Document:

Exhibit 4.1

 

TELESAT CANADA,

as Issuer

 

TELESAT LLC,

as Co-Issuer

 

Guarantors Party hereto,

 

THE BANK OF NEW YORK MELLON,

as Trustee

 

and

 

the NOTES COLLATERAL AGENTS PARTY HERETO

 

Indenture

Dated as of April 27, 2021

 

 

 

5.625% Senior Secured Notes due 2026

 

     

     

    

 

TABLE OF CONTENTS

 

	 	Page
	 	 
	Article One	 
	 	 
	DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION	 
	 	 
	Section 101.	Rules of Construction	1
	Section 102.	Definitions	2
	Section 103.	Compliance Certificates and Opinions	47
	Section 104.	Form of Documents Delivered to Trustee and Notes Collateral Agents	48
	Section 105.	Acts of Holders	48
	Section 106.	Notices, Etc., to Trustee, Company, Any Guarantor and Agent	49
	Section 107.	Notice to Holders; Waiver	50
	Section 108.	Effect of Headings and Table of Contents	50
	Section 109.	Successors and Assigns	51
	Section 110.	Separability Clause	51
	Section 111.	Benefits of Indenture	51
	Section 112.	Governing Law	51
	Section 113.	Legal Holidays	51
	Section 114.	No Personal Liability of Directors, Officers, Employees and Stockholders	51
	Section 115.	Counterparts	51
	Section 116.	Regulatory Matters	51
	Section 117.	Agent for Service; Submission to Jurisdictions; Waiver of Immunities; Waiver of Jury Trial	52
	Section 118.	Conversion of Currency	53
	Section 119.	Limited Condition Transactions	54
	Section 120.	Certain Calculations	55
	 	 	 
	Article Two	 
	 	 
	NOTE FORMS	 
	 	 
	Section 201.	Form and Dating	57
	Section 202.	Execution, Authentication, Delivery and Dating	57
	 	 	 
	Article Three	 
	 	 
	THE NOTES	 
	 	 
	Section 301.	Title and Terms	58
	Section 302.	Denominations	59
	Section 303.	Temporary Notes	59
	Section 304.	Registration, Registration of Transfer and Exchange	59
	Section 305.	Mutilated, Destroyed, Lost and Stolen Notes	60
	Section 306.	Payment of Interest; Interest Rights Preserved	61
	Section 307.	Persons Deemed Owners	61
	Section 308.	Cancellation	61
	Section 309.	Computation of Interest	61
	Section 310.	Transfer and Exchange	62
	Section 311.	CUSIP, ISIN and Common Code Numbers	62
	Section 312.	Issuance of Additional Notes	62

 

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	 	Page
	 	 
	Article Four	 
	 	 
	SATISFACTION AND DISCHARGE	 
	 	 
	Section 401.	Satisfaction and Discharge of Indenture	62
	Section 402.	Application of Trust Money	64
	 	 	 
	Article Five	 
	 	 
	REMEDIES	 
	 	 
	Section 501.	Events of Default	64
	Section 502.	Acceleration of Maturity; Rescission and Annulment	66
	Section 503.	Collection of Indebtedness and Suits for Enforcement by Trustee	68
	Section 504.	Trustee May File Proofs of Claim	69
	Section 505.	Trustee May Enforce Claims Without Possession of Notes	69
	Section 506.	Application of Money Collected	69
	Section 507.	Limitation on Suits	70
	Section 508.	Unconditional Right of Holders to Receive Principal, Premium and Interest	70
	Section 509.	Restoration of Rights and Remedies	70
	Section 510.	Rights and Remedies Cumulative	71
	Section 511.	Delay or Omission Not Waiver	71
	Section 512.	Control by Holders	71
	Section 513.	Waiver of Past Defaults	71
	Section 514.	Waiver of Stay or Extension Laws	72
	 	 	 
	Article Six	 
	 	 
	THE TRUSTEE	 
	 	 
	Section 601.	Duties of the Trustee	72
	Section 602.	Notice of Defaults	73
	Section 603.	Certain Rights of Trustee	73
	Section 604.	Trustee Not Responsible for Recitals or Issuance of Notes	75
	Section 605.	May Hold Notes	75
	Section 606.	Money Held in Trust	76
	Section 607.	Compensation and Reimbursement	76
	Section 608.	Corporate Trustee Required; Eligibility	77
	Section 609.	Resignation and Removal; Appointment of Successor	77
	Section 610.	Acceptance of Appointment by Successor	78
	Section 611.	Merger, Conversion, Consolidation or Succession to Business	78
	Section 612.	Appointment of Authenticating Agent	78
	Section 613.	Force Majeure	79
	Section 614.	Security Documents; Intercreditor Agreements	80

 

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	 	Page
	 	 
	Article Seven	 
	 	 
	HOLDERS LISTS	 
	 	 
	Section 701.	Company to Furnish Trustee Names and Addresses	80
	Section 702.	Holder List	80
	Section 703.	[Reserved]	80
	 	 	 
	Article Eight	 
	 	 
	MERGER, CONSOLIDATION OR SALE OF ALL OR	 
	SUBSTANTIALLY ALL ASSETS	 
	 	 
	Section 801.	Company May Consolidate, Etc., Only on Certain Terms	81
	Section 802.	Guarantors and Co-Issuers May Consolidate, Etc., Only on Certain Terms	82
	Section 803.	Successor Substituted	83
	 	 	 
	Article Nine	 
	 	 
	SUPPLEMENTAL INDENTURES	 
	 	 
	Section 901.	Amendments or Supplements Without Consent of Holders	83
	Section 902.	Amendments, Supplements or Waivers with Consent of Holders	85
	Section 903.	Execution of Amendments, Supplements or Waivers	86
	Section 904.	Revocation and Effect of Consents	86
	Section 905.	[Reserved]	86
	Section 906.	Notation on or Exchange of Notes	86
	Section 907.	Notice of Supplemental Indentures	87
	 	 	 
	Article Ten	 
	 	 
	COVENANTS	 
	 	 
	Section 1001.	Payment of Principal, Premium, if any, and Interest	87
	Section 1002.	Maintenance of Office or Agency	87
	Section 1003.	Money for Notes Payments to Be Held in Trust	87
	Section 1004.	Existence	88
	Section 1005.	Payment of Taxes and Other Claims	89
	Section 1006.	[Reserved]	89
	Section 1007.	Maintenance of Insurance	89
	Section 1008.	Statement by Officers as to Default	91
	Section 1009.	Reports and Other Information	91
	Section 1010.	Limitation on Restricted Payments	93
	Section 1011.	Limitation on Incurrence of Indebtedness	98
	Section 1012.	Limitation on Liens	104
	Section 1013.	Limitations on Transactions with Affiliates	105
	Section 1014.	Limitations on Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries	107
	Section 1015.	Limitation on Guarantees of Indebtedness by Restricted Subsidiaries	108
	Section 1016.	[Reserved]	109
	Section 1017.	Change of Control Triggering Event	109
	Section 1018.	Asset Sales	111
	Section 1019.	Suspension of Covenants	114
	Section 1020.	[Reserved]	115
	Section 1021.	Limitation on Activities of the Co-Issuer	115
	Section 1022.	Additional Amounts	115
	Section 1023.	After-Acquired Property	117
	Section 1024.	Additional Material Real Property	118
	Section 1025.	Post-Closing Collateral Covenant	118

 

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	 	Page
	 	 
	Article Eleven	 
	 	 
	REDEMPTION OF NOTES	 
	Section 1101.	Right of Redemption	118
	Section 1102.	Applicability of Article	119
	Section 1103.	Election To Redeem; Notice to Trustee	119
	Section 1104.	Selection by Trustee of Notes to Be Redeemed	119
	Section 1105.	Notice of Redemption	120
	Section 1106.	Deposit of Redemption Price	121
	Section 1107.	Notes Payable on Redemption Date	121
	Section 1108.	Notes Redeemed in Part	121
	Section 1109.	Redemption for Changes in Withholding Taxes	122
	Section 1110.	Offers to Repurchase by Application of Proceeds	122
	Section 1111.	Mandatory Redemption; Open Market Purchases	124
	 	 	 
	Article Twelve	 
	 	 
	GUARANTEES	 
	 	 
	Section 1201.	Guarantees	124
	Section 1202.	Severability	126
	Section 1203.	Restricted Subsidiaries	126
	Section 1204.	Limitation of Guarantors’ Liability	126
	Section 1205.	Contribution	126
	Section 1206.	Subrogation	127
	Section 1207.	Reinstatement	127
	Section 1208.	Release of a Guarantor	127
	Section 1209.	Benefits Acknowledged	127
	Section 1210.	Matters of Brazilian Law	128
	 	 	 
	Article Thirteen	 
	 	 
	LEGAL DEFEASANCE AND COVENANT DEFEASANCE	 
	 	 
	Section 1301.	Issuer’s Option To Effect Legal Defeasance or Covenant Defeasance	128
	Section 1302.	Legal Defeasance and Discharge	128
	Section 1303.	Covenant Defeasance	128
	Section 1304.	Conditions to Legal Defeasance or Covenant Defeasance	129
	Section 1305.	Deposited Money and Government Securities To Be Held in Trust; Other Miscellaneous Provisions	130
	Section 1306.	Reinstatement	131

 

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	 	Page
	 	 
	Article Fourteen	 
	 	 
	COLLATERAL	 
	 	 
	Section 1401.	Security Documents	131
	Section 1402.	Release of Collateral	132
	Section 1403.	Suits to Protect the Collateral	133
	Section 1404.	Authorization of Receipt of Funds by the Trustee Under the Security Documents	133
	Section 1405.	Purchaser Protected	134
	Section 1406.	Powers Exercisable by Receiver or Trustee	134
	Section 1407.	[Reserved]	134
	Section 1408.	Notes Collateral Agents	134

 

APPENDIX & EXHIBITS

 

Rule 144A/Regulation S/IAI Appendix

 

EXHIBIT 1 to Rule 144A/Regulation S/IAI Appendix – Form of Note

EXHIBIT 2 to Rule 144A/Regulation
S/IAI Appendix – Form of Transferee Letter of Representation

 

EXHIBIT A – Form of Supplemental Indenture

EXHIBIT B – Form of Incumbency Certificate

EXHIBIT C – Agreed Security Principles

  

    -v-

     

    

 

INDENTURE dated as of April 27, 2021 (this “Indenture”),
among Telesat Canada, a Canadian corporation (the “Issuer” or “Company”), Telesat LLC, a Delaware
limited liability company and a Wholly-Owned Subsidiary of the Issuer (the “Co-Issuer,” and together with the Issuer,
the “Co-Issuers”), having its principal office at 160 Elgin Street, Suite 2100, Ottawa, Ontario, Canada K2P 2P7, and
certain of the Issuer’s direct and indirect Subsidiaries (as defined below), each named in the signature pages hereto (each, a “Guarantor”
and, collectively, the “Guarantors”), THE BANK OF NEW YORK MELLON (“BNY Mellon”), a New York banking
corporation, as Trustee (in such capacity, the “Trustee”) and as a notes collateral agent, TMF
Brasil Administração e Gestão de Ativos Ltda., as an on-shore notes collateral agent, and TMF
Trustee Limited, as an on-shore notes collateral agent.

 

RECITALS OF THE COMPANY

 

The Co-Issuers have duly authorized the execution
and delivery of this Indenture to provide for the issuance of (i) their 5.625% Senior Secured Notes due 2026 to be issued on the date
hereof (the “Initial Notes”) and (ii) any additional notes (“Additional Notes” and, together with
the Initial Notes, the “Notes”) that may be issued after the Issue Date.

 

Each Guarantor has duly authorized its Guarantee
of the Initial Notes and to provide therefor each Guarantor has duly authorized the execution and delivery of this Indenture.

 

All things necessary have been done to make the
Notes, when executed by the Co-Issuers and authenticated and delivered hereunder and duly issued by the Co-Issuers, the valid and legally
binding obligations of the Co-Issuers and to make this Indenture a valid and legally binding agreement of the Co-Issuers, in accordance
with their and its terms.

 

All things necessary have been done to make the
Guarantees, upon execution and delivery of this Indenture, the valid obligations of each Guarantor and to make this Indenture a valid
and legally binding agreement of each Guarantor, in accordance with their and its terms.

 

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

 

For and in consideration of the premises and the
purchase of the Notes by the Holders thereof, it is mutually covenanted and agreed, for the equal and ratable benefit of all Holders,
as follows:

 

Article
One

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

 

Section
101.           
Rules of Construction.

 

(a)               
For all purposes of this Indenture, except as otherwise expressly provided or unless the context otherwise requires:

 

(1)               
the terms defined in this Article One have the meanings assigned to them in this Article One, and words in the singular include
the plural and words in the plural include the singular;

 

(2)               
all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with GAAP (as herein defined);

 

    

     

    

 

(3)               
 the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this
Indenture as a whole and not to any particular Article, Section or other subdivision;

 

(4)               
all references to Articles, Sections, Exhibits and Appendices shall be construed to refer to Articles and Sections of, and Exhibits
and Appendices to, this Indenture;

 

(5)               
“or” is not exclusive;

 

(6)               
“including” means including without limitation;

 

(7)               
all references to the date the Notes were originally issued shall refer to the Issue Date; and

 

(8)               
all references, in any context, to any interest or other amount payable on or with respect to the Notes shall be deemed to include
any Additional Amounts (as herein defined).

 

Section
102.           
Definitions.

 

“Acceptable Commitment” has
the meaning specified in Section 1018 of this Indenture.

 

“Acquired EBITDA” means, with
respect to any Acquired Entity or Business or any Converted Restricted Subsidiary (any of the foregoing, a “Pro Forma Entity”)
for any period, the amount for such period of Consolidated EBITDA of such Pro Forma Entity (determined using such definitions as if references
to the Issuer and its Subsidiaries therein were to such Pro Forma Entity and its Subsidiaries), all as determined on a consolidated basis
for such Pro Forma Entity in accordance with GAAP.

 

“Acquired Entity or Business”
has the meaning provided in the definition of the term “Consolidated EBITDA.”

 

“Acquired Indebtedness” means,
with respect to any specified Person,

 

(1)               
Indebtedness of any other Person existing at the time such other Person is merged with or into or became a Restricted Subsidiary
of such specified Person, including Indebtedness incurred in connection with, or in contemplation of, such other Person merging with or
into or becoming a Restricted Subsidiary of such specified Person, and

 

(2)               
Indebtedness secured by a Lien encumbering any asset acquired by such specified Person.

 

“Act,” when used with respect
to any Holder, has the meaning specified in Section 105 of this Indenture.

 

“Additional Amounts” has the
meaning specified in Section 1022 of this Indenture.

 

“Additional Notes” means any
Notes issued by the Company pursuant to Section 312.

 

“Adjusted Net Assets” has the
meaning specified in Section 1205 of this Indenture.

 

“Advance Offer” has the meaning
specified in Section 1018 of this Indenture.

 

“Advance Portion” has the meaning
specified in Section 1018 of this Indenture.

 

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

 

“Affiliate Transaction” has
the meaning specified in Section 1013 of this Indenture.

 

“After-Acquired Property” means
property (other than Excluded Assets) acquired by the Issuer, the Co-Issuer or a Guarantor that is not automatically subject to a perfected
security interest under the Security Documents, which the Issuer, Co-Issuer or such Guarantor will provide a first priority lien over
such property (or, in the case of a new Guarantor, such of its property) in favor of the applicable Notes Collateral Agent and deliver
certain certificates and opinions in respect thereof, all as and to the extent required by Section 1023 of this Indenture or the Security
Documents.

 

“Agent” means any Note Registrar,
co-registrar, transfer agent, Paying Agent or additional paying agent.

 

“Agreed Security Principles”
means:

 

(i)       no
Lien or provision of a guarantee by any Person organized outside the United States or Canada shall be made that would:

 

(a)       result
in any breach of corporate benefit, financial assistance, capital preservation, fraudulent preference, thin capitalization rules, retention
of title claims or any other law or regulation (or analogous restriction) of the jurisdiction of organization of such Person;

 

(b)       result
in any risk to the officers or directors of such Person of a civil or criminal liability; or

 

(c)       result
in a Lien being granted over assets, the acquisition of which was financed from a subsidy of payments, the terms of which prohibit any
assets acquired with such subsidy or payment being used as collateral; provided if the Senior Credit Facilities are outstanding,
the Senior Credit Facilities Collateral Agent consents to such exclusion (such consent not to be unreasonably withheld).

 

(ii)       It
is expressly acknowledged that in certain jurisdictions (a) it may be impossible or impractical (including for legal and regulatory reasons)
to grant guarantees or create security over certain categories of assets in which event such guarantees will not be granted and security
will not be taken over such assets or (b) it may take longer than agreed to grant guarantees or create security over certain categories
of assets, in which event the timing for obtaining such guarantees or security may be extended as reasonably agreed by the Senior Credit
Facilities Collateral Agent; provided that, in each case with respect to subclauses (a) and (b), the relevant Guarantor has exercised
due diligence and reasonable efforts in providing such guarantees or security.

 

(iii)       [Reserved].

 

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(iv)       Each
Security Document relating to assets or stock of a United States or Canadian telecommunications carrier (as defined in the Telecommunications
Act (Canada)) will contain provisions substantially in accordance with Exhibit C hereto and shall be deemed to include such
provisions whether or not actually included.

 

“Ancillary Agreement” means
the Ancillary Agreement, dated as of August 7, 2007, among Loral, Skynet, PSP and the Issuer, as amended.

 

“Applicable Amount” means the
sum of (A) (x) cumulative Consolidated EBITDA from and after October 1, 2016, to the most recently completed fiscal quarter for which
internal financial statements are available immediately preceding the date of the proposed action (for the avoidance of doubt, such cumulative
Consolidated EBITDA shall include the Consolidated EBITDA for any such quarters, whether negative or positive) minus (y) 1.4 times
Cumulative Interest Expense plus (without duplication) (B):

 

(1)               
the aggregate net cash proceeds, and the Fair Market Value of marketable securities or other property other than cash, received
by the Issuer from the issue or sale (other than to a Restricted Subsidiary) of any class of Equity Interests, including Retired Capital
Stock, in the Issuer after November 17, 2016, other than (A) Disqualified Stock, (B) Equity Interests to the extent the net cash proceeds
therefrom are applied as provided for in clause (4) of the second paragraph of Section 1010, (C) Refunding Capital Stock and (D) Excluded
Contributions; plus

 

(2)               
100% of any cash and the Fair Market Value of marketable securities or other property other than cash received by the Issuer as
a capital contribution from its shareholders subsequent to November 17, 2016 other than any Excluded Contributions; plus

 

(3)               
the principal amount (or accreted amount (determined in accordance with GAAP), if less) of any Indebtedness, or the liquidation
preference or maximum fixed repurchase price, as the case may be, of any Disqualified Stock, of the Issuer or any Restricted Subsidiary
issued after November 17, 2016 (other than any such Indebtedness or Disqualified Stock to the extent issued to a Restricted Subsidiary),
which has been converted into or exchanged for Equity Interests in the Issuer (other than Disqualified Stock); plus

 

(4)               
to the extent not already included in Consolidated EBITDA, 100% of the aggregate amount of cash and the Fair Market Value of marketable
securities or other property other than cash received by the Issuer or a Restricted Subsidiary since November 17, 2016 from (A) Investments
(other than Cash Equivalents), whether through interest payments, principal payments, returns, profits, distributions, income and similar
amounts, dividends or other distributions, repayments and payments, or the sale or other disposition (other than to the Issuer or a Restricted
Subsidiary) thereof made by the Issuer and its Restricted Subsidiaries and (B) cash dividends from, or the sale (other than to the Issuer
or a Restricted Subsidiary) of the stock of, an Unrestricted Subsidiary; plus

 

(5)               
if any Unrestricted Subsidiary is or was redesignated as a Restricted Subsidiary after November 17, 2016, the Fair Market Value
of all Investments by the Issuer and its Restricted Subsidiaries after November 17, 2016 in such Unrestricted Subsidiary as determined
in good faith by the Board of Directors of the Issuer at the time of the redesignation of such Unrestricted Subsidiary as a Restricted
Subsidiary other than to the extent such Investment constituted a Permitted Investment or was made pursuant to clause (14) of the second
paragraph of Section 1010; plus

 

(6)               
US$100,000,000;

 

    -4-

     

    

 

less the amount of any Applicable Amount applied pursuant to
any permitted usage under this Indenture.

 

“Applicable Collateral Limitations”
has the meaning specified in Section 1023 of this Indenture.

 

“Applicable Premium” means,
with respect to any Note on any Redemption Date, the greater of:

 

(1)               
1.0% of the principal amount of the Note; and

 

(2)               
the excess, if any, of:

 

(a)               
the present value at such Redemption Date of (i) the redemption price of the Note at the First Call Date (such redemption price
being set forth in the table appearing in Section 1101), plus (ii) all required interest payments due on the Note through the First
Call Date (excluding accrued but unpaid interest to the Redemption Date), computed using a discount rate equal to the Treasury Rate as
of such Redemption Date plus 50 basis points; over

 

(b)               
the principal amount of the Note.

 

“Applicable Premium Deficit”
has the meaning specified in Section 401(1)(B) of this Indenture.

 

“APT Security Agreement” means,
collectively, (a) the APT Parental Guarantee dated as of December 23, 2015, as amended, by and among APT Satellite Holdings Limited and
Telesat International Limited and (b) the Declaration of Trust, dated as of February 5, 2016, as amended, by Telesat International.

 

“APT Transponders” means those
transponders subject to (a) that Satellite Transponder Agreement dated as of August 26, 2003 between APT Satellite Company Limited and
Loral Orion, Inc. (as assigned to Telesat Satellite LP), as amended as of November 16, 2003 or (y) that Satellite Transponder Agreement
dated as of December 23, 2015 between APT Satellite Company Limited and Telesat International Limited.

 

“Asset Sale” means:

 

(1)               
the sale, conveyance, transfer or other disposition, whether in a single transaction or a series of related transactions, of property
or assets (including by way of a Sale and Lease Back Transaction) of the Issuer or any Restricted Subsidiary (each referred to in this
definition as a “disposition”), or

 

(2)               
the issuance or sale of Equity Interests of any Restricted Subsidiary (other than preferred stock issued pursuant to Section 1011),
whether in a single transaction or a series of related transactions, in each case, other than:

 

(a)               
a disposition of cash or Cash Equivalents, obsolete or worn out property or equipment, inventory, Excluded Satellites or other
assets that in the reasonable judgment of the Issuer are no longer useful in the conduct of the business of the Issuer and its Restricted
Subsidiaries and that in each case are disposed of in the ordinary course of business;

 

    -5-

     

    

 

(b)               
 the disposition of all or substantially all of the assets of the Issuer or any of the Restricted Subsidiaries in a manner permitted
pursuant to Article Eight or any disposition that constitutes a Change of Control pursuant to this Indenture;

 

(c)               
the making of any Restricted Payment or Permitted Investment that is permitted to be made, and is made, under Section 1010;

 

(d)               
any disposition of assets or issuance or sale of Equity Interests of any Restricted Subsidiary in any transaction or series of
transactions with an aggregate Fair Market Value not exceeding US$25,000,000 for any such transaction or series of transactions;

 

(e)               
any disposition of property or assets or issuance of securities by a Restricted Subsidiary to the Issuer or by the Issuer or a
Restricted Subsidiary to the Co-Issuer or a Guarantor;

 

(f)                
to the extent allowable under Section 1031 of the Internal Revenue Code of 1986, any exchange of like property (excluding any boot
thereon) for use in a Similar Business;

 

(g)               
the lease, assignment or sublease of any real or personal property in the ordinary course of business;

 

(h)               
any issuance or sale of Equity Interests in, or Indebtedness or other securities of, an Unrestricted Subsidiary;

 

(i)                
foreclosures on or expropriations of assets;

 

(j)                
any financing transaction with respect to property built, repaired, improved or acquired by the Issuer or any Restricted Subsidiary
after the Issue Date, including Sale and Lease-Back Transactions and asset securitizations, permitted by this Indenture;

 

(k)               
any Event of Loss;

 

(l)                
dispositions of accounts receivable in connection with the collection or compromise thereof in the ordinary course of business
and consistent with past practice;

 

(m)             
any transfer of transponders or the corresponding interest in the common elements on the Telstar 18 VANTAGE satellite to APT Satellite
Company Limited (“APT”) or its affiliates effected pursuant to a Satellite Transponder Agreement dated as of December
23, 2015 between Telesat International Limited and APT or a letter agreement dated December 31, 2015 between Telesat International Limited
and APT, as amended from time to time;

 

(n)               
the granting of a Lien permitted under Section 1012;

 

(o)               
contractual arrangements under long-term contracts with customers entered into by the Issuer and the Restricted Subsidiaries in
the ordinary course of business which are treated as sales for accounting purposes; provided that there is no transfer of title
in connection with such contractual arrangement;

 

    -6-

     

    

 

(p)               
 additional dispositions of assets (taken together with all such dispositions made pursuant to this clause (p)) since the Issue
Date with an aggregate Fair Market Value not exceeding US$50,000,000;

 

(q)               
the licensing or sub-licensing of intellectual property or other general intangibles in the ordinary course of business or that
is immaterial;

 

(r)                
the unwinding or termination of any Swap Agreement (unless entered into for speculative purposes) and allowing for the expiration
of any options agreement with respect to any real property or personal property;

 

(s)                
the disposition of any of the property or assets of The SpaceConnection, Inc. or Infosat Communications LP; and

 

(t)                
any Spectrum Repurposing.

 

In the event that a transaction (or any portion
thereof) meets the criteria of a permitted Asset Sale and would also be a permitted Restricted Payment or Permitted Investment, the Issuer,
in its sole discretion, shall be entitled to divide and classify such transaction (or a portion thereof) as an Asset Sale and/or one or
more of the types of permitted Restricted Payments or Permitted Investments.

 

“Asset Sale Offer” has the meaning
specified in Section 1018 of this Indenture.

 

“Attorney Costs” means and includes
all reasonable and documented or invoiced fees, expenses and disbursements of any law firm or other external counsel.

 

“Authentication Order” has the
meaning specified in Section 906 of this Indenture.

 

“Authorized Officers” has the
meaning specified in Section 603(13) of this Indenture.

 

“Bankruptcy Law” means the Bankruptcy
and Insolvency Act (Canada), the Companies’ Creditors Arrangement Act (Canada), the Winding-Up Restructuring Act
(Canada), Title 11, United States Bankruptcy Code of 1978, the Companies Act 1931 of the Isle of Man, Law No. 11,101, of February 9, 2005
(Brazil), or any similar federal, state, provincial or foreign law relating to bankruptcy, insolvency, receivership, winding-up, liquidation,
reorganization or relief of debtors or any amendment to, succession to or change in any such law.

 

“Base Currency” has the meaning
specified in Section 118(a)(i) of this Indenture.

 

“Board of Directors” means,
with respect to any Person, (i) in the case of any corporation, the board of directors of such Person, (ii) in the case of any limited
liability company, the board of managers of such Person, (iii) in the case of any partnership, the Board of Directors of the general partner
of such Person and (iv) in any other case, the functional equivalent of the foregoing.

 

“Board Resolution” means, with
respect to the Issuer or the Co-Issuer, a duly adopted resolution of the Board of Directors of the Issuer or the Co-Issuer, as applicable,
or any committee thereof.

 

“Business Day” means each day
which is not a Legal Holiday.

 

    -7-

     

    

 

“Brazilian Civil Code” has the
meaning specified in Section 1201 of this Indenture.

 

“Brazilian Code of Civil Procedure”
has the meaning specified in Section 1201 of this Indenture.

 

“Brazilian Collateral Agent”
means TMF Brasil Administração e Gestão de Ativos Ltda., until a successor replaces it and, thereafter, means the
successor.

 

“Brazilian Security Documents”
means (a) a Brazilian law governed Amendment No. 1 to the Quota Pledge Agreement dated as of March 16, 2020 among Telesat Brazil Holdings
LLC, Telesat International, L.L.C., the Brazilian Collateral Agent, the Senior Credit Facilities Collateral Agent, and, as intervening
party, Telesat Space Participações Ltda.; (b) a Brazilian law governed Amendment No. 1 to the Quota Pledge Agreement dated
as of March 16, 2020 among Telesat Space Participações Ltda., Telesat Brazil Holdings LLC, the Brazilian Collateral Agent,
the Senior Credit Facilities Collateral Agent, and, as intervening party, Telesat Brasil Capacidade de Satélites Ltda.; (c) a Brazilian
law governed Amendment No. 1 to the Quota Pledge Agreement dated as of March 16, 2020 among Telesat Canada, Telesat Brazil Holdings LLC,
the Brazilian Collateral Agent, the Senior Credit Facilities Collateral Agent, and, as intervening party, Telesat Brasil Ltda.; and (d)
a Brazilian law governed Amendment No. 1 to the Quota Pledge Agreement dated as of March 16, 2020 among Telesat Brasil Ltda., Telesat
Brazil Holdings LLC, the Brazilian Collateral Agent, the Senior Credit Facilities Collateral Agent, and, as intervening party, Telesat
Serviços de Telecomunicação Ltda.

 

“Capital Stock” means:

 

(1)               
in the case of a corporation, corporate stock;

 

(2)               
in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however
designated) of corporate stock;

 

(3)               
in the case of a partnership or limited liability company, partnership or membership interests (whether general or limited); and

 

(4)               
any other interest or participation that confers on a Person the right to receive a share of the profits and losses of, or distributions
of assets of, the issuing Person.

 

“Cash Equivalents” means:

 

(1)               
securities or obligations issued or unconditionally guaranteed by the United States government, the Government of Canada or any
agency or instrumentality thereof, in each case having maturities of not more than 24 months from the date of acquisition thereof;

 

(2)               
securities or obligations issued by any state of the United States of America, any province of Canada or any political subdivision
of any such state or province, or any public instrumentality thereof, having maturities of not more than 24 months from the date
of acquisition thereof and, at the time of acquisition, having an investment grade rating generally obtainable from either S&P or
Moody’s (or, if at any time neither S&P nor Moody’s shall be rating such obligations, then from another nationally recognized
rating service);

 

(3)               
commercial paper and variable or fixed rate notes issued by any lender under the Senior Credit Facilities or any bank holding company
owning any lender under the Senior Credit Facilities or any variable rate notes issued by, or guaranteed by, any domestic corporation
not an 

Affiliate of the Issuer rated (x) A-1 (or the equivalent
thereof) or better by S&P, or (y) P-1 (or the equivalent thereof) or better by Moody’s, and maturing within one year of the
date of acquisition;

 

    -8-

     

    

 

(4)               
commercial paper maturing no more than 12 months after the date of creation thereof and, at the time of acquisition, having a rating
of at least A-2 or P-2 from either S&P or Moody’s (or, if at any time neither S&P nor Moody’s shall be rating such
obligations, an equivalent rating from another nationally recognized rating service);

 

(5)               
domestic and LIBOR certificates of deposit or bankers’ acceptances maturing no more than two years after the date of acquisition
thereof issued by any lender under the Senior Credit Facilities or any other bank having combined capital and surplus of not less than
US$250,000,000 in the case of domestic banks and US$100,000,000 (or the U.S. dollar equivalent thereof) in the case of foreign banks;

 

(6)               
auction rate securities rated at least Aa3 by Moody’s and AA- by S&P (or, if at any time either S&P or Moody’s
shall not be rating such obligations, an equivalent rating from another nationally recognized rating service);

 

(7)               
repurchase agreements with a term of not more than 30 days for underlying securities of the type described in clauses (1), (2)
and (5) above entered into with any bank meeting the qualifications specified in clause (5) above or securities dealers of recognized
national standing;

 

(8)               
repurchase obligations with respect to any security that is a direct obligation or fully guaranteed as to both credit and timeliness
by the Government of Canada or any agency or instrumentality thereof, the obligations of which are backed by the full faith and credit
of the Government of Canada, in either case entered into with any Canadian I or II bank or any trust company (acting as principal);

 

(9)               
repurchase agreements with a term of not more than one year with a bank or trust company (including any of the lenders under the
Senior Credit Facilities) or recognized securities dealer having capital and surplus in excess of US$250,000,000 for direct obligations
issued by or fully guaranteed by the United States of America in which the Issuer or one or more of its Restricted Subsidiaries shall
have a perfected first priority security interest (subject to no other Liens) and having, on the date of purchase thereof, a fair market
value of at least 100.0% of the amount of the repurchase obligations;

 

(10)           
marketable short-term money market and similar funds (x) either having assets in excess of US$250,000,000 or (y) having a rating
of at least A-2 or P-2 from either S&P or Moody’s (or, if at any time neither S&P nor Moody’s shall be rating such
obligations, an equivalent rating from another nationally recognized rating service in the United States);

 

(11)           
shares of investment companies that are registered under the Investment Company Act of 1940 and 95% of the investments of which
are one or more of the types of securities described in clauses (1) through (10) above;

 

(12)           
any other investments used by the Issuer and its Restricted Subsidiaries as temporary investments permitted by the Trustee in writing
in its sole discretion; and

 

(13)            in
the case of investments by the Issuer or any Subsidiary organized or located in a jurisdiction other than the United States (or any
political subdivision or territory thereof), or in the case of investments made in a country outside the United States of America,
other customarily utilized high-quality investments in the country where such Subsidiary is organized or located or in which such
Investment is made, all as reasonably determined in good faith by the Issuer.

 

    -9-

     

    

 

“Cash Management Obligations”
means, as applied to any Person, any direct or indirect liability, contingent or otherwise, of such Person in respect of cash management
services (including treasury, depository, overdraft, credit or debit card, electronic funds transfer and other cash management arrangements)
provided by any cash management bank to the Issuer or any of its Restricted Subsidiaries, including obligations for the payment of agreed
interest and reasonable fees, charges, expenses, Attorney Costs and disbursements in connection therewith.

 

“Change of Control” means the
occurrence of any of the following:

 

(1)               
the sale, lease or transfer, in one or a series of related transactions, of all or substantially all of the assets of the Issuer
and its Subsidiaries, taken as a whole, to any Person other than a Permitted Holder; or

 

(2)               
the Issuer becomes aware of (by way of a report or any other filing pursuant to Section 13(d) of the Exchange Act, proxy, vote,
written notice or otherwise) the acquisition by any Person or group (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the
Exchange Act, or any successor provision), including any group acting for the purpose of acquiring, holding or disposing of securities
(within the meaning of Rule 13d-5(b)(1) under the Exchange Act) other than the Permitted Holders, in a single transaction or in a related
series of transactions, by way of merger, consolidation or other business combination or purchase of beneficial ownership (within the
meaning of Rule 13d-3 under the Exchange Act, or any successor provision) of more than 50% of the total voting power of the Voting Stock
of the Issuer or any company that holds directly or indirectly more than 50% of the total voting power of the Voting Stock of the Issuer.

 

Notwithstanding the foregoing, at any time in connection
with, or after, a Qualified IPO, a transaction in which the Issuer becomes a Subsidiary of another Person (other than a Person that is
an individual) shall not constitute a Change of Control if (a) the shareholders of the Issuer immediately prior to such transaction beneficially
own (within the meaning of Rule 13d-3 under the Exchange Act, or any successor provision), directly or indirectly through one or more
intermediaries, more than 50% of the total voting power of the outstanding Voting Stock of the Issuer, immediately following the consummation
of such transaction or (b) immediately following the consummation of such transaction, no Person (within the meaning of Section 13(d)(3)
of the Exchange Act, or any successor provision), other than such Person or its direct or indirect Subsidiaries (including, in each case,
the holders of the Equity Interests of such other Person) or the Permitted Holders, beneficially owns (as such term is defined above),
directly or indirectly through one or more intermediaries, more than 50% of the voting power of the outstanding Voting Stock of the Issuer.

 

In addition, notwithstanding the preceding or
any provision of Section 13(d) or 14(d) of the Exchange Act (or any successor provision), (i) a Person, entity or
 “group” shall not be deemed to beneficially own securities subject to an equity or asset purchase agreement, merger
agreement or similar agreement (or voting or option or similar agreement related thereto) until the consummation of the transactions
contemplated by such agreement, (ii) if any “group” includes one or more Permitted Holders, the issued and outstanding
Voting Stock of the Issuer beneficially owned, directly or indirectly, by any Permitted Holders that are part of such
 “group” shall not be treated as being beneficially owned by any other member of such “group” for purposes of
determining whether a Change of Control has occurred and (iii) a Person, entity or “group” will not be deemed to
beneficially own the Voting Stock of another Person as a result of its ownership of Voting Stock or other securities of such other
Person’s parent entity (or related contractual rights) unless it owns more than 50% of the total voting power of the Voting
Stock of such parent entity. For purposes of this definition, except with respect to clause (1) of this definition hereunder, and
any related definition to the extent used for purposes of this definition, at any time when more than 50.0% of the total voting
power of the Voting Stock of the Issuer is directly or indirectly owned by a parent entity, all references to the Issuer shall be
deemed to refer to its ultimate parent entity (but excluding (x) any Permitted Holder and (y) in the case where the entity that
engaged in a Qualified IPO is a limited partnership, the general partner of which is owned by a convenience party, such as a trust
for the benefit of a charity, such general partner and such convenience party (but not any other Person or “group” who
has the right to direct the general partner in its capacity as such) that directly or indirectly owns such Voting Stock). For the
avoidance of doubt and without limiting the generality of the foregoing, with respect to any voting trust that is beneficially owned
by a convenience party, such as a trust for the benefit of a charity, such voting trust and such convenience party (but not any
other Person or group to the extent such Person or group has the right to direct the voting of Voting Stock held by such voting
trust) shall be disregarded for purposes of this definition.

 

    -10-

     

    

 

“Change of Control Offer” has
the meaning specified in Section 1017 of this Indenture.

 

“Change of Control Payment”
has the meaning specified in Section 1017 of this Indenture.

 

“Change of Control Payment Date”
has the meaning specified in Section 1017(2) of this Indenture.

 

“Change of Control Triggering Event”
means both (i) the occurrence of a Change of Control and (ii) on a pro forma basis after giving effect to such Change of Control and any
transaction or series of transactions taken in connection therewith or reasonably incidental thereto (including, without limitation, the
incurrence of any Indebtedness and any use of proceeds thereof), the Issuer’s Total Net Leverage Ratio for the Test Period immediately
preceding the first public notice by the Issuer or another Person seeking to effect a transaction that would be a Change of Control shall
be greater than 4.50 to 1.00.

 

“Co-Issuer” means the Person
named as the “Co-Issuer” in the first paragraph of this Indenture, until a successor Person shall have become such pursuant
to the applicable provisions of this Indenture, and thereafter “Co-Issuer” shall mean such successor Person.

 

“Collateral” means all of the
assets and properties subject to Liens granted by the Issuer, the Co-Issuer or any Guarantor in favor of any Notes Collateral Agent for
the benefit of the Secured Parties pursuant to the Security Documents; provided that Collateral shall not include Excluded Property.

 

“Company” means the Person named
as the “Company” in the first paragraph of this Indenture, until a successor Person shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter “Company” shall mean such successor Person.

 

“Company Request” or “Company
Order” means a written request or order signed in the name of the Company by an officer thereof, and delivered to the Trustee.

 

“consolidated” or “Consolidated”
means, with respect to any Person, such Person consolidated with its Restricted Subsidiaries, and shall not include any Unrestricted Subsidiary.

 

“Consolidated Depreciation and
Amortization Expense” means, with respect to any Person for any period, the total amount of depreciation and amortization
expense, including the amortization of deferred financing fees, of such Person and its Restricted Subsidiaries for such period on a
consolidated basis and otherwise determined in accordance with GAAP; provided that, in the event any item that represents an
accrual or reserve for a cash expenditure in a future period is included in Consolidated Depreciation and Amortization Expense, the
actual cash expenditure in such future period shall reduce Consolidated EBITDA.

 

    -11-

     

    

 

“Consolidated EBITDA” means,
with respect to the Issuer and the Restricted Subsidiaries on a consolidated basis, for any period, an amount equal to Consolidated Net
Income for such period

 

(1)               
increased (without duplication) by:

 

(a)               
Consolidated Income Tax Expense accrued for such period to the extent deducted in determining Consolidated Net Income for such
period; plus

 

(b)               
Consolidated Interest Expense for such period to the extent deducted in determining Consolidated Net Income for such period; plus

 

(c)               
Consolidated Depreciation and Amortization Expense of such Person for such period to the extent such depreciation and amortization
were deducted in computing Consolidated Net Income; plus

 

(d)               
to the extent deducted in arriving at Consolidated Net Income, foreign withholding Taxes paid or accrued in such period; plus

 

(e)               
any expenses or charges related to any Qualified IPO, Investment permitted by this Indenture, acquisition, disposition, issuance
of Indebtedness permitted to be incurred by this Indenture, any Change of Control that is not a Change of Control Triggering Event, any
refinancing transaction or any amendment or other modification of any debt instrument (whether or not successful), including any fees,
expenses and charges related thereto and deducted in computing Consolidated Net Income; plus

 

(f)                
the amount of any restructuring charges or reserves deducted in such period in computing Consolidated Net Income, including any
one-time costs incurred in connection with acquisitions and costs related to closure of facilities; plus

 

(g)               
any other non-cash charges reducing Consolidated Net Income for such period, excluding any such charge that represents an accrual
or reserve for a cash expenditure for a future period; plus

 

(h)               
the amount of any minority interest expense deducted in calculating Consolidated Net Income (less the amount of any cash dividends
paid to the holders of such minority interests); plus

 

(i)                
to the extent deducted in arriving at Consolidated Net Income, the annual consulting fee payable pursuant to the Consulting Services
Agreement as in effect on the Issue Date pursuant to clause (12) of Section 1013; plus

 

(j)                
Transaction Expenses; plus

 

    -12-

     

    

 

(k)                solely
for purposes of clause (12) of Section 1013, the Total Net Leverage Ratio and the Senior Secured Net Leverage Ratio, in the event of
any loss of any Satellite during the applicable Test Period, 90% of the contracted for revenues that would reasonably have been
expected to be realized but for such loss for that portion of the period following such loss attributable to such Satellite (less
revenue actually realized in respect of such Satellite during such period after such event of loss) so long as insurance for such
Satellite required to be maintained pursuant to Section 1007 is maintained in accordance with the terms thereof and the Issuer or a
Restricted Subsidiary has filed a notice of loss with the applicable insurers and believes in good faith that the insurers will pay
funds (and the applicable insurer(s) have not indicated that they will not pay such funds) in amounts that the Issuer reasonably
believes will be sufficient, together with cash on hand (other than cash resulting from drawings under the revolving facility under
the Senior Credit Facilities) and cash from operations, to replace such Satellite with a replacement Satellite that generates annual
revenues for the Issuer and its Restricted Subsidiaries not less than the revenue generated by such replaced Satellite during the
four-quarter period ended immediately prior to such event of loss; but such amounts may only be added to Consolidated EBITDA so long
as the Issuer or the applicable Restricted Subsidiary intends promptly to replace such Satellite and is working reasonably to do so
(provided that the amount added to Consolidated EBITDA under this clause (k) shall not exceed US$100,000,000 for any Test
Period); plus

 

(l)                
pro forma adjustments, including pro forma “run rate” cost savings, operating expense reductions, and other synergies
related to mergers, business combinations, acquisitions, dispositions and other similar transactions, or related to restructuring initiatives,
cost savings initiatives and other initiatives, in each case, projected by the Issuer in good faith to result from actions that have been
taken, actions with respect to which substantial steps have been taken or actions that are expected to be taken (in each case, in the
good faith determination of the Issuer), in any such case, within six fiscal quarters after the date of consummation of such merger, business
combination, acquisition, disposition or other similar transaction or the initiation of such restructuring initiative, cost savings initiative
or other initiative; provided that the aggregate amount of all such pro forma adjustments pursuant to this clause (l) in any Test
Period that are included in Consolidated EBITDA for such Test Period shall not exceed 20% of Consolidated EBITDA for such Test Period
(in each case, calculated before giving effect to any such adjustment); provided, further, that, for the purpose of this
clause (l), (i) any such adjustments shall be added to Consolidated EBITDA for each Test Period until fully realized and shall be calculated
on a pro forma basis as though such adjustments had been realized on the first day of the relevant Test Period and shall be calculated
net of the amount of actual benefits realized from such actions, (ii) any such adjustments shall be reasonably identifiable and factually
supportable and (iii) no such adjustments shall be added pursuant to this clause (l) to the extent duplicative of any items related to
adjustments included in the definition of “Consolidated Net Income” (it being understood that for purposes of the foregoing
 “run rate” shall mean the full recurring benefit that is associated with any such action); plus

 

(m)             
[reserved];

 

(n)               
non-cash charges related to stock compensation expense and non-cash pension expenses determined in accordance with GAAP; plus

 

(o)               
management fees paid to the Permitted Holders and other management, monitoring, consulting and advisory fees and related expenses
paid directly by the Co-Issuers or any Restricted Subsidiary pursuant to clause (12) of Section 1013; plus

 

    -13-

     

    

 

(p)               
 losses on asset sales (other than asset sales in the ordinary course of business) and losses from the early extinguishment of
Indebtedness or hedging obligations or other derivative instruments; plus

 

(q)               
to the extent not already included in clauses (a) through (p) above, extraordinary losses (or minus the amount of any gains
related thereto) and unusual or nonrecurring charges (or minus the amount of any gains related thereto) (including, but not limited
to, impairment losses, cost of debt retirement, restructuring, severance, relocation costs and one-time compensation charges); and

 

(2)               
decreased by (without duplication): non-cash gains increasing Consolidated Net Income of the Issuer and the Restricted Subsidiaries
for such period, excluding any items which represent the reversal of any accrual of, or cash reserve for, anticipated cash charges in
any prior period, and including gains on asset sales (other than asset sales in the ordinary course of business) and gains from the early
extinguishment of Indebtedness or hedging obligations or other derivative instruments;

 

(3)               
increased or decreased by any net non-cash loss or gain resulting from Swap Obligations and, other than for purposes of calculating
the Applicable Amount, any cash loss or gain resulting from Swap Obligations; and

 

(4)               
increased or decreased by any non-cash loss or gain on changes in fair value of financial instruments and non-cash loss or gains
resulting from changes in foreign exchange rates;

 

in each case, as determined on a consolidated basis
for the Issuer and the Restricted Subsidiaries in accordance with GAAP, provided that

 

(i)                
there shall be excluded from Consolidated Net Income and the determination of Consolidated EBITDA for any period the effects of
significant changes in accounting or reporting principles or practices since October 11, 2019; provided that, notwithstanding the
foregoing, to the extent the functional or presentation currency is changed, any related effects shall not be excluded; and

 

(ii)              
[reserved];

 

(iii)            
there shall be excluded from Consolidated Net Income and the determination of Consolidated EBITDA for any period the effects of
adjustments in component amounts required or permitted by ASC 805, ASC 350 and related or similar authoritative pronouncements pursuant
to IFRS, as a result of an acquisition of assets, capital stock or other equity interest by the Issuer or any Restricted Subsidiary in
accordance with the terms of this Indenture or the amortization or write-off of any amounts in connection therewith and related financings
thereof; and

 

    -14-

     

    

 

 

(iv)              (x)
there shall be included in determining Consolidated EBITDA for any period the Acquired EBITDA of any Person, property, business or
asset (other than an Unrestricted Subsidiary) acquired to the extent not subsequently sold, transferred or otherwise disposed of
(but not including the Acquired EBITDA of any related Person, property, business or assets to the extent not so acquired) by the
Issuer or any Restricted Subsidiary during such period (each such Person, property, business or asset acquired and not subsequently
so disposed of, an “Acquired Entity or Business”), and the Acquired EBITDA of any Unrestricted Subsidiary that is
converted into a Restricted Subsidiary during such period (each, a “Converted Restricted Subsidiary”), in each
case based on the actual Acquired EBITDA of such Acquired Entity or Business or Converted Restricted Subsidiary for such period
(including the portion thereof occurring prior to such acquisition or conversion) and (y) for purposes of determining the Total Net
Leverage Ratio and the Senior Secured Net Leverage Ratio, there shall be excluded in determining Consolidated EBITDA for any period
the Disposed EBITDA of any Person, property, business or asset (other than an Unrestricted Subsidiary) sold, transferred or
otherwise disposed of, closed or classified as discontinued operations by the Issuer or any Restricted Subsidiary during such period
(each such Person, property, business or asset so sold or disposed of, a “Sold Entity or Business”), and the
Acquired EBITDA of any Restricted Subsidiary that is converted into an Unrestricted Subsidiary during such period (each, a
 “Converted Unrestricted Subsidiary”), in each case based on the actual Acquired EBITDA of such Sold Entity or
Business or Converted Unrestricted Subsidiary for such period (including the portion thereof occurring prior to such sale, transfer,
disposition or conversion); and

 

(v)               
(i) except as provided in clause (iv) above, there shall be excluded from Consolidated EBITDA for any period the income or loss
from continuing operations before income taxes and extraordinary items of all Unrestricted Subsidiaries for such period to the extent
otherwise included in Consolidated Net Income, except to the extent any such income is actually received in cash by the Issuer or its
Restricted Subsidiaries or such losses funded by the Issuer or a Restricted Subsidiary in cash, in each case during such period through
dividends or other distributions and (ii) to the extent not covered in clause (i) above, there shall be included in calculating Consolidated
EBITDA, the amount of any cash dividends or other cash distributions paid by any Unrestricted Subsidiary or joint venture to the Issuer
or any Restricted Subsidiary.

 

“Consolidated Income Tax Expense”
means, with respect to the Issuer and the Restricted Subsidiaries for any period, the provision for federal, state, local and foreign
taxes based on income or profits (including franchise taxes) payable by the Issuer and the Restricted Subsidiaries for such period as
determined on a consolidated basis in accordance with GAAP.

 

“Consolidated Interest Expense”
means, for any period, the cash interest expense (including that attributable to Finance Lease Obligations in accordance with GAAP), net
of cash interest income earned on cash and Cash Equivalents, of the Issuer and the Restricted Subsidiaries on a consolidated basis with
respect to all outstanding Indebtedness of the Issuer and the Restricted Subsidiaries, including all commissions, discounts and other
fees and charges owed with respect to letters of credit and bankers’ acceptance financing and all income or costs under Swap Agreements
(other than currency swap agreements, currency future or option contracts and other similar agreements unrelated to interest expense)
and any cash dividends paid on any Disqualified Stock and including, without duplication, capitalized interest in connection with the
purchase of Satellites to the extent paid in cash and interest expense related to Satellite performance incentive payments, but excluding,
however, amortization of deferred financing costs and any other amounts of noncash interest, all as calculated on a consolidated basis
in accordance with GAAP and excluding, for avoidance of any doubt, any interest in respect of items excluded from Indebtedness in the
proviso to the definition thereof; provided that, there shall be excluded from Consolidated Interest Expense for any period the
cash interest expense (or cash interest income earned on cash and Cash Equivalents) of all Unrestricted Subsidiaries for such period to
the extent otherwise included in Consolidated Interest Expense. For purposes of this definition, interest on a Finance Lease Obligation
shall be deemed to accrue at an interest rate reasonably determined by such Person to be the rate of interest implicit in such Finance
Lease Obligation in accordance with GAAP.

 

“Consolidated Net Income” means,
for any period, the consolidated net income (or loss) after the deduction of income taxes of the Issuer and the Restricted Subsidiaries,
determined on a consolidated basis in accordance with GAAP.

 

    -15-

     

    

 

“Consolidated Total First Lien Debt”
means all Consolidated Total Indebtedness secured by a Lien that is not subordinated in lien priority to the Liens on the Collateral securing
the Credit Facility Obligations.

 

“Consolidated Total Indebtedness”
means, as of any date of determination, the sum of (i) all Indebtedness of the Issuer and the Restricted Subsidiaries for borrowed money
(adjusted (up or down) for the effects of currency swap agreements) outstanding on such date and (ii) all Finance Lease Obligations of
the Issuer and the Restricted Subsidiaries outstanding on such date, all calculated on a consolidated basis in accordance with GAAP.

 

“Consolidated Total Secured Debt”
means all Consolidated Total Indebtedness secured by a Lien on property or assets of the Issuer or a Restricted Subsidiary.

 

“Consulting Services Agreement”
means the Consulting Services Agreement between Loral and the Issuer as amended from time to time.

 

“Converted Restricted Subsidiary”
has the meaning provided in the definition of the term “Consolidated EBITDA.”

 

“Converted Unrestricted Subsidiary”
has the meaning provided in the definition of the term “Consolidated EBITDA.”

 

“Corporate Trust Office” means
the office of the Trustee at which at any particular time its corporate trust business shall be principally administered, which office
at the date of the execution of this instrument is located at 240 Greenwich Street, Floor 7 East, New York, New York 10286, Attention:
Corporate Trust Division Corporate Finance Unit, or such other address as the Trustee may designate from time to time by notice to the
Company, or the principal corporate trust office of any successor Trustee (or such other address as such successor Trustee may designate
from time to time by notice to the Company).

 

“Contract” has the meaning provided
in the definition of the term “Subject Property.”

 

“Covenant Defeasance” has the
meaning specified in Section 1303 of this Indenture.

 

“Covenant Suspension Event”
has the meaning specified in Section 1019 of this Indenture.

 

“Credit Facilities” means, with
respect to the Issuer or any of its Restricted Subsidiaries, one or more debt facilities, including the Senior Credit Facilities, or commercial
paper facilities with banks or other institutional lenders or investors or indentures providing for revolving credit loans, term loans,
receivables financing, including through the sale of receivables to such lenders or to special purpose entities formed to borrow from
such lenders against receivables, letters of credit or other long-term indebtedness, including any notes, guarantees, collateral documents,
instruments and agreements executed in connection therewith, and any amendments, waivers, supplements, modifications, extensions, renewals,
restatements or refundings thereof and any indentures or credit facilities or commercial paper facilities with banks or other institutional
lenders or investors that replace, refund, refinance or otherwise restructure all or any part of the loans, notes, other credit facilities
or commitments thereunder or any successor or replacement loans, notes, other credit facilities or commitments thereunder, including any
such replacement, refunding, refinancing or other restructuring facility or indenture that increases the amount borrowable thereunder
or alters the maturity thereof.

 

“Credit Facility Obligations”
means “Secured Obligations” (as defined in the Senior Credit Facilities).

 

    -16-

     

    

 

“CRTC” means the Canadian Radio-Television
and Telecommunications Commission or any successor authority of the Government of Canada substituted therefor.

 

“Cumulative Interest Expense”
means, in respect of any Restricted Payment, the sum of the aggregate amount of Consolidated Interest Expense of the Issuer and the Restricted
Subsidiaries for the period from and after October 1, 2016, to the most recently completed fiscal quarter for which internal financial
statements are available immediately preceding the proposed Restricted Payment.

 

“deemed year” has the meaning
specified in Section 306(d) of this Indenture.

 

“Default” means any event that
is, or with the passage of time or the giving of notice or both would be, an Event of Default.

 

“Deposit Accounts” means, collectively,
with respect to each of the Co-Issuers and each Guarantor, all “deposit accounts” as such term is defined in the UCC.

 

“Depositary” means DTC.

 

“Derivative Instrument” with
respect to a Person, means any contract, instrument or other right to receive payment or delivery of cash or other assets to which such
Person or any Affiliate of such Person that is acting in concert with such Person in connection with such Person’s investment in
the Notes (other than a Screened Affiliate) is a party (whether or not requiring further performance by such Person), the value and/or
cash flows of which (or any material portion thereof) are materially affected by the value and/or performance of the Notes and/or the
creditworthiness of the Performance References.

 

“Designated Noncash Consideration”
means the Fair Market Value of noncash consideration received by the Issuer or a Restricted Subsidiary in connection with an Asset Sale
that is so designated as Designated Noncash Consideration pursuant to an Officer’s Certificate, setting forth the basis of such
valuation, executed by an executive vice president and the principal financial officer of the Issuer, less the amount of cash or
Cash Equivalents received in connection with a subsequent sale of such Designated Noncash Consideration.

 

“Disposed EBITDA” means, with
respect to any Sold Entity or Business or Converted Unrestricted Subsidiary for any period, the amount for such period of Consolidated
EBITDA of such Sold Entity or Business or Converted Unrestricted Subsidiary (determined as if references to the Issuer and the Restricted
Subsidiaries in the definition of the term “Consolidated EBITDA” (and in the component financial definitions used therein)
were references to such Sold Entity or Business and its Subsidiaries or to such Converted Unrestricted Subsidiary and its Subsidiaries),
all as determined on a consolidated basis for such Sold Entity or Business.

 

“Disqualified Stock” means,
with respect to any Person, any Capital Stock of such Person which, by its terms, or by the terms of any security into which it is convertible
or for which it is putable or exchangeable, or upon the happening of any event, matures or is mandatorily redeemable, other than as a
result of a change of control or asset sale, pursuant to a sinking fund obligation or otherwise, or is redeemable at the option of the
holder thereof, other than as a result of a change of control or asset sale, in whole or in part, in each case prior to the date 91 days
after the earlier of the maturity date of the Notes or the date the Notes are no longer outstanding; provided, however,
that if such Capital Stock is issued to any plan for the benefit of employees of the Issuer or its Subsidiaries or by any such plan to
such employees, such Capital Stock shall not constitute Disqualified Stock solely because it may be required to be repurchased by the
Issuer or its Subsidiaries in order to satisfy applicable statutory or regulatory obligations.

 

    -17-

     

    

 

“Dividend Obligations” means
obligations of the Issuer to a shareholder of the Issuer in connection with the receipt by such shareholder of cash or other assets on
account of dividends or distributions on Capital Stock of the Issuer; provided, however, that (i) the making of such dividend
or distribution is permitted by the provisions of this Indenture described below under Section 1010, (ii) such obligations have a final
scheduled maturity date of not more than 12 months from the date of incurrence thereof, (iii) such obligations are incurred within 90
days of receipt by such shareholder of such dividend or distribution, (iv) the principal amount of any such obligations shall not exceed
the cash or other assets to be received by such shareholder in connection with the applicable dividend or distribution, (v) such obligations
are unsecured, are not guaranteed by any Subsidiary of the Issuer and are subordinated in right of payment to the Notes, (vi) for the
avoidance of doubt, the Applicable Amount shall not be increased by the amount of such obligations, (vii) in no event shall any such obligations
be refinanced or reclassified and (viii) such obligations are designated as “Dividend Obligations” pursuant to an Officer’s
Certificate on the date of their incurrence.

 

“Documentary Taxes” has the
meaning specified in Section 1022 of this Indenture.

 

“DTC” means the Depository Trust
Company, its nominees and their respective successors.

 

“Electronic Means” means the
following communications methods: S.W.I.F.T., email, facsimile transmission, secure electronic transmission containing applicable authorization
codes, passwords and/or authentication keys issued by the Trustee, or another method or system specified by the Trustee as available for
use in connection with its services hereunder.

 

“Equity Interests” means Capital
Stock and all warrants, options or other rights to acquire Capital Stock, but excluding any debt security that is convertible into, or
exchangeable for, Capital Stock.

 

“Equity Offering” means any
public or private sale of common stock or preferred stock of the Issuer, or any of its direct or indirect parent companies (excluding
Disqualified Stock), other than:

 

(1)               
public offerings with respect to the Issuer’s or any direct or indirect parent company’s common stock registered on
Form S-8 (or the equivalent thereof) and

 

(2)               
any public or private sale that constitutes an Excluded Contribution.

 

“Event of Default” has the meaning
specified in Section 501 of this Indenture.

 

“Event of Loss” has the meaning
specified in Section 1007(d) of this Indenture.

 

“Event of Loss Proceeds” means,
with respect to any Event of Loss, all Satellite insurance proceeds received by the Issuer or any of the Restricted Subsidiaries in connection
with such Event of Loss, after:

 

(1)               
provision for all income or other taxes measured by or resulting from such Event of Loss;

 

(2)               
payment of all reasonable legal, accounting and other reasonable fees and expenses related to such Event of Loss;

 

(3)               
payment of amounts required to be applied to the repayment of Indebtedness secured by a Lien on the Satellite that is the subject
of such Event of Loss;

 

    -18-

     

    

 

(4)               
 provision for payments to Persons who own an interest in the Satellite (including any transponder thereon) in accordance with
terms of the agreement(s) governing the ownership of such interest by such Person (other than payments to insurance carriers required
to be made based on the future revenues generated from such Satellite);

 

(5)               
deduction of appropriate amounts to be provided by the Issuer or such Restricted Subsidiary as a reserve, in accordance with GAAP,
against any liabilities associated with the Satellite that was the subject of the Event of Loss;

 

(6)               
deduction of the amount of any payment to any customer providing a deposit or other related amounts which must be repaid in the
event of an Event of Loss, including any rebates, settlement amounts or other proceeds received from a satellite manufacturer in relation
to performance incentives or performance warranty paybacks with respect to a Satellite; and

 

(7)               
deduction of the pro rata portion of the insurance proceeds of any non-Wholly-Owned Restricted Subsidiary attributable to minority
interests and not available for distribution to or for the account of the Issuer or a Wholly-Owned Restricted Subsidiary as a result thereof.

 

“Excess Proceeds” has the meaning
specified in Section 1018 of this Indenture.

 

“Exchange Act” means the Securities
Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder.

 

“Excluded Account” means:

 

(1)               
any Deposit Account or Securities Account constituting (and the balance of which consists solely of funds set aside in connection
with) payroll accounts, escrow accounts, trust accounts and other accounts where the Issuer, Co-Issuer or any Guarantor holds the funds
for the benefit of a third party, and

 

(2)               
any Deposit Account or Securities Account the maximum balance of which shall not exceed $1,000,000 for more than 3 consecutive
Business Days.

 

“Excluded Assets” means:

 

(1)               
any assets of the Issuer and its Subsidiaries’ network services business located outside of the United States and Canada
(to the extent such assets are not material and non-essential (as determined in good faith by the Issuer) for the operations of the Issuer
and its Subsidiaries);

 

(2)               
any grant of Liens over assets (or, if applicable, perfection of liens) if to do so would contravene the Agreed Security Principles;

 

(3)                any
other Contract that by its terms would be breached, defaulted, violated, invalidated, require the consent of a third Person not
obtained or rendered unenforceable by the creation of any other Lien on such property or if the creation of any other Lien on such
property would create a right of termination in favor of any party (other than to the extent that any such term would be rendered
ineffective pursuant to Section 9-406, 9-407, 9-408 or 9-409 of the UCC or any successor provision or provisions or similar
provisions of any applicable law); provided that for satellite purchase contracts and other contracts material (as determined
in good faith by the Issuer) to the operation of the Co-Issuers and their Restricted Subsidiaries taken as a whole, upon the request
of a Notes Collateral Agent or the Senior Credit Facilities Collateral Agent, the Co-Issuers or the applicable Guarantor shall use
commercially reasonable efforts to obtain such consent (but shall not be required to make any payment or material concession in
exchange for such consent); provided, further, that under no circumstances shall the Issuer or any Restricted
Subsidiary be obligated to seek consent to pledge customer agreements;

 

    -19-

     

    

 

(4)               
real estate leasehold interests (including all office leases and including requirements to deliver landlord lien waivers, estoppels
and collateral access letters), other than ground leased real property on which earth station equipment worth more than US$10.0 million
(as determined in good faith by the Issuer) are located;

 

(5)               
vehicles and other goods for which possession of a certificate of title or ownership is required for perfection of a security interest
therein;

 

(6)               
any Collateral in circumstances where the burden (including tax, administrative or otherwise) of creating and perfecting liens
on such assets, as determined in good faith by the Issuer in writing, is excessive in relation to the value of such assets; provided
that, if the Senior Credit Facilities are then outstanding, the same determination is made with the written consent of the Senior Credit
Facilities Collateral Agent in respect of the Lien on such assets securing the Senior Credit Facilities;

 

(7)               
any application for registration of a trademark filed with the United States Patent and Trademark Office on an intent-to-use basis
until such time (if any) as a Statement of Use or Amendment to Allege Use is filed, at which time such trademark shall automatically become
part of the Collateral and subject to the security interest pledged;

 

(8)              
any property to the extent that such grant of a security interest is prohibited by the law of a Governmental Authority, or requires
a consent not obtained of any Governmental Authority pursuant to such law (other than to the extent that any such law would be rendered
ineffective pursuant to Section 9-406, 9-407, 9-408 or 9-409 of the UCC or any successor provision or provisions or similar provisions
of any applicable law);

 

(9)               
property not otherwise excluded from the Collateral that is subject to a Lien permitted under clause (6) (with respect to clause
(d) of the definition of “Permitted Debt”), (7) (other than the Liens securing the Senior Credit Facilities), (9), (10) or
(18) (but only to the extent permitted under clause (6) (with respect to clause (d) of the definition of “Permitted Debt”),
(7), (9) or (10) of the definition of “Permitted Lien” in the Senior Credit Facilities) of the definition of “Permitted
Lien” in the Senior Credit Facilities, including any insurance and other proceeds thereof;

 

(10)           
Letter of Credit Rights (as defined in the UCC) for a specified purpose to the extent the Issuer or any Restricted Subsidiary is
required by applicable law to apply the proceeds of such Letter of Credit Rights for a specified purpose;

 

(11)           
any FCC Licenses to the extent (but only to the extent) that at such time the applicable Notes Collateral Agent may not validly
possess a security interest therein pursuant to the laws, and the regulations promulgated by any Governmental Authority, as in effect
at such time, but Collateral shall include, to the maximum extent permitted by law, all rights incident or appurtenant to the FCC Licenses
and the right to receive all proceeds derived from or in connection with the sale, assignment or transfer of the telecommunications licenses;

 

    -20-

     

    

 

(12)           
 a lien on the ownership interest with respect to the APT Transponders or APT’s interest in the “Common Elements”
as defined in the Amended and Restated Satellite Agreement dated as of August 26, 2003, as amended (together with that certain Satellite
Procurement Contract dated December 23, 2015, that certain Management Agreement dated as of December 23, 2015, that certain Satellite
Transponder Agreement dated as of December 23, 2015, that certain Orbital Slot Sublicense Agreement dated as of December 31, 2015 and
that certain Marketing Agreement dated as of December 31, 2015, the “APT Satellite Agreement”) between APT Satellite
Company Limited (including its successors, assigns and transferees, “APT”), and Loral Orion, Inc. (as assigned to Telesat
Satellite LP), that are on Telstar 18 (collectively, the “Excluded APT Elements”) so long as such prohibition exists
in the APT Satellite Agreement, any other agreement with APT or the APT Security Agreement (or any replacement or successor agreement),
it being understood that subject to the foregoing, a lien on the Satellite (as defined in the APT Satellite Agreement) is permitted so
long as the lien thereon (which the Senior Credit Facilities Collateral Agent (if the Senior Credit Facilities remain outstanding) or
the applicable Notes Collateral Agent (if the Senior Credit Facilities are not outstanding) shall be permitted to release at any time
in its sole discretion) is subject to the rights of APT under the APT Satellite Agreement and does not encompass the Excluded APT Elements;

 

(13)           
Excluded Accounts;

 

(14)           
Equity Interests of Unrestricted Subsidiaries;

 

(15)           
any Equity Interests (A) owned as of the Issue Date or acquired after the Issue Date in accordance with this Agreement if, and
to the extent that, and for so long as (1) such grant would violate applicable law or a contractual obligation binding on such Equity
Interests (other than to the extent that any such law or contractual obligation would be rendered ineffective pursuant to Section 9-406,
9-407, 9-408 or 9-409 of the UCC, or any successor provision or provisions or similar provisions of any applicable law) and (2) such law
or contractual obligation existed at the time of the acquisition thereof and was not created or made binding on such Equity Interests
in contemplation of or in connection with the acquisition of such Subsidiary (provided that clause (2) shall not apply in the case
of a joint venture), (B) in Subsidiaries that collectively account for less than 5% of the consolidated assets and revenues or (C) in
any Person (other than a Subsidiary) to the extent such assets are not essential or material (as determined in good faith by the Issuer)
for the operations of the Issuer and the Restricted Subsidiaries taken as a whole;

 

(16)           
any assets acquired after the Issue Date, to the extent that, and for so long as, taking such actions would violate a contractual
obligation binding on such assets (other than to the extent that such contractual obligation would be rendered ineffective pursuant to
Section 9-406, 9-407, 9-408 or 9-409 of the UCC, if applicable to such contractual obligation, or any successor provision or provisions
or similar provisions of any applicable law) that existed at the time of the acquisition thereof and was not created or made binding on
such assets in contemplation of or in connection with the acquisition of such assets (except in the case of assets acquired with Indebtedness
permitted pursuant to Section 1011 that is secured by a Lien permitted pursuant to Section 1012;

 

(17)           
Satellites not subject to the Lien created by the Security Documents and subject to agreements that are described in clause (26)
of the definition of “Permitted Liens” and which the applicable Notes Collateral Agent (in its sole discretion) has not entered
into a non-disturbance agreement as further described therein;

 

    -21-

     

    

 

(18)           
 any Subject Property; provided, however, that the exclusions pursuant to this clause (18) shall not apply to the
extent that any such prohibition, default or other term would be rendered ineffective pursuant to Section 9-406, 9-407, 9-408 or
9-409 of the UCC, or any successor provision or provisions or similar provisions of any applicable law; and provided, however,
that the security interest shall attach immediately to any portion of such Subject Property that does not result in any of the consequences
specified above including, without limitation, any proceeds of such Subject Property;

 

(19)           
any property to the extent a security interest in such property would result in material adverse tax consequences to the Issuer
or any Subsidiary of the Issuer as reasonably determined by the Issuer; provided that, if the Senior Credit Facilities are then
outstanding, the same determination is made in respect of the Lien on such assets securing the Senior Credit Facilities; and

 

(20)           
so long as the Senior Credit Facilities are outstanding, any asset that is not pledged to secure obligations arising in respect
of the Senior Credit Facilities (whether pursuant to the terms of the Senior Credit Facilities (and any related documents) or as a result
of any determination made thereunder, or by amendment, waiver or otherwise).

 

“Excluded Contribution” means
net cash proceeds, marketable securities or Qualified Proceeds received by the Issuer from:

 

(1)             
contributions to its common equity capital, and

 

(2)            
the sale (other than to a Subsidiary of the Issuer or to any management equity plan or stock option plan or any other management
or employee benefit plan or agreement of the Issuer) of Capital Stock (other than Disqualified Stock) of the Issuer,

 

in each case designated as Excluded Contributions pursuant to an Officer’s
Certificate executed by a vice president and the principal financial officer of the Issuer on the date such capital contributions are
made or the date such Equity Interests are sold, as the case may be, which are excluded from the calculation set forth in the definition
of the term “Applicable Amount.”

 

“Excluded Foreign Subsidiary”
shall have the meaning specified in Section 1023 of this Indenture.

 

“Excluded Satellites” means
(a) the Satellites owned by the Issuer and its Restricted Subsidiaries commonly referred to as Anik F1, Anik F1R, Nimiq 1, Nimiq 2, Telstar 12,
Telstar 14R and the transponders for which the Issuer or its Restricted Subsidiaries have a right to use on Eutelsat 113West A, (b) any
other Satellite, other than a Named Satellite, that (i) is not expected or intended, in the good faith determination of the Issuer to
earn future revenues from the operation of such Satellite in excess of US$35,000,000 in any fiscal year and (ii) has a book value of less
than US$75,000,000, (c) any other Satellite, other than a Named Satellite, with one year or less of in-orbit life remaining (it being
understood and agreed that such Satellite shall be deemed to have “in-orbit life” only for so long as it is maintained in
station kept orbit), (d) any other Satellite that, in the good faith determination of the Issuer, (A) the procurement of In-Orbit Insurance
therefor in the amounts and on the terms required hereby would not be available for a price that is, and on other terms and conditions
that are, commercially reasonable or (B) the procurement of such In-Orbit Insurance therefor would be subject to exclusions or limitations
of coverage that would make the terms of the insurance commercially unreasonable (including because such Satellite’s performance
and/or operating status has been adversely affected by anomalies or component exclusions or there are systemic failures or anomalies applicable
to Satellites of the same model).

 

    -22-

     

    

 

“Existing Indebtedness” means
Indebtedness of the Issuer or the Restricted Subsidiaries in existence on the Issue Date, plus interest accruing thereon.

 

“Existing Notes” means the Existing
Secured Notes and the Existing Unsecured Notes.

 

“Existing Secured Notes” means
the Co-Issuers’ outstanding 4.875% Senior Secured Notes due 2027.

 

“Existing Secured Notes Indenture”
means the indenture dated as of December 6, 2019 (as supplemented or otherwise modified from time to time), among the Co-Issuers, the
guarantors party thereto and The Bank of New York Mellon, as trustee and notes collateral agent, and TMF Brasil Administração
e Gestão de Ativos Ltda. and TMF Trustee Limited, the on-shore notes collateral agents.

 

“Existing Unsecured Notes” means
the Co-Issuers’ outstanding 6.500% Senior Notes due 2027.

 

“Existing Unsecured Notes Indenture”
means the indenture dated as of October 11, 2019 (as supplemented or otherwise modified from time to time), among the Co-Issuers, the
guarantors party thereto and The Bank of New York Mellon, as trustee.

 

“Fair Market Value” means, with
respect to any asset or property, as determined by the Issuer, the price which could be negotiated in an arm’s length, free market
transaction, for cash, between a willing seller and a willing and able buyer, neither of whom is under undue pressure or compulsion to
complete the transaction.

 

“FCC” means the Federal Communications
Commission or any governmental authority in the United States substituted therefor.

 

“FCC Licenses” means all authorizations,
orders, licenses and permits issued by the FCC to the Issuer or any of its Subsidiaries.

 

“Finance Lease Obligations”
means, as applied to any Person, an obligation that is required to be accounted for as a financing or capital lease (and, for the avoidance
of doubt, not a straightline or operating lease) on both the balance sheet and income statement for financial reporting purposes in accordance
with GAAP. At the time any determination thereof is to be made, the amount of the liability in respect of a financing or capital lease
would be the amount required to be reflected as a liability on such balance sheet (excluding the footnotes thereto) in accordance with
GAAP.

 

“First Call Date” has the meaning
specified in Section 1101 of this Indenture.

 

“First Lien Intercreditor Agreement”
means the intercreditor agreement dated as of December 6, 2019 among JPMorgan Chase Bank, N.A., as agent under the Senior Credit Facilities
and the notes collateral agents in respect of the Existing Secured Notes, as it may be amended, amended and restated, modified, renewed
or replaced from time to time in accordance with this Indenture.

 

“First Lien Indebtedness” means
any Indebtedness secured by a Lien that is not subordinated in lien priority to the Liens on the Collateral securing the Obligations.

 

“First Lien Net Leverage
Ratio” means, as of any date of determination, the ratio of (a) Consolidated Total First Lien Debt as of the last day of
the Test Period most recently ended on or prior to such date of determination, minus up to US$100.0 million of cash and Cash
Equivalents of the Issuer and its Restricted Subsidiaries to the extent not designated as restricted cash on the consolidated
balance sheet of the Issuer and its Restricted Subsidiaries in accordance with GAAP to (b) Consolidated EBITDA for such Test
Period.

 

    -23-

     

    

 

“First Lien Notes Obligations”
means all Obligations of the Co-Issuers and the Guarantors under this Indenture, the Notes, the Guarantees and the Security Documents.

 

“First Priority Obligations”
means (i) the Credit Facility Obligations, (ii) all Obligations of the Co-Issuers and the Guarantors under the Existing Secured Notes
Indenture, the Existing Secured Notes, the guarantees in respect thereof and the related security documents, (iii) all First Lien Notes
Obligations and (iv) any other Obligations secured by a Lien that is not subordinated in lien priority to the Liens on the Collateral
securing the Obligations and subject to the First Lien Intercreditor Agreement that are permitted to be incurred and secured by such Liens
pursuant to this Indenture.

 

“Fitch” means Fitch Ratings,
Inc., and any successor to its rating agency business.

 

“Funding Guarantor” has the
meaning specified in Section 1205 of this Indenture.

 

“GAAP” means Generally Accepted
Accounting Principles as adopted by the Issuer and the Restricted Subsidiaries from time to time to prepare their published financial
statements in accordance with the International Financial Reporting Standards as issued by the International Accounting Standards Board
(“IFRS”) in effect from time to time.

 

“Government Securities” means
securities that are:

 

(1)               
direct obligations of, or obligations fully and unconditionally guaranteed by, the United States of America for the timely payment
of which its full faith and credit is pledged, or

 

(2)               
obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States of America
the timely payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America, which,
in either case, are not callable or redeemable at the option of the issuers thereof, and shall also include a depository receipt issued
by a bank (as defined in Section 3(a)(2) of the Securities Act), as custodian with respect to any such Government Securities or a specific
payment of principal of or interest on any such Government Securities held by such custodian for the account of the holder of such depository
receipt; provided that (except as required by law) such custodian is not authorized to make any deduction from the amount payable
to the holder of such depository receipt from any amount received by the custodian in respect of the Government Securities or the specific
payment of principal of or interest on the Government Securities evidenced by such depository receipt.

 

“Governmental Authority” means
any federal, state, provincial, local or foreign court or tribunal or governmental agency, authority, instrumentality or regulatory or
legislative body.

 

“guarantee” means a guarantee
(other than by endorsement of negotiable instruments for collection in the ordinary course of business), direct or indirect, in any manner
(including letters of credit and reimbursement agreements in respect thereof), of all or any part of any Indebtedness or other obligations.

 

“Guarantee” means the guarantee
by any Guarantor of the Co-Issuers’ obligations under the Notes and this Indenture.

 

    -24-

     

    

 

“Guarantee Obligations” means,
as to any Person, any obligation of such Person guaranteeing or intended to guarantee any Indebtedness of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, including any obligation of such Person, whether or not contingent,
(a) to purchase any such Indebtedness or any property constituting direct or indirect security therefor, (b) to advance or supply funds
(i) for the purchase or payment of any such Indebtedness or (ii) to maintain working capital or equity capital of the primary obligor
or otherwise to maintain the net worth or solvency of the primary obligor, (c) to purchase property, securities or services primarily
for the purpose of assuring the owner of any such Indebtedness of the ability of the primary obligor to make payment of such Indebtedness
or (d) otherwise to assure or hold harmless the owner of such Indebtedness against loss in respect thereof; provided, however,
that the term “Guarantee Obligations” shall not include endorsements of instruments for deposit or collection in the ordinary
course of business. The amount of any Guarantee Obligation shall be deemed to be an amount equal to the stated or determinable amount
of the Indebtedness in respect of which such Guarantee Obligation is made or, if not stated or determinable, the maximum reasonably anticipated
liability in respect thereof (assuming such Person is required to perform thereunder) as determined by such Person in good faith.

 

“Guarantor” means each Subsidiary
of the Issuer (other than the Co-Issuer) that executes a Guarantee, provided that upon release or discharge of such Subsidiary
from its Guarantee in accordance with this Indenture, such Subsidiary shall cease to be a Guarantor.

 

“Holder” means, at any time,
a Person in whose name a Note is at such time registered on the Note Registrar’s books.

 

“IFRS” has the meaning provided
in the definition of the term “GAAP.”

 

“incur” has the meaning specified
in Section 1011 of this Indenture.

 

“incurrence” has the meaning
specified in Section 1011 of this Indenture.

 

“Indebtedness” means, with
respect to any Person, (a) all indebtedness of such Person for borrowed money (including, without limitation, BAs under the Senior
Credit Facilities but excluding the impact of capitalized financing costs and prepayment options), (b) the deferred purchase price
of assets or services that in accordance with GAAP would be included as liabilities in the balance sheet of such Person, (c) the
face amount of all letters of credit issued for the account of such Person and, without duplication, all drafts drawn thereunder,
(d) all Indebtedness of a second Person secured by any Lien on any property owned by such first Person, whether or not such
Indebtedness has been assumed (excluding any Lien created pursuant to the APT Security Agreement), (e) all Finance Lease Obligations
of such Person, (f) all net obligations of such Person under interest rate swap, cap or collar agreements, interest rate future or
option contracts, currency swap agreements, currency future or option contracts, commodity price protection agreements or other
commodity price hedging agreements and other similar agreements, (g) without duplication, all Guarantee Obligations of such Person
in respect of the foregoing and (h) any Disqualified Stock; provided that Indebtedness shall not include (i) trade payables
and accrued expenses, in each case payable directly or through a bank clearing arrangement and arising in the ordinary course of
business, (ii) obligations to make progress or incentive payments under Satellite Purchase Agreements and Launch Services
Agreements, in each case, not overdue by more than 90 days, (iii) deferred or prepaid revenue, (iv) purchase price holdbacks in
respect of a portion of the purchase price of an asset to satisfy warranty or other unperformed obligations of the respective
seller, (v) obligations to make payments to one or more insurers under satellite insurance policies in respect of premiums or the
requirement to remit to such insurer(s) a portion of the future revenues generated by a Satellite which has been declared a
constructive total loss, in each case in accordance with the terms of the insurance policies relating thereto, (vi) Indebtedness of
any parent entity appearing on the balance sheet of the Issuer or any Restricted Subsidiary solely by reason of
 “pushdown” accounting under GAAP, (vii) Non-Finance Lease Obligations or other obligations under or in respect of
straight-line leases, operating leases or Sale and Lease-Back Transactions (except resulting in Finance Lease Obligations) and
(viii) customer deposits made in connection with the construction or acquisition of a Satellite being constructed or acquired at the
request of one or more customers. The amount of Indebtedness of any Person for purposes of clause (d) shall be deemed to be equal to
the lesser of (x) the aggregate unpaid amount of such Indebtedness and (y) the fair market value of the property encumbered thereby
as reasonably determined by such Person in good faith. The amount of Indebtedness of any Person for purposes of clause (h) shall be
deemed to be equal to the greater of the voluntary or involuntary liquidation preference and maximum fixed repurchase price in
respect of such Disqualified Stock. For purposes hereof, the “maximum fixed repurchase price” of any Disqualified Stock
that does not have a fixed repurchase price shall be calculated in accordance with the terms of such Disqualified Stock as if such
Disqualified Stock were purchased on any date on which Indebtedness shall be required to be determined pursuant to this Indenture,
and if such price is based upon, or measured by, the fair market value of such Disqualified Stock, such fair market value shall be
determined reasonably and in good faith by the Board of Directors of the Issuer.

 

    -25-

     

    

 

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

 

“Independent Director” means,
with respect to the Board of Directors of the Issuer, a member of such board who is not an officer, director, employee or appointee of
Loral or its Affiliates (other than the Issuer and its Subsidiaries).

 

“Initial Lien” has the meaning
stated in Section 1012 of this Indenture.

 

“Initial Notes” has the meaning
stated in the first recital of this Indenture.

 

“In-Orbit Contingency Protection”
means transponder capacity that, in the good faith determination of the Issuer, is available on a contingency basis from the Issuer or
its Restricted Subsidiaries, or any Subsidiary of any parent of the Issuer, directly or from another satellite operator pursuant to a
contractual arrangement, to accommodate the transfer of traffic representing at least 25% of the revenue-generating capacity with respect
to any Satellite (or, if the entire Satellite is not owned by the Issuer or any of its Restricted Subsidiaries, as the case may be, the
portion of the Satellite it owns or for which it has risk of loss) that may suffer actual or constructive total loss and that meets or
exceeds the contractual performance specifications for the transponders that had been utilized by such traffic; it being understood that
the Satellite (or portion, as applicable) shall be deemed to be insured for a percentage of the Satellite’s (or applicable portion’s)
net book value for which In-Orbit Contingency Protection is available.

 

“In-Orbit Insurance” means with
respect to any Satellite (or, if the entire Satellite is not owned by the Issuer or any of its Restricted Subsidiaries, as the case may
be, the portion of the Satellite it owns or for which it has risk of loss), insurance (subject to a right of coinsurance or deductible
in an amount up to US $75,000,000) or other contractual arrangement providing for coverage against the risk of loss of or damage to such
Satellite (or portion, as applicable) attaching upon the expiration of the Launch Insurance therefor (or, if Launch Insurance is not procured,
upon the initial completion of in-orbit testing) and attaching, during the commercial in-orbit service of such Satellite (or portion,
as applicable), upon the expiration of the immediately preceding corresponding policy or other contractual arrangement, as the case may
be, subject to the terms and conditions set forth herein.

 

“Instructions” has the meaning
specified in Section 603(13) of this Indenture.

 

    -26-

     

    

 

“Interest Payment Date” means
the Stated Maturity of an installment of interest on the Notes.

 

“Investment Grade Rating” means
a rating equal to or higher than Baa3 (or the equivalent) by Moody’s, BBB- (or the equivalent) by S&P and BBB- (or the equivalent)
by Fitch, or an equivalent rating by any other Rating Agency.

 

“Investments” means, with respect
to any Person, all investments by such Person in other Persons (including Affiliates) in the form of loans (including guarantees), advances
or capital contributions (excluding accounts receivable, trade credit, advances to customers, commission, travel and similar advances
to officers and employees, in each case made in the ordinary course of business), purchases or other acquisitions for consideration of
Indebtedness, Equity Interests or other securities issued by any other Person and investments that are required by GAAP to be classified
on the balance sheet (excluding the footnotes) of the Issuer in the same manner as the other investments included in this definition to
the extent such transactions involve the transfer of cash or other property. For purposes of the definition of “Unrestricted Subsidiary”
and Section 1010,

 

(1)          
“Investments” shall include the portion (proportionate to the Issuer’s equity interest in such Subsidiary) of
the Fair Market Value of the net assets of a Subsidiary of the Issuer at the time that such Subsidiary is designated an Unrestricted Subsidiary;
provided, however, that upon a redesignation of such Subsidiary as a Restricted Subsidiary, the Issuer shall be deemed to
continue to have a permanent “Investment” in an Unrestricted Subsidiary in an amount (if positive) equal to:

 

(x)               
the Issuer’s “Investment” in such Subsidiary at the time of such redesignation, less

 

(y)              
the portion (proportionate to the Issuer’s equity interest in such Subsidiary) of the Fair Market Value of the net assets
of such Subsidiary at the time of such redesignation; and

 

(2)          
any property transferred to or from an Unrestricted Subsidiary shall be valued at its Fair Market Value at the time of such transfer.

 

The amount of any Investment outstanding at any
time shall be the original cost of such Investment, reduced by any dividend, distribution, interest payment, return of capital, repayment
or other amount received in Cash Equivalents by the Issuer or a Restricted Subsidiary in respect of such Investment to the extent such
amounts do not increase any other baskets under this Indenture.

 

“ISED Canada” means Innovation,
Science and Economic Development Canada or any successor department of the Government of Canada substituted therefor.

 

“ISED Canada Authorizations”
means all authorizations, orders, licenses and exemptions issued by ISED Canada to the Issuer or any of its Subsidiaries, pursuant to
authority under the Radiocommunication Act (Canada) or the Telecommunications Act (Canada), as amended, under which the
Issuer or any of its Subsidiaries is authorized to launch and operate any of its Satellites or to operate any of its transmit only, receive
only or transmit and receive earth stations or any ancillary terrestrial communications facilities.

 

“Issue Date” means April 27,
2021.

 

    -27-

     

    

 

“Issuer” means the Person named
as the “Issuer” in the first paragraph of this Indenture, until a successor Person shall have become such pursuant to the
applicable provisions of this Indenture, and thereafter “Issuer” shall mean such successor Person.

 

“Judgment Currency” has the
meaning set forth in Section 118(a)(i) of this Indenture.

 

“Launch” means, with respect
to any Satellite, the point in time before lift-off of such Satellite at which risk of loss of such Satellite passes to the applicable
Satellite Purchaser under the terms of the applicable Satellite Purchase Agreement, unless risk of loss thereunder is to pass to such
Satellite Purchaser after lift-off, in which case “Launch” shall mean the intentional ignition of the first stage engines
of the launch vehicle that has been integrated with such Satellite.

 

“Launch Insurance” means, with
respect to any Satellite, insurance for risks of loss of and damage to such Satellite attaching not later than the time of Launch and
continuing at least until the successful or unsuccessful attempt to achieve physical separation of such Satellite from the launch vehicle
that had been integrated with such Satellite.

 

“Launch Services Agreement”
means, with respect to any Satellite, the agreement between the applicable Satellite Purchaser and the applicable Launch Services Provider
relating to the launch of such Satellite.

 

“Launch Services Provider” means,
with respect to any Satellite, the provider of launch services for such Satellite pursuant to the terms of the Launch Services Agreement
related thereto.

 

“LCT Election” has the meaning
specified in Section 119 of this Indenture.

 

“LCT Test Date” has the meaning
specified in Section 119 of this Indenture.

 

“Legal Defeasance” has the meaning
specified in Section 1302 of this Indenture.

 

“Legal Holiday” means a Saturday,
a Sunday or a day on which banking institutions in New York City or Toronto are authorized or required by law to remain closed.

 

“LEO Entity” means Telesat LEO
Holdings Inc.

 

“Lien” means, with respect to
any asset, any mortgage, lien, pledge, hypothec, charge, security interest or encumbrance of any kind in respect of such asset, whether
or not filed, recorded or otherwise perfected under applicable law, including any conditional sale or other title retention agreement,
any lease in the nature thereof, any option or other agreement to sell or give a security interest in and any filing of or agreement to
give any financing statement under the Uniform Commercial Code or Personal Property Security Act (or equivalent statutes) of any jurisdiction;
provided that in no event shall any lease (other than a Finance Lease Obligation) entered into in the ordinary course of business
be deemed to constitute a Lien. For the avoidance of doubt, in no event shall a Non-Finance Lease Obligation be deemed to be a Lien.

 

“Limited Condition
Transaction” means (1) any Investment or acquisition (whether by merger, amalgamation, consolidation or other business
combination or the acquisition of Capital Stock or otherwise), whose consummation is not conditioned on the availability of, or on
obtaining, third-party financing, (2) any redemption, repurchase, defeasance, satisfaction and discharge or repayment of
Indebtedness, Disqualified Stock or preferred stock requiring irrevocable notice in advance of such redemption, repurchase,
defeasance, satisfaction and discharge or repayment and (3) any Restricted Payment requiring irrevocable notice in advance
thereof.

 

    -28-

     

    

 

“Long Derivative Instrument”
means a Derivative Instrument (i) the value of which generally increases, and/or the payment or delivery obligations under which generally
decrease, with positive changes to the Performance References and/or (ii) the value of which generally decreases, and/or the payment or
delivery obligations under which generally increase, with negative changes to the Performance References.

 

“Loral” means Loral Space &
Communications Inc.

 

“Market Capitalization” means
an amount equal to (i) the total number of issued and outstanding shares of Capital Stock of the Issuer or any parent entity of the Issuer
so long as the Issuer is a Wholly-Owned Subsidiary of such entity on a fully diluted basis on the date of the declaration of the relevant
dividend multiplied by (ii) the arithmetic mean of the closing prices per share of such Capital Stock on the principal securities exchange
on which such common Capital Stock is traded for the 30 consecutive trading days immediately preceding the date of declaration of such
Restricted Payment.

 

“Material Leased Real Property”
has the meaning specified in Section 1024(ii) of this Indenture.

 

“Material Owned Real Property”
has the meaning specified in Section 1024(i) of this Indenture.

 

“Material Subsidiary” means,
at any date of determination, any Restricted Subsidiary (a) whose Total Assets at the last day of the Test Period ending on the last day
of the most recently completed fiscal quarter for which internal financial statements are available immediately preceding such date of
determination were equal to or greater than 5% of the consolidated Total Assets of the Issuer and its consolidated subsidiaries at such
date or (b) whose gross revenues for such Test Period were equal to or greater than 5% of the consolidated gross revenues of the Issuer
and its consolidated subsidiaries for such period, in each case determined in accordance with GAAP.

 

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

 

“Mezzanine Securities” means
the securities periodically issued by the Issuer in favor of Loral as satisfaction of the Issuer’s payments under the Consulting
Services Agreement.

 

“Moody’s” means Moody’s
Investors Service, Inc. and any successor to its rating agency business.

 

“Named Satellites” means the
Satellites commonly referred to as Anik F2, Anik F3, Telstar 11N, Nimiq 4, Nimiq 5, Nimiq 6, Anik G1, Telstar 12 VANTAGE, Telstar 18 VANTAGE
and Telstar 19 VANTAGE.

 

“Nationally Recognized Independent Financial
Advisor” means an accounting, appraisal, investment banking firm or consultant of nationally recognized standing that is, in
the good faith judgment of the Issuer, qualified to perform the task for which it has been engaged.

 

    -29-

     

    

 

  

“Net Proceeds” means, with respect
to any Asset Sale, (a) the gross cash proceeds (including payments from time to time in respect of installment obligations, if applicable)
received by or on behalf of the Issuer or any of the Restricted Subsidiaries in respect of such Asset Sale less (b) the sum of:

 

(1)               
the amount, if any, of all Taxes paid or estimated to be payable by the Issuer or any of the Restricted Subsidiaries in connection
with such Asset Sale,

 

(2)               
the amount of any reasonable reserve established in accordance with GAAP against any liabilities (other than any Taxes deducted
pursuant to clause (1) above) (x) associated with the assets that are the subject of such Asset Sale and (y) retained by the Issuer or
any of the Restricted Subsidiaries; provided that the amount of any subsequent reduction of such reserve (other than in connection
with a payment in respect of any such liability) shall be deemed to be Net Proceeds of such an Asset Sale occurring on the date of such
reduction,

 

(3)               
the amount of any Indebtedness (other than Indebtedness described in clause (1) of the second paragraph of Section 1018) secured
by a Lien on the assets that are the subject of such Asset Sale to the extent that the instrument creating or evidencing such Indebtedness
requires that such Indebtedness be repaid upon consummation of such Asset Sale, and

 

(4)               
reasonable and customary fees, commissions, expenses, issuance costs, discounts and other costs paid by the Issuer or any of the
Restricted Subsidiaries, as applicable, in connection with such Asset Sale (other than those payable to the Issuer or any Subsidiary of
the Issuer), in each case only to the extent not already deducted in arriving at the amount referred to in clause (a) above.

 

“Net Short” means, with respect
to a Holder or beneficial owner, as of a date of determination, either (i) the value of its Short Derivative Instruments exceeds the sum
of the (x) the value of its Notes plus (y) the value of its Long Derivative Instruments as of such date of determination or (ii)
it is reasonably expected that such would have been the case were a Failure to Pay or Bankruptcy Credit Event (each as defined in the
2014 ISDA Credit Derivatives Definitions) to have occurred with respect to the Co-Issuers or any Guarantor immediately prior to such date
of determination.

 

“Non-Finance Lease Obligations”
means a lease obligation that is not required to be accounted for as a financing or capital lease on both the balance sheet and the income
statement for financial reporting purposes in accordance with GAAP. For avoidance of doubt, a straight-line or operating lease shall be
considered a Non-Finance Lease Obligation.

 

“Non-Guarantor Asset Sale” has
the meaning specified in Section 1018 of this Indenture.

 

“Non-Guarantor Event of Loss”
has the meaning specified in Section 1018 of this Indenture.

 

“Non-Successor Person” has the
meaning specified in Section 802 of this Indenture.

 

“Non-U.S. Person” means a Person
who is not a U.S. Person.

 

“Note Register” and “Note
Registrar” have the respective meanings specified in Section 304.

 

“Notes” has the meaning stated
in the first recital to this Indenture and more particularly means any Notes authenticated and delivered under this Indenture. The Initial
Notes and the Additional Notes shall be treated as a single class for all purposes of this Indenture, and unless the context otherwise
requires, all references to the Notes shall include the Initial Notes and any Additional Notes.

 

    -30-

     

    

 

“Notes Collateral Agent” means
The Bank of New York Mellon (together with certain of its branches, affiliates and agents) until a successor replaces it and, thereafter,
means the successor.

 

“Notes Collateral Agents” means
the Notes Collateral Agent, each On-Shore Notes Collateral Agent and those Persons who become a notes collateral agent pursuant to the
terms of the First Lien Intercreditor Agreement.

 

“Notes Documents” means this
Indenture, the Notes, the Guarantees and the Security Documents.

 

“Obligations” means any principal,
interest (including any interest or entitlement to fees or expenses or other charges that accrue after the commencement of any insolvency,
bankruptcy, or liquidation proceeding, whether or not allowed or allowable as a claim in any such insolvency or liquidation proceeding),
penalties, fees, indemnifications, reimbursements (including reimbursement obligations with respect to letters of credit and banker’s
acceptances), damages and other liabilities, and guarantees of payment of such principal, interest, penalties, fees, indemnifications,
reimbursements, damages and other liabilities, payable under the documentation governing any Indebtedness.

 

“Offer Amount” has the meaning
specified in Section 1110(b) of this Indenture.

 

“Offer Period” has the meaning
specified in Section 1110(b) of this Indenture.

 

“Offering Memorandum” means
the Offering Memorandum, dated April 13, 2021, relating to the sale of the Initial Notes.

 

“Officer” means the Chairman
of the Board of Directors, the Chief Executive Officer, the President, any Executive Vice President, Senior Vice President or Vice President,
the Treasurer or the Secretary of the Issuer or, if acting in connection with the Co-Issuer, the Co-Issuer.

 

“Officer’s Certificate”
means a certificate signed on behalf of the Issuer by an Officer of the Issuer or on behalf of any other Person, as the case may be, that
meets the requirements set forth in this Indenture and is delivered to the Trustee.

 

“On-Shore Notes Collateral Agent”
means each of TMF Brasil Administração e Gestão de Ativos Ltda. and TMF Trustee Limited, in each case until a successor
replaces it and, thereafter, means the successor.

 

“Opinion of Counsel” means a
written opinion from legal counsel, who may be an employee of or counsel to the Issuer, which opinion may be subject to customary assumptions
and exclusions.

 

“Outstanding,” when used with
respect to Notes, means, as of the date of determination, all Notes theretofore authenticated and delivered under this Indenture, except:

 

(1)               
Notes theretofore cancelled by the Trustee or delivered to the Trustee for cancellation;

 

(2)                Notes,
or portions thereof, for whose payment or redemption money in the necessary amount has been theretofore deposited with the Trustee
or any Paying Agent (other than the Issuer) in trust or set aside and segregated in trust by the Issuer (if the Issuer shall act as
its own Paying Agent) for the Holders of such Notes; provided that, if such Notes are to be redeemed, notice of such
redemption has been duly given pursuant to this Indenture or provision therefor satisfactory to the Trustee has been made;

 

    -31-

     

    

 

(3)               
Notes, except to the extent provided in Sections 1302 and 1303, with respect to which the Issuer has effected Legal Defeasance
or Covenant Defeasance as provided in Article Thirteen; and

 

(4)               
Notes which have been paid pursuant to Section 305 or in exchange for or in lieu of which other Notes have been authenticated and
delivered pursuant to this Indenture, other than any such Notes in respect of which there shall have been presented to the Trustee proof
satisfactory to it that such Notes are held by a Protected Purchaser in whose hands the Notes are valid obligations of the Issuer;

 

provided, however, that in determining whether the Holders
of the requisite principal amount of Outstanding Notes have given any request, demand, authorization, direction, consent, notice or waiver
hereunder, Notes owned by the Company or any other obligor upon the Notes or any Affiliate of the Company or such other obligor shall
be disregarded and deemed not to be Outstanding, except that, in determining whether the Trustee shall be protected in making such calculation
or in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only Notes which a Responsible Officer
of the Trustee actually knows to be so owned shall be so disregarded.

 

“Pari Passu Indebtedness” means
with respect to any Person:

 

(1)               
Indebtedness of such Person, whether outstanding on the Issue Date or thereafter incurred; and

 

(2)               
all other Obligations of such Person (including interest accruing on or after the filing of any petition in bankruptcy or for reorganization
relating to such Person whether or not post-filing interest is allowed in such proceeding) in respect of Indebtedness described in clause
(1) above

 

unless, in the case of clauses (1) and (2), in the instrument creating
or evidencing the same or pursuant to which the same is outstanding, it is provided that such Indebtedness or other Obligations are subordinate
in right of payment to the Notes or the Guarantee of such Person, as the case may be; provided, however, that Pari Passu
Indebtedness shall not include:

 

(A)             
any obligation of such Person to the Issuer or any Subsidiary;

 

(B)             
  any liability for federal, state, local or other taxes owed or owing by such Person;

 

(C)             
 any accounts payable or other liability to trade creditors arising in the ordinary course of business; or

 

(D)             
 any Indebtedness or other Obligation of such Person which is subordinate or junior in any respect to any other Indebtedness or
other Obligation of such Person.

 

“Paying Agent” means any Person
(including the Issuer acting as Paying Agent) authorized by the Issuer to pay the principal of (and premium, if any) or interest on any
Notes on behalf of the Issuer.

 

    -32-

     

    

 

“Performance References” means
each of the Co-Issuers and/or any one or more of the Guarantors.

 

“Permitted Asset Swap” means
the concurrent purchase and sale or exchange of Related Business Assets or a combination of Related Business Assets and cash or Cash Equivalents
between the Issuer or any of its Restricted Subsidiaries and another Person.

 

“Permitted Debt” has the meaning
specified in Section 1011 of this Indenture.

 

“Permitted Holders” means each
of (a) (i) Loral, (ii) PSP, (iii) MHR Fund Management LLC, (iv) Intelsat, Ltd., (v) SES SA, (vi) Eutelsat Communications SA, (vii) EchoStar
Corporation, (viii) Dish Network Corporation, (ix) Inmarsat plc and (x) their respective Affiliates (including, for the avoidance of doubt,
any limited partnership, the general partner of which is owned by a convenience party, such as a trust for the benefit of a charity, such
general partner, any trust controlling such general partner, and such convenience party), (b) members of management of the Issuer who
are shareholders of the Issuer on the Issue Date and (c) any Person, entity or “group” (within the meaning of Section 13(d)
or 14(d) of the Exchange Act (or any successor provision)) the members of which include any of the Permitted Holders specified in clauses
(a) and (b) above (a “Permitted Holder Group”); provided that, in the case of any Permitted Holder Group, the
Permitted Holders specified in clauses (a) and (b) above collectively own, directly or indirectly, without giving effect to the existence
of such group, Equity Interests having more than 50.0% of the total voting power of the Voting Stock of the Issuer held by such Permitted
Holder Group; provided, further, that, in the case of clauses (a)(iv) through (a)(ix) (and clause (a)(x) solely with respect
to clauses (a)(iv) through (a)(ix)) of this definition, a Rating Decline shall not have occurred in connection with the transaction (including
any incurrence of Indebtedness used to finance the acquisition thereof) involving such Permitted Holder that would have resulted in a
Change of Control (but for the terms of this definition) and provided, further, that the notice referred to in the definition
of “Rating Decline” has been given to each of the Rating Agencies.

 

“Permitted Investments” means:

 

(1)               
any Investment in (x) the Issuer or any Guarantor or (y) in a Restricted Subsidiary that is not a Guarantor, in the case of this
clause (y) in an aggregate amount since the Issue Date not to exceed the greater of US$180,000,000 and 4.0% of Total Assets at the time
of such Investment, plus, to the extent such amounts are not otherwise applied to clause (B)(4) of the definition of the term
 “Applicable Amount,” the amount of any returns (including dividends, payments, interest, distributions, returns of principal,
profits on sale, repayments, income and similar amounts) on or in respect of such Investments;

 

(2)               
any Investment in cash and Cash Equivalents;

 

(3)               
any Investment by the Issuer or any Restricted Subsidiary of the Issuer in a Person that is engaged in a Similar Business, if,
as a result of such Investment:

 

(a)               
such Person becomes a Restricted Subsidiary, or

 

(b)               
such Person, in one transaction or a series of related transactions, is merged, consolidated or amalgamated with or into, or transfers
or conveys substantially all of its assets to, or is liquidated into, the Issuer or a Restricted Subsidiary;

 

    -33-

     

    

 

(4)               
 any Investment in securities or other assets not constituting cash or Cash Equivalents and received in connection with an Asset
Sale made pursuant to Section 1018, or any other disposition of assets not constituting an Asset Sale;

 

(5)               
any Investment existing on the Issue Date;

 

(6)               
any Investment acquired by the Issuer or any Restricted Subsidiary:

 

(a)               
in exchange for any other Investment or accounts receivable held by the Issuer or any such Restricted Subsidiary in connection
with or as a result of a bankruptcy, workout, reorganization or recapitalization of the Issuer or such Restricted Subsidiary of such other
Investment or accounts receivable or

 

(b)               as a result of a foreclosure by the Issuer or any Restricted Subsidiary with respect to any secured Investment or other transfer
of title with respect to any secured Investment in default.

 

(7)               
Swap Obligations permitted under clause (j) of the second paragraph of Section 1011;

 

(8)               
Investments the payment for which consists of Equity Interests of the Issuer, or any of its direct or indirect parent companies
(exclusive of Disqualified Stock); provided, however, that such Equity Interests shall not increase the amount available
for Restricted Payments under the calculation set forth in the definition of the term “Applicable Amount”;

 

(9)               
guarantees of Indebtedness permitted under Section 1011;

 

(10)           
  any transaction to the extent it constitutes an investment that is permitted and made in accordance with the provisions of the
second paragraph of Section 1013 (except transactions described in clauses (2) and (4) of such paragraph of Section 1013);

 

(11)           
  Investments consisting of purchases and acquisitions of inventory, supplies, material or equipment;

 

(12)           
  if no Default or Event of Default has occurred and is continuing, additional Investments having an aggregate Fair Market Value,
taken together with all other Investments made pursuant to this clause (12) (without giving effect to the sale of an Unrestricted Subsidiary
to the extent the proceeds of such sale do not consist of cash or marketable securities), not to exceed since the Issue Date the greater
of US$150,000,000 and 3.25% of Total Assets at the time of such Investments (with the Fair Market Value of each Investment being measured
at the time made and without giving effect to subsequent changes in value) plus, to the extent such amounts are not otherwise applied
to clause (B)(4) of the definition of the term “Applicable Amount,” the amount of any returns (including dividends, payments,
interest, distributions, returns of principal, profits on sale, repayments, income and similar amounts) on or in respect of such Investments;

 

(13)           
  advances to employees not in excess of the greater of US$10,000,000 and 0.25% of Total Assets outstanding at any one time, in the
aggregate;

 

(14)           
  loans and advances to officers, directors and employees for business-related travel expenses, moving expenses and other similar
expenses, in each case incurred in the ordinary course of business; and

 

    -34-

     

    

 

(15)           
   additional Investments, so long as on a pro forma basis after giving effect to such Investment and the incurrence of any related
Indebtedness, the Total Net Leverage Ratio for the Test Period immediately preceding such date shall be less than or equal to 3.50 to
1.00.

 

“Permitted Liens” means, with
respect to any Person:

 

(1)               
pledges or deposits by such Person under workmen’s compensation laws, unemployment insurance laws or similar legislation,
or good faith deposits in connection with bids, tenders, contracts (other than for the payment of Indebtedness) or leases to which such
Person is a party, or deposits to secure public or statutory obligations of such Person or deposits of cash or U.S. government bonds to
secure surety or appeal bonds to which such Person is a party, or deposits as security for the payment of rent, in each case incurred
in the ordinary course of business;

 

(2)               
Liens imposed by law, such as carriers’, landlords’ liens, warehousemen’s, storers’, repairers’ and
mechanics’ Liens and other similar Liens arising in the ordinary course of business, in each case for sums not yet due or being
contested in good faith by appropriate proceedings or other Liens arising out of judgments or awards against such Person with respect
to which such Person shall then be proceeding with an appeal or other proceedings for review;

 

(3)               
Liens for taxes, assessments or other governmental charges not yet due or payable or which are being contested in good faith by
appropriate proceedings;

 

(4)               
Liens in favor of issuers of performance and surety bonds or bid bonds or with respect to other regulatory requirements or letters
of credit issued pursuant to the request of and for the account of such Person in the ordinary course of its business;

 

(5)               
minor survey exceptions, minor encumbrances, easements or reservations of, or rights of others for, licenses, rights-of-way, sewers,
electric lines, telegraph and telephone lines and other similar purposes, or zoning or other restrictions as to the use of real properties
or Liens incidental, to the conduct of the business of such Person or to the ownership of its properties which were not incurred in connection
with Indebtedness and which do not in the aggregate materially adversely affect the value of said properties or materially impair their
use in the operation of the business of such Person;

 

(6)               
Liens securing Indebtedness permitted to be incurred pursuant to clause (a), (d), (i) or (m) of the definition of “Permitted
Debt”; provided that (w) in the case of such clause (a), to the extent such Liens are on Collateral, an authorized representative
of the holders of such Indebtedness shall either (1) with the Notes Collateral Agent, execute a joinder to the First Lien Intercreditor
Agreement (in the form attached thereto) as a holder of First Lien Obligations or (2) if such Liens rank junior to the Liens securing
the Notes and the Guarantees enter into a customary intercreditor agreement pursuant to which such representative shall agree with the
Notes Collateral Agent (and the representatives of other First Lien Obligations (including the Senior Credit Facilities and the Existing
Secured Notes, in each case, to the extent outstanding) that the Liens securing such Indebtedness are subordinate to the Liens securing
the Obligations under the Notes and the Note Guarantees, (x) in the case of such clause (d) such Liens shall not extend to any assets
other than the specified asset being financed (and insurance proceeds related thereto), (y) Liens on assets of Restricted Subsidiaries
that are not Guarantors shall secure Indebtedness of such Restricted Subsidiaries that are not Guarantors and (z) additions and improvements
thereon and in the case of such clause (m) such Liens shall not attach to any assets other than the specified asset being financed (including
satellite, launch and related revenue contracts and insurance proceeds);

 

    -35-

     

    

 

(7)               
 Liens existing on the Issue Date;

 

(8)               
Liens on property or shares of stock of a Person at the time such Person becomes a Subsidiary; provided, however,
such Liens are not created or incurred in connection with, or in contemplation of, such other Person becoming such a subsidiary; provided,
further, however, that such Liens may not extend to any other property owned by the Issuer or any Restricted Subsidiary;

 

(9)               
Liens on property at the time the Issuer or a Restricted Subsidiary acquired the property, including any acquisition by means of
a merger, amalgamation or consolidation with or into the Issuer or any Restricted Subsidiary; provided, however, that such
Liens are not created or incurred in connection with, or in contemplation of, such acquisition; provided, further, however,
that the Liens may not extend to any other property owned by the Issuer or any Restricted Subsidiary;

 

(10)           
   Liens placed upon the capital stock of any Restricted Subsidiary acquired in an acquisition or similar transaction permitted by
this Indenture to secure Indebtedness incurred pursuant to clause (o)(2) of the definition of “Permitted Debt” and/or Liens
placed upon the assets of any such Restricted Subsidiary so acquired to secure a guarantee by such Restricted Subsidiary of any such Indebtedness
of the Issuer or any other Restricted Subsidiary;

 

(11)           
  Liens securing Indebtedness or other obligations of a Restricted Subsidiary owing to the Issuer or another Restricted Subsidiary
permitted to be incurred in accordance with Section 1011 hereof;

 

(12)           
  Liens securing Swap Obligations (including Liens in favor of a counterparty to a swap or similar agreement on the Issuer’s
or any Restricted Subsidiary’s rights under such agreement) and Cash Management Obligations, in each case so long as the related
Indebtedness is permitted to be incurred under this Indenture;

 

(13)           
  Liens on specific items of inventory or other goods and proceeds of any Person securing such Person’s obligations in respect
of bankers’ acceptances issued or created for the account of such Person to facilitate the purchase, shipment or storage of such
inventory or other goods;

 

(14)           
  leases and subleases of real property which do not materially interfere with the ordinary conduct of the business of the Issuer
or any of the Restricted Subsidiaries;

 

(15)           
   Liens arising from Uniform Commercial Code or Personal Property Security Act financing statement filings regarding operating leases
entered into by the Issuer and its Restricted Subsidiaries in the ordinary course of business;

 

(16)           
  Liens (including Liens in connection with Sale and Lease-Back Transactions) in favor of the Co-Issuers or any Guarantor;

 

(17)           
  Liens on equipment of the Issuer or any Restricted Subsidiary granted in the ordinary course of business to a client of the Issuer
or a Restricted Subsidiary at which such equipment is located;

 

(18)              Liens
to secure any refinancing, refunding, extension, renewal or replacement (or successive refinancing, refunding, extensions, renewals
or replacements) as a whole, or in part, of any Indebtedness secured by any Lien referred to in the foregoing clauses (6), (7), (8),
(9), (10), (11), (12) and (16); provided, however, that (x) such new Lien shall be limited to all or part of the same
property that secured the original Lien (plus improvements on such property), (y) the Indebtedness secured by such Lien at
such time is not increased to any amount greater than the sum of (A) the outstanding principal amount or, if greater, committed
amount of the Indebtedness described under clauses (6), (7), (8), (9), (10), (11), (12) and (16) at the time the original Lien
became a Permitted Lien under this Indenture, and (B) an amount necessary to pay any fees and expenses, including premiums, related
to such refinancing, refunding, extension, renewal or replacement and (z) if the applicable original Lien extended to any assets
securing the Secured Obligations, such new Lien may be incurred in respect of such collateral only on terms not materially less
favorable to the Holders, as determined in good faith by the Issuer, than the terms and conditions of the applicable original
Lien;

 

    -36-

     

    

 

(19)           
deposits made in the ordinary course of business to secure liability to insurance carriers;

 

(20)           
reservations, limitations, provisos and conditions expressed in any original grant from the Canadian Crown or other grants of real
or immovable property, or interests therein;

 

(21)           
the right reserved to or vested in any Governmental Authority by the terms of any lease, license, franchise, grant or permit acquired
by the Issuer or any of its Restricted Subsidiaries or by any statutory provision to terminate any such lease, license, franchise, grant
or permit, or to require annual or other payments as a condition to the continuance thereof;

 

(22)           
security given to a public utility or any Governmental Authority when required by such utility or authority in connection with
the operations of the Issuer or any of its Restricted Subsidiaries in the ordinary course of its business;

 

(23)           
subdivision agreements, site plan control agreements, development agreements, servicing agreements, cost sharing, reciprocal and
other similar agreements with municipal and other Governmental Authorities affecting the development, servicing or use of a property;
provided the same are complied with in all material respects except as such non-compliance does not interfere in any material respect
as determined in good faith by the Issuer with the business of the Issuer and its Subsidiaries taken as a whole;

 

(24)           
facility cost sharing, servicing, reciprocal or other similar agreements related to the use and/or operation of a property in the
ordinary course of business, provided the same are complied with in all material respects;

 

(25)           
Liens in favor of customers on Satellites or portions thereof (including insurance proceeds relating thereto) or the satellite
construction or acquisition agreement being related thereto in the event such Satellites or portions thereof are being constructed or
acquired at the request of one or more customers to secure repayment of deposits and related amounts;

 

(26)            restrictions
in condosat agreements or revenue agreements (as any such condosat agreements or revenue agreements may from time to time be
modified, supplemented, amended, renewed or replaced, the “Subject Agreements”) relating to transponders that
restrict sales, dispositions, leases or security interests on satellites to any third party purchaser, lessee or secured party
unless such purchaser or lessee of such satellite agrees to (or, in the case of a security interest in such satellite, the secured
party agrees pursuant to a non-disturbance agreement that in connection with the enforcement of any such security interest or the
realization upon any such security interest, such secured party agrees that, prior to or concurrently with the transfer becoming
effective, the person to whom the satellite bus shall be transferred shall agree that such transferee shall) be subject to the terms
of the applicable Subject Agreement and provided that, with respect to any Subject Agreement entered into after the Issue
Date, the Issuer and/or the applicable Restricted Subsidiaries shall have used their commercially reasonable efforts in negotiating
such Subject Agreement so that such Subject Agreement does not contain such restrictions;

 

    -37-

     

    

 

(27)           
deemed trusts created by operation of law in respect of amounts which are (i) not yet due and payable, (ii) immaterial, (iii) being
contested in good faith and by appropriate proceedings for which appropriate reserves have been established in accordance with GAAP or
(iv) unpaid due to inadvertence after exercising due diligence;

 

(28)           
[reserved];

 

(29)           
other Liens so long as the aggregate principal amount of the obligations so secured does not exceed the greater of US$150,000,000
and 3.25% of Total Assets at any one time outstanding;

 

(30)           
ground leases in respect of real property on which facilities owned or leased by the Issuer or any of its Subsidiaries are located;

 

(31)           
Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection
with the importation of goods;

 

(32)           
any interest or title of a lessor or secured by a lessor’s interest under any lease permitted by this Indenture (other than
in respect of a Finance Lease Obligation), together with all Liens of whatsoever nature permitted or created by such lessor or any fee
owner of the property or any predecessor in title, including in connection with any Sale and Lease-Back Transaction;

 

(33)           
Liens on goods the purchase price of which is financed by a documentary letter of credit issued for the account of the Issuer or
any of its Subsidiaries; provided that such Lien secures only the obligations of the Issuer or such Subsidiaries in respect of
such letter of credit to the extent permitted under Section 1011; and

 

(34)           
Liens created in the ordinary course of business in favor of banks and other financial institutions over credit balances of any
bank accounts of the Issuer and the Restricted Subsidiaries held at such banks or financial institutions, as the case may be, to facilitate
the operation of cash pooling and/or interest set-off arrangements in respect of such bank accounts in the ordinary course of business.

 

For purposes of this definition, the term “Indebtedness”
shall be deemed to include interest on such Indebtedness.

 

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

 

“Personal Property Security Act”
and “PPSA” means the Personal Property Security Act (Ontario) and any successor or replacement legislation thereto,
together with the personal property security laws or laws relating to movable property applicable in any province or territory of Canada.

 

    -38-

     

    

 

“Predecessor Note” of any particular
Note means every previous Note evidencing all or a portion of the same debt as that evidenced by such particular Note; and, for the purposes
of this definition, any Note authenticated and delivered under Section 305 in exchange for a mutilated Note or in lieu of a lost, destroyed
or stolen Note shall be deemed to evidence the same debt as the mutilated, lost, destroyed or stolen Note.

 

“primary obligor” has the meaning
provided in the definition of the term “Guarantee Obligations.”

 

“Prospective Purchaser” has
the meaning specified in Section 1009 of this Indenture.

 

“Protected Purchaser” has the
meaning specified in Section 305 of this Indenture.

 

“PSP” means Public Sector Pension
Investment Board, a Canadian federal special Act corporation.

 

“Public Debt” means any Indebtedness
consisting of bonds, debentures, notes or other similar debt securities issued in (a) a public offering registered under the Securities
Act or (b) a private placement to institutional investors that is underwritten for resale in accordance with Rule 144A or Regulation S
of the Securities Act, whether or not it includes registration rights entitling the holders of such debt securities to registration thereof
with the SEC. The term “Public Debt” (i) shall not include the Initial Notes (or any Additional Notes) and (ii) for the avoidance
of doubt, shall not be construed to include any Indebtedness issued to institutional investors in a direct placement of such Indebtedness
that is not underwritten by an intermediary (it being understood that, without limiting the foregoing, a financing that is distributed
to not more than ten Persons (provided that multiple managed accounts and affiliates of any such Persons shall be treated as one
Person for the purposes of this definition) shall be deemed not to be underwritten), or any Indebtedness under the Senior Credit Facilities,
commercial bank or similar Indebtedness, Finance Lease Obligation or recourse transfer of any financial asset or any other type of Indebtedness
Incurred in a manner not customarily viewed as a “securities offering.”

 

“Purchase Date” has the meaning
specified in Section 1110(b) of this Indenture.

 

“Qualified IPO” means a public
offering (other than a public offering pursuant to a registration statement on Form S-8) of the Voting Stock of the Issuer or any other
direct or indirect parent entity thereof pursuant to an effective registration statement filed with the SEC in accordance with the Securities
Act or a final prospectus for which a receipt has been issued by one or more securities commissions or regulatory authorities in the provinces
or territories of Canada (in each case, whether alone or in connection with a secondary public offering), and also includes any transaction
whereby the Issuer or any other direct or indirect parent entity thereof becomes a reporting issuer in any province or territory in Canada.

 

“Qualified Proceeds” means the
Fair Market Value of assets that are used or useful in, or Capital Stock of any Person engaged in, a Similar Business.

 

“Qualifying Trustee” has the
meaning specified in Section 1305 of this Indenture.

 

“rate(s) of exchange” has the
meaning specified in Section 118 of this Indenture.

 

“Rating Agency” means Moody’s,
S&P and Fitch or if Moody’s, S&P and/or Fitch shall not make a rating on the Notes (or the applicable security) publicly
available, a nationally recognized statistical rating agency or agencies, as the case may be, selected by the Issuer (in the case of
the Notes, as certified by a Board Resolution) which shall be substituted for Moody’s, S&P and/or Fitch, as the case may be.

 

    -39-

     

    

 

“Rating Decline” means the occurrence
on any date from and after the date of the public notice by the Issuer or another Person seeking to effect a transaction that would be
a Change of Control (but for the definition of “Permitted Holder”) or an arrangement that, in the good faith judgment of the
Issuer, would be expected to result in a Change of Control (but for the definition of “Permitted Holder”) until the end of
the 30-day period following such public notice or the abandonment of the proposed transaction (which period shall be extended an additional
30 days if the rating of the Notes is under publicly announced consideration for possible downgrade by any Rating Agency at the end of
the initial 30-day period) of: (1) a decline in the rating of the Notes by any Rating Agency by at least one notch in the gradation of
the rating scale (e.g., + or – for S&P or 1, 2 and 3 for Moody’s) or of the credit outlook with respect thereto from such
Rating Agency’s rating of the Notes; or (2) withdrawal by any Rating Agency of such Rating Agency’s rating of the Notes.

 

“Record Date” has the meaning
specified in Section 301 of this Indenture.

 

“Redemption Date,” when used
with respect to any Note to be redeemed, in whole or in part, means the date fixed for such redemption by or pursuant to Section 1101
of this Indenture.

 

“Redemption Price,” when used
with respect to any Note to be redeemed, means the price at which it is to be redeemed pursuant to this Indenture.

 

“Refinancing Indebtedness” has
the meaning specified in Section 1011(n) of this Indenture.

 

“Refunding Capital Stock” has
the meaning specified in Section 1010 of this Indenture.

 

“Reinvestment Period” has the
meaning specified in Section 1018 of this Indenture.

 

“Related Business Assets” means
assets (other than cash or Cash Equivalents) used or useful in a Similar Business; provided that any assets received by the Issuer
or a Restricted Subsidiary in exchange for assets transferred by the Issuer or a Restricted Subsidiary shall not be deemed to be Related
Business Assets if they consist of securities of a Person, unless upon receipt of the securities of such Person, such Person would become
a Restricted Subsidiary.

 

“Relevant Taxing Jurisdiction”
has the meaning specified in Section 1022 of this Indenture.

 

“Replacement Commitment” has
the meaning specified in Section 1018 of this Indenture.

 

“Responsible Officer,” when
used with respect to the Trustee, any officer assigned to the Corporate Trust Division Corporate Finance Unit (or any successor division
or unit) of the Trustee located at the Corporate Trust Office of the Trustee, who shall have direct responsibility for the administration
of this Indenture, and for the purposes of Section 601(c)(2) and Section 602 shall also include any other officer of the Trustee to whom
any corporate trust matter is referred because of such officer’s knowledge of and familiarity with the particular subject.

 

“Restricted Investment” means
an Investment other than a Permitted Investment.

 

“Restricted Payments” has the
meaning specified in Section 1010 of this Indenture.

 

    -40-

     

    

 

“Restricted Subsidiary” means,
at any time, any direct or indirect Subsidiary of the Issuer that is not then an Unrestricted Subsidiary; provided, however,
that upon the occurrence of an Unrestricted Subsidiary ceasing to be an Unrestricted Subsidiary, such Subsidiary shall be included in
the definition of “Restricted Subsidiary.”

 

“Retired Capital Stock” has
the meaning specified in Section 1010 of this Indenture.

 

“Reversion Date” has the meaning
specified in Section 1019 of this Indenture.

 

“ROF” has the meaning specified
in Section 1408(x) of this Indenture.

 

“S&P” means Standard &
Poor’s Ratings Group, Inc. and any successor to its rating agency business.

 

“Sale and Lease-Back Transaction”
means any arrangement with any Person providing for the leasing by the Issuer or any Restricted Subsidiary of any real or tangible personal
property, which property has been or is to be sold or transferred by the Issuer or such Restricted Subsidiary to such Person in contemplation
of such leasing.

 

“Satellite” means any satellite
owned by, leased to or for which a contract to purchase has been entered into by, the Issuer or any of its Subsidiaries, whether such
satellite is in the process of manufacture, has been delivered for launch or is in orbit (whether or not in operational service).

 

“Satellite Manufacturer” means,
with respect to any Satellite, the prime contractor and manufacturer of such Satellite.

 

“Satellite Purchase Agreement”
means, with respect to any Satellite, the agreement between the applicable Satellite Purchaser and either (i) the applicable Satellite
Manufacturer relating to the manufacture, testing and delivery of such Satellite or (ii) the applicable seller relating to the purchase
and sale of such Satellite.

 

“Satellite Purchaser” means
the Issuer or a Restricted Subsidiary that is a party to a Satellite Purchase Agreement or Launch Services Agreement, as the case may
be.

 

“Screened Affiliate” means any
Affiliate of a Holder (i) that makes investment decisions independently from such Holder and any other Affiliate of such Holder that is
not a Screened Affiliate, (ii) that has in place customary information screens between it and such Holder and any other Affiliate of such
Holder that is not a Screened Affiliate and such screens prohibit the sharing of information with respect to the Co-Issuers or their Subsidiaries,
(iii) whose investment policies are not directed by such Holder or any other Affiliate of such Holder that is acting in concert with such
Holder in connection with its investment in the Notes, and (iv) whose investment decisions are not influenced by the investment decisions
of such Holder or any other Affiliate of such Holder that is acting in concert with such Holders in connection with its investment in
the Notes.

 

“SEC” means the Securities and
Exchange Commission, or any successor thereto.

 

“Secured Parties” means the
Trustee, any of the Notes Collateral Agents, as applicable, and the Holders of the Notes.

 

“Secured Indebtedness” means
any Indebtedness secured by a Lien on property or assets of the Issuer or a Restricted Subsidiary.

 

    -41-

     

    

 

“Securities Accounts” means,
collectively, with respect to each of the Co-Issuers and each Guarantor, all “securities accounts” as such term is defined
in the UCC.

 

“Securities Act” means the Securities
Act of 1933, as amended and the rules and regulations of the SEC promulgated thereunder.

 

“Security Documents” means the
First Lien Intercreditor Agreement and each of the security documents pursuant to which the Co-Issuers and the Guarantors grant liens
in favor of the applicable Notes Collateral Agent to secure obligations under this Indenture and the Notes and any other intercreditor
agreement entered into pursuant to this Indenture.

 

“SEDAR” has the meaning specified
in Section 1009 of this Indenture.

 

“Senior Credit Facilities” means
the Credit Agreement dated as of March 28, 2012 (as amended by that certain Amendment No. 1 thereto, dated as of April 2, 2013, as further
amended by that certain Amendment No. 2 thereto, dated as of November 17, 2016, as further amended by that certain Amendment No. 3 thereto,
dated as of December 19, 2016, as further amended by that certain Amendment No. 4 thereto, dated as of February 1, 2017, as further amended
by that certain Amendment No. 5 thereto, dated as of April 26, 2018 and as further amended by that certain Amendment No. 6 thereto, dated
as of December 6, 2019) by and among the Co-Issuers, the guarantors party thereto, the lenders party thereto in their capacities as lenders
thereunder, JPMorgan Chase Bank, N.A, as Administrative Agent and Collateral Agent, and the other parties thereto, including any guarantees,
collateral documents, instruments and agreements executed in connection therewith, and any amendments, waivers, supplements, modifications,
extensions, renewals, restatements, refundings or other restructuring thereof and any indentures or credit facilities or commercial paper
facilities with banks or other institutional lenders or investors that replace, refund, refinance or otherwise restructure all or any
part of the loans, notes, other credit facilities or commitments thereunder or any successor or replacement loans, notes, other credit
facilities or commitments thereunder, including any such replacement, refunding, refinancing or other restructuring facility or indenture
that increases the amount borrowable thereunder, alters the maturity thereof or alters the parties thereto.

 

“Senior Credit Facilities Collateral Agent”
means JPMorgan Chase Bank, N.A., as collateral agent under the Senior Credit Facilities, together with its permitted successors.

 

“Senior Secured Net Leverage Ratio”
means, as of any date of determination, the ratio of (a) Consolidated Total Secured Debt as of the last day of the Test Period most recently
ended on or prior to such date of determination, minus up to US$100,000,000 of cash and Cash Equivalents of the Issuer and its
Restricted Subsidiaries to the extent not designated as restricted cash on the consolidated balance sheet of the Issuer and its Restricted
Subsidiaries in accordance with GAAP to (b) Consolidated EBITDA for such Test Period.

 

“Shared Collateral” shall have
the meaning given to such term in the First Lien Intercreditor Agreement.

 

“Short Derivative Instrument”
means a Derivative Instrument (i) the value of which generally decreases, and/or the payment or delivery obligations under which generally
increase, with positive changes to the Performance References and/or (ii) the value of which generally increases, and/or the payment or
delivery obligations under which generally decrease, with negative changes to the Performance References.

 

    -42-

     

    

 

“Significant Subsidiary” means
any Restricted Subsidiary that would be a “significant subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated
pursuant to the Securities Act, as such regulation is in effect on the Issue Date.

 

“Similar Business” means any
business conducted or proposed to be conducted by the Issuer and its Restricted Subsidiaries on the Issue Date or any business that is
similar, reasonably related, incidental or ancillary thereto.

 

“Skynet” means Loral Skynet
Corporation, a Delaware corporation.

 

“Sold Entity or Business” has
the meaning provided in the definition of the term “Consolidated EBITDA.”

 

“Specified Transaction” means,
with respect to any period, any Investment, Change of Control for which a Change of Control Offer has been made (if required), sale, transfer
or other disposition of assets or property, incurrence, refinancing, prepayment, redemption, repurchase, defeasance, acquisition similar
payment, extinguishment, retirement or repayment of Indebtedness, distribution, dividend, Subsidiary designation, or other event that
by the terms of the Indenture requires pro forma compliance with a test or covenant hereunder or requires such test or covenant to be
calculated on a pro forma basis and shall include any restructuring initiative, cost saving initiative or other similar strategic initiative
of the Issuer or any of its Restricted Subsidiaries after the Issue Date.

 

“Spectrum Repurposing” means
the diminution of the Issuer or any Restricted Subsidiary’s rights to the use of orbital spectrum or market access rights, directly
or indirectly, by any Governmental Authority, including, without limitation, Issuer or its Restricted Subsidiary’s FCC Licenses
or ISED Canada Authorizations, directly or indirectly, as result of the FCC proceeding Expanding Flexible Use of the 3.7-4.2 GHz Band,
GN Docket No. 18-122, Order and Notice of Proposed Rulemaking, 33 FCC Rcd 6915 (2018) or the ISED Canada Consultation on Revisions
to the 3500 MHz Band to Accommodate Flexible Use and Preliminary Consultation on Changes to the 3800 MHz Band, ISED Canada’s
Decision on Revisions to the 3500 MHz Band to Accommodate Flexible Use and Decisions on Changes to the 3800 MHz Band, or any similar
proceedings.

 

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

 

“Subject Agreements” has the
meaning provided in the definition of the term “Permitted Liens.”

 

“Subject
Property” means, collectively, (1) any contract, license, lease, agreement, permit, instrument, security or
franchise agreement or other document (a “Contract”) to which the Issuer or any Restricted Subsidiary is a party
or any asset, right or property (and accessions and additions to such assets, rights or property, replacements and products thereof
and customary security deposits, related Contract rights and payment intangibles) of the Issuer or a Restricted Subsidiary that is
subject to a purchase money security interest, Finance Lease Obligation, similar arrangement or Contract and any of its rights or
interests thereunder, in each case only to the extent and for so long as the grant of such security interest or Lien in such
Contract or such asset, right or property is prohibited by or constitutes or results or would constitute or result in the
invalidation, violation, breach, default, forfeiture or unenforceability of any right, title or interest of the Issuer or such
Restricted Subsidiary under such Contract or purchase money, capital lease or similar arrangement or Contract or creates or would
create a right of termination in favor of any other party thereto (other than the Issuer or any Wholly-Owned Restricted Subsidiary),
or requires consent not obtained of any third party (it being understood and agreed that the Issuer and each Restricted Subsidiary
shall not be required to seek any such consent), other than the proceeds thereof the assignment of which is expressly deemed
effective under the UCC or any similar applicable laws notwithstanding such prohibition, (2) any Governmental Authority licenses or
state or local Governmental Authority franchises, charters or authorizations, to the extent the grant of a security interest in any
such licenses, franchise, charter or authorization would be prohibited or restricted by such license, franchise, charter or
authorization or (3) any property to the extent that such grant of a security interest would result in the forfeiture of the
Issuer’s or any Restricted Subsidiary’s rights in the property (including any legally effective prohibition or
restriction).

 

    -43-

     

    

 

“Subordinated Indebtedness”
means:

 

(1)               
with respect to any Co-Issuer, any Indebtedness of such Co-Issuer which is by its terms subordinated in right of payment to the
Notes, and

 

(2)               
with respect to any Guarantor, any Indebtedness of such Guarantor which is by its terms subordinated in right of payment to the
Guarantee of such Guarantor.

 

“Subsidiary” means, with respect
to any Person,

 

(1)               
any corporation, association, or other business entity (other than a partnership, joint venture, limited liability company or similar
entity) of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any
contingency) to vote in the election of directors, managers or trustees thereof is at the time of determination owned or controlled, directly
or indirectly, by such Person or one or more of the other Subsidiaries of that Person or a combination thereof, and

 

(2)               
any partnership, joint venture, limited liability company or similar entity of which:

 

(x)               
more than 50% of the capital accounts, distribution rights, total equity and voting interests or general or limited partnership
interests, as applicable, are owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of
that Person or a combination thereof whether in the form of membership, general, special or limited partnership or otherwise, and

 

(y)               
such Person or any Restricted Subsidiary of such Person is a controlling general partner or otherwise controls such entity.

 

“Successor Company” has the
meaning specified in Section 801(1) of this Indenture.

 

“Successor Person” has the meaning
specified in Section 802 of this Indenture.

 

“Suspended Covenants” has the
meaning specified in Section 1019 of this Indenture.

 

“Suspension Date” has the meaning
specified in Section 1019 of this Indenture.

 

“Suspension Period” has the
meaning specified in Section 1019 of this Indenture.

 

    -44-

     

    

 

 

“Swap Agreement” means any
agreement with respect to any swap, forward, future or derivative transaction or option or similar agreement involving, or settled
by reference to, one or more rates, currencies, commodities, equity or debt instruments or securities, or economic, financial or
pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these
transactions; provided that no phantom stock or similar plan providing for payments only on account of services provided by
current or former directors, officers, employees or consultants of the Issuer or any of its Subsidiaries shall be a Swap
Agreement.

 

“Swap Obligations” means obligations
under or with respect to Swap Agreements.

 

“Tax” means any tax, duty, levy,
impost, assessment or similar governmental charge (including penalties, interest and any other liabilities related thereto) and, for the
avoidance of doubt, including any withholding or deduction for or on account of any of the foregoing.

 

“Taxing
Authority” means any government or political subdivision or territory or possession of any government or any authority or agency
therein or thereof having power to tax.

 

“Test Period” means, on any
date of determination, the period of four consecutive fiscal quarters of the Issuer then most recently ended (taken as one accounting
period) for which internal financial statements are available.

 

“The SpaceConnection, Inc.”
means The SpaceConnection, Inc., a Nevada corporation, and its successors.

 

“Total Assets” means the total
assets of the Issuer and the Restricted Subsidiaries, as shown on the most recent balance sheet of the Issuer and its Restricted Subsidiaries
provided to the Trustee and Holders, in conformity with GAAP.

 

“Total Net Leverage Ratio” means,
as of any date of determination, the ratio of (a) Consolidated Total Indebtedness as of the last day of the Test Period most recently
ended on or prior to such date of determination, minus up to US$100,000,000 of cash and Cash Equivalents of the Issuer and its
Restricted Subsidiaries to the extent not designated as restricted cash on the consolidated balance sheet of the Issuer and its Restricted
Subsidiaries in accordance with GAAP to (b) Consolidated EBITDA for such Test Period. As of the Issue Date, the Total Net Leverage Ratio
will be calculated using a Canadian Dollar equivalent for Consolidated Total Indebtedness. If the Issuer changes its functional currency
to U.S. dollars, the Total Net Leverage Ratio will be calculated using a U.S. dollar equivalent for Consolidated Total Indebtedness.

 

“Transaction Expenses” means
any fees or expenses incurred or paid by the Issuer or any of its Subsidiaries in connection with the Transactions, the Initial Notes,
the Existing Notes, the Senior Credit Facilities and the related loan documents and the transactions contemplated thereby.

 

“Transactions” means, collectively,
(a) the issuance of the Initial Notes, (b) the consummation of any other transactions in connection with the foregoing and (c) the payment
of all fees and expenses to be paid on or prior to the Issue Date and owing in connection with the foregoing.

 

“Treasury Rate” means, as
of any the date of any redemption notice, the weekly average for each Business Day of the most recent week that has ended at least
two Business Days prior to the Redemption Date of the yield to maturity at the time of computation of United States Treasury
securities with a constant maturity (as compiled and published in the most recent Federal Reserve Statistical Release H.15 (or, if
such Federal Reserve Statistical Release is no longer published, any publicly available source of similar market data)) most nearly
equal to the period from the date of the notice of redemption to the First Call Date; provided, however, that if the
period from the date of the notice of redemption to the First Call Date is less than one year, the weekly average yield on actually
traded United States Treasury securities adjusted to a constant maturity of one year will be used.

 

    -45-

     

    

 

“Trustee” means The Bank of
New York Mellon, a New York banking corporation, until a successor replaces it and, thereafter, means the successor.

 

“UCC” means the Uniform Commercial
Code as in effect in any applicable jurisdiction.

 

“Uniform Commercial Code” means
the New York Uniform Commercial Code as in effect from time to time.

 

“Unrestricted Subsidiary” means:

 

(1)            any Subsidiary of the Issuer (other than any Co-Issuer) that at the time of determination is an Unrestricted Subsidiary (as designated
by the Board of Directors of the Issuer, as provided below);

 

(2)            the LEO Entity and its subsidiaries and Telesat Technology Corporation and its subsidiaries; provided that any such Subsidiary
shall cease to be an Unrestricted Subsidiary if the Board of Directors designates such Subsidiary as a Restricted Subsidiary as set forth
below; and

 

(3)            any Subsidiary of an Unrestricted Subsidiary.

 

The Board of Directors of the Issuer may designate
any Subsidiary of the Issuer (including any existing Subsidiary and any newly acquired or newly formed Subsidiary) to be an Unrestricted
Subsidiary unless such Subsidiary or any of its Subsidiaries owns any Equity Interests or Indebtedness of, or owns or holds any Lien on,
any property of, the Issuer or any of its Subsidiaries (other than any Subsidiary of the Subsidiary to be so designated), provided
that

 

(a)            any Subsidiary to be so designated must be an entity of which shares of the capital stock or other equity interests (including
partnership interests) entitled to cast at least a majority of the votes that may be cast by all shares or equity interests having ordinary
voting power for the election of directors or other governing body are owned, directly or indirectly, by the Issuer,

 

(b)            such designation complies with Section 1010, and

 

(c)            each of:

 

(1)               
the Subsidiary to be so designated, and

 

(2)               
its Subsidiaries.

 

has not at the time of designation, and does not thereafter,
create, incur, issue, assume, guarantee or otherwise become directly or indirectly liable with respect to any Indebtedness pursuant to
which the lender has recourse to any of the assets of the Issuer or any Restricted Subsidiary.

 

The Board of Directors of the Issuer may designate
any Unrestricted Subsidiary to be a Restricted Subsidiary; provided that (1) immediately after giving effect to such designation
no Default or Event of Default shall have occurred and be continuing and (2) the Issuer could incur at least US$1.00 of additional Indebtedness
pursuant to the Total Net Leverage Ratio test described in the first paragraph of Section 1011.

 

    -46-

     

    

 

Any such designation by the Board of Directors
of the Issuer shall be notified by the Issuer to the Trustee by promptly filing with the Trustee a copy of the Board Resolution giving
effect to such designation and an Officer’s Certificate certifying that such designation complied with the foregoing provisions.

 

“Unrestricted Subsidiary Support Transactions”
means transactions, agreements and arrangements entered into and performed by (i) the Issuer and any of its Restricted Subsidiaries and
(ii) any Unrestricted Subsidiary pursuant to which the Issuer and any of its Restricted Subsidiaries provide a common salesforce (including
cross-selling) and/or selling, general and administrative services, including employment and related services, to such Unrestricted Subsidiary,
in each case, at a cost of not less than 105% of the cost incurred by the Issuer or the relevant Restricted Subsidiary related to such
service.

 

“U.S. Person” means a U.S. Person
as defined in Rule 902(k) promulgated under the Securities Act.

 

“Vice President,” when used
with respect to the Issuer, the Co-Issuer or the Trustee, means any vice president, whether or not designated by a number or a word or
words added before or after the title “vice president.”

 

“Voting Stock” of any Person
as of any date means the Capital Stock of such Person that is at the time entitled to vote in the election of the Board of Directors of
such Person; provided, however, that, with respect to the Issuer, the term “Voting Stock” shall not include
preferred shares of the Issuer that have a nominal dividend and return of capital and vote only for the election of directors, for so
long as such shares are held and voted by directors nominated by a committee consisting of members of the Board of Directors of the Issuer
or by PSP or by Loral.

 

“Weighted Average Life to Maturity”
means, when applied to any Indebtedness at any date, the number of years obtained by dividing (a) the sum of the products obtained by
multiplying (i) the amount of each then remaining installment, sinking fund, serial maturity or other required payments of principal,
including payment at final maturity, in respect thereof, by (ii) the number of years (calculated to the nearest one-twelfth) that will
elapse between such date and the making of such payment; by (b) the then outstanding principal amount of such Indebtedness.

 

“Wholly-Owned Restricted Subsidiary”
means a Restricted Subsidiary that is a direct or indirect Wholly-Owned Subsidiary of the Issuer.

 

“Wholly-Owned Subsidiary” of
any Person means a Subsidiary of such Person, 100% of the outstanding Capital Stock or other ownership interests of which (other than
directors’ qualifying shares) shall at the time be owned by such Person or by one or more Wholly-Owned Subsidiaries of such Person
or would be owned upon exchange of all outstanding securities of such Person in accordance with their terms.

 

Section
103.            Compliance
Certificates and Opinions. Upon any application or request by the Co-Issuers to the Trustee or any Notes Collateral Agent to
take or refrain from taking any action under this Indenture, the Co-Issuers shall furnish to the Trustee or such applicable Notes
Collateral Agent an Officer’s Certificate stating that all conditions precedent, if any, provided for in this Indenture
(including any covenant compliance which constitutes a condition precedent) relating to the proposed action have been complied with
and, other than in connection with the issuance, authentication and delivery of the Initial Notes on the Issue Date and the addition
of a new Guarantor or parent guarantor, an Opinion of Counsel stating that in the opinion of such counsel all such conditions
precedent, if any, have been complied with, except that in the case of any such application or request as to which the furnishing of
such documents is specifically required by any provision of this Indenture relating to such particular application or request, no
additional certificate or opinion need be furnished.

 

    -47-

     

    

 

Every certificate or opinion with respect to compliance
with a condition or covenant provided for in this Indenture (other than pursuant to Section 1008) shall include:

 

(1)               
a statement that each individual signing such certificate or opinion has read such covenant or condition and the definitions herein
relating thereto;

 

(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 each such individual, he or she has made such examination or investigation as is necessary
to enable him or her to express an informed opinion as to whether or not such covenant or condition has been complied with; and

 

(4)               
a statement as to whether, in the opinion of each such individual, such condition or covenant has been complied with.

 

The Trustee and each Notes Collateral Agent shall
have no responsibility or liability with respect to any matters that would have been covered by the Opinion of Counsel that are not permitted
by this Section 103.

 

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

 

Any certificate or opinion of an officer of the
Issuer or Co-Issuer, as the case may be, may be based, insofar as it relates to legal matters, upon a certificate or opinion of, or representations
by, counsel. Any such certificate or opinion may be based, insofar as it relates to factual matters, upon a certificate or opinion of,
or representations by, an officer or officers of the Issuer or Co-Issuer, as the case may be, stating that the information with respect
to such factual matters is in the possession of the Issuer or Co-Issuer, as the case may be.

 

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

 

Section
105.         Acts
of Holders.

 

(a)                Any
request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken
by Holders may be embodied in and evidenced by one or more instruments of substantially similar tenor signed by such Holders in
person or by agents duly appointed in writing; and, except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments are delivered to the Trustee and, where it is hereby expressly required, to the
Issuer. Such instrument or instruments (and the action embodied therein and evidenced thereby) are herein sometimes referred to as
the “Act” of the Holders signing such instrument or instruments. Proof of execution of any such instrument or of a
writing appointing any such agent shall be sufficient for any purpose of this Indenture and conclusive in favor of the Trustee and
the Issuer, if made in the manner provided in this Section 105.

 

    -48-

     

    

 

(b)               
The fact and date of the execution by any Person of any such instrument or writing may be proved by the affidavit of a witness
of such execution or by a certificate of a notary public or other officer authorized by law to take acknowledgments of deeds, certifying
that the individual signing such instrument or writing acknowledged to him the execution thereof. Where such execution is by a signer
acting in a capacity other than his individual capacity, such certificate or affidavit shall also constitute sufficient proof of authority.
The fact and date of the execution of any such instrument or writing, or the authority of the Person executing the same, may also be proved
in any other manner that the Trustee deems sufficient.

 

(c)               
The principal amount and serial numbers of Notes held by any Person, and the date of holding the same, shall be proved by the Note
Register.

 

(d)               
If the Issuer shall solicit from the Holders any request, demand, authorization, direction, notice, consent, waiver or other Act,
the Issuer may, at its option, fix in advance a record date for the determination of Holders entitled to give such request, demand, authorization,
direction, notice, consent, waiver or other Act, but the Issuer shall have no obligation to do so. Such record date shall be a date not
earlier than the date 30 days prior to the first solicitation of Holders generally in connection therewith and not later than the date
such solicitation is completed. If such a record date is fixed, such request, demand, authorization, direction, notice, consent, waiver
or other Act may be given before or after such record date, but only the Holders of record at the close of business on such record date
shall be deemed to be Holders for the purposes of determining whether Holders of the requisite proportion of Outstanding Notes have authorized
or agreed or consented to such request, demand, authorization, direction, notice, consent, waiver or other Act, and for that purpose the
Outstanding Notes shall be computed as of such record date; provided that no such authorization, agreement or consent by the Holders
on such record date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later
than eleven months after the record date. Any request, demand, authorization, direction, notice, consent, waiver or other Act of the Holder
of any Note shall bind every future Holder of the same Note and the Holder of every Note issued upon the registration of transfer thereof
or in exchange therefor or in lieu thereof in respect of anything done, omitted or suffered to be done by the Trustee, the Co-Issuers
or any Guarantor in reliance thereon, whether or not notation of such action is made upon such Note.

 

Section
106.           
Notices, Etc., to Trustee, Company, Any Guarantor and Agent. Any request, demand, authorization, direction, notice,
consent, waiver or Act of Holders or other document provided or permitted by this Indenture to be made upon, given or furnished to, or
filed with,

 

(1)               
The Trustee or the Notes Collateral Agent by any Holder or by the Co-Issuers or any Guarantor shall be sufficient for every purpose
hereunder if made, given, furnished or filed in writing (via facsimile, email in PDF format, mailed, first-class postage prepaid, or delivered
by recognized overnight courier) to or with the Trustee at The Bank of New York Mellon, 240 Greenwich Street, Floor 7 East, New York,
New York, 10286, Attention: Corporate Trust Division — Corporate Finance Unit;

 

(2)                TMF
Brasil Administração e Gestão de Ativos Ltda. as an On-Shore Notes Collateral Agent by any Holder or by the
Co-Issuers or any Guarantor shall be sufficient for every purpose hereunder if made, given, furnished or filed in writing (via
facsimile, email in PDF format, mailed, first-class postage prepaid, or delivered by recognized overnight courier) to or with such
On-Shore Notes Collateral Agent at Al Caiapós, No. 243, Conjunto A, Sala 1, Tamboré, Zip Code 06460110, City of
Barueri, São Paulo, Attention: Danilo Oliveira/Joanna Viali;

 

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(3)               
TMF Trustee Limited as an On-Shore Notes Collateral Agent by any Holder or by the Co-Issuers or any Guarantor shall be sufficient
for every purpose hereunder if made, given, furnished or filed in writing (via facsimile, email in PDF format, mailed, first-class postage
prepaid, or delivered by recognized overnight courier) to or with such On-Shore Notes Collateral Agent at 20 Farringdon Street, London,
8th floor, EC4A 4AB, UK, Attention: Attention: Corporate Trust; or

 

(4)               
either of the Co-Issuers or any Guarantor by the Trustee, by any Notes Collateral Agent or by any Holder shall be sufficient for
every purpose hereunder (unless otherwise herein expressly provided) if made, given, furnished or delivered in writing (via facsimile,
email in PDF format, mailed, first-class postage prepaid, or delivered by recognized overnight courier) to the Issuer addressed to it
at the address of its principal office specified in the first paragraph, Attention: General Counsel, or at any other address previously
furnished in writing to the Trustee by the Issuer or such Guarantor.

 

A copy of all notices to any Agent shall be sent
to the Trustee at the address shown above. Any Person may change its address by giving notice of such change as set forth herein.

 

Section
107.           
Notice to Holders; Waiver. Where this Indenture provides for notice of any event to Holders by the Co-Issuers or
the Trustee, such notice shall be sufficiently given (unless otherwise herein expressly provided) if in writing and delivered electronically
or mailed, first-class postage prepaid, to each Holder affected by such event, at such Holder’s address as it appears in the Note
Register, not later than the latest date, and not earlier than the earliest date, prescribed for the giving of such notice. In any case
where notice to Holders is given by mail, neither the failure to mail such notice, nor any defect in any notice so mailed, to any particular
Holder shall affect the sufficiency of such notice with respect to other Holders. Notices given by publication (including posting of information
as contemplated by Section 1009 of this Indenture) will be deemed given on the first date on which publication is made; notices given
by first-class mail, postage prepaid, will be deemed given five calendar days after mailing; notices sent by overnight delivery service
will be deemed given when delivered; and notices given electronically will be deemed given when sent. Notices otherwise given in accordance
with the procedures of DTC will be deemed given on the date sent to DTC. Any notices required to be given to the Holders of Notes that
are in global form will be given to DTC in accordance with its customary procedures therefor.

 

In case by reason of the suspension of or irregularities
in regular mail service or by reason of any other cause, it shall be impracticable to mail notice of any event to Holders when such notice
is required to be given pursuant to any provision of this Indenture, then any manner of giving such notice as shall be satisfactory to
the Trustee shall be deemed to be a sufficient giving of such notice for every purpose hereunder.

 

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

 

Section
108.           
Effect of Headings and Table of Contents. The Article and Section headings herein and the Table of Contents are for
convenience of reference only, are not intended to be considered a part hereof and shall not affect the construction hereof.

 

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Section
109.           
Successors and Assigns. All agreements of each of the Co-Issuers in this Indenture and the Notes will bind their
respective successors. All agreements of the Trustee and any Notes Collateral Agent in this Indenture will bind their respective successors.
All agreements of each Guarantor in this Indenture will bind its successors, except as otherwise provided in Section 1208 hereof.

 

Section
110.           
Separability Clause. In case any provision in this Indenture or in the Notes shall be invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

 

Section
111.           
Benefits of Indenture. Nothing in this Indenture or in the Notes, express or implied, shall give to any Person, other
than the parties hereto, any Paying Agent, any Note Registrar and their successors hereunder and the Holders any benefit or any legal
or equitable right, remedy or claim under this Indenture.

 

Section
112.           
Governing Law. This Indenture, the Notes and any Guarantee will be governed by and construed in accordance with the
laws of the State of New York.

 

Section
113.           
Legal Holidays. In any case where any Interest Payment Date, Redemption Date, Change of Control Payment Date, or
Stated Maturity or Maturity of any Note shall not be a Business Day, then (notwithstanding any other provision of this Indenture or of
the Notes) payment of principal (or premium, if any) or interest need not be made on such date, but may be made on the next succeeding
Business Day with the same force and effect as if made on the Interest Payment Date, Redemption Date, Change of Control Payment Date,
or at the Stated Maturity or Maturity; provided that no interest shall accrue for purposes of such payment for the period from
and after such Interest Payment Date, Redemption Date, Change of Control Payment Date, Stated Maturity or Maturity, as the case may be.

 

Section
114.           
No Personal Liability of Directors, Officers, Employees and Stockholders. No director, officer, employee, incorporator
or stockholder of the Issuer, the Co-Issuer or any Guarantor or any of their parent companies (other than the Issuer and the Guarantors)
shall have any liability for any obligations of the Co-Issuers or the Guarantors under the Notes, the Guarantees, this Indenture or the
Security Documents or for any claim based on, in respect of, or by reason of such obligations or their creation to the extent permitted
by applicable law. Each Holder by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration
for issuance of the Notes.

 

Section
115.           
Counterparts. This Indenture may be executed in any number of counterparts, each of which shall be original; but
such counterparts shall together constitute but one and the same instrument. One signed copy is enough to prove this Indenture. The exchange
of copies of this Indenture and of signature pages by facsimile, electronic mail (including PDF) or any electronic signature complying
with the U.S. federal ESIGN Act of 2000 or the New York Electronic Signature and Records Act or other transmission method shall constitute
effective execution and delivery of this Indenture as to the parties hereto and may be used in lieu of the original Indenture for all
purposes. Signatures of the parties hereto transmitted by facsimile, electronic mail (including PDF) or any electronic signature complying
with the U.S. federal ESIGN Act of 2000 or the New York Electronic Signature and Records Act or other transmission method shall be deemed
to be their original signatures for all purposes.

 

Section
116.           
Regulatory Matters. The Issuer agrees to take any action which any Holder or the Trustee may reasonably request in
order to obtain from the FCC, the U.S. Department of Justice, ISED Canada, the CRTC or any other relevant Governmental Authority such
approval as may be necessary to enable the Holders and the Trustee to exercise the full rights and benefits granted to them pursuant to
this Indenture.

 

    -51-

     

    

 

Notwithstanding anything herein, in the Offering
Memorandum or in the Notes to the contrary, prior to the occurrence of an Event of Default and the consent of the FCC, the U.S. Department
of Justice, ISED Canada, the CRTC and of any other applicable Governmental Authority to the assignment or transfer of control of FCC Licenses,
ISED Canada Authorizations, CRTC licenses or approvals or other governmental permits, licenses, or other authorizations, including those
of any other Governmental Authority, this Indenture, and the transactions contemplated hereby and thereby may not be effectuated if and
to the extent they would constitute, create, or have the effect of constituting or creating, directly or indirectly, actual or practical
ownership of any FCC Licenses, ISED Canada Authorizations, CRTC licenses or approvals or other governmental permits, licenses or other
authorizations, including those of any other Governmental Authority, by the Holders or the Trustee or control, affirmative or negative,
direct or indirect, by Holders or the Trustee over the management or any other aspect of the operation of any FCC Licenses, ISED Canada
Authorizations, CRTC licenses or approvals or other governmental permits, licenses, or other authorizations, including those of any other
Governmental Authority.

 

Section
117.           
Agent for Service; Submission to Jurisdictions; Waiver of Immunities; Waiver of Jury Trial. By the execution and
delivery of this Indenture, each of the Issuer, Co-Issuer and each Guarantor (i) acknowledges that it has irrevocably designated and appointed
Corporation Service Company, 251 Little Falls Drive, Wilmington, Delaware, 19808 as its authorized agent upon which process may be served
in any suit or proceeding arising out of or relating to the Notes, the Guarantees or this Indenture that may be instituted in any federal
or New York state court located in The Borough of Manhattan, The City of New York, or brought by the Trustee (whether in its individual
capacity or in its capacity as Trustee hereunder), (ii) irrevocably submits to the non-exclusive jurisdiction of any such court in any
such suit or proceeding, and (iii) agrees that service of process upon Corporation Service Company and written notice of said service
to the Issuer (mailed or delivered to the Issuer in accordance with Section 106, attention: General Counsel, at its principal office at
160 Elgin Street, Suite 2100, Ottawa, Ontario, Canada K2P 2P7), shall be deemed in every respect effective service of process upon the
Company in any such suit or proceeding. The Issuer, Co-Issuer and each Guarantors each further agrees to take any and all action, including
the execution and filing of any and all such documents and instruments, as may be necessary to continue such designation and appointment
of Corporation Service Company in full force and effect so long as this Indenture shall be in full force and effect.

 

To the extent that any of the Issuer, Co-Issuer
or any Guarantor has or hereafter may acquire any immunity from jurisdiction of any court or from any legal process (whether through service
of notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) with respect to itself or its property,
it hereby irrevocably waives such immunity in respect of its obligations under this Indenture and the Note or Guarantees, as applicable,
to the extent permitted by law.

 

Each of the Issuer, Co-Issuer and each Guarantor
irrevocably and unconditionally waives, to the fullest extent permitted by law, any obligation that it may now or hereafter have to the
laying of venue of any such action, suit or proceeding in any such court or any appellate court with respect thereto. Each of the Issuer,
Co-Issuer and each Guarantor irrevocably waives, to the fullest extent permitted by law, the defense of any inconvenient forum to the
maintenance of such action, suit or proceeding in any such court.

 

EACH PARTY HERETO, AND EACH HOLDER OF A SECURITY
BY ITS ACCEPTANCE THEREOF, HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY
IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS INDENTURE.

 

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Section
118.           
Conversion of Currency.

 

(a)               
Each of the Issuer, Co-Issuer and each Guarantor covenants and agrees that the following provisions shall apply to conversion of
currency in the case of the Notes, Guarantees and this Indenture:

 

(i)              
If for the purposes of obtaining judgment in, or enforcing the judgment of, any court in any country, it becomes necessary to convert
into a currency (the “Judgment Currency”) an amount due or contingently due in any other currency under the Notes of
any series and this Indenture (the “Base Currency”), then the conversion shall be made at the rate of exchange prevailing
on the Business Day before the day on which a final judgment is given or the order of enforcement is made, as the case may be (unless
a court shall otherwise determine).

 

(ii)              If there is a change in the rate of exchange prevailing between the Business Day before the day on which the judgment referred
to in (i) above is given or an order of enforcement is made, as the case may be (or such other date as a court shall determine), and the
date of receipt of the amount due, the Issuer, Co-Issuer and Guarantors, as applicable, shall pay such additional (or, as the case may
be, such lesser) amount, if any, as may be necessary so that the amount paid in the Judgment Currency when converted at the rate of exchange
prevailing on the date of receipt will produce the amount in the Base Currency originally due.

 

(b)               
In the event of the winding-up of any of the Issuer, Co-Issuer or Guarantors at any time while any amount or damages owing under
the Notes, Guarantees and this Indenture, or any judgment or order rendered in respect thereof, shall remain outstanding, the Co-Issuers
and the Guarantors shall indemnify and hold the Holders and the Trustee harmless against any deficiency arising or resulting from any
variation in rates of exchange between (1) the date as of which the equivalent of the amount in the Base Currency due or contingently
due under the Notes, Guarantees and this Indenture (other than under this subsection (b)) is calculated for the purposes of such winding-up
and (2) the final date for the filing of proofs of claim in such winding-up. For the purpose of this subsection (b) the final date for
the filing of proofs of claim in the winding-up of any of the Issuer, Co-Issuer or Guarantors shall be the date fixed by the liquidator
or otherwise in accordance with the relevant provisions of applicable law as being the latest practicable date as at which liabilities
of the Issuer, Co-Issuer or Guarantors, as applicable may be ascertained for such winding-up prior to payment by the liquidator or otherwise
in respect thereto.

 

(c)               
The obligations contained in subsections (a)(ii) and (b) of this Section 118 shall constitute separate and independent obligations
of the each of the Issuer, Co-Issuer and each Guarantor from its other obligations under the Notes, Guarantees and this Indenture, shall
give rise to separate and independent causes of action against the Issuer, Co-Issuer or Guarantors, as applicable, shall apply irrespective
of any waiver or extension granted by any Holder or the Trustee or either of them from time to time and shall continue in full force and
effect notwithstanding any judgment or order or the filing of any proof of claim in the winding-up of the Issuer, Co-Issuer or Guarantors,
as applicable, for a liquidated sum in respect of amounts due hereunder (other than under subsection (b) above) or under any such judgment
or order. Any such deficiency as aforesaid shall be deemed to constitute a loss suffered by the Holders or the Trustee, as the case may
be, and no proof or evidence of any actual loss shall be required by the Issuer, Co-Issuer or Guarantors, as applicable or its liquidator.
In the case of subsection (b) above, the amount of such deficiency shall not be deemed to be increased or reduced by any variation in
rates of exchange occurring between the said final date and the date of any liquidating distribution.

 

The term “rate(s) of
exchange” shall mean the rate of exchange quoted by a Canadian chartered bank as may be designated in writing by the
Issuer to the Trustee from time to time, at its central foreign exchange desk in its main office in Toronto at 12:00 noon (Toronto
time) on the relevant date for purchases of the Base Currency with the Judgment Currency and includes any premiums and costs of
exchange payable.

 

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Section
119.           
Limited Condition Transactions. When calculating the availability under any basket or ratio under this Indenture
or compliance with any provision of this Indenture in connection with any Limited Condition Transaction and any actions or transactions
related thereto (including acquisitions, Investments, the incurrence or issuance of Indebtedness, Disqualified Stock or preferred stock
and the use of proceeds thereof, the incurrence of Liens, repayments and Restricted Payments), in each case, at the option of the Issuer
(the Issuer’s election to exercise such option, an “LCT Election”), the date of determination for availability
under any such basket or ratio and whether any such action or transaction is permitted (or any requirement or condition therefor is complied
with or satisfied (including as to the absence of any continuing Default or Event of Default)) under this Indenture shall be deemed to
be the date (the “LCT Test Date”) either (a) the definitive agreements for such Limited Condition Transaction are entered
into (or, if applicable, the date of delivery of an irrevocable notice, declaration of a Restricted Payment or similar event), or (b)
solely in connection with an acquisition to which the United Kingdom City Code on Takeovers and Mergers applies, the date on which a “Rule
2.7 announcement” of a firm intention to make an offer is published on a regulatory information service in respect of a target of
a Limited Condition Transaction and, in each case, if, after giving pro forma effect to the Limited Condition Transaction and any actions
or transactions related thereto (including acquisitions, Investments, the incurrence or issuance of Indebtedness, Disqualified Stock or
preferred stock and the use of proceeds thereof, the incurrence of Liens, repayments and Restricted Payments) and any related pro forma
adjustments, the Issuer or any of its Restricted Subsidiaries would have been permitted to take such actions or consummate such transactions
on the relevant LCT Test Date in compliance with such ratio, test or basket (and any related requirements and conditions), such ratio,
test or basket (and any related requirements and conditions) shall be deemed to have been complied with (or satisfied) for all purposes
(in the case of Indebtedness, for example, whether such Indebtedness is committed, issued or incurred at the LCT Test Date or at any time
thereafter); provided, that (a) if financial statements for one or more subsequent fiscal quarters shall have become available,
the Issuer may elect, in its sole discretion, to redetermine all such ratios, tests or baskets on the basis of such financial statements,
in which case, such date of redetermination shall thereafter be deemed to be the applicable LCT Test Date for purposes of such ratios,
tests or baskets and (b) except as contemplated in the foregoing clause (a), compliance with such ratios, tests or baskets (and any related
requirements and conditions) shall not be determined or tested at any time after the applicable LCT Test Date for such Limited Condition
Transaction and any actions or transactions related thereto (including acquisitions, Investments, the incurrence or issuance of Indebtedness,
Disqualified Stock or preferred stock and the use of proceeds thereof, the incurrence of Liens, repayments, Restricted Payments and Asset
Sales).

 

For the avoidance of doubt, if the Issuer has
made an LCT Election, (1) if any of the ratios, tests or baskets for which compliance was determined or tested as of the LCT Test
Date would at any time after the LCT Test Date have been exceeded or otherwise failed to have been complied with as a result of
fluctuations in any such ratio, test or basket, including due to fluctuations in Consolidated EBITDA or Total Assets of the Issuer
or the Person subject to such Limited Condition Transaction, such baskets, tests or ratios will not be deemed to have been exceeded
or failed to have been complied with as a result of such fluctuations; (2) if any related requirements and conditions (including as
to the absence of any continuing Default or Event of Default) for which compliance or satisfaction was determined or tested as of
the LCT Test Date would at any time after the LCT Test Date not have been complied with or satisfied (including due to the
occurrence or continuation of an Default or Event of Default), such requirements and conditions will not be deemed to have been
failed to be complied with or satisfied (and such Default or Event of Default shall be deemed not to have occurred or be
continuing); and (3) in calculating the availability under any ratio, test or basket in connection with any action or transaction
unrelated to such Limited Condition Transaction following the relevant LCT Test Date and prior to the earlier of the date on which
such Limited Condition Transaction is consummated or the date that the definitive agreement or date for redemption, purchase or
repayment specified in an irrevocable notice for such Limited Condition Transaction is terminated, expires or passes, as applicable,
without consummation of such Limited Condition Transaction, any such ratio, test or basket shall be determined or tested giving pro
forma effect to such Limited Condition Transaction.

 

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The Trustee shall not be responsible, or have any
liability, for the calculation of any basket or ratio under this Indenture or compliance with any provision of this Indenture in connection
with any Limited Condition Transaction or any LCT Election.

 

Section
120.           
Certain Calculations. Notwithstanding anything to the contrary in this Indenture and for the avoidance of doubt,
financial ratios and tests (including measurements of Total Assets or Consolidated EBITDA), including the Senior Secured Net Leverage
Ratio and the Total Net Leverage Ratio shall be calculated in the manner prescribed under this Section 120. For purposes of calculating
any financial ratio or test (including Total Assets or Consolidated EBITDA), Specified Transactions (with any incurrence or refinancing
of any Indebtedness in connection therewith to be subject to the second succeeding paragraph of this Section 120) that have been made
(i) during the applicable Test Period or (ii) subsequent to such Test Period and prior to or simultaneously with the event for which the
calculation of any such ratio is made shall be calculated on a pro forma basis assuming that all such Specified Transactions (and any
increase or decrease in Consolidated EBITDA and the component financial definitions used therein attributable to any Specified Transaction)
had occurred on the first day of the applicable Test Period (or, in the case of Total Assets or “unrestricted” cash and Cash
Equivalents, on the last day of the applicable Test Period). If, since the beginning of any applicable Test Period, any Person that subsequently
became a Restricted Subsidiary or was merged, amalgamated or consolidated with or into the Issuer or any Restricted Subsidiary since the
beginning of such Test Period shall have made any Specified Transaction that would have required adjustment pursuant to this Section 120
then such financial ratio or test (including Total Assets and Consolidated EBITDA) shall be calculated to give pro forma effect thereto
in accordance with the provisions set forth in this Section 120.

 

Whenever pro forma effect or a determination of
pro forma compliance is to be given to a Specified Transaction, the pro forma calculations shall be made in good faith by the Issuer
and may include, for the avoidance of doubt, the amount of “run rate” cost savings, operating expense reductions and cost
synergies and other synergies projected by the Issuer in good faith to result from or relating to any Specified Transaction that is being
given pro forma effect or for which a determination of pro forma compliance is being made that have been realized or are expected to
be realized and for which the actions necessary to realize such cost savings, operating expense reductions, cost synergies or other synergies
have been taken, have been committed to be taken, with respect to which substantial steps have been taken or which are expected to be
taken (in the good faith determination of the Issuer) (calculated on a pro forma basis as though such cost savings, operating expense
reductions, cost synergies and other synergies had been realized on the first day of such period and as if such cost savings, operating
expense reductions, cost synergies and other synergies were realized during the entirety of such period and “run rate” means
the full recurring benefit for a period that is associated with any action taken, any action committed to be taken, any action with respect
to which substantial steps have been taken or any action that is expected to be taken net of the amount of actual benefits realized during
such period from such actions, and any such adjustments shall be included in the initial pro forma calculations of such financial ratios
or tests and during any subsequent Test Period in which the effects thereof are expected to be realized) relating to such Specified Transaction,
and any such adjustments included in the initial pro forma calculations shall continue to apply to subsequent calculations of such financial
ratios or tests, including during any subsequent test periods in which the effects thereof are expected to be realizable; provided
that (i) such amounts are reasonably identifiable in the good faith judgment of the Issuer, (ii) such actions are taken, such actions
are committed to be taken, substantial steps with respect to such action have been taken or such actions are expected to be taken no
later than six fiscal quarters after the date of consummation of such Specified Transaction and (iii) no amounts shall be added to the
extent duplicative of any amounts that are otherwise added back in computing Consolidated EBITDA (or any other components thereof), whether
through a pro forma adjustment or otherwise, with respect to such period; provided, further, that the aggregate amount
of all such pro forma adjustments pursuant to this paragraph, the third paragraph below in this Section 120 or clause (l) of the definition
of “Consolidated EBITDA” in any Test Period shall not exceed 20% of Consolidated EBITDA for such Test Period (in each case,
calculated before giving effect to any such adjustment).

 

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In the event that the Issuer or any Restricted
Subsidiary incurs (including by assumption or guarantee) or refinances (including by redemption, repurchase, repayment, retirement or
extinguishment) any Indebtedness, in each case included in the calculations of any financial ratio or test, (i) during the applicable
Test Period or (ii) subsequent to the end of the applicable Test Period and prior to or simultaneously with the event for which the calculation
of any such ratio is made, then such financial ratio or test shall be calculated giving pro forma effect to such incurrence or refinancing
of Indebtedness (including pro forma effect to the application of the net proceeds therefrom), in each case to the extent required, as
if the same had occurred on the last day of the applicable Test Period; provided that, with respect to any incurrence of Indebtedness
permitted by the provisions of the Indenture in reliance on the pro forma calculation of the Senior Secured Net Leverage Ratio and/or
the Total Net Leverage Ratio, as applicable, shall not give pro forma effect to any Indebtedness being incurred (or expected to be incurred)
substantially simultaneously or contemporaneously with the incurrence of any such Indebtedness in reliance on any “basket”
set forth in the indenture (including any “baskets” measured as a percentage of Total Assets or Consolidated EBITDA).

 

Whenever pro forma effect is to be given to a pro
forma event, the pro forma calculations shall be made in good faith by the Issuer. Interest on a Finance Lease Obligation shall be deemed
to accrue at an interest rate reasonably determined by the Issuer to be the rate of interest implicit in such Finance Lease Obligation
in accordance with GAAP. Interest on Indebtedness that may optionally be determined at an interest rate based upon a factor of a prime
or similar rate, a eurocurrency interbank offered rate, or other rate, shall be determined to have been based upon the rate actually chosen,
or if none, then based upon such optional rate chosen as the Issuer or applicable Restricted Subsidiary may designate. For purposes of
making the computations referred to above, interest on any Indebtedness under a revolving credit facility computed on a pro forma basis
shall be computed based upon the average daily balance of such Indebtedness during the applicable period or, if lower, the maximum commitments
under such revolving credit facility.

 

Any such pro forma calculation may include, without
limitation, adjustments calculated in accordance with Regulation S-X under the Securities Act; provided that the aggregate amount
of all such pro forma adjustments pursuant to this sentence, third paragraph above in this Section 120 or clause (l) of the definition
of “Consolidated EBITDA” in any Test Period shall not exceed 20% of Consolidated EBITDA for such Test Period (in each case,
calculated before giving effect to any such adjustment).

 

The Issuer may elect, pursuant to an
Officer’s Certificate delivered to the Trustee, to treat all or any portion of a revolving commitment under any Credit
Facility as incurred and outstanding Indebtedness for borrowed money at the time of such election and for so long as such revolving
commitments remain outstanding, regardless of whether fully drawn at the time of such election. As a result of any such election,
any subsequent incurrence of Indebtedness under such revolving commitment shall not be deemed an incurrence of additional
Indebtedness or an additional Lien at such subsequent time. As of the Issue Date, the Senior Secured Net Leverage Ratio and the
First Lien Net Leverage Ratio will be calculated using a Canadian Dollar equivalent for Consolidated Total Secured Debt and
Consolidated Total First Lien Debt. If the Issuer changes its functional currency to U.S. dollars, the Senior Secured Net Leverage
Ratio will be calculated using a U.S. dollar equivalent for Consolidated Total Secured Debt and Consolidated Total First Lien
Debt.

 

    -56-

     

    

 

For the avoidance of doubt, the Trustee shall not
be responsible or liable for any calculation under this Indenture, including, without limitation, the calculation of any financial ratio
or test.

 

Article
Two

NOTE FORMS

 

Section
201.           
Form and Dating. Provisions relating to the Initial Notes are set forth in the Rule 144A/Regulation S/IAI Appendix
attached hereto (the “Appendix”) which is hereby incorporated in, and expressly made part of, this Indenture. The Initial
Notes and the Trustee’s certificate of authentication shall be substantially in the form of Exhibit 1 to the Appendix which
is hereby incorporated in, and expressly made a part of, this Indenture. The Notes may have notations, legends or endorsements required
by law, stock exchange rule, agreements to which the Co-Issuers are subject, if any, or usage (provided that any such notation,
legend or endorsement is in a form reasonably acceptable to the Issuer). Each Note shall be dated the date of its authentication. The
terms of the Note set forth in the Appendix are part of the terms of this Indenture.

 

Section
202.           
Execution, Authentication, Delivery and Dating. The Notes shall be executed on behalf of the Co-Issuers by at least
one Officer of each Co-Issuer. The signature of any Officer on the Notes may be manual or facsimile signatures of the present or any future
such authorized officer and may be imprinted or otherwise reproduced on the Notes.

 

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

 

At any time and from time to time after the execution
and delivery of this Indenture, the Co-Issuers may deliver Notes executed by the Co-Issuers to the Trustee for authentication, together
with a Company Order for the authentication and delivery of such Notes, and the Trustee in accordance with such Company Order shall authenticate
and deliver such Notes.

 

On the Issue Date, the Co-Issuers shall
deliver the Initial Notes in the aggregate principal amount of US$500,000,000 executed by the Co-Issuers to the Trustee for
authentication, together with a Company Order for the authentication and delivery of such Notes, directing the Trustee to
authenticate the Notes, and the Trustee in accordance with such Company Order shall authenticate and deliver such Initial Notes. At
any time and from time to time after the Issue Date, the Co-Issuers may deliver Additional Notes executed by the Co-Issuers to the
Trustee for authentication, together with a Company Order for the authentication and delivery of such Additional Notes, directing
the Trustee to authenticate the Additional Notes, and certifying that the issuance of such Additional Notes is in compliance with
Article Ten hereof, and the Trustee in accordance with such Company Order shall authenticate and deliver such Additional Notes. In
each case, the Trustee shall receive an Officer’s Certificate and an Opinion of Counsel of the Co-Issuers in connection with
such authentication of Notes; provided that no Opinion of Counsel under Section 103 shall be required in connection with the
authentication of the Initial Notes. Such Company Order shall specify the amount of Notes to be authenticated and the date on which
the original issue of Notes is to be authenticated.

 

    -57-

     

    

 

Each Note shall be dated the date of its authentication.

 

No Note shall be entitled to any benefit under
this Indenture or be valid or obligatory for any purpose unless there appears on such Note a certificate of authentication substantially
in the form provided for herein duly executed by the Trustee by manual signature of an authorized signatory, and such certificate upon
any Note shall be conclusive evidence, and the only evidence, that such Note has been duly authenticated and delivered hereunder and is
entitled to the benefits of this Indenture.

 

In case any of the Co-Issuers or any Guarantor,
pursuant to Article Eight of this Indenture, shall be consolidated, amalgamated, merged with or into or wound up into any other Person
or shall sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of its properties or assets in one or
more related transactions to any Person, and the successor Person resulting from such consolidation or amalgamation, or surviving such
merger, or into which such Co-Issuer or such Guarantor shall have been merged or wound up into, or the Person which shall have received
a sale, assignment, transfer, lease, conveyance or other disposition as aforesaid, shall have executed a supplemental indenture hereto
with the Trustee pursuant to Article Eight of this Indenture, any of the Notes authenticated or delivered prior to such consolidation,
amalgamation, merger, sell, assignment, transfer, lease, conveyance or other disposition may, from time to time, at the request of the
successor Person, be exchanged for other Notes executed in the name of the successor Person with such changes in phraseology and form
as may be appropriate, but otherwise in substance of like tenor as the Notes surrendered for such exchange and of like principal amount;
and the Trustee, upon Company Request of the successor Person, shall authenticate and deliver Notes as specified in such request for the
purpose of such exchange. If Notes shall at any time be authenticated and delivered in any new name of a successor Person pursuant to
this Section 202 in exchange or substitution for or upon registration of transfer of any Notes, such successor Person, at the option of
the Holders but without expense to them, shall provide for the exchange of all Notes at the time Outstanding for Notes authenticated and
delivered in such new name.

 

Article
Three

THE NOTES

 

Section
301.           
Title and Terms. The aggregate principal amount of Notes which may be authenticated and issued under this Indenture
is not limited; provided, however, that any Additional Notes issued under this Indenture are issued in accordance with Sections
202 and 1011 hereof, as part of the same series as the Initial Notes.

 

The Notes shall be known and designated as the
 “5.625% Senior Secured Notes due 2026” of the Co-Issuers. The Stated Maturity of the Notes shall be December 6, 2026, and
the Notes shall bear interest at the rate of 5.625% per annum from the Issue Date, or from the most recent Interest Payment Date to which
interest has been paid or duly provided for, payable semi-annually in arrears on June 1 and December 1 in each year, commencing on December
1, 2021, and at said Stated Maturity, until the principal thereof is paid or duly provided for and to the Person in whose name the Note
(or any predecessor Note) is registered at the close of business on May 15 and November 15 immediately preceding such Interest Payment
Date (each, a “Record Date”). Interest on the Notes will accrue from the most recent date to which interest has been
paid or, if no interest has been paid, from the Issue Date.

 

    -58-

     

    

 

The principal of (and premium, if any) and interest
on the Notes shall be payable at the office or agency of the Issuer maintained for such purpose within the City and State of New York
or, at the option of the Issuer, payment of interest may be made by check mailed to the Holders of the Notes at their respective addresses
set forth in the Note Register of Holders; provided that all payments of principal, premium, if any, and interest with respect
to Notes represented by one or more permanent Global Notes registered in the name of or held by DTC or its nominee will be made in accordance
with DTC’s applicable procedures. Until otherwise designated by the Issuer, the Issuer’s office or agency in New York will
be the office of the Trustee maintained for such purpose.

 

Holders shall have the right to require the Co-Issuers
to purchase their Notes, in whole or in part, in the event of a Change of Control Triggering Event pursuant to Section 1017. The Notes
shall be subject to repurchase pursuant to an Asset Sale Offer as provided in Section 1018.

 

The Notes shall be redeemable as provided in Article
Eleven.

 

The due and punctual payment of principal of, premium,
if any, and interest on the Notes payable by the Issuer is irrevocably unconditionally guaranteed, to the extent set forth herein, by
each of the Guarantors.

 

Section
302.           
Denominations. The Notes shall be issuable only in registered form without coupons and only in denominations of US$2,000
and integral multiples of US$1,000 in excess of US$2,000.

 

Section
303.           
Temporary Notes. Pending the preparation of definitive Notes, the Company may execute, and upon Company Order the
Trustee shall authenticate and deliver, temporary Notes which are printed, lithographed, typewritten, mimeographed or otherwise produced,
in any authorized denomination, substantially of the tenor of the definitive Notes in lieu of which they are issued and with such appropriate
insertions, omissions, substitutions and other variations as the officers executing such Notes may determine, as conclusively evidenced
by their execution of such Notes.

 

If temporary Notes are issued, the Company will
cause definitive Notes to be prepared without unreasonable delay. After the preparation of definitive Notes, the temporary Notes shall
be exchangeable for definitive Notes upon surrender of the temporary Notes at the office or agency of the Company designated for such
purpose pursuant to Section 1002, without charge to the Holder. Upon surrender for cancellation of any one or more temporary Notes, the
Company shall execute and the Trustee shall authenticate and deliver in exchange therefor a like principal amount of definitive Notes
of authorized denominations. Until so exchanged, the temporary Notes shall in all respects be entitled to the same benefits under this
Indenture as definitive Notes.

 

Section
304.           
Registration, Registration of Transfer and Exchange. The Co-Issuers shall cause to be kept at the Corporate Trust
Office of the Trustee a register (the register maintained in such office and in any other office or agency designated pursuant to Section
1002 being herein sometimes referred to as the “Note Register”) in which, subject to such reasonable regulations as
it may prescribe, the Co-Issuers shall provide for the registration of Notes and of transfers of Notes. The Note Register shall be in
written form or any other form capable of being converted into written form within a reasonable time. At all reasonable times, the Note
Register shall be open to inspection by the Trustee. The Trustee is hereby initially appointed as note registrar (the “Note Registrar”)
for the purpose of registering Notes and transfers of Notes as herein provided.

 

Upon surrender for registration of transfer
of any Note at the office or agency of the Co-Issuers designated pursuant to Section 1002, the Co-Issuers shall execute, and the
Trustee shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Notes of any
authorized denomination or denominations of a like aggregate principal amount.

 

    -59-

     

    

 

 

At the option of the Holder, Notes may be exchanged
for other Notes of any authorized denomination and of a like aggregate principal amount, upon surrender of the Notes to be exchanged at
such office or agency. Whenever any Notes are so surrendered for exchange, the Co-Issuers shall execute, and the Trustee shall authenticate
and deliver, the Notes which the Holder making the exchange is entitled to receive.

 

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

 

Every Note presented or surrendered for registration
of transfer or for exchange shall (if so required by either of the Co-Issuers or the Note Registrar) be duly endorsed, or be accompanied
by written instruments of transfer, in form satisfactory to the Co-Issuers and the Note Registrar, duly executed by the Holder thereof
or his attorney duly authorized in writing.

 

No service charge shall be made for any registration
of transfer or exchange or redemption of Notes, but the Co-Issuers may require payment of a sum sufficient to cover any taxes, fees or
other governmental charge that may be imposed in connection with any registration of transfer or exchange of Notes, other than exchanges
pursuant to Sections 202, 303, 906, 1017, 1018, or 1108 not involving any transfer.

 

Section
305.           
Mutilated, Destroyed, Lost and Stolen Notes. If (1) any mutilated Note is surrendered to the Trustee, or (2) the
Co-Issuers and the Trustee receive evidence to their satisfaction of the destruction, loss or theft of any Note, and there is delivered
to the Co-Issuers and the Trustee such security or indemnity as may be required by them to save each of them harmless, then, in the absence
of notice to the Co-Issuers or the Trustee that such Note has been acquired by a Protected Purchaser (as defined in Section 8-303 of the
Uniform Commercial Code) (a “Protected Purchaser”), the Co-Issuers shall execute and upon Company Order the Trustee
shall authenticate and deliver, in exchange for any such mutilated Note or in lieu of any such destroyed, lost or stolen Note, a new Note
of like tenor and principal amount, bearing a number not contemporaneously outstanding.

 

In case any such mutilated, destroyed, lost or
stolen Note has become or is about to become due and payable, the Co-Issuers in their discretion may, instead of issuing a new Note, pay
such Note.

 

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

 

Every new Note issued pursuant to this Section
305 in lieu of any mutilated, destroyed, lost or stolen Note shall constitute an original additional contractual obligation of the Co-Issuers
and each Guarantor, whether or not the mutilated, destroyed, lost or stolen Note shall be at any time enforceable by anyone, and shall
be entitled to all benefits of this Indenture equally and proportionately with any and all other Notes duly issued hereunder.

 

The provisions of this Section 305 are exclusive
and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Notes.

 

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Section
306.           
Payment of Interest; Interest Rights Preserved.

 

(a)               
Interest on any Note which is payable, and is punctually paid or duly provided for, on any Interest Payment Date shall be paid
to the Person in whose name such Note (or one or more Predecessor Notes) is registered at the close of business on the Record Date for
such interest at the office or agency of the Co-Issuers maintained for such purpose pursuant to Section 1002; provided, however,
that, subject to Section 301 hereof, each installment of interest may at the Co-Issuers’ option be paid by (1) mailing a check for
such interest, payable to or upon the written order of the Person entitled thereto pursuant to Section 307, to the address of such Person
as it appears in the Note Register or (2) transfer to an account located in the United States maintained by the payee.

 

(b)               
[Reserved].

 

(c)               
Subject to the foregoing provisions of this Section 306, each Note delivered under this Indenture upon registration of transfer
of or in exchange for or in lieu of any other Note shall carry the rights to interest accrued and unpaid, and to accrue, which were carried
by such other Note.

 

(d)               
Whenever interest is computed on the basis of a year (the “deemed year”) which contains fewer days than the
actual number of days in the calendar year of calculation, such rate of interest shall be expressed as a yearly rate for purposes of the
Interest Act (Canada) by multiplying such rate of interest by the actual number of days in the calendar year of calculation and
dividing it by the number of days in the deemed year. For the purposes of the Interest Act (Canada), the principle of deemed reinvestment
of interest will not apply to any interest calculation under this Indenture or the Notes, and the rates of interest stipulated in this
Indenture or the Notes are intended to be nominal rates and not effective rates or yields.

 

Section
307.           
Persons Deemed Owners. Prior to the due presentment of a Note for registration of transfer, the Co-Issuers, any Guarantor,
the Trustee and any agent of either of the Co-Issuers or the Trustee may treat the Person in whose name such Note is registered as the
owner of such Note for the purpose of receiving payment of principal of (and premium, if any) and (subject to Sections 304 and 306) interest
on such Note and for all other purposes whatsoever, whether or not such Note be overdue, and none of the Co-Issuers, the Trustee or any
agent of either of the Co-Issuers or the Trustee shall be affected by notice to the contrary.

 

Section
308.           
Cancellation. All Notes surrendered for payment, redemption, registration of transfer or exchange shall, if surrendered
to any Person other than the Trustee, be delivered to the Trustee and shall be promptly cancelled by it. The Co-Issuers may at any time
deliver to the Trustee for cancellation any Notes previously authenticated and delivered hereunder which the Company may have acquired
in any manner whatsoever, and may deliver to the Trustee (or to any other Person for delivery to the Trustee) for cancellation any Notes
previously authenticated hereunder which the Co-Issuers have not issued and sold, and all Notes so delivered shall be promptly cancelled
by the Trustee. If any of the Co-Issuers shall so acquire any of the Notes, however, such acquisition shall not operate as a redemption
or satisfaction of the indebtedness represented by such Notes unless and until the same are surrendered to the Trustee for cancellation.
No Notes shall be authenticated in lieu of or in exchange for any Notes cancelled as provided in this Section 308, except as expressly
permitted by this Indenture. All cancelled Notes held by the Trustee shall be disposed of by the Trustee in accordance with its customary
procedures unless by Company Order the Co-Issuers shall direct that cancelled Notes be returned to it.

 

Section
309.           
Computation of Interest. Interest on the Notes shall be computed on the basis of a 360-day year of twelve 30-day
months.

 

    -61-

     

    

 

Section
310.           
Transfer and Exchange. The Notes shall be issued in registered form and shall be transferable only upon the surrender
of a Note for registration of transfer. When a Note is presented to the Note Registrar or a co-registrar with a request to register a
transfer, the Note Registrar shall register the transfer as requested if the requirements of this Indenture and Section 8-401(a) of the
Uniform Commercial Code are met. When Notes are presented to the Note Registrar or a co-registrar with a request to exchange them for
an equal principal amount of Notes of other denominations, the Note Registrar shall make the exchange as requested if the same requirements
are met.

 

Section
311.           
CUSIP, ISIN and Common Code Numbers. The Co-Issuers in issuing the Notes may use “CUSIP” numbers, ISINs
and “Common Code” numbers (in each case, if then generally in use) in addition to serial numbers, and, if so, the Trustee
shall use such “CUSIP” numbers, ISINs and “Common Code” numbers in addition to serial numbers in notices of redemption,
repurchase or other notices to Holders as a convenience to Holders; provided that any such notice may state that no representation
is made as to the correctness of such “CUSIP” numbers, ISINs and “Common Code” numbers either as printed on the
Notes or as contained in any notice of a redemption or repurchase and that reliance may be placed only on the serial or other identification
numbers printed on the Notes, and any such redemption or repurchase shall not be affected by any defect in or omission of such numbers.
The Company will promptly notify the Trustee in writing of any change in the “CUSIP” numbers, ISINs and “Common Code”
numbers applicable to the Notes.

 

Section
312.           
Issuance of Additional Notes. The Co-Issuers may, subject to Section 1011 of this Indenture, issue additional Notes
having identical terms and conditions to the Initial Notes issued on the Issue Date (the “Additional Notes”), except,
if applicable, the initial Interest Payment Date and the initial interest accrual date. The Initial Notes issued on the Issue Date and
any Additional Notes subsequently issued shall be treated as a single class for all purposes under this Indenture, including waivers,
amendments, redemptions and offers to purchase; provided that a separate CUSIP or ISIN shall be issued for the Additional Notes,
unless the Initial Notes and the Additional Notes are treated as fungible for U.S. federal income tax purposes or Canadian federal income
tax purposes.

 

Article
Four

SATISFACTION AND DISCHARGE

 

Section
401.           
Satisfaction and Discharge of Indenture. This Indenture shall, upon Company Request and at the Company’s expense,
be discharged and cease to be of further effect as to all Notes issued hereunder (except for any provisions which survive discharge),
and any Collateral then securing the Notes shall be automatically released, and the Trustee and the Notes Collateral Agents, as applicable,
at the expense of the Company, shall execute proper instruments acknowledging satisfaction and discharge of this Indenture (except for
any provisions which survive discharge) and release of any Collateral then securing the Notes, when:

 

(1)               
either:

 

(A)             
all Notes heretofore authenticated and delivered (other than (i) Notes which have been destroyed, lost or stolen and which have
been replaced or paid as provided in Section 305 and (ii) Notes for whose payment money has theretofore been deposited in trust with the
Trustee or any Paying Agent or segregated and held in trust by the Company and thereafter repaid to the Company or discharged from such
trust, as provided in Section 1003) have been delivered to the Trustee for cancellation; or

 

    -62-

     

    

 

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

 

(i)              
have become due and payable by reason of the making of a notice of redemption pursuant to Section 1105 or otherwise, or

 

(ii)              will become due and payable 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 Co-Issuers,

 

and the Co-Issuers or any Guarantor, in the case of (i), (ii)
or (iii) above, has irrevocably deposited or caused to be deposited with the Trustee as trust funds in trust solely for the benefit of
the Holders, cash in U.S. dollars, non-callable Government Securities, or a combination thereof, in such amounts as will be sufficient
without consideration of any reinvestment of interest to pay and discharge the entire indebtedness on such Notes not theretofore delivered
to the Trustee for cancellation, for principal (and premium, if any) and accrued but unpaid interest to the date of such deposit (in the
case of Notes which have become due and payable) or to the Stated Maturity or Redemption Date, as the case may be; provided that
upon any redemption that requires the payment of the Applicable Premium, the amount deposited shall be sufficient for purposes of this
Indenture to the extent that an amount is deposited with the Trustee equal to the Applicable Premium calculated as of the date of the
notice of redemption, with any deficit as of the date of redemption (any such amount, the “Applicable Premium Deficit”)
only required to be deposited with the Trustee on or prior to the Redemption Date. Any Applicable Premium Deficit shall be set forth in
an Officer’s Certificate delivered to the Trustee simultaneously with the deposit of such Applicable Premium Deficit that confirms
that such Applicable Premium Deficit shall be applied toward such redemption;

 

(2)               
no Default or Event of Default (other than that resulting from borrowing funds to be applied to make such deposit) with respect
to this Indenture or the Notes shall have occurred and be continuing on the date of such deposit or shall occur as a result of such deposit
and such deposit shall not result in a breach or violation of, or constitute a default under the Senior Credit Facilities or any other
material agreement or instrument (other than this Indenture) to which each of the Co-Issuers or any Guarantor is a party or by which the
Issuer, the Co-Issuer or any Guarantor is bound;

 

(3)               
the Co-Issuers have paid or caused to be paid all sums payable by it under this Indenture;

 

(4)               
the Issuer has delivered irrevocable instructions to the Trustee under this Indenture to apply the deposited money toward the payment
of such Notes at the Stated Maturity or the Redemption Date, as the case may be; and

 

(5)               
the Issuer has delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that all conditions
precedent herein to the satisfaction and discharge of this Indenture have been complied with. Such Opinion of Counsel may rely on such
Officer’s Certificate as to matters of fact, including clauses (1), (2), (3) and (4).

 

Notwithstanding the satisfaction and
discharge of this Indenture, the obligations of the Co-Issuers to the Trustee under Section 607, the obligations of the Issuer to
any authenticating agent under Section 612 and, if money or Government Securities shall have been deposited with the Trustee
pursuant to subclause (B) of clause (1) of this Section 401, the obligations of the Trustee under Section 402 and the last paragraph
of Section 1003 shall survive such satisfaction and discharge.

 

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Section
402.           
Application of Trust Money. Subject to the provisions of the last paragraph of Section 1003, all money or Government
Securities deposited with the Trustee pursuant to Section 401 shall be held in trust and applied by it, in accordance with the provisions
of the Notes and this Indenture, to the payment, either directly or through any Paying Agent (including the Issuer acting as its own Paying
Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal (and premium, if any) and interest for whose payment
such money or Government Securities has been deposited with the Trustee; but such money or Government Securities need not be segregated
from other funds except to the extent required by law.

 

If the Trustee or Paying Agent is unable to apply
any money or Government Securities in accordance with Section 401 by reason of any legal proceeding or by reason of any order or judgment
of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, the Issuer’s, the Co-Issuer’s
and any Guarantor’s obligations under this Indenture and the Notes shall be revived and reinstated as though no deposit had occurred
pursuant to Section 401 until such time as the Trustee or Paying Agent is permitted to apply all such money or Government Securities in
accordance with Section 401; provided that if the Co-Issuers have made any payment of principal of, premium, if any, or interest
on any Notes because of the reinstatement of its obligations, the Co-Issuers shall be subrogated to the rights of the Holders of such
Notes to receive such payment from the money or Government Securities held by the Trustee or Paying Agent.

 

Article
Five

REMEDIES

 

Section
501.           
Events of Default. “Event of Default,” wherever used herein, means any one of the following events
(whatever the reason for such Event of Default and whether it shall be effected by operation of law or pursuant to any judgment, decree
or order of any court or any order, rule or regulation of any administrative or governmental body):

 

(1)               
default in payment when due and payable, upon redemption, acceleration or otherwise, of principal of, or premium, if any, on the
Notes issued under this Indenture;

 

(2)               
default for 30 days or more in the payment when due of interest or Additional Amounts on or with respect to the Notes issued under
this Indenture;

 

(3)               
failure by the Issuer to comply with its obligations under Section 801;

 

(4)               
failure by the Issuer, the Co-Issuer or any Guarantor for 45 days after receipt of written notice given by the Trustee or the Holders
of not less than 25% in principal amount of the Notes then outstanding and issued under this Indenture to comply with any of its obligations,
covenants or other agreements (other than a default referred to in clause (1), (2) or (3) above) contained in this Indenture, the Notes
or the Security Documents;

 

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(5)                default
under any mortgage, indenture or instrument under which there is issued or by which there is secured or evidenced any Indebtedness
by the Issuer or any Restricted Subsidiary or the payment of which is guaranteed by the Issuer or any Restricted Subsidiary, other
than Indebtedness owed to the Issuer or a Restricted Subsidiary, whether such Indebtedness or guarantee now exists or is created
after the issuance of the Notes, if

 

(A)             
such default either:

 

(i)              
results from the failure to pay any such Indebtedness at its stated final maturity (after giving effect to any applicable grace
periods) or

 

(ii)              relates to an obligation other than the obligation to pay principal of any such Indebtedness at its stated final maturity and results
in the holder or holders of such Indebtedness causing such Indebtedness to become due prior to its stated maturity;

 

(B)             
the principal amount of such Indebtedness, together with the principal amount of any other such Indebtedness in default for failure
to pay principal at stated final maturity (after giving effect to any applicable grace periods), or the maturity of which has been so
accelerated, aggregate US$110,000,000 or more at any one time outstanding; and

 

(C)             
in the case of the occurrence of a default described in (A)(ii) above, such default results in (x) the acceleration of such Indebtedness
prior to the final maturity thereof or (y) the commencement of judicial proceedings to foreclose upon, or to exercise remedies under applicable
law or applicable security documents to take ownership of, the assets securing such Indebtedness;

 

(6)               
failure by the Issuer or any Significant Subsidiary to pay final judgments aggregating in excess of US$110,000,000 or its foreign
currency equivalent (net of any amounts which are covered by insurance policies from creditworthy insurers), which final judgments remain
undischarged, unwaived and unstayed for a period of more than 60 days after such judgment becomes final;

 

(7)               
any of the following events with respect to the Issuer or any Significant Subsidiary:

 

(A)             
the Issuer or any Significant Subsidiary pursuant to or within the meaning of any Bankruptcy Law:

 

(i)              
commences proceedings to be adjudicated bankrupt or insolvent;

 

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

 

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

 

(iv)             takes any comparable action under any foreign laws relating to insolvency; or

 

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

 

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(i)              
 is for relief against the Company or any Significant Subsidiary in an involuntary case;

 

(ii)             appoints a custodian of the Company or any Significant Subsidiary or for all or substantially all of its property; or

 

(iii)            orders the winding up or liquidation of the Company or any Significant Subsidiary; and

 

the order or decree remains unstayed and in effect for 60
days;

 

(8)               
the Guarantee of the Issuer or any Significant Subsidiary shall for any reason cease to be in full force and effect or be declared
null and void or any responsible officer of the Issuer or any Guarantor that is a Significant Subsidiary, as the case may be, denies that
it has any further liability under its Guarantee or gives notice to such effect, other than by reason of the termination of this Indenture
or the release of any such Guarantee in accordance with this Indenture; or

 

(9)               
unless such Liens have been released in accordance with the provisions of this Indenture or Security Documents, Liens securing
the First Lien Notes Obligations with respect to a material portion of the Collateral cease to be valid, perfected or enforceable, or
the Co-Issuers shall assert or any Guarantor shall assert, in any pleading in any court of competent jurisdiction, that any such Lien
is invalid, unperfected or unenforceable and, in the case of any such Guarantor, the Co-Issuers fail to cause such Guarantor to rescind
such assertions within 30 days after the Issuer has actual knowledge of such assertions; provided that no Event of Default shall
occur under this clause (9) if the Co-Issuers and the Guarantors cooperate with the applicable Notes Collateral Agent to replace or perfect
such Lien, such Lien is promptly replaced or perfected (as needed) and the rights, powers and privileges of the Holders are not materially
adversely affected by such replacement or perfection.

 

Section
502.           
Acceleration of Maturity; Rescission and Annulment.

 

(a)               
If any Event of Default (other than an Event of Default specified in Section 501(7) above) occurs and is continuing, then and in
every such case the Trustee or the Holders of at least 25% in principal amount of the Outstanding Notes issued under this Indenture may
declare the principal, premium, if any, interest and any other monetary obligations on all the Outstanding Notes to be due and payable
immediately, by a notice in writing to the Issuer (and to the Trustee if given by Holders); provided that no such declaration may
occur with respect to any action taken, and reported publicly or to Holders, more than two years prior to the date of such declaration.
The Trustee shall have no obligation to accelerate the Notes if in the best judgment of the Trustee acceleration is not in the best interest
of the Holders. The Trustee shall have no obligation to determine when or if any Holders have been notified of any such action or to track
when such two-year period starts or concludes. Any time period to cure any actual or alleged Default or Event of Default may be extended
or stayed by a court of competent jurisdiction.

 

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Any notice of Default, notice of acceleration
or instruction to the Trustee to provide a notice of Default, notice of acceleration or take any other action (a
 “Noteholder Direction”) provided by any one or more Holders (each a “Directing Holder”) must
be accompanied by a written representation from each such Holder delivered to the Co-Issuers and the Trustee that such Holder is not
(or, in the case such Holder is DTC or its nominee, that such Holder is being instructed solely by beneficial owners that have
represented to such Holder that they are not) Net Short (a “Position Representation”), which representation, in
the case of a Noteholder Direction relating to the delivery of a notice of Default shall be deemed a continuing representation until
the resulting Event of Default is cured or otherwise ceases to exist or the Notes are accelerated. In addition, each Directing
Holder is deemed, at the time of providing a Noteholder Direction, to covenant to provide the Co-Issuers with such other information
as the Co-Issuers may reasonably request from time to time in order to verify the accuracy of such Noteholder’s Position
Representation within five Business Days of request therefor (a “Verification Covenant”). In any case in which
the Holder is DTC or its nominee, any Position Representation or Verification Covenant required hereunder shall be provided by the
beneficial owner of the Notes in lieu of DTC or its nominee, and DTC shall be entitled to conclusively rely on such Position
Representation and Verification Covenant in delivering its direction to the Trustee.

 

If, following the delivery of a Noteholder Direction,
but prior to acceleration of the Notes, the Co-Issuers determine in good faith that there is a reasonable basis to believe a Directing
Holder was, at any relevant time, in breach of its Position Representation and provide to the Trustee an Officer’s Certificate stating
that the Co-Issuers have initiated litigation in a court of competent jurisdiction seeking a determination that such Directing Holder
was, at such time, in breach of its Position Representation, and seeking to invalidate any Event of Default that resulted from the applicable
Noteholder Direction, the cure period with respect to such Default shall be automatically stayed and the cure period with respect to such
Event of Default shall be automatically reinstituted and any remedy stayed pending a final and non-appealable determination of a court
of competent jurisdiction on such matter. If, following the delivery of a Noteholder Direction, but prior to acceleration of the Notes,
the Co-Issuers provide to the Trustee an Officer’s Certificate stating that a Directing Holder failed to satisfy its Verification
Covenant, the cure period with respect to such Default shall be automatically stayed and the cure period with respect to any Event of
Default that resulted from the applicable Noteholder Direction shall be automatically reinstituted and any remedy stayed pending satisfaction
of such Verification Covenant. Any breach of the Position Representation shall result in such Holder’s participation in such Noteholder
Direction being disregarded; and, if, without the participation of such Holder, the percentage of Notes held by the remaining Holders
that provided such Noteholder Direction would have been insufficient to validly provide such Noteholder Direction, such Noteholder Direction
shall be void ab initio (other than any indemnity such Directing Holder may have offered the Trustee), with the effect that such Event
of Default shall be deemed never to have occurred, acceleration voided and the Trustee shall be deemed not to have received such Noteholder
Direction or any notice of such Default or Event of Default.

 

Notwithstanding anything in the preceding two paragraphs
to the contrary, any Noteholder Direction delivered to the Trustee during the pendency of an Event of Default specified in Section 501(7)
shall not require compliance with the foregoing paragraphs of this Section 502(a). For the avoidance of doubt, the Trustee shall be entitled
to conclusively rely on any Noteholder Direction delivered to it in accordance with this Indenture, shall have no duty to inquire as to
or investigate the accuracy of any Position Representation, enforce compliance with any Verification Covenant, verify any statements in
any Officer’s Certificate delivered to it, or otherwise make calculations, investigations or determinations with respect to Derivative
Instruments, Net Shorts, Long Derivative Instruments, Short Derivative Instruments or otherwise. The Trustee shall have no liability to
the Co-Issuers, any Holder or any other Person in acting in good faith on a Noteholder Direction.

 

(b)               
Upon the effectiveness of such declaration, such principal and interest will be due and payable immediately. Notwithstanding the
foregoing, if an Event of Default specified in Section 501(7) above occurs, then the principal amount of all Outstanding Notes shall ipso
facto become and be immediately due and payable without any notice, declaration or other act on the part of the Trustee or any Holder.

 

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(c)                At
any time after a declaration of acceleration has been made and before a judgment or decree for payment of the money due has been
obtained by the Trustee as hereinafter provided in this Article Five, the Holders of a majority in aggregate principal amount of the
Outstanding Notes, by written notice to the Issuer and the Trustee, may rescind and annul such declaration and its consequences, so
long as such rescission and annulment would not conflict with any judgment of a court of competent jurisdiction, if:

 

(1)               
the Co-Issuers have paid or deposited with the Trustee a sum sufficient to pay:

 

(A)             
all overdue interest on all Outstanding Notes,

 

(B)             
all unpaid principal of (and premium, if any, on) any Outstanding Notes which has become due otherwise than by such declaration
of acceleration, and interest on such unpaid principal at the rate borne by the Notes,

 

(C)             
to the extent that payment of such interest is lawful, interest on overdue interest at the rate borne by the Notes, and

 

(D)             
all sums paid or advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel; and

 

(2)               
Events of Default, other than the non-payment of amounts of principal of (or premium, if any, on) or interest on Notes which have
become due solely by such declaration of acceleration, have been cured or waived as provided in Section 513, provided that no such
rescission shall affect any subsequent default or impair any right consequent thereon.

 

Section
503.           
Collection of Indebtedness and Suits for Enforcement by Trustee. The Co-Issuers covenant that if:

 

(1)               
default is made in the payment of any installment of interest on any Note when such interest becomes due and payable and such default
continues for a period of 30 days, or

 

(2)               
default is made in the payment of the principal of (or premium, if any, on) any Note at the Maturity thereof,

 

the Co-Issuers will, upon demand of the Trustee, pay to the Trustee
for the benefit of the Holders of such Notes, the whole amount then due and payable on such Notes for principal (and premium, if any)
and interest, and interest on any overdue principal (and premium, if any) and, to the extent that payment of such interest shall be legally
enforceable, upon any overdue installment of interest, at the rate borne by the Notes, and, in addition thereto, such further amount as
shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel.

 

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

 

If an Event of Default occurs and is
continuing, the Trustee may in its discretion proceed to protect and enforce its rights and the rights of the Holders under this
Indenture and the Guarantees by such appropriate judicial proceedings as the Trustee shall deem necessary to protect and enforce any
such rights, including seeking recourse against any Guarantor, whether for the specific enforcement of any covenant or agreement in
this Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper remedy, including seeking
recourse against any Guarantor.

 

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Section
504.           
Trustee May File Proofs of Claim. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial proceeding relative to the Co-Issuers or any other obligor including
any Guarantor, upon the Notes or the property of either of the Co-Issuers or of such other obligor or their creditors, the Trustee (irrespective
of whether the principal of the Notes shall then be due and payable as therein expressed or by declaration or otherwise and irrespective
of whether the Trustee shall have made any demand on the Co-Issuers for the payment of overdue principal, premium, if any, or interest)
shall be entitled and empowered, by intervention in such proceeding or otherwise,

 

(1)               
to file and prove a claim for the whole amount of principal (and premium, if any) and interest owing and unpaid in respect of the
Notes and to file such other papers or documents as may be necessary or advisable in order to have the claims of the Trustee (including
any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and of the Holders
allowed in such judicial proceeding, and

 

(2)               
to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same;

 

and any custodian, receiver, assignee, trustee, liquidator, sequestrator
or similar official in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee and, in the
event that the Trustee shall consent to the making of such payments directly to the Holders, to pay the Trustee any amount due it for
the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 607.

 

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

 

Section
505.           
Trustee May Enforce Claims Without Possession of Notes. All rights of action and claims under this Indenture or the
Notes may be prosecuted and enforced by the Trustee without the possession of any of the Notes or the production thereof in any proceeding
relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own name and as trustee of an express trust,
and any recovery of judgment shall, after provision for the payment of the reasonable compensation, expenses, disbursements and advances
of the Trustee, its agents and counsel, be for the ratable benefit of the Holders in respect of which such judgment has been recovered.

 

Section
506.           
Application of Money Collected. Any money or property collected by the Trustee pursuant to this Article Five and
any money or other property distributable in respect of obligations of the Co-Issuers under this Indenture or the Security Documents after
the occurrence of an Event of Default, including in each case upon realization of the Collateral (but subject, in each case, to the First
Lien Intercreditor Agreement) shall be applied in the following order, at the date or dates fixed by the Trustee and, in case of the distribution
of such money on account of principal (or premium, if any) or interest, upon presentation of the Notes and the notation thereon of the
payment if only partially paid and upon surrender thereof if fully paid:

 

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FIRST: To the payment of all amounts
due the Trustee and the Notes Collateral Agents (including any predecessor Trustee or Notes Collateral Agents) under Section 607;

 

SECOND: To the payment of the
amounts then due and unpaid for principal of (and premium, if any) and interest on the Notes in respect of which or for the benefit of
which such money has been collected and all other First Lien Notes Obligations, ratably, without preference or priority of any kind, according
to the amounts due and payable on such Notes for principal (and premium, if any) and interest, respectively, and all other First Lien
Notes Obligations; and

 

THIRD: The balance, if any, to
the Co-Issuers or as a court of competent jurisdiction may direct in writing; provided that all sums due and owing to the Holders
and the Trustee have been paid in full as required by this Indenture.

 

Section
507.           
Limitation on Suits. Except to enforce the right to receive payment of principal, premium (if any) or interest when
due, no Holder shall pursue any remedy with respect to this Indenture or the Notes (subject to the First Lien Intercreditor Agreement),
unless:

 

(1)               
such Holder has previously given the Trustee notice that an Event of Default is continuing;

 

(2)               
Holders of at least 25% in principal amount of the outstanding Notes have requested the Trustee to pursue the remedy;

 

(3)               
such Holders have offered the Trustee or the Notes Collateral Agents, as applicable, reasonable security or indemnity against any
loss, liability or expense;

 

(4)               
the Trustee has not complied with such request within 60 days after the receipt thereof and the offer of security or indemnity;
and

 

(5)               
Holders of a majority in principal amount of the outstanding Notes have not given the Trustee a direction inconsistent with such
request within such 60-day period,

 

it being understood and intended that no one or more Holders shall
have any right in any manner whatever by virtue of, or by availing of, any provision of this Indenture or the Guarantees to affect, disturb
or prejudice the rights of any other Holders, or to obtain or to seek to obtain priority or preference over any other Holders or to enforce
any right under this Indenture or the Guarantees, except in the manner herein provided and for the equal and ratable benefit of all the
Holders (it being further understood that the Trustee does not have an affirmative duty to ascertain whether or not such actions or forbearances
are unduly prejudicial to such Holders).

 

Section
508.           
Unconditional Right of Holders to Receive Principal, Premium and Interest. Notwithstanding any other provision in
this Indenture, the Holder of any Note shall have the right, which is absolute and unconditional, to receive payment, as provided herein
(including, if applicable, Article Eleven) and in such Note of the principal of (and premium, if any) and (subject to Section 306) interest
on such Note on the respective Stated Maturities expressed in such Note (or, in the case of redemption, on the Redemption Date) and to
institute suit for the enforcement of any such payment on or after such respective dates, and such rights shall not be impaired without
the consent of such Holder.

 

Section
509.            Restoration
of Rights and Remedies. If the Trustee or any Holder has instituted any proceeding to enforce any right or remedy under this
Indenture or the Guarantees and such proceeding has been discontinued or abandoned for any reason, or has been determined adversely
to the Trustee or to such Holder, then and in every such case, subject to any determination in such proceeding, the Co-Issuers, any
Guarantor, any other obligor of the Notes, the Trustee and the Holders shall be restored severally and respectively to their former
positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall continue as though no such
proceeding had been instituted.

 

    -70-

     

    

 

Section
510.           
Rights and Remedies Cumulative. Except as otherwise provided with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Notes in the last paragraph of Section 305, no right or remedy herein conferred upon or reserved to the Trustee
or to the Holders is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted
by law, be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity
or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

 

Section
511.           
Delay or Omission Not Waiver. No delay or omission of the Trustee or of any Holder of any Note to exercise any right
or remedy accruing upon any Event of Default shall impair any such right or remedy or constitute a waiver of any such Event of Default
or an acquiescence therein. Every right and remedy given by this Article Five or by law to the Trustee or to the Holders may be exercised
from time to time, and as often as may be deemed expedient, by the Trustee or by the Holders, as the case may be.

 

Section
512.           
Control by Holders. Subject to the Trustee’s rights under Article Six hereof, the Holders of not less than
a majority in principal amount of the Outstanding Notes shall have the right to direct the time, method and place of conducting any proceeding
for any remedy available to the Trustee or the Notes Collateral Agents, or exercising any trust or power conferred on the Trustee or the
Notes Collateral Agents, provided that:

 

(1)               
such direction shall not be in conflict with any rule of law or with this Indenture,

 

(2)               
subject to all applicable laws, rules and regulations, the Trustee or the Notes Collateral Agents may take any other action deemed
proper by the Trustee or the Notes Collateral Agents, as applicable, which is not inconsistent with such direction, and

 

(3)               
the Trustee or the Notes Collateral Agents need not take any action which might involve it in personal liability or which the Trustee
or the Notes Collateral Agents, as applicable, determines is unduly prejudicial to the rights of any Holders not consenting.

 

Section
513.           
Waiver of Past Defaults. Subject to Sections 508 and 902, the Holders of at least a majority in aggregate principal
amount of the Outstanding Notes issued under this Indenture by notice to the Trustee may on behalf of the Holders of all of such Notes
waive any existing or past Default or Event of Default hereunder and its consequences under this Indenture (except a continuing Default
or Event of Default in respect of the payment of interest on, premium, if any, or the principal of any such Note held by a non-consenting
Holder, or in respect of a covenant or provision hereof which under Article Nine cannot be modified or amended without the consent of
the Holder of each Outstanding Note affected) and rescind any acceleration and its consequences with respect to the Notes; provided
such rescission would not conflict with any judgment of a court of competent jurisdiction and the Trustee and each of the Notes Collateral
Agents has been paid any amounts owed to it in connection with such Default or Event of Default. In the event of any Event of Default
specified in clause (5) of Section 501, such Event of Default and all consequences thereof (excluding any resulting payment default, other
than as a result of acceleration of the Notes) shall be annulled, waived and rescinded, automatically and without any action by the Trustee
or the Holders, if within 20 days after such Event of Default arose:

 

(1)               
 the Indebtedness or guarantee that is the basis for such Event of Default has been discharged; or

 

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(2)               
the requisite holders thereof have rescinded or waived the acceleration, notice or action (as the case may be) giving rise to such
Event of Default; or

 

(3)               
the default that is the basis for such Event of Default has been cured.

 

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

 

Section
514.           
Waiver of Stay or Extension Laws. Each of the Co-Issuers, the Guarantors and any other obligor on the Notes covenants
(to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatsoever claim or take
the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the covenants
or the performance of this Indenture; and each of the Co-Issuers, the Guarantors and any other obligor on the Notes (to the extent that
it may lawfully do so) hereby expressly waives all benefit or advantage of any such law and covenants that it will not hinder, delay or
impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power as though
no such law had been enacted.

 

Article
Six

THE TRUSTEE

 

Section
601.           
Duties of the Trustee.

 

(a)               
Except during the continuance of an Event of Default,

 

(1)               
the Trustee undertakes to perform such duties and only such duties as are specifically set forth in this Indenture, and no implied
covenants or obligations shall be read into this Indenture against the Trustee; and

 

(2)               
in the absence of bad faith, gross negligence or willful misconduct 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; but in the case of any such certificates or opinions specifically required by any provision hereof
to be provided to it, the Trustee shall be under a duty to examine the same to determine whether or not they conform to the requirements
of this Indenture, but not to verify the contents thereof or any conclusions therein.

 

(b)               
If an Event of Default has occurred and is continuing of which a Responsible Officer of the Trustee has actual knowledge (in the
case of an Event of Default under clause (1) or (2) of Section 501 hereof) or (in the case of any other Event of Default) of which written
notice of such Event of Default shall have been given to a Responsible Officer of the Trustee by the Issuer, any other obligor of the
Notes or by any Holder, 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 such person’s
own affairs.

 

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(c)               
 No provision of this Indenture shall be construed to relieve the Trustee from liability for its own negligent action, its own
negligent failure to act, or its own willful misconduct, except that

 

(1)               
this paragraph (c) shall not be construed to limit the effect of paragraphs (a) or (d) of this Section 601;

 

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

 

(3)               
the Trustee shall not be liable with respect to any action taken or omitted to be taken by it in good faith in accordance with
the direction of the Holders of a majority in aggregate principal amount of the Outstanding Notes relating to the time, method and place
of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred upon the Trustee, under
this Indenture.

 

(d)               
No provision of this Indenture shall require the Trustee to expend or risk its own funds or otherwise incur any financial liability
in the performance of any of its duties hereunder, or in the exercise of any of its rights or powers, if it shall have reasonable grounds
for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured to it.

 

(e)               
Whether or not therein expressly so provided, every provision of this Indenture relating to the conduct or affecting the liability
of or affording protection to the Trustee shall be subject to the provisions of this Section 601.

 

Section
602.           
Notice of Defaults. Notwithstanding anything herein to the contrary (including Section 502(a) hereof), within 30
days after the receipt from the Issuer of notice of the occurrence of any Default or Event of Default hereunder, the Trustee shall transmit
notice of such Default or Event of Default hereunder, unless such Default or Event of Default shall have been cured or waived; provided,
however, that, except in the case of a Default or Event of Default in the payment of the principal of (or premium, if any, on)
or interest on any Note, the Trustee shall be protected in withholding such notice if and so long as a trust committee of Responsible
Officers of the Trustee in good faith determine that the withholding of such notice is in the interest of the Holders.

 

Section
603.           
Certain Rights of Trustee. Subject to the provisions of Sections 601 and 602:

 

(1)               
the Trustee may conclusively rely and shall be fully protected in acting or refraining from acting upon any resolution, certificate,
statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness
or other paper or document (whether in original or facsimile form) believed by it to be genuine and to have been signed or presented by
the proper party or parties;

 

(2)               
any request or direction of the Co-Issuers mentioned herein shall be sufficiently evidenced by a Company Request or Company Order
and any resolution of the Board of Directors may be sufficiently evidenced by a Board Resolution;

 

(3)               
whenever in the administration of this Indenture the Trustee shall deem it desirable that a matter be proved or established prior
to taking, suffering or omitting any action hereunder, the Trustee (unless other evidence be herein specifically prescribed) may, in the
absence of bad faith on its part, conclusively rely upon an Officer’s Certificate;

 

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(4)               
 the Trustee may consult with counsel, accountants or other professionals of its own selection and the advice of such counsel,
accountants or other professionals or any Opinion of Counsel shall be full and complete authorization and protection in respect of any
action taken, suffered or omitted by it hereunder in good faith and in reliance on the advice or opinion of such counsel;

 

(5)               
the Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Indenture or the Security
Documents at the request or direction of any of the Holders pursuant to this Indenture, unless such Holders shall have offered to the
Trustee reasonable indemnity or security against any loss, liability or expense which might be incurred by it in compliance with such
request or direction;

 

(6)               
the Trustee shall not be bound to make any investigation into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, note, other evidence of indebtedness or other
paper or document, but the Trustee, in its discretion, may make such further inquiry or investigation into such facts or matters as it
may see fit, and, if the Trustee shall determine to make such further inquiry or investigation, it shall be entitled to examine the books,
records and premises of the Issuer, personally or by agent or attorney at the expense of the Issuer and shall incur no liability of any
kind by reason of such inquiry or investigation;

 

(7)               
the Trustee may execute any of the trusts or powers hereunder or perform any duties hereunder either directly or by or through
agents or attorneys and the Trustee shall not be responsible for any misconduct or negligence on the part of any agent or attorney appointed
with due care by it hereunder;

 

(8)               
the Trustee shall not be liable for any action taken, suffered or omitted by it in good faith and believed by it to be authorized
or within the discretion or rights or powers conferred upon it by this Indenture; provided, however, that the Trustee’s
conduct does not constitute willful misconduct or gross negligence;

 

(9)               
the rights, privileges, protections, immunities and benefits given to the Trustee, including its right to be indemnified, are extended
to, and shall be enforceable by, BNY Mellon in each of its capacities hereunder, including as Notes Collateral Agent (to the extent not
already set forth in Article Fourteen), and to each agent, custodian and other Person employed to act hereunder; provided that
in and during an Event of Default, only the Trustee, and not any other agent, shall be subject to the prudent person standard;

 

(10)           
the Trustee may request that the Co-Issuers deliver an Incumbency Certificate substantially in the form of Exhibit B hereto
setting forth the names of individuals or titles of officers authorized at such time to take specified actions pursuant to this Indenture,
which Incumbency Certificate may be signed by any person authorized to sign an Officer’s Certificate, including any person specified
as so authorized in any such certificate previously delivered and not superseded;

 

(11)           
anything in this Indenture notwithstanding, in no event shall the Trustee be responsible or liable for special, indirect, incidental,
punitive, or consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit) irrespective of whether
the Trustee has been advised of the likelihood of such loss or damage and regardless of the form of action; and

 

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(12)           
 the Trustee shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default unless a Responsible
Officer of the Trustee shall have received written notice from the Issuer or Holders describing such Default or Event of Default, and
stating that such notice is a notice of Default.

 

(13)           
The Trustee shall have the right to accept and act upon instructions, including funds transfer instructions (“Instructions”)
given pursuant to this Indenture and delivered using Electronic Means; provided, however, that the Co-Issuers and Guarantors
shall each provide to the Trustee an incumbency certificate listing officers with the authority to provide such Instructions (“Authorized
Officers”) and containing specimen signatures of such Authorized Officers, which incumbency certificate shall be amended whenever
a person is to be added or deleted from the listing. If any of the Co-Issuers or Guarantors elect to give the Trustee Instructions using
Electronic Means and the Trustee in its discretion elects to act upon such Instructions, the Trustee’s understanding of such Instructions
shall be deemed controlling. The Co-Issuers and Guarantors each understand and agree that the Trustee cannot determine the identity of
the actual sender of such Instructions and that the Trustee shall conclusively presume that directions that purport to have been sent
by an Authorized Officer listed on the incumbency certificate provided to the Trustee have been sent by such Authorized Officer. The Co-Issuers
and Guarantors shall each be responsible for ensuring that only Authorized Officers transmit such Instructions to the Trustee and that
the Co-Issuers and Guarantors and all Authorized Officers are solely responsible to safeguard the use and confidentiality of applicable
user and authorization codes, passwords and/or authentication keys upon receipt by the Co-Issuers or Guarantors, respectively. The Trustee
shall not be liable for any losses, costs or expenses arising directly or indirectly from the Trustee’s reliance upon and compliance
with such Instructions notwithstanding such directions conflict or are inconsistent with a subsequent written instruction. The Co-Issuers
and Guarantors each agree: (i) to assume all risks arising out of the use of Electronic Means to submit Instructions to the Trustee, including
without limitation the risk of the Trustee acting on unauthorized Instructions, and the risk of interception and misuse by third parties;
(ii) that it is fully informed of the protections and risks associated with the various methods of transmitting Instructions to the Trustee
and that there may be more secure methods of transmitting Instructions than the method(s) selected by the Co-Issuers or Guarantors; (iii)
that the security procedures (if any) to be followed in connection with its transmission of Instructions provide to it a commercially
reasonable degree of protection in light of its particular needs and circumstances; and (iv) to notify the Trustee immediately upon learning
of any compromise or unauthorized use of the security procedures.

 

Section
604.           
Trustee Not Responsible for Recitals or Issuance of Notes. The recitals contained herein and in the Notes, except
for the Trustee’s certificates of authentication, shall be taken as the statements of the Issuer, and the Trustee assumes no responsibility
for their correctness. The Trustee makes no representations as to the validity or sufficiency of this Indenture or of the Notes, except
that the Trustee represents that it is duly authorized to execute and deliver this Indenture, authenticate the Notes and perform its obligations
hereunder. The Trustee shall not be accountable for the use or application by the Issuer of Notes or the proceeds thereof.

 

Section
605.           
May Hold Notes. The Trustee, any Paying Agent, any Note Registrar or any other agent of the Issuer or of the Trustee,
in its individual or any other capacity, may become the owner or pledgee of Notes and may otherwise deal with the Issuer with the same
rights it would have if it were not the Trustee, Paying Agent, Note Registrar or such other agent; provided, however, that,
if it acquires any conflicting interest, it must eliminate such conflict within 90 days or resign.

 

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Section
606.           
Money Held in Trust. Money held by the Trustee in trust hereunder need not be segregated from other funds except
to the extent required by law. The Trustee shall be under no liability for interest on any money received by it hereunder except as otherwise
agreed in writing with the Issuer.

 

Section
607.           
Compensation and Reimbursement. The Co-Issuers and the Guarantors, jointly and severally, agree:

 

(1)               
to pay to the Trustee from time to time such compensation as shall be agreed in writing between the Issuer and the Trustee for
all services rendered by it hereunder (which compensation shall not be limited by any provision of law in regard to the compensation of
a trustee of an express trust);

 

(2)               
except as otherwise expressly provided herein, to reimburse the Trustee upon its request for all reasonable expenses, disbursements
and advances incurred or made by the Trustee in accordance with any provision of this Indenture (including the reasonable compensation
and the expenses and disbursements of its agents and counsel and of all Persons not regularly employed by the Trustee), except any such
expense, disbursement or advance as shall be determined to have been caused by its own negligence, bad faith or willful misconduct; and

 

(3)               
to indemnify the Trustee and any predecessor Trustee and their officers, agents, directors, and employees for, and to hold them
harmless against, any and all loss, liability, claim, damage or expense, including taxes (other than the taxes based on the income of
the Trustee) incurred without negligence, bad faith, or willful misconduct on its part, arising out of or in connection with the acceptance
or administration of this trust, including the documented and reasonable compensation, expenses and disbursements of its agents and counsel
related thereto and the costs of enforcing the terms of this Indenture, including the indemnification provided herein, and defending itself
against any claim, regardless of whether the claim is asserted by the Issuer, a Guarantor, a Holder or any other Person, or liability
in connection with the exercise or performance of any of its powers or duties hereunder.

 

The obligations of the Co-Issuers and Guarantors
under this Section 607 to compensate the Trustee, to pay or reimburse the Trustee for expenses, disbursements and advances and to indemnify
and hold harmless the Trustee shall constitute additional indebtedness hereunder and shall survive the satisfaction and discharge of this
Indenture and resignation or removal of the Trustee. As security for the performance of such obligations of the Co-Issuers and Guarantors,
the Trustee shall have a claim prior to the Notes upon all property and funds held or collected by the Trustee as such, except funds held
in trust for the payment of principal of (and premium, if any) or interest on particular Notes.

 

When the Trustee incurs expenses or renders services
in connection with an Event of Default specified in Section 501(7), the expenses (including the reasonable charges and expenses of its
counsel) of and the compensation for such services are intended to constitute expenses of administration under any applicable Bankruptcy
Law.

 

“Trustee” for purposes of this
Section 607 shall include any predecessor Trustee; provided, however, that the negligence, willful misconduct or bad faith
of any Trustee hereunder shall not affect the rights of any other Trustee hereunder.

 

The provisions of this Section 607 shall survive
the satisfaction and discharge of this Indenture.

 

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Section
608.           
Corporate Trustee Required; Eligibility. There shall be at all times a Trustee hereunder which shall have a combined
capital and surplus of at least US$50,000,000. If such corporation publishes reports of condition at least annually, pursuant to law
or to the requirements of federal, State, territorial or District of Columbia supervising or examining authority, then for the purposes
of this Section 608, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set
forth in its most recent report of condition so published. If at any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section 608, it shall resign immediately in the manner and with the effect hereinafter specified in this Article Six.

 

Section
609.           
Resignation and Removal; Appointment of Successor.

 

(a)               
No resignation or removal of the Trustee and no appointment of a successor Trustee pursuant to this Article Six shall become effective
until the acceptance of appointment by the successor Trustee in accordance with the applicable requirements of Section 610.

 

(b)               
The Trustee may resign at any time by giving written notice thereof to the Issuer. Upon receiving such notice of resignation, the
Issuer shall promptly appoint a successor trustee by written instrument, a copy of which shall be delivered to the resigning Trustee and
a copy to the successor Trustee. If the instrument of acceptance by a successor Trustee required by Section 610 shall not have been delivered
to the Trustee within 30 days after the giving of such notice of removal, the removed Trustee may petition, at the expense of the Issuer,
any court of competent jurisdiction for the appointment of a successor Trustee.

 

(c)               
The Trustee may be removed with 30 days’ notice at any time by Act of the Holders of not less than a majority in principal
amount of the Outstanding Notes, delivered to the Trustee and to the Issuer. If the instrument of acceptance by a successor Trustee required
by Section 610 shall not have been delivered to the Trustee within 30 days after the giving of such notice of resignation, the resigning
Trustee may petition, at the expense of the Issuer, any court of competent jurisdiction for the appointment of a successor Trustee.

 

(d)               
[Reserved].

 

(e)               
If the Trustee shall resign, be removed or become incapable of acting, or if a vacancy shall occur in the office of Trustee for
any cause, the Issuer shall promptly appoint a successor Trustee. If, within one year after such resignation, removal or incapability,
or the occurrence of such vacancy, a successor Trustee shall be appointed by Act of the Holders of a majority in principal amount of the
Outstanding Notes delivered to the Issuer and the retiring Trustee, the successor Trustee so appointed shall, forthwith upon its acceptance
of such appointment, become the successor Trustee and supersede the successor Trustee appointed by the Issuer. If no successor Trustee
shall have been so appointed by the Issuer or the Holders and accepted appointment in the manner hereinafter provided, the resigning Trustee
or any Holder who has been a bona fide Holder of a Note for at least six months may, on behalf of himself, and all others similarly situated,
petition any court of competent jurisdiction for the appointment of a successor Trustee at the sole cost and expense of the Issuer.

 

(f)                
The Issuer shall give notice of each resignation and each removal of the Trustee and each appointment of a successor Trustee to
the Holders in the manner provided for in Section 107. Each notice shall include the name of the successor Trustee and the address of
its Corporate Trust Office.

 

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Section
610.           
Acceptance of Appointment by Successor.

 

(a)               
Every successor Trustee appointed hereunder shall execute, acknowledge and deliver to the Issuer and to the retiring Trustee an
instrument accepting such appointment, and thereupon the resignation or removal of the retiring Trustee shall become effective and such
successor Trustee, without any further act, deed or conveyance, shall become vested with all the rights, powers, trusts and duties of
the retiring Trustee; but, on request of the Issuer or the successor Trustee, such retiring Trustee shall, upon payment of its charges,
execute and deliver an instrument transferring to such successor Trustee all the rights, powers and trusts of the retiring Trustee and
shall duly assign, transfer and deliver to such successor Trustee all property and money held by such retiring Trustee hereunder subject
to the lien provided for in Section 607. Upon request of any such successor Trustee, the Issuer shall execute any and all instruments
for more fully and certainly vesting in and confirming to such successor Trustee all such rights, powers and trusts.

 

(b)               
No successor Trustee shall accept its appointment unless at the time of such acceptance such successor Trustee shall be qualified
and eligible under this Article Six.

 

Section
611.           
Merger, Conversion, Consolidation or Succession to Business. Any corporation into which the Trustee may be merged
or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which
the Trustee shall be a party, or any corporation succeeding to all or substantially all of the corporate trust business of the Trustee,
shall be the successor of the Trustee hereunder, provided such corporation shall be otherwise qualified and eligible under this
Article Six, without the execution or filing of any paper or any further act on the part of any of the parties hereto. In case any Notes
shall have been authenticated, but not delivered, by the Trustee then in office, any successor by merger, conversion or consolidation
to such authenticating Trustee may adopt such authentication and deliver the Notes so authenticated with the same effect as if such successor
Trustee had itself authenticated such Notes. In case at that time any of the Notes shall not have been authenticated, any successor Trustee
may authenticate such Notes either in the name of any predecessor hereunder or in the name of the successor Trustee. In all such cases
such certificates shall have the full force and effect which this Indenture provides for the certificate of authentication of the Trustee
shall have; provided, however, that the right to adopt the certificate of authentication of any predecessor Trustee or to
authenticate Notes in the name of any predecessor Trustee shall apply only to its successor or successors by merger, conversion or consolidation.

 

Section
612.            Appointment
of Authenticating Agent. At any time when any of the Notes remain Outstanding, the Trustee may appoint an authenticating agent
or agents with respect to the Notes which shall be authorized to act on behalf of the Trustee to authenticate Notes and the Trustee
shall give written notice of such appointment to all Holders with respect to which such authenticating agent will serve, in the
manner provided for in Section 107. Notes so authenticated shall be entitled to the benefits of this Indenture and shall be valid
and obligatory for all purposes as if authenticated by the Trustee hereunder. Any such appointment shall be evidenced by an
instrument in writing signed by a Responsible Officer of the Trustee, and a copy of such instrument shall be promptly furnished to
the Issuer. Wherever reference is made in this Indenture to the authentication and delivery of Notes by the Trustee or the
Trustee’s certificate of authentication, such reference shall be deemed to include authentication and delivery on behalf of
the Trustee by an authenticating agent and a certificate of authentication executed on behalf of the Trustee by an authenticating
agent. Each authenticating agent shall be acceptable to the Issuer and shall at all times be a corporation organized and doing
business under the laws of the United States of America, any state thereof or the District of Columbia, authorized under such laws
to act as authenticating agent, having a combined capital and surplus of not less than US$50,000,000 and subject to supervision or
examination by Federal or state authority. If such corporation publishes reports of condition at least annually, pursuant to law or
to the requirements of said supervising or examining authority, then for the purposes of this Section 612, the combined capital and
surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of
condition so published. If at any time an authenticating agent shall cease to be eligible in accordance with the provisions of this
Section 612, it shall resign immediately in the manner and with the effect specified in this Section 612.

 

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Any corporation into which an authenticating agent
may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation
to which such authenticating agent shall be a party, or any corporation succeeding to all or substantially all the corporate agency or
corporate trust business of an authenticating agent, shall continue to be an authenticating agent, provided such corporation shall
be otherwise eligible under this Section 612, without the execution or filing of any paper or any further act on the part of the Trustee
or the authenticating agent.

 

An authenticating agent may resign at any time
by giving written notice thereof to the Trustee and to the Issuer. The Trustee may at any time terminate the agency of an authenticating
agent by giving written notice thereof to such authenticating agent and to the Issuer. Upon receiving such a notice of resignation or
upon such a termination, or in case at any time such authenticating agent shall cease to be eligible in accordance with the provisions
of this Section 612, the Trustee may appoint a successor authenticating agent which shall be acceptable to the Issuer and shall give written
notice of such appointment to all Holders, in the manner provided for in Section 107. Any successor authenticating agent upon acceptance
of its appointment hereunder shall become vested with all the rights, powers and duties of its predecessor hereunder, with like effect
as if originally named as an authenticating agent. No successor authenticating agent shall be appointed unless eligible under the provisions
of this Section 612.

 

The Issuer agrees to pay to each authenticating
agent from time to time such compensation for its services under this Section 612 as shall be agreed in writing between the Issuer and
such authenticating agent.

 

If an appointment is made pursuant to this Section
612, the Notes may have endorsed thereon, in addition to the Trustee’s certificate of authentication, an alternate certificate of
authentication in the following form:

 

This is one of the Notes designated therein referred
to in the within-mentioned Indenture.

 

	 	THE BANK OF NEW YORK MELLON, as Trustee
	 	 	 
	 	By:	 
	 	 	as Authenticating Agent
	 	 	 
	 	By:	 
	 	 	as Authorized Officer

 

Section
613.           
Force Majeure. The Trustee shall not be responsible or liable for any failure or delay in the performance of its
obligations under this Indenture arising out of or caused, directly or indirectly, by circumstances beyond its control, including, without
limitation, acts of God; earthquakes; fire; flood; terrorism; wars and other military disturbances; sabotage; epidemics; riots; interruptions;
loss or malfunctions of utilities, computer (hardware or software) or communication services; accidents; labor disputes; acts of civil
or military authority and governmental action.

 

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Section
614.            Security
Documents; Intercreditor Agreements. By their acceptance of the Notes, the Holders hereby authorize and direct the Trustee and
Notes Collateral Agents, as the case may be, to execute and deliver, or enter into a joinder with respect to, the First Lien
Intercreditor Agreement (and any other applicable intercreditor agreements referred to herein from time to time) and any other
Security Documents in which the Trustee or any Notes Collateral Agent, as applicable, is named as a party, including any Security
Documents executed after the Issue Date. It is hereby expressly acknowledged and agreed that, in doing so, the Trustee and each of
the Notes Collateral Agents are (a) expressly authorized to make the representations attributed to Holders in any such agreements
and (b) not responsible for the terms or contents of such agreements, or for the validity or enforceability thereof, or the
sufficiency thereof for any purpose. Whether or not so expressly stated therein, in entering into, or taking (or forbearing from)
any action under, the First Lien Intercreditor Agreement (or any other applicable intercreditor agreements referred to herein from
time to time) or any other Security Documents, the Trustee and the Notes Collateral Agents each shall have all of the rights,
immunities, indemnities and other protections granted to it under this Indenture (in addition to those that may be granted to it
under the terms of such other agreement or agreements).

 

Article
Seven

HOLDERS LISTS

 

Section
701.           
Company to Furnish Trustee Names and Addresses. The Issuer will furnish or cause to be furnished to the Trustee:

 

(1)               
semiannually, not more than 10 days after each Record Date, a list, in such form as the Trustee may reasonably require, of the
names and addresses of the Holders as of such Record Date; and

 

(2)               
at such other times as the Trustee may reasonably request in writing, within 30 days after receipt by the Issuer of any such request,
a list of similar form and content to that in clause (1) hereof as of a date not more than 15 days prior to the time such list is furnished;

 

provided, however, that if and so long as the Trustee
shall be the Note Registrar, no such list need be furnished.

 

Section
702.           
Holder List. The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available
to it of the names and addresses of Holders. If the Trustee is not the Note Registrar, the Co-Issuers, on their own behalf and on behalf
of each of the Guarantors, shall furnish or cause the Note Registrar to furnish to the Trustee, in writing at least five Business Days
before each interest payment date and at such other times as the Trustee may request in writing, a list in such form and as of such date
as the Trustee may reasonably require of the names and addresses of Holders.

 

Section
703.           
[Reserved].

 

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Article
Eight

MERGER, CONSOLIDATION OR SALE OF ALL OR

SUBSTANTIALLY ALL ASSETS

 

Section
801.           
Company May Consolidate, Etc., Only on Certain Terms. The Issuer may not consolidate, amalgamate or merge with or
into or wind up into (whether or not the Issuer is the surviving Person), or sell, assign, transfer, lease, convey or otherwise dispose
of all or substantially all of its properties or assets in one or more related transactions, to any Person unless:

 

(1)               
 the Issuer is the surviving, resulting or continuing Person, or the Person formed by, continuing or resulting from or surviving
any such consolidation, amalgamation, merger or winding up (if other than the Issuer) or to which such sale, assignment, transfer, lease,
conveyance or other disposition will have been made is a corporation, limited liability company or partnership organized or existing under
the laws of Canada, any province or territory thereof, the United States, any state thereof or the District of Columbia (such Person,
as the case may be, being herein called the “Successor Company”); provided that, if the Successor Company is
a limited liability company or partnership, then such Successor Company shall have a co-issuer that is a corporation organized or existing
under the laws of Canada, any province or territory thereof, the United States, any state thereof or the District of Columbia;

 

(2)               
the Successor Company, if other than the Issuer, expressly assumes all the obligations of the Issuer under this Indenture, the
Notes and the applicable Security Documents pursuant to supplemental indentures or other applicable documents or instruments in form reasonably
satisfactory to the Trustee and the Notes Collateral Agent, if applicable;

 

(3)               
immediately after such transaction no Default or Event of Default exists;

 

(4)               
immediately after giving pro forma effect to such transaction, as if such transaction had occurred at the beginning of the applicable
Test Period, (A) the Successor Company would be permitted to incur at least US$1.00 of additional Indebtedness pursuant to the Total Net
Leverage Ratio test set forth in the first paragraph of Section 1011 or (B) the Total Net Leverage Ratio for the Successor Company and
the Restricted Subsidiaries would be equal to or less than such Total Net Leverage Ratio for the Issuer and the Restricted Subsidiaries
immediately prior to such transaction;

 

(5)               
each Guarantor, unless it is the other party to the transactions described above, in which case clause (2) of the second to last
paragraph of this Section 801 shall apply, shall have by supplemental indenture confirmed that its Guarantee shall apply to such Person’s
obligations under this Indenture and the Notes; and

 

(6)               
the Issuer shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that such
consolidation, amalgamation, merger, winding up, sale, assignment, transfer, lease, conveyance or other disposition and such supplemental
indentures, if any, comply with this Indenture.

 

For purposes of this Section 801, any Indebtedness
of the Successor Company which was not Indebtedness of the Issuer immediately prior to the transaction shall be deemed to have been incurred
in connection with such transaction.

 

The Successor Company will succeed to, and be substituted
for, the Issuer under this Indenture (and all references to the Issuer will be deemed references to the Successor Company, unless the
context otherwise requires) and the Notes and the Issuer will automatically be released and discharged from its obligations under this
Indenture and the Notes. For purposes of the foregoing, the transfer (by lease, assignment, sale or otherwise, in a single transaction
or series of transactions) of all or substantially all of the properties or assets of one or more Restricted Subsidiaries, the Equity
Interests of which constitute all or substantially all of the properties and assets of the Issuer will be deemed to be the transfer of
all or substantially all of the properties and assets of the Issuer.

 

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Section
802.            Guarantors
and Co-Issuers May Consolidate, Etc., Only on Certain Terms. Subject to Section 1208 hereof, no Guarantor nor the Co-Issuer
will, and the Issuer will not permit any Guarantor or the Co-Issuer to, consolidate, amalgamate or merge with or into or wind up
into (whether or not such Guarantor or the Co-Issuer is the surviving Person), or sell, assign, transfer, lease, convey or otherwise
dispose of all or substantially all of its properties or assets in one or more related transactions to, any Person unless:

 

(A)             
(1) (x) such Guarantor or the Co-Issuer, as applicable, is the surviving, resulting or continuing Person or (y) the Person formed
by, continuing or resulting from or surviving any such consolidation, amalgamation, merger or winding up (if other than such Guarantor
or the Co-Issuer, as applicable) or to which such sale, assignment, transfer, lease, conveyance or other disposition will have been made
is a corporation, limited liability company or partnership organized or existing under the laws of Canada, any province or territory thereof
(except that in the case of the Co-Issuer, such surviving Person shall be organized or existing under the laws of the United States, any
state thereof, the District of Columbia, or any territory thereof) (such Guarantor or the Co-Issuer or such Person, as the case may be,
being herein called the “Successor Person”) (provided that, in the case of clause (y), if the Guarantor or Co-Issuer,
as applicable, that is not the Successor Person of such transaction (a “Non-Successor Person”) had, immediately prior
to such transaction, been formed, organized or existing under the laws of a jurisdiction other than those referenced immediately above
and/or existed in or was organized as a legal entity other than a corporation, limited liability company or partnership, then the Successor
Person of such transaction may be formed, organized or existing under the laws of the same jurisdiction as such Non-Successor Person had
then been and may be of the same corporate or other organizational type as such Non-Successor Person had then been);

 

(2)       the
Successor Person, if other than such Guarantor or the Co-Issuer, as applicable, expressly assumes all the obligations of such Guarantor
or the Co-Issuer, as applicable, under this Indenture and, in the case of a Guarantor, such Guarantor’s Guarantee and the applicable
Security Documents, pursuant to supplemental indentures or other applicable documents or instruments in form reasonably satisfactory to
the Trustee and the Notes Collateral Agent, if applicable;

 

(3)       immediately
after such transaction no Default or Event of Default exists; and

 

(4)       the
Issuer shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that such consolidation,
merger, winding up, sale, assignment, transfer, lease, conveyance or other disposition and such supplemental indentures, if any, comply
with this Indenture; or

 

(B)             
in the case of a Guarantor, the transaction is made in compliance with Section 1018.

 

Subject to Section 1208 hereof, the Successor Person
will succeed to, and be substituted for, such Guarantor or the Co-Issuer, as applicable, under this Indenture and such Guarantor’s
Guarantee (and references to such Guarantor or the Co-Issuer, as applicable, will be deemed references to the Successor Person, unless
the context requires otherwise), as applicable, and such Guarantor will automatically be released and discharged from its obligations
under this Indenture and such Guarantor’s Guarantee. Notwithstanding the foregoing, any Guarantor may merge into, amalgamate or
consolidate with, wind up into or sell, assign, transfer, lease, convey or otherwise dispose of all or part of its properties and assets
to another Guarantor or the Issuer.

 

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Notwithstanding anything to the contrary in this
Indenture:

 

(a)               
any Restricted Subsidiary may consolidate, amalgamate with, merge into or transfer all or part of its properties and assets to
the Issuer or any Guarantor;

 

(b)               
the Issuer, the Co-Issuer or any Guarantor may merge or amalgamate with an Affiliate of the Issuer solely for the purpose of reincorporating
the Issuer, the Co-Issuer or such Guarantor in another jurisdiction of the United States or Canada so long as the amount of Indebtedness
of the Issuer and the Restricted Subsidiaries is not increased thereby; and

 

(c)               
The Issuer and any of its direct or indirect parent companies, if any, may combine (whether by consolidation, amalgamation, merger
or otherwise) if the beneficial owners of the Issuer’s Voting Stock and the resulting or continuing entity’s Voting Stock
are the persons set forth in clause (i), (ii), (iii), (x) (as it relates to clause (i), (ii) or (iii)), or (xi) of the definition of “Permitted
Holders” and the aggregate principal amount of Indebtedness of the resulting or continuing entity is no greater than that of the
Issuer immediately prior thereto or is permitted to be incurred under Section 1011.

 

Section
803.           
Successor Substituted. Upon any consolidation, amalgamation, merger or winding up, or any sale, assignment, transfer,
lease, conveyance or disposition of all or substantially all of the assets or properties of the Issuer, Co-Issuer or any Guarantor in
accordance with Sections 801 and 802 hereof, the successor Person formed by such consolidation or into which the Issuer, Co-Issuer or
such Guarantor, as the case may be, is merged or would up into or the successor Person to which such sale, assignment, transfer, lease,
conveyance or disposition is made, shall succeed to, and be substituted for, and may exercise every right and power of, the Issuer, Co-Issuer
or such Guarantor, as the case may be, under this Indenture or the Guarantees, as the case may be, with the same effect as if such successor
Person had been named as the Issuer, Co-Issuer or such Guarantor, as the case may be, herein or the Guarantees, as the case may be. When
a successor Person assumes all obligations of its predecessor hereunder, the Notes or the Guarantees, as the case may be, such predecessor
shall be released from all obligations; provided that in the event of a lease, the predecessor shall not be released from the payment
of principal and interest or other obligations on the Notes or the Guarantees, as the case may be.

 

Article
Nine

SUPPLEMENTAL INDENTURES

 

Section
901.           
Amendments or Supplements Without Consent of Holders. Without the consent of any Holder, the Co-Issuers, any Guarantor
(with respect to a Guarantee or this Indenture to which it is a party), the Trustee and the applicable Notes Collateral Agent, at any
time and from time to time, may amend or supplement this Indenture, any Guarantee, the Notes or any of the Security Documents for any
of the following purposes:

 

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

 

(2)               
to provide for uncertificated Notes in addition to or in place of certificated Notes;

 

(3)               
to comply with Article Eight hereof;

 

(4)               
to provide the assumption of the Co-Issuers’ or any Guarantor’s obligations to Holders;

 

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(5)               
 to make any change that would provide any additional rights or benefits to the Holders or that does not adversely affect the legal
rights under this Indenture of any such Holder;

 

(6)               
to add or modify covenants for the benefit of the Holders or to surrender any right or power conferred in this Indenture, any Guarantee,
the Notes or the Security Documents upon the Issuer, the Co-Issuer or any Guarantor;

 

(7)               
to evidence and provide for the acceptance and appointment under the First Lien Intercreditor Agreement and Security Documents
of any new or successor notes collateral agent thereunder pursuant to the requirements thereof;

 

(8)               
to evidence and provide for the acceptance and appointment under this Indenture of a successor Trustee or a successor Paying Agent
thereunder pursuant to the requirements of Sections 609 and 610 hereof;

 

(9)               
to add a Guarantor or obligor of the Notes under this Indenture or to add additional assets as Collateral or add any security for
the First Lien Obligations or make, complete or confirm any grant of security interest in any property or assets as additional Collateral
securing the obligations under this Indenture, the Notes, the Guarantees and the Security Documents, including when permitted or required
by this Indenture or any of the Security Documents or any release, termination or discharge of Collateral when permitted or required by
this Indenture or any of the Security Documents;

 

(10)           
to conform the text of this Indenture, Guarantees, the Notes or any of the Security Documents to any provision of the “Description
of notes” section of the Offering Memorandum to the extent that such provision in the “Description of notes” was intended
to be a verbatim recitation of a provision of this Indenture, the Guarantees, the Notes or any of the Security Documents;

 

(11)           
to make any amendment to the provisions of this Indenture relating to the transfer and legending of Notes; provided, however,
that (A) compliance with this Indenture as so amended would not result in Notes being transferred in violation of the Securities Act or
any applicable securities law and (B) such amendment does not materially and adversely affect the rights of Holders to transfer Notes;

 

(12)           
to provide for the issuance of Additional Notes in accordance with the terms of this Indenture;

 

(13)           
to secure the Notes and/or the related Guarantees;

 

(14)           
to release any Guarantor from its Guarantee pursuant to this Indenture when permitted or required by this Indenture and to release
and discharge any Lien securing the Notes when permitted or required by this Indenture or the Security Documents; or

 

(15)           
to release Collateral from the Lien pursuant to this Indenture and the Security Documents when permitted or required by this Indenture,
or the Security Documents.

 

In addition, the Co-Issuers, the Trustee and the
applicable Notes Collateral Agents may amend the Security Documents to provide for the addition of any creditors to such agreements to
the extent a pari passu lien for the benefit of such creditor is permitted by the terms of this Indenture.

 

    -84-

     

    

 

Section
902.           
Amendments, Supplements or Waivers with Consent of Holders. With the consent of the Holders of at least a majority
in principal amount of the Outstanding Notes (including consents obtained in connection with the purchase of, or tender offer or exchange
offer for, the Notes), by Act of said Holders delivered to the Issuer and the Trustee, the Co-Issuers, any Guarantor (with respect to
any Guarantee or this Indenture to which it is a party), and the Trustee may amend or supplement this Indenture, any Guarantee, the Notes
or any of the Security Documents for the purpose of adding any provisions hereto or thereto, changing in any manner or eliminating any
of the provisions or of modifying in any manner the rights of the Holders hereunder or thereunder (including consents obtained in connection
with a purchase of, or tender offer or exchange offer for, the Notes) and any existing Default, Event of Default or compliance with any
provision of this Indenture or the Notes may be waived with the consent of the Holders of at least a majority in principal amount of
the Outstanding Notes, other than Notes beneficially owned by the Issuer or its Affiliates (including consents obtained in connection
with a purchase of or tender offer or exchange offer for Notes); provided, however, without the consent of each Holder
affected, an amendment, supplement or waiver may not, with respect to any Notes issued under this Indenture and held by a non-consenting
Holder:

 

(1)               
reduce the principal amount of Notes whose Holders must consent to an amendment, supplement or waiver;

 

(2)               
reduce the principal of or change the Maturity of any such Note or alter or waive the provisions with respect to the redemption
of the Notes (other than Sections 1017 and 1018);

 

(3)               
reduce the rate of or change the time for payment of interest on any Note;

 

(4)               
waive a Default or Event of Default in the payment of principal of or premium, if any, or interest on the Notes issued under this
Indenture, except a rescission of acceleration of the Notes by the Holders of at least a majority in aggregate principal amount of the
Notes and a waiver of the payment default that resulted from such acceleration, or in respect of a covenant or provision contained in
this Indenture or any guarantee which cannot be amended or modified without the consent of all Holders;

 

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

 

(6)               
make any change in Section 513 or the rights of Holders to receive payments of principal of or premium, if any, or interest on
the Notes;

 

(7)               
make any change in these amendment and waiver provisions;

 

(8)               
release the Issuer or any Guarantor that is a Significant Subsidiary from any of its obligations under its Guarantee or this Indenture,
except as permitted by this Indenture;

 

(9)               
modify or change any provision of this Indenture or the related definitions to affect the ranking of the Notes or any Guarantee
in a manner that adversely affects the Holders; or

 

(10)           
amend the contractual right expressly set forth in this Indenture or the Notes of any Holder to receive payment of principal of,
or interest on such Holder’s Notes on or after the due dates therefor or to institute suit for the enforcement of any payment on
or with respect to such Holder’s Notes.

 

    -85-

     

    

 

In addition, without the consent of Holders
of at least 66 2/3% in principal amount of the Notes then outstanding (including, without limitation, consents obtained in
connection with a purchase of, or tender offer or exchange offer for, Notes), no amendment, supplement or waiver may modify any
Security Documents or the provisions in this Indenture dealing with Collateral or the Security Documents to the extent that such
amendment, supplement or waiver would have the effect of releasing Liens on all or substantially all of the Collateral securing the
Notes (except as permitted by the terms of this Indenture and the Security Documents) or change or alter the priority of the
security interests in the Collateral.

 

The consent of the Holders is not necessary under
this Indenture or the Notes to approve the particular form of any proposed amendment. It is sufficient if such consent approves the substance
of the proposed amendment.

 

Section
903.           
Execution of Amendments, Supplements or Waivers. In executing, or accepting the additional trusts created by, any
amendment, supplement or waiver permitted by this Article Nine or the modifications thereby of the trusts created by this Indenture, the
Trustee shall be provided with, and shall be fully protected in relying upon, an Officer’s Certificate and (other than in the case
of an amendment or supplement for the purpose of adding a Guarantor or a obligor under this Indenture in accordance with Section 901(9))
Opinion of Counsel stating that the execution of such amendment, supplement or waiver is authorized or permitted by this Indenture. Guarantors
may, but shall not be required to, execute supplemental indentures that do not modify such Guarantor’s Guarantee. The Trustee may,
but shall not be obligated to, enter into any such amendment, supplement or waiver which affects the Trustee’s own rights, duties
or immunities under this Indenture or otherwise. The Trustee shall have no responsibility or liability with respect to any matters that
would have been covered by the Opinions of Counsel that are not permitted by this Section 903.

 

Section
904.           
Revocation and Effect of Consents. Until an amendment, supplement or waiver becomes effective, a consent to it by
a Holder of a Note is a continuing consent by the Holder of a Note and every subsequent Holder of a Note or portion of a Note that evidences
the same debt as the consenting Holder’s Note, even if notation of the consent is not made on any Note. However, any such Holder
of a Note or subsequent Holder of a Note may revoke the consent as to its Note if the Trustee receives written notice of revocation before
the date the waiver, supplement or amendment becomes effective. An amendment, supplement or waiver becomes effective in accordance with
its terms (or if silent as to effectiveness, on the date on which the Trustee receives an Officer’s Certificate certifying that
the Holders of the requisite principal amount of Notes have consented (and not theretofore revoked such consent) to such amendment, supplement
or waiver) and thereafter binds every Holder.

 

The Co-Issuers may, but shall not be obligated
to, fix a record date for the purpose of determining the Holders entitled to consent to any amendment, supplement, or waiver. If a record
date is fixed, then, notwithstanding the preceding paragraph, those Persons who were Holders at such record date (or their duly designated
proxies), and only such Persons, shall be entitled to consent to such amendment, supplement, or waiver or to revoke any consent previously
given, whether or not such Persons continue to be Holders after such record date. No such consent shall be valid or effective for more
than 120 days after such record date unless the consent of the requisite number of Holders has been obtained.

 

Section
905.           
[Reserved].

 

Section
906.           
Notation on or Exchange of Notes. The Trustee may place an appropriate notation about an amendment, supplement or
waiver on any Note thereafter authenticated. The Co-Issuers in exchange for all Notes may issue and the Trustee shall, upon receipt of
a Company Order (an “Authentication Order”), authenticate new Notes that reflect the amendment, supplement or waiver.

 

Failure to make the appropriate notation or issue
a new Note shall not affect the validity and effect of such amendment, supplement or waiver.

 

    -86-

     

    

 

Section
907.           
Notice of Supplemental Indentures. Promptly after the execution by the Co-Issuers, any Guarantor and the Trustee
of any supplemental indenture pursuant to the provisions of Section 902, the Issuer shall give notice thereof to the Holders of each
Outstanding Note affected, in the manner provided for in Section 107, setting forth in general terms the substance of such supplemental
indenture; provided that failure to give such notice shall not impair the validity of such supplemental indenture.

 

Article
Ten

COVENANTS

 

Section
1001.        Payment
of Principal, Premium, if any, and Interest. The Co-Issuers covenant and agree for the benefit of the Holders that they will duly
and punctually pay the principal of (and premium, if any) and interest and Additional Amount, if any, on the Notes in accordance with
the terms of the Notes and this Indenture.

 

The Co-Issuers shall pay interest on overdue principal
at the rate specified therefor in the Notes, and it shall pay interest on overdue installments of interest, Additional Amounts, if any,
at the same rate to the extent lawful.

 

Section
1002.        Maintenance
of Office or Agency. The Co-Issuers will maintain in The City of New York, an office or agency where Notes may be presented for registration
of transfer or for exchange, where Notes may be presented for payment and where notices and demands to or upon the Co-Issuers in respect
of the Notes and this Indenture may be served. The designated office of the Trustee shall be such office or agency of the Co-Issuers,
unless the Issuer shall designate and maintain some other office or agency for one or more of such purposes. The Issuer will give prompt
written notice to the Trustee of any change in the location of any such office or agency. If at any time the Co-Issuers shall fail to
maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations, surrenders,
notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the Co-Issuers hereby appoint the Trustee
as its agent to receive all such presentations, surrenders, notices and demands.

 

The Issuer may also from time to time designate
one or more other offices or agencies (in or outside of The City of New York) where the Notes may be presented or surrendered for any
or all such purposes and may from time to time rescind any such designation; provided, however, that no such designation
or rescission shall in any manner relieve the Co-Issuers of their obligation to maintain an office or agency in The City of New York for
such purposes. The Issuer will give prompt written notice to the Trustee of any such designation or rescission and any change in the location
of any such other office or agency.

 

Section
1003.        Money
for Notes Payments to Be Held in Trust. If the Co-Issuers shall at any time act as their own Paying Agent, they will, on or before
each due date of the principal of (or premium, if any) or interest on any of the Notes, segregate and hold in trust for the benefit of
the Persons entitled thereto a sum sufficient to pay the principal of (or premium, if any) or interest so becoming due until such sums
shall be paid to such Persons or otherwise disposed of as herein provided and will promptly notify the Trustee of its action or failure
so to act.

 

Whenever the Co-Issuers shall have one or
more Paying Agents for the Notes, they will, on or before each due date of the principal of (or premium, if any) or interest on any
Notes, deposit with a Paying Agent a sum sufficient to pay the principal (and premium, if any) or interest so becoming due, such sum
to be held in trust for the benefit of the Persons entitled to such principal, premium or interest, and (unless such Paying Agent is
the Trustee) the Issuer will promptly notify the Trustee of such action or any failure so to act.

 

    -87-

     

    

 

The Co-Issuers will cause each Paying Agent (other
than the Trustee) to execute and deliver to the Trustee an instrument in which such Paying Agent shall agree with the Trustee, subject
to the provisions of this Section 1003, that such Paying Agent will:

 

(1)               
hold all sums held by it for the payment of the principal of (and premium, if any) or interest on Notes in trust for the benefit
of the Persons entitled thereto until such sums shall be paid to such Persons or otherwise disposed of as herein provided;

 

(2)               
give the Trustee notice of any Default by the Co-Issuers (or any other obligor upon the Notes) in the making of any payment of
principal (and premium, if any) or interest; and

 

(3)               
at any time during the continuance of any such Default, upon the written request of the Trustee, forthwith pay to the Trustee all
sums so held in trust by such Paying Agent.

 

The Co-Issuers may at any time, for the purpose
of obtaining the satisfaction and discharge of this Indenture or for any other purpose, pay, or by Company Order direct any Paying Agent
to pay, to the Trustee all sums held in trust by the Issuer or such Paying Agent, such sums to be held by the Trustee upon the same trusts
as those upon which such sums were held by the Issuer or such Paying Agent; and, upon such payment by any Paying Agent to the Trustee,
such Paying Agent shall be released from all further liability with respect to such sums.

 

Any money deposited with the Trustee or any Paying
Agent, or then held by the Issuer, in trust for the payment of the principal of (or premium, if any) or interest on any Note and remaining
unclaimed for two years after such principal, premium or interest has become due and payable shall be paid to the Issuer on Company Request,
or (if then held by the Issuer) shall be discharged from such trust; and the Holder of such Note shall thereafter, as an unsecured general
creditor, look only to the Issuer for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust
money, and all liability of the Issuer as Trustee thereof, shall thereupon cease; provided, however, that the Trustee or
such Paying Agent, before being required to make any such repayment, shall at the expense of the Issuer cause to be published once, in
a newspaper published in the English language, customarily published on each Business Day and of general circulation in the Borough of
Manhattan, The City of New York, notice that such money remains unclaimed and that, after a date specified therein, which shall not be
less than 30 days from the date of such publication, any unclaimed balance of such money then remaining will be repaid to the Issuer.

 

Section
1004.        Existence.
Except as permitted by Article Eight, Section 1018 and Section 1208, the Issuer will do or cause to be done all things necessary to preserve
and keep in full force and effect its existence and that of each Co-Issuer and Guarantor and the rights (based on organization documents
and statute) and franchises of each Co-Issuer and Guarantor; provided, however, that the Issuer shall not be required to
preserve any such existence, right or franchise if the Issuer shall determine in its judgment that the preservation thereof is no longer
desirable in the conduct of the business of the Issuer and its Subsidiaries taken as a whole. For the avoidance of doubt, subject to compliance
with Article Eight, the Co-Issuers and the Guarantors will be permitted to change their organizational form.

 

    -88-

     

    

 

Section
1005.        Payment
of Taxes and Other Claims. The Issuer will pay or discharge or cause to be paid or discharged, before the same shall become
delinquent, (1) all taxes, assessments and governmental charges levied or imposed upon the Issuer or any Restricted Subsidiary or
upon the income, profits or property of the Issuer or any Restricted Subsidiary and (2) all lawful claims for labor, materials and
supplies, which, if unpaid, might by law become a lien upon the property of the Issuer or any Restricted Subsidiary; provided, however,
that the Issuer shall not be required to pay or discharge or cause to be paid or discharged any such tax, assessment, charge or
claim whose amount, applicability or validity (x) is being contested in good faith by appropriate proceedings and for which
appropriate reserves, if necessary (in the good faith judgment of management of the Issuer) are being maintained in accordance with
GAAP or (y) would not reasonably be expected to cause a material adverse effect on the results of operations or financial condition
of the Issuer and its Subsidiaries taken as a whole.

 

Section
1006.        [Reserved].

 

Section
1007.        Maintenance
of Insurance.

 

(a)               
The Issuer will, and the Issuer will cause each of its Restricted Subsidiaries to, use commercially reasonable efforts to cause
all insurance in favor of the applicable Notes Collateral Agent to be endorsed to such Notes Collateral Agent’s reasonable satisfaction
for the benefit of such Notes Collateral Agent (including, without limitation, by naming such Notes Collateral Agent as additional insured
and loss payee with respect to real property, certificate holder and loss payee with respect to personal property and additional insured
with respect to general liability and umbrella coverage); provided that (i) insurance covering any assets or property not constituting
Collateral and (ii) insurance with respect to export credit financings shall not be made in favor of any Notes Collateral Agent, and the
Issuer and the Restricted Subsidiaries shall not be required to use commercially reasonable efforts to name any Notes Collateral Agent
as additional insured, certificate holder or loss payee with respect to any such insurance.

 

(b)               
Generally. The Issuer will, and will cause each of the Restricted Subsidiaries to, at all times maintain in full force and
effect, with insurance companies that the Issuer believes (in the good faith judgment of the management of the Issuer) are financially
sound and responsible at the time the relevant coverage is placed or renewed, insurance in at least such amounts and against at least
such risks (and with such risk retentions) as are usually insured against in the same general area by companies engaged in the same or
a similar business.

 

(c)                Covered
Satellites. The Issuer will, and the Issuer will cause each of its Restricted Subsidiaries to, obtain, maintain and keep in full
force and effect at all times (i) with respect to each Satellite procured by the Issuer or any of its Restricted Subsidiaries for
which the risk of loss passes to the Issuer or such Restricted Subsidiary at or before launch, and for which launch insurance or
commitments with respect thereto are not in place as of the Issue Date, launch insurance with respect to each such Satellite
covering the launch of such Satellite and a period of time thereafter and with such industry standard terms (including exclusions,
limitations on coverage, co-insurance and deductibles) as are generally available on commercially reasonable terms, (ii) with
respect to each Satellite it currently owns or for which it has risk of loss (or, if the entire Satellite is not owned, the portion
it owns or for which it has risk of loss), other than any Excluded Satellite, In-Orbit Insurance and (iii) at all times subsequent
to the coverage period of the launch insurance described in clause (i) above, if any, or if launch insurance is not procured, at all
times subsequent to the initial completion of in-orbit testing, in each case with respect to each Satellite it then owns or for
which it has risk of loss (or portion, as applicable), other than any Excluded Satellite, In-Orbit Insurance; provided, however,
that at any time with respect to a Satellite that is not an Excluded Satellite, none of the Issuer or any of its Subsidiaries shall
be required to maintain In-Orbit Insurance in excess of 33% of the aggregate net book value of any individual and 50% of the
aggregate net book value of all in-orbit Satellites (and portions it owns or for which it has risk of loss) insured (it being
understood that any Satellite (or portion, as applicable) protected by In-Orbit Contingency Protection shall be deemed to be insured
for a percentage of its net book value as set forth in the definition of “In-Orbit Contingency Protection”). In the
event that the expiration and non-renewal of In-Orbit Insurance for such a Satellite (or portion, as applicable) resulting from a
claim of loss under such policy causes a failure to comply with the proviso in the immediately preceding sentence, the Issuer and
its Restricted Subsidiaries shall be deemed to be in compliance with such proviso for the 120 days immediately following such
expiration or nonrenewal; provided that the Issuer or any of its Restricted Subsidiaries, as the case may be, procures such
In-Orbit Insurance or provides such In-Orbit Contingency Protection as necessary to comply with such proviso within such 120-day
period. In the event of the unavailability of any In-Orbit Contingency Protection for any reason, the Issuer or any of its
Restricted Subsidiaries, as the case may be, shall, subject to the first proviso above, within 120 days of such unavailability, be
required to have in effect In-Orbit Insurance complying with clause (ii) or (iii) above, as applicable, with respect to all
Satellites (or portions, as applicable), other than Excluded Satellites that the unavailable In-Orbit Contingency Protection was
intended to protect and for so long as such In-Orbit Contingency Protection is unavailable; provided that the Issuer and its
Restricted Subsidiaries shall be considered in compliance with this Section 1007 for the 120 days immediately following such
unavailability.

 

    -89-

     

    

 

 

(d)               
Procurement of Insurance by Trustee. Without limiting the obligations of the Issuer or any Restricted Subsidiary hereunder,
in the event the Issuer or any Restricted Subsidiary shall fail to maintain in full force and effect insurance as required by this Section
1007 and an Event of Default arises therefrom, then the Trustee, acting pursuant to instructions of Holders holding not less than 25%
of the aggregate principal amount of Notes, upon receipt of adequate security or indemnity from such Holders, may, but shall have no obligation
to, or Holders holding not less than 25% of the aggregate principal amount of Notes may themselves, in either case upon reasonable prior
notice to the Issuer of an intention to do so, procure insurance covering the interests of the Holders in such amounts and against such
risks as are required hereby, and the Issuer shall reimburse the Holders or the Trustee in respect of any premiums or other fees or expenses
paid by the Holders or Trustee in respect thereof.

 

(e)               
In the event that the Issuer or its Restricted Subsidiaries receive net cash proceeds in excess of US $10,000,000 from any Satellite
insurance covering any Satellite owned by the Issuer or any of its Restricted Subsidiaries, or in the event that the Issuer or any of
its Restricted Subsidiaries receives net cash proceeds in excess of US$10,000,000 from any insurance maintained for it by a Satellite
Manufacturer or any Launch Services Provider covering any of such Satellites (the event resulting in the payment of such proceeds, an
 “Event of Loss”), all Event of Loss Proceeds in respect of such Event of Loss shall be applied in the manner provided
for in the second paragraph under Section 1018.

 

(f)                
The Issuer will, and will cause each of the Restricted Subsidiaries to, notify the Trustee promptly whenever any separate insurance
concurrent in form or contributing in the Event of Loss with that required to be maintained under this Section 1007 is taken out by the
Issuer or any of the Restricted Subsidiaries; and promptly deliver to the Trustee a duplicate original copy of such policy or policies,
or an insurance certificate with respect thereto.

 

(g)               
Notwithstanding anything herein, the Trustee shall have no obligation to monitor whether the Issuer or any Restricted Subsidiary
is maintaining the insurance required under this Indenture and the Trustee makes no representations or warranties and will not provide
any advice as to whether any insurance is adequate for purposes of the business of the Issuer and its Subsidiaries or the protection of
the Holders’ interests.

 

    -90-

     

    

 

(h)               
In connection with the covenants set forth in this Section 1007, it is understood and agreed that

 

(1)                neither
the Trustee nor any Holder nor any of their respective agents or employees shall be liable for any loss or damage insured by the
insurance policies required to be maintained under this Section 1007, it being understood that (A) the Issuer and its Restricted
Subsidiaries shall look solely to their insurance companies or any other parties other than the aforesaid parties for the recovery
of such loss or damage and (B) such insurance companies shall have no rights of subrogation against the Trustee or any Holder or any
of their respective agents or employees (it being understood and agreed that the Issuer shall only be required to use commercially
reasonable efforts to seek such waiver of subrogation rights against such parties, but in no event shall such efforts require the
making of payments or material concessions in exchange for such consent). If, however, the insurance policies do not provide waiver
of subrogation rights against such parties, then the Issuer hereby agrees, to the extent permitted by law, to waive, and to cause
its Subsidiaries to waive, its right of recovery, if any, against the Trustee, the Holders and their respective agents and
employees;

 

(2)               
the designation of any form, type or amount of insurance coverage under this Section 1007 shall in no event be deemed a representation,
warranty or advice by the Trustee or the Holders that such insurance is adequate for the purposes of the business of the Issuer and its
Subsidiaries or the protection of their properties; and

 

(3)               
all references to book value set forth herein shall be measured with respect to the entity which owns or leases the applicable
Satellite, provided that if the entity leases the applicable Satellite from an Affiliate then such references shall be measured
with respect to the book value of such Affiliate.

 

Section
1008.        Statement
by Officers as to Default. When any Default or Event of Default has occurred and is continuing under this Indenture, the Issuer shall
deliver to the Trustee by registered or certified mail, email in PDF format or facsimile transmission a statement specifying such Default
of Event or Default within twenty Business Days of becoming aware of its occurrence.

 

Section
1009.        Reports
and Other Information. Whether or not required by the rules and regulations of the SEC, so long as any Notes are outstanding, the
Issuer shall furnish:

 

(a)               
(1) within 90 days of the end of each fiscal year, annual audited financial statements for such fiscal year and (2) within 45 days
of the end of each of the first three fiscal quarters of every fiscal year, unaudited financial statements for the interim period as of,
and for the period ending on, the end of such fiscal quarter, in each case, including “Business,” “Legal Proceedings,”
 “Defaults Upon Senior Securities,” “Management’s Discussion and Analysis of Financial Condition and Results of
Operations,” “Accounting Standards” and “Related Party Transactions” disclosures with respect to the periods
presented to the extent such disclosures would be required in a Form 20-F or 40-F for such period and, with respect to the annual information
only, a report on the annual financial statements by the Issuer’s certified independent accountants (all of the foregoing financial
information to be prepared on a basis substantially consistent with (i), and subject to exceptions substantially consistent with, the
corresponding financial information included in the Offering Memorandum or (ii) the then applicable SEC requirements); and

 

(b)                promptly
from time to time after the occurrence of an event required to be therein reported, such other reports (in each case, without
exhibits) containing substantially the same information required to be contained in a Current Report on Form 8-K under the Exchange
Act (other than Items 1.04 (Mine safety — reporting of shutdowns and patterns of violations), 3.01 (Notice of delisting or
failure to satisfy a continued listing rule or standard; transfer of listing), 3.02 (Unregistered sales of equity securities), 3.03
(material modifications to rights of security holders) (other than as relates to debt securities), 5.03(a) (Amendments to Articles
of Incorporation or Bylaws), 5.04 (Temporary suspension of trading under registrant’s employee benefit plans), 5.05
(Amendments to the Registrant’s Code of Ethics, or Waiver of a Provision of the Code of Ethics), 5.06 (Change in shell company
status), 5.07 (Submission of matters to a vote of security holders), 5.08 (Shareholder director nominations), all items in Section 6
thereof and 8.01 (Other events)); provided, however, that no such report shall be required to be furnished if the
Issuer determines in its good faith judgment that such event is not material to the Holders or the business, assets, operations,
financial positions or prospects of the Issuer and its Restricted Subsidiaries; provided, however, that in no event
shall such reports be required to comply with Regulation G under the Exchange Act or Item 10(e) of Regulation S-K promulgated by the
SEC with respect to any non-GAAP (non-IFRS) financial measures contained therein.

 

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For any quarterly or annual period during which
(a) any of the Issuer’s Subsidiaries are Unrestricted Subsidiaries and (b) any of the revenues, assets and liabilities of the Unrestricted
Subsidiaries, in the aggregate, exceed 5.0% of the total revenues, Total Assets, or total liabilities, respectively, of the Issuer on
a consolidated basis, then the quarterly and annual financial information required by the preceding paragraph will include a reasonably
detailed presentation, on the face of the financial statements, in the footnotes thereto or in “Management’s Discussion and
Analysis of Financial Condition and Results of the Operations” or other comparable section, of the financial condition and results
of operations of the Issuer and its Restricted Subsidiaries separate from the financial condition and results of operations of the Unrestricted
Subsidiaries of the Issuer.

 

The Issuer will (1) distribute such reports and
information electronically to the Trustee and (2) make available, or arrange with the Trustee for the Trustee to make available, such
reports and information to any Holder, any bona fide prospective purchaser of the Notes (a “Prospective Purchaser”),
any bona fide security analyst or any bona fide market maker by posting such reports and information on Intralinks or any comparable password
protected online data system or on a public website; provided that the Issuer shall only be required to make readily available
any password or other login information to any such Holder, Prospective Purchaser, security analyst or market maker.

 

Notwithstanding the foregoing, (i) none of the
reports, financial statements or other materials furnished pursuant to clauses (a) and (b) of the first paragraph of this Section 1009
shall be required to comply with Section 302 or Section 404 of the Sarbanes-Oxley Act of 2002, or related Items 307 and 308 of Regulation
S-K promulgated by the SEC and (ii) the Issuer will be deemed to have furnished such reports referred to above if it or any parent company
that has provided a full and unconditional guarantee of the Notes has filed such reports with either the SEC via the EDGAR filing system
or the System for Electronic Document Analysis and Retrieval (“SEDAR”) in Canada or any successor systems thereto and
such reports are publicly available via the EDGAR filing system or SEDAR or any successor systems thereto.

 

So long as any Notes are outstanding, the Issuer
will also: (1) as promptly as reasonably practicable after furnishing to the Trustee the annual and quarterly reports required by clause
(a) of the first paragraph of this Section 1009 or such earlier time after the completion of such reporting period, hold a conference
call to discuss the results of operations for the relevant reporting period; and (2) issue a press release to the appropriate nationally
recognized wire services prior to the date of the conference call required to be held in accordance with clause (1) of this paragraph,
announcing the time and date of such conference call and either including all information necessary to access the call or informing Holders,
Prospective Purchasers, market makers and securities analysts how they can obtain such information.

 

In addition, to the extent not satisfied by the
foregoing, the Issuer shall, for so long as any Notes are outstanding, furnish to prospective investors, upon their request, any information
required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act so long as the Notes are not freely transferable under the
Securities Act.

 

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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 actual or constructive
notice of any information contained therein or determinable from information contained therein, including the Issuer’s compliance
with any of the covenants under this Indenture (as to which the Trustee is entitled to rely exclusively on Officer’s Certificates).

 

Notwithstanding the requirements to furnish reports,
financial statements and other materials pursuant to clauses (a) and (b) of the first paragraph of this Section 1009, in the event that
the Issuer, or any parent or successor thereto, is a “reporting issuer” (or its equivalent) in any province of Canada, (i)
all reports, financial statements and other materials required to be furnished to the Trustee and Holders will be deemed to have been
provided to the Trustee and the Holders in satisfaction of the requirements above if the Issuer, or any parent or successor thereto has
filed all documents required to be filed pursuant to National Investment 51-102 — Continuous Disclosure Obligations on SEDAR
or any successor system thereto; provided, that the Trustee shall not be required to monitor whether such documents are so posted
and shall not be required to retrieve such documents, and (ii) if the Issuer holds a quarterly conference call for its equity holders
within fifteen Business Days of filing a financial report on SEDAR or any successor system thereto, the Issuer will no longer be required
to hold a separate conference call in respect of such financial report for the Holders as described in the fifth paragraph of this Section
1009.

 

Section
1010.        Limitation
on Restricted Payments. The Issuer will not, and will not permit any Restricted Subsidiary to, directly or indirectly:

 

(a)               
declare or pay any dividend or make any distribution on account of the Issuer’s or any Restricted Subsidiary’s Equity
Interests, including any dividend or distribution payable on account of the Issuer’s or any Restricted Subsidiary’s Equity
Interests in connection with any merger or consolidation other than:

 

(1)               
dividends or distributions by the Issuer payable in Equity Interests (other than Disqualified Stock) of the Issuer or in options,
warrants or other rights to purchase such Equity Interests, or

 

(2)               
dividends or distributions by a Restricted Subsidiary so long as, in the case of any dividend or distribution payable on or in
respect of any class or series of securities issued by a Subsidiary other than a Wholly-Owned Subsidiary, the Issuer or a Restricted Subsidiary
receives at least its pro rata share of such dividend or distribution in accordance with its Equity Interests in such class or series
of securities;

 

(b)               
purchase, redeem, defease or otherwise acquire or retire for value any Equity Interests of the Issuer or any direct or indirect
parent of the Issuer, including any dividend or distribution payable in connection with any merger, amalgamation or consolidation;

 

(c)               
make any principal payment on, or redeem, repurchase, defease or otherwise acquire or retire for value in each case, prior to any
scheduled repayment, sinking fund payment or maturity, any Subordinated Indebtedness, other than the purchase, repurchase or other acquisition
of Subordinated Indebtedness purchased in anticipation of satisfying a sinking fund obligation, principal installment or final maturity,
in each case due within one year of the date of purchase, repurchase or acquisition; or

 

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(d)                make
any Restricted Investment

 

(all such payments and other actions set forth in clauses (a) through (d) above being collectively
referred to as “Restricted Payments”), unless, at the time of such Restricted Payment:

 

(1)               
no Default or Event of Default shall have occurred and be continuing or would occur as a consequence thereof;

 

(2)               
the Issuer can incur at least US$1.00 of additional Indebtedness pursuant to the provisions of the first paragraph of Section 1011;
and

 

(3)               
such Restricted Payment, together with the aggregate amount of all other Restricted Payments made by the Issuer and its Restricted
Subsidiaries after October 11, 2019 (including Restricted Payments permitted by clauses (1), (5) and (17) of the next succeeding paragraph,
but excluding all other Restricted Payments permitted by the next succeeding paragraph), is less than the Applicable Amount.

 

The foregoing provisions will not prohibit:

 

(1)               
the payment of any dividend or distribution or the consummation of any irrevocable redemption within 60 days after the date of
declaration thereof or the giving of such irrevocable notice, as applicable, if, at the date of declaration or the giving of such notice,
such payment would have complied with the provisions of this Indenture (assuming, in the case of a redemption payment, the giving of the
notice of such redemption payment would have been deemed to be a Restricted Payment at such time);

 

(2)               
the redemption, repurchase, retirement, defeasance or other acquisition of any Equity Interests (“Retired Capital Stock”)
or Subordinated Indebtedness of the Issuer, in exchange for, or out of the proceeds of the substantially concurrent sale (other than to
a Restricted Subsidiary) of, Equity Interests of the Issuer (in each case, other than any Disqualified Stock) (“Refunding Capital
Stock”);

 

(3)               
the redemption, repurchase, defeasance, exchange or other acquisition or retirement of Subordinated Indebtedness of the Issuer
or any Restricted Subsidiary made by exchange for, or out of the proceeds of the substantially concurrent sale of, new Indebtedness of
the Issuer or any Restricted Subsidiary which is incurred in compliance with Section 1011 so long as:

 

(A)             
the principal amount (or accreted value, in the case of Indebtedness issued at a discount) of such new Indebtedness does not exceed
the principal amount (or accreted value, if applicable) of the Subordinated Indebtedness being so redeemed, repurchased, acquired, defeased,
exchanged or retired, plus the amount of any reasonable fees, expenses and premium incurred or paid in connection with such redemption,
repurchase, acquisition, defeasance, exchange or retirement and the incurrence of such new Indebtedness;

 

(B)             
such new Indebtedness is subordinated to the Notes at least to the same extent as such Subordinated Indebtedness so redeemed, repurchased,
defeased, exchanged, acquired or retired; provided that this subclause (B) need not be satisfied if (i) such new Indebtedness can
be incurred pursuant to the first paragraph of Section 1011 or (ii) the amount of such new Indebtedness shall not exceed the Applicable
Amount (it being understood that if amounts available under the Applicable Amount are used to redeem, repurchase, defease, exchange, acquire
or retire such Subordinated Indebtedness, then the Applicable Amount shall be reduced by such amounts);

 

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(C)             
 such new Indebtedness has a final scheduled maturity date equal to or later than the final scheduled maturity date of the Subordinated
Indebtedness being so redeemed, repurchased, defeased, exchanged, acquired or retired;

 

(D)             
such new Indebtedness has a Weighted Average Life to Maturity at the time incurred which is not less than the shorter of (i) the
remaining Weighted Average Life to Maturity of the Subordinated Indebtedness being so redeemed, repurchased, defeased, exchanged, acquired
or retired and (ii) the Weighted Average Life to Maturity that would result if all payments of principal on the Indebtedness being so
redeemed, repurchased, defeased, acquired or retired that were due on or after the date one year following the maturity date of any Notes
then outstanding were instead due on such date one year following the maturity date of such Notes; and

 

(E)              
the obligor of such Indebtedness does not include any Person (other than the Co-Issuers or any Guarantor) that is not an obligor
of the Indebtedness being so redeemed, repurchased, defeased, exchanged, acquired or retired;

 

(4)               
a Restricted Payment to pay for the repurchase, redemption, retirement, defeasance or other acquisition of Equity Interests of
the Issuer or any of its direct or indirect parent companies held by any future, present or former employee, director, officer or consultant
of the Issuer, any of its Subsidiaries or any of its direct or indirect parent companies pursuant to any management equity plan or stock
option plan or any other management or employee benefit plan or agreement; provided, however, that the aggregate Restricted
Payments made under this clause (4) do not exceed in any calendar year US$15,000,000 (which shall increase to US$30,000,000 subsequent
to the consummation of a Qualified IPO) with unused amounts in any calendar year in an amount not to exceed US$30,000,000 (which shall
increase to US$60,000,000 subsequent to the consummation of a Qualified IPO) being carried over to the succeeding calendar years; provided,
further, that such amount in any calendar year may be increased by an amount not to exceed:

 

(A)             
the cash proceeds from the sale of Equity Interests of the Issuer and, to the extent contributed to the Issuer, Equity Interests
of any of the Issuer’s direct or indirect parent companies, in each case to members of management, directors or consultants of the
Issuer, any of its Subsidiaries or any of its direct or indirect parent companies that occurs or occurred after October 11, 2019, to the
extent the cash proceeds from the sale of such Equity Interests have not otherwise been applied to the payment of Restricted Payments
by virtue of clause (B)(3) of the definition of the term “Applicable Amount”; plus

 

(B)             
the cash proceeds of key man life insurance policies received by the Issuer (or any direct or indirect parent company of the Issuer
to the extent contributed to the Issuer) and its Restricted Subsidiaries after October 11, 2019; less

 

(C)             
the amount of any Restricted Payments previously made since the Issue Date pursuant to clauses (A) and (B) of this clause (4);

 

and provided, further, that cancellation of
Indebtedness owing to the Issuer, Co-Issuer or any Guarantor from members of management of the Issuer, any of its direct or indirect parent
companies or any Restricted Subsidiary in connection with a repurchase of Equity Interests of the Issuer or any of its direct or indirect
parent companies will not be deemed to constitute a Restricted Payment for purposes of this Section 1010 or any other provision of this
Indenture;

 

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(5)               
 the declaration and payment of dividends or distributions to holders of any class or series of Disqualified Stock of the Issuer
or any other Restricted Subsidiary issued in accordance with Section 1011 to the extent such dividends are included in the definition
of “Cumulative Interest Expense”;

 

(6)               
repurchases of Equity Interests deemed to occur upon exercise of stock options or warrants if such Equity Interests represent a
portion of the exercise price or taxes payable in respect of such options or warrants;

 

(7)               
Restricted Payments that are made with Excluded Contributions;

 

(8)               
the repurchase, redemption or other acquisition of Equity Interests deemed to occur in connection with paying cash in lieu of fractional
shares in connection with any dividend (including in connection with the exercise of warrants, options or other securities convertible
into or exchangeable for Equity Interests), share split, reverse share split or combination thereof or any acquisition or other Investment
and to honor any conversion request by a holder of convertible Indebtedness and make cash payments in lieu of fractional shares in connection
with any such conversion and may make payments on convertible Indebtedness in accordance with its terms;

 

(9)               
the repurchase, redemption, defeasance, exchange or other acquisition or retirement for value of any Subordinated Indebtedness
pursuant to the provisions similar to those described under Sections 1017 and 1018; provided that all Notes tendered by Holders
in connection with a Change of Control Offer or Asset Sale Offer, as applicable, have been repurchased, redeemed or otherwise acquired
for value;

 

(10)           
  the Issuer making and paying dividends:

 

(A)             
for any taxable period ending after the Issue Date for which the Issuer is a member of a consolidated, combined, unitary or aggregate
income tax group (a “Tax Group”) of which a direct or indirect parent company of the Issuer is the common parent, the
proceeds of which shall be used to pay (or to make dividends to allow any parent entity of the Issuer to pay) any income Tax liability
of such Tax Group in respect of taxable income attributable to the Issuer and its Subsidiaries, but not in excess of the Tax liability
that the Issuer would incur if it filed tax returns as the parent of a Tax Group for itself and its applicable Subsidiaries (and net of
any payment already made and to be made by the Issuer to a taxing authority to satisfy such Tax liability); provided that a dividend
attributable to any Taxes attributable to an Unrestricted Subsidiary shall be permitted only to the extent such Unrestricted Subsidiary
distributed cash to the Issuer or its Restricted Subsidiaries for such purpose,

 

(B)             
the proceeds of which shall be used to pay (or to make dividends to allow any parent entity of the Issuer to pay) its operating
expenses incurred in the ordinary course (including related to maintenance of organizational existence), general administrative costs
and other overhead costs and expenses (including customary salary, bonus and other benefits payable to present or former officers and
employees of any parent entity and administrative, legal, accounting, professional and similar fees and expenses provided by third parties,
including the Issuer’s proportionate share of such amount relating to such parent entity being a public company, if applicable),
plus any indemnification claims made by employees, managers, consultants, independent contractors, directors or officers of any
parent entity of the Issuer; and

 

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(C)             
 the proceeds of which shall be used to pay (or to make dividends to allow any parent entity of the Issuer to pay) franchise, excise
and similar taxes and other fees, taxes and expenses, in each case, required to maintain its (or any of its parent entities’) corporate
or other legal existence;

 

(11)           
Restricted Payments made to fund payments made in accordance with clause (7) or (12) of the second paragraph of Section 1013;

 

(12)           
the declaration and payment of dividends or distributions to, or repurchase or redemption of shares from, the equity holders of
the Issuer in an amount equal to the greater of (x) 6.0% per annum of the net proceeds received by the Issuer, as applicable, from any
Qualified IPO and (y) 5.0% per annum of Market Capitalization;

 

(13)           
the prepayment, repurchase, redemption or other retirement or defeasance of the Mezzanine Securities at any time, so long as no
Default or Event of Default has occurred and is continuing;

 

(14)           
Investments in Unrestricted Subsidiaries having an aggregate Fair Market Value, taken together with all other Investments made
pursuant to this clause (14) that are at that time outstanding, not to exceed the greater of US$500,000,000 and 11% of Total Assets at
the time of such Investment (with the Fair Market Value of each Investment being measured at the time made and without giving effect to
subsequent changes in value); plus, to the extent such amounts are not otherwise applied to clause (B)(4) of the definition
of the term “Applicable Amount,” the amount of any returns (including dividends, payments, interest, distributions, returns
of principal, profits on sale, repayments, income and similar amounts) on or in respect of such Investments;

 

(15)           
the distribution, as a dividend or otherwise, of shares of Capital Stock of, or Indebtedness owed to the Issuer or a Restricted
Subsidiary by, Unrestricted Subsidiaries (other than Unrestricted Subsidiaries, the primary assets of which are cash and/or Cash Equivalents);

 

(16)           
any Investment in respect of an Unrestricted Subsidiary Support Transaction;

 

(17)           
other Restricted Payments, so long as on a pro forma basis after giving effect to such Restricted Payment and the incurrence of
any related Indebtedness, the Total Net Leverage Ratio for the Test Period immediately preceding such date shall be less than or equal
to 3.25 to 1.00;

 

(18)           
payments by the Issuer or any Restricted Subsidiary in respect of withholding or similar taxes payable or expected to be payable
by any future, current or former employee, director, manager, consultant or independent contractor (or any of their respective immediate
family members) of the Issuer, any parent entity of the Issuer or any other Subsidiary in connection with the exercise or vesting of Equity
Interests or other equity awards or any repurchases, redemptions, acquisitions, retirements or withholdings of Equity Interests in connection
with any exercise of Equity Interests or other equity options or warrants or the vesting of Equity Interests or other equity awards if
such Equity Interests represent all or a portion of the exercise price of, or withholding obligation with respect to, such options or,
warrants or other Equity Interests or equity awards;

 

(19)           
the payment, on or after the Issue Date, of one or more dividends to the shareholders and/or option holders of the Issuer in an
aggregate amount not to exceed US$10,000,000;

 

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(20)           
 the repayment, redemption, repurchase, defeasance, exchange or other acquisition or retirement of Dividend Obligations (excluding
the payment of any interest (in the form of accretion, PIK, cash or otherwise), expenses or premium related thereto); and

 

(21)           
payment of dividends by the Issuer on director voting preferred shares in an amount not to exceed US$50,000 per year.

 

For purposes of determining compliance with this
Section 1010, in the event that a proposed Restricted Payment or Investment (or a portion thereof) meets the criteria of more than one
of the categories of Restricted Payments described in the preceding clauses (1) through (21) above and/or one or more of the clauses contained
in the definition of “Permitted Investments,” or is entitled to be made pursuant to the first paragraph of this covenant the
Issuer shall be entitled to divide or classify (or later divide, classify or reclassify in whole or in part in its sole discretion) such
Restricted Payment or Investment (or portion thereof) among such clauses (1) through (21) and such first paragraph and/or one or more
of the clauses contained in the definition of “Permitted Investments,” in a manner that otherwise complies with this Section
1010.

 

The Issuer will not permit any Unrestricted Subsidiary
to become a Restricted Subsidiary except pursuant to the definition of “Unrestricted Subsidiary.” For purposes of designating
any Restricted Subsidiary as an Unrestricted Subsidiary, all outstanding Investments by the Issuer and its Restricted Subsidiaries (except
to the extent repaid) in the Subsidiary so designated will be deemed to be Restricted Payments in an amount determined as set forth in
the last sentence of the definition of “Investment.” Such designation will be permitted only if a Restricted Payment in such
amount would be permitted at such time, whether pursuant to the this Section 1010 or the definition of “Permitted Investments,”
and if such Subsidiary otherwise meets the definition of an “Unrestricted Subsidiary.” Unrestricted Subsidiaries will not
be subject to any of the restrictive covenants set forth in this Indenture and will not guarantee the Notes.

 

Section
1011.        Limitation
on Incurrence of Indebtedness. The Issuer will not, and will not permit any Restricted Subsidiary to, directly or indirectly, create,
incur, issue, assume, guarantee or otherwise become directly or indirectly liable, contingently or otherwise (collectively, “incur”
and collectively, an “incurrence”) with respect to any Indebtedness (including Acquired Indebtedness) and the Issuer
will not permit any Restricted Subsidiary to issue any shares of preferred stock; provided, however, that the Issuer and
the Co-Issuer may incur Indebtedness (including Acquired Indebtedness), any Restricted Subsidiary may incur Indebtedness and issue shares
of preferred stock (including Acquired Indebtedness) if as of the date any such Indebtedness is incurred or preferred stock is issued,
on a pro forma basis after giving effect to the incurrence and application of the proceeds of such Indebtedness, the Issuer’s Total
Net Leverage Ratio for the Test Period immediately preceding such date shall be less than or equal to 4.50 to 1.00; provided, further,
that the aggregate principal amount (or liquidation preference) of Indebtedness incurred or preferred stock issued pursuant to the foregoing
together with any Refinancing Indebtedness in respect thereof incurred pursuant to clause (n) below and amounts under clauses (i) and
(o) of this Section 1011 (together with any Refinancing Indebtedness in respect thereof incurred pursuant to clause (n) below) by Restricted
Subsidiaries that are not Guarantors shall not exceed the greater of US$300,000,000 and 6.5% of Total Assets at any time outstanding.

 

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The foregoing limitations will not apply to (“Permitted
Debt”):

 

(a)                the
incurrence of Indebtedness under Credit Facilities by the Issuer or any of the Restricted Subsidiaries and the issuance and creation
of letters of credit and bankers’ acceptances thereunder (with letters of credit and bankers’ acceptances being deemed
to have a principal amount equal to the face amount thereof), (x) up to the greater of (1) an aggregate principal amount of
US$2,650,000,000 and (2) (i) in the case of First Lien Indebtedness, an aggregate principal amount of First Lien Indebtedness
outstanding at any one time that does not cause the First Lien Net Leverage Ratio to exceed 3.50 to 1.00 and (ii) in the case of any
other Indebtedness, an aggregate principal amount of Indebtedness outstanding at any one time that does not cause the Senior Secured
Net Leverage Ratio to exceed 4.25 to 1.00 (with all Indebtedness incurred under this clause (a) being deemed Secured
Indebtedness for purposes of making the determination under this clause (a)(ii)), in each case of this clause (2), determined on a
pro forma basis (including a pro forma application of the net proceeds therefrom) and (y) without duplication, Indebtedness incurred
to refund, refinance or replace any Indebtedness incurred pursuant to clause (a)(x) plus accrued but unpaid interest,
dividends, premiums (including tender premiums), defeasance costs, underwriting discounts, fees, costs and expenses (including
original issue discount, upfront fees or similar fees) incurred in connection with such refinancing; provided that any
Indebtedness incurred under this clause (a) that is secured by the Collateral shall not be secured by a Lien on any assets other
than the Collateral or any other assets that secure the Notes;

 

(b)               
the incurrence by the Co-Issuers and any Guarantor of Indebtedness represented by the Notes (including any Guarantee) (other than
any Additional Notes);

 

(c)               
Existing Indebtedness (other than Indebtedness described in clauses (a) and (b));

 

(d)               
Indebtedness (including Finance Lease Obligations and Indebtedness related to Sale and Lease-Back Transactions) and preferred stock
incurred by the Issuer or any of its Restricted Subsidiaries, to finance the purchase, lease, construction or improvement (including,
without limitation, the cost of design, development, construction, acquisition, transportation, installation, improvement and migration)
of property (real or personal) or equipment that is used or useful in a Similar Business, whether through the direct purchase of assets
or the Capital Stock of any Person owning such assets, in an aggregate principal amount which, when aggregated with the principal amount
of all other Indebtedness and preferred stock then outstanding and incurred pursuant to this clause (d) and including all Refinancing
Indebtedness incurred to refund, refinance or replace any other Indebtedness and preferred stock incurred pursuant to this clause (d),
does not exceed the greater of (x) US$150,000,000 and (y) 3.25% of Total Assets at the time of incurrence;

 

(e)               
Indebtedness incurred by the Issuer or any Restricted Subsidiary constituting reimbursement obligations with respect to letters
of credit issued in the ordinary course of business, including letters of credit in respect of workers’ compensation claims, or
other Indebtedness with respect to reimbursement type obligations regarding workers’ compensation claims; provided, however,
that upon the drawing of such letters of credit or the incurrence of such Indebtedness, such obligations are reimbursed within 30 days
following such drawing or incurrence;

 

(f)                
Indebtedness arising from agreements of the Issuer or a Restricted Subsidiary providing for indemnification, adjustment of purchase
price or similar obligations, in each case, incurred or assumed in connection with the acquisition or disposition of any business, assets
or a Subsidiary, other than guarantees of Indebtedness incurred by any Person acquiring or disposing of all or any portion of such business,
assets or a Subsidiary for the purpose of financing such acquisition; provided, however, that

 

(1)                such
Indebtedness is not to be reflected on the balance sheet of the Issuer or any Restricted Subsidiary prepared in accordance with GAAP
(contingent obligations referred to in a footnote to financial statements and not otherwise reflected on the balance sheet will not
be deemed to be reflected on such balance sheet for purposes of this clause (f)(1)) and

 

    -99-

     

    

 

(2)               
the maximum assumable liability in respect of all such Indebtedness shall at no time exceed the gross proceeds including noncash
proceeds (the Fair Market Value of such noncash proceeds being measured at the time received and without giving effect to any subsequent
changes in value) actually received by the Issuer and the Restricted Subsidiaries in connection with such disposition;

 

(g)               
Indebtedness (including Indebtedness related to Sale and Lease-Back Transactions) or preferred stock of the Issuer to a Restricted
Subsidiary; provided that any such Indebtedness owing to a Restricted Subsidiary that is not a Guarantor is subordinated in right
of payment to the Notes; provided, further, that any subsequent issuance or transfer of any Capital Stock or any other event
which results in any such Restricted Subsidiary ceasing to be a Restricted Subsidiary or any other subsequent transfer of any such Indebtedness
(except to the Issuer or another Restricted Subsidiary) shall be deemed in each case to be an incurrence of such Indebtedness;

 

(h)               
Indebtedness (including Indebtedness related to Sale and Lease-Back Transactions) or preferred stock of a Restricted Subsidiary
to the Issuer or another Restricted Subsidiary; provided that

 

(1)               
any such Indebtedness is made pursuant to an intercompany note and

 

(2)               
if a Guarantor incurs such Indebtedness owing to a Restricted Subsidiary that is not a Guarantor such Indebtedness is subordinated
in right of payment to the Guarantee of such Guarantor; provided, further, that any subsequent transfer of any such Indebtedness
(except to the Issuer or another Restricted Subsidiary) shall be deemed in each case to be an incurrence of such Indebtedness;

 

(i)                
Indebtedness or preferred stock of Restricted Subsidiaries that are not Guarantors, provided, however, that the aggregate
principal amount of Indebtedness or liquidation preference of preferred stock incurred under this clause (i), when aggregated with the
principal amount of all other Indebtedness then outstanding and incurred pursuant to this clause (i) and any refinancings in respect of
any of the foregoing (including any Refinancing Indebtedness incurred pursuant to clause (n) below), does not exceed the greater of US$120,000,000
and 2.75% of Total Assets at the time of incurrence; provided, further, that the aggregate principal amount (or liquidation
preference) of Indebtedness incurred or preferred stock issued pursuant to this clause (i) together with such amounts incurred or issued
by Restricted Subsidiaries that are not Guarantors pursuant to clause (o) below, the first paragraph of this covenant and any Refinancing
Indebtedness in respect of the foregoing incurred pursuant to clause (n) below) shall not exceed the greater of US$300,000,000 and 6.5%
of Total Assets at any one time outstanding;

 

(j)                
(x) Swap Obligations entered into for bona fide (non-speculative) business purposes and (y) Indebtedness in respect of Cash Management
Obligations;

 

(k)               
obligations in respect of performance, bid, appeal and surety bonds and completion guarantees provided by the Issuer or any Restricted
Subsidiary in the ordinary course of business, including guarantees or obligations of the Issuer or any Restricted Subsidiary with respect
to letters of credit supporting such performance, bid, appeal or surety obligations (in each case other than for an obligation for money
borrowed);

 

    -100-

     

    

 

(l)                
 (a) Indebtedness or preferred stock of the Co-Issuers or any Guarantor not otherwise permitted hereunder in an aggregate principal
amount or liquidation preference of 100% of the net cash proceeds received by the Issuer since immediately after October 11, 2019 from
the issue or sale of Equity Interests of the Issuer or cash contributed to the capital of the Issuer (in each case, other than Excluded
Contributions or sales of Equity Interests to the Issuer or any of its Subsidiaries) as determined in accordance with clauses (B)(1) and
(B)(2) of the definition of “Applicable Amount” to the extent such net cash proceeds or cash have not been applied pursuant
to such clauses to make Restricted Payments or to make other Investments, payments or exchanges pursuant to the second paragraph of Section
1010 or to make Permitted Investments (other than Permitted Investments specified in clauses (1), (2) and (3) of the definition thereof)
and (b) Indebtedness or preferred stock of the Co-Issuers or any Guarantor not otherwise permitted hereunder in an aggregate principal
amount or liquidation preference, which when aggregated with the principal amount and liquidation preference of all other Indebtedness
or preferred stock then outstanding and incurred pursuant to this clause (l)(b) together with any Refinancing Indebtedness in respect
thereof incurred pursuant to clause (n) below, does not at any one time outstanding exceed the greater of (x) US$200,000,000 or (y) 4.5%
of Total Assets as of the time of incurrence (it being understood that any Indebtedness or preferred stock incurred pursuant to this clause
(l)(b) shall cease to be deemed incurred or outstanding for purposes of this clause (l)(b) but shall be deemed incurred for the purposes
of the first paragraph of this Section 1011 from and after the first date on which the Co-Issuers or such Guarantor could have incurred
such Indebtedness under the first paragraph of this Section 1011 without reliance on this clause (l)(b));

 

(m)             
Indebtedness or preferred stock incurred in connection with project financings and export credit financings (it being understood
that the Issuer may determine in good faith the purpose for which Indebtedness was incurred) and any refinancing, refunding, renewal or
extension of any such Indebtedness; provided that the aggregate amount of Indebtedness or preferred stock incurred pursuant to
this clause (m) together with any Refinancing Indebtedness in respect thereof incurred pursuant to clause (n) below shall not exceed the
greater of US$700,000,000 and 15.1% of Total Assets at any time outstanding;

 

(n)               
the incurrence by the Issuer or any Restricted Subsidiary of Indebtedness or preferred stock which serves to refund or refinance
any Indebtedness or preferred stock incurred as permitted under the first paragraph of this Section 1011 and clauses (b), (c), (d), (i),
(l)(b) and (m) above, this clause (n) and clause (o) below or any Indebtedness or preferred stock issued to so refund or refinance such
Indebtedness or preferred stock including additional Indebtedness or preferred stock incurred to pay accrued but unpaid interest, dividends,
premiums (including tender premiums), defeasance costs, underwriting discounts, fees, costs and expenses (including original issue discount,
upfront fees or similar fees) incurred in connection with such refinancing (the “Refinancing Indebtedness”) prior to
its respective maturity; provided, however, that such Refinancing Indebtedness

 

(1)               
has a Weighted Average Life to Maturity at the time such Refinancing Indebtedness is incurred that is not less than the remaining
Weighted Average Life to Maturity of the Indebtedness being refunded or refinanced,

 

(2)                to
the extent such Refinancing Indebtedness refinances Subordinated Indebtedness, such Refinancing Indebtedness is subordinated to the
Notes or such Guarantee at least to the same extent as the Indebtedness being refinanced or refunded; provided that this
subclause (2) need not be satisfied if the amount of such Refinancing Indebtedness shall not exceed the Applicable Amount (it being
understood that if amounts available under the Applicable Amount are used to refinance such Subordinated Indebtedness, then the
Applicable Amount shall be reduced by such amount),

 

    -101-

     

    

 

(3)               
to the extent such Refinancing Indebtedness is Secured Indebtedness, the Liens securing such Refinancing Indebtedness have a Lien
priority equal or junior to the Liens securing the Indebtedness being refunded or refinanced, and

 

(4)               
shall not include

 

(x)               
Indebtedness of a Subsidiary of the Issuer that refinances Indebtedness of the Issuer,

 

(y)               
Indebtedness of a Subsidiary of the Issuer that is not a Guarantor or a Co-Issuer that refinances Indebtedness of a Guarantor or
a Co-Issuer or

 

(z)               
Indebtedness of the Issuer or a Restricted Subsidiary that refinances Indebtedness of an Unrestricted Subsidiary;

 

(o)               
(x) Indebtedness or preferred stock of Persons that are acquired by the Issuer or any Restricted Subsidiary or consolidated, amalgamated
or merged with or into or wound up into a Restricted Subsidiary in accordance with the terms of this Indenture, provided that in
the case of this clause (x) immediately and after giving effect to such acquisition, amalgamation, consolidation, winding up or merger
either (1) the Issuer would be permitted to incur at least US$1.00 of additional Indebtedness pursuant to the Total Net Leverage Ratio
set forth in the first paragraph of this Section 1011 or (2) the Issuer’s Total Net Leverage Ratio is less than or equal to the
amount thereof immediately prior to such acquisition, amalgamation or merger; or

 

(y)       Indebtedness
or preferred stock incurred in connection with or in contemplation of the acquisition of Persons that are acquired by the Issuer or any
Restricted Subsidiary or consolidated, amalgamated or merged with or into or wound up into a Restricted Subsidiary in accordance with
the terms of this Indenture, provided that in the case of this clause (y) immediately after giving effect to such acquisition,
consolidation, amalgamation or merger either (1) the Issuer would be permitted to incur at least US$1.00 of additional Indebtedness pursuant
to the Total Net Leverage Ratio set forth in the first paragraph of this Section 1011 or (2) the Issuer’s Total Net Leverage Ratio
is less than or equal to the amount thereof immediately prior to such acquisition, consolidation, amalgamation or merger; provided,
further, that the principal amount of any such Indebtedness and liquidation preference of any such preferred stock of any Restricted
Subsidiaries that are not Guarantors permitted to remain outstanding pursuant to this clause (o) together with the aggregate principal
amount of Indebtedness incurred and liquidation preference of preferred stock issued in each case by Restricted Subsidiaries that are
not Guarantors pursuant to the first paragraph of this Section 1011, clause (i) above or any Refinancing Indebtedness incurred pursuant
to clause (n) above in respect of amounts incurred or issued by Restricted Subsidiaries that are not Guarantors under this clause (o)
or the first paragraph of this covenant shall not exceed an amount of the greater of US$300,000,000 and 6.50% of Total Assets at any one
time outstanding;

 

(p)               
Indebtedness arising from the honoring by a bank or other financial institution of a check, draft or similar instrument drawn against
insufficient funds in the ordinary course of business, provided that such Indebtedness is extinguished within two Business Days
of its incurrence;

 

    -102-

     

    

 

(q)               
 Indebtedness of the Issuer or any Restricted Subsidiary supported by a letter of credit issued pursuant to the Credit Facilities,
in a principal amount not in excess of the stated amount of such letter of credit;

 

(r)                
(1) any guarantee by the Co-Issuers or a Guarantor of Indebtedness or other obligations of any Restricted Subsidiary so long as
the incurrence of such Indebtedness incurred by such Restricted Subsidiary is permitted under the terms of this Indenture,

 

(2)       any
guarantee by a Restricted Subsidiary of Indebtedness of the Co-Issuers or any Guarantor, provided that such guarantee is incurred
in accordance with Section 1015;

 

(s)                
(i) Mezzanine Securities issued pursuant to clause (12)(a) of the second paragraph of Section 1013 or existing as of the Issue
Date, including pay-in-kind interest payments issued thereon, in each case in accordance with the terms of the Mezzanine Securities as
in effect on the Issue Date; and (ii) any refinancings of the foregoing so long as (x) the principal amount of such refinancing shall
not exceed the principal amount of such Mezzanine Securities being refinanced together with any accrued interest and fees (including any
amendment or consent fees thereon) and (y) such refinancing shall, as determined by the Issuer in good faith, have terms material to the
interests of the Holders no materially less advantageous to the Holders than the existing terms of such Mezzanine Securities being refinanced;
or

 

(t)                
the incurrence of additional Indebtedness or other obligations by the Issuer not otherwise permitted under this Section 1011; provided
that such Indebtedness or other obligations (x) satisfy the definition of “Dividend Obligations,” (y) do not bear any
interest (in the form of accretion, PIK, cash or otherwise) and (z) shall not result in a decline in the rating of the Notes by any Rating
Agency by at least one notch in the gradation of the rating scale (e.g., + or – for S&P or 1, 2 and 3 for Moody’s) or
of the credit outlook with respect thereto from such Rating Agency’s rating of the Notes.

 

For purposes of determining compliance with this
Section 1011:

 

(1)               
in the event that an item of Indebtedness or preferred stock meets the criteria of more than one of the categories of permitted
Indebtedness or preferred stock described in clauses (a) through (t) above or is entitled to be incurred pursuant to the first paragraph
of this Section 1011, the Issuer, in its sole discretion, will classify or reclassify such item of Indebtedness or preferred stock (or
any portion thereof) and will only be required to include the amount and type of such Indebtedness or preferred stock in one of the above
clauses; provided that all Indebtedness outstanding under the Senior Credit Facilities on the Issue Date will be treated as incurred
on the Issue Date under clause (a) of the preceding paragraph and the Issuer shall not be permitted to reclassify all or any portion of
such Indebtedness outstanding on the Issue Date;

 

(2)               
at the time of incurrence, the Issuer will be entitled to divide and classify an item of Indebtedness or preferred stock in more
than one of the types of Indebtedness or preferred stock described above;

 

(3)               
the principal amount of Indebtedness or preferred stock outstanding under any clause of this Section 1011 shall be determined after
giving effect to the application of proceeds of any such Indebtedness or preferred stock; and

 

    -103-

     

    

 

(4)                the
U.S. dollar equivalent principal amount of Indebtedness or preferred stock denominated in a foreign currency shall be calculated
based on the relevant currency exchange rate in effect on the date such Indebtedness or preferred stock was incurred, in the case of
term debt, or first committed or first incurred (whichever yields the lower U.S. dollar equivalent), in the case of revolving credit
debt; provided that (x) if such Indebtedness or preferred stock is incurred to refinance other Indebtedness or preferred
stock denominated in the same foreign currency, and such refinancing would cause the applicable U.S. dollar-denominated restriction
to be exceeded if calculated at the relevant currency exchange rate in effect on the date of such refinancing, such U.S.
dollar-denominated restriction shall be deemed not to have been exceeded so long as the principal amount in such currency of such
refinancing Indebtedness or preferred stock does not exceed the principal amount in such currency of such Indebtedness or preferred
stock being refinanced, plus the aggregate amount of accrued but unpaid interest, dividends, premiums (including tender
premiums), defeasance costs, underwriting discounts, fees, costs and expenses (including original issue discount, upfront fees or
similar fees) incurred in connection with such refinancing and (y) if such Indebtedness or preferred stock is incurred to refinance
other Indebtedness or preferred stock denominated in a different currency from the Indebtedness or preferred stock being refinanced,
the principal amount of any such Indebtedness or preferred stock shall be calculated based on the currency exchange rate applicable
to the currencies in which such respective Indebtedness or preferred stock is denominated that is in effect on the date of such
refinancing.

 

Accrual of interest, the accretion of accreted
value, the accretion or amortization of original issue discount and the payment of interest or dividends in the form of additional Indebtedness
or preferred stock will not be deemed to be an incurrence of Indebtedness or preferred stock for purposes of this Section 1011. If Indebtedness
or preferred stock originally incurred in reliance upon a percentage of Total Assets under this covenant is being refinanced and such
refinancing would cause the maximum amount of Indebtedness or preferred stock thereunder to be exceeded at such time, then such refinancing
will nevertheless be permitted thereunder and such additional Indebtedness or preferred stock will be deemed to have been incurred under
the applicable provision so long as the principal amount or liquidation preference of such refinancing Indebtedness or preferred
stock does not exceed the principal amount or liquidation preference of Indebtedness or preferred stock being refinanced plus amounts
permitted by the next sentence. Any Indebtedness or preferred stock permitted to be incurred to refinance Indebtedness or preferred stock
above shall be permitted to include additional Indebtedness or preferred stock incurred to pay accrued but unpaid interest, dividends,
premiums (including tender premiums), defeasance costs, underwriting discounts, fees, costs and expenses (including original issue discount,
upfront fees or similar fees) incurred in connection with such refinancing.

 

Section
1012.         Limitation
on Liens. The Issuer will not, and will not permit any Restricted Subsidiary to, directly or indirectly, create, incur, assume or
suffer to exist any Lien (except Permitted Liens) of any kind (any such Lien, the “Initial Lien”) that secures any
Obligations under any Indebtedness of the Issuer or a Restricted Subsidiary against or on any asset or property now owned or hereafter
acquired by the Issuer or any such Restricted Subsidiary, or any income or profits therefrom, or assign or convey any right to receive
income therefrom, except, in the case of any assets that do not constitute Collateral, any Initial Lien if the notes or the Guarantee
of such Restricted Subsidiary, if any, are secured equally and ratably with or prior to such Initial Liens.

 

Any Lien which is granted to secure the Notes or
the Guarantee of such Restricted Subsidiary under the last clause of the preceding paragraph in this Section 1012 shall be discharged
at the same time as the discharge of the Initial Lien.

 

    -104-

     

    

 

 

Section
1013.        Limitations
on Transactions with Affiliates. The Issuer will not, and will not permit any Restricted Subsidiary to, make any payment to, or
sell, lease, transfer or otherwise dispose of any of its properties or assets to, or purchase any property or assets from, or enter
into or make or amend any transaction, contract, agreement, understanding, loan, advance or guarantee with, or for the benefit of,
any Affiliate of the Issuer (each of the foregoing, an “Affiliate Transaction”) in any one or series of related
transactions involving aggregate payments or consideration in excess of US$15,000,000, unless:

 

(a)               
such Affiliate Transaction is on terms that are not materially less favorable to the Issuer or the relevant Restricted Subsidiary
than those that could have been obtained in a comparable transaction by the Issuer or such Restricted Subsidiary with an unrelated Person
(or, in the event that there are no comparable transactions involving Persons who are not Affiliates of the Issuer or the relevant Restricted
Subsidiary to apply for comparative purposes, is otherwise on terms that, taken as a whole, the Issuer has determined to be fair to the
Issuer or the relevant Restricted Subsidiary), and

 

(b)               
the Issuer delivers to the Trustee (x) with respect to any Affiliate Transaction or series of related Affiliate Transactions involving
aggregate payments or consideration in excess of US$35,000,000, a resolution adopted by the majority of the Board of Directors of the
Issuer (and a majority of the Independent Directors) approving such Affiliate Transaction and set forth in an Officer’s Certificate
certifying that such Affiliate Transaction complies with clause (a) above and (y) with respect to any Affiliate Transaction or series
of related Affiliate Transactions involving aggregate payments or consideration in excess of US$75,000,000, a written opinion of a Nationally
Recognized Independent Financial Advisor stating that such Affiliate Transaction meets the requirements of clause (a).

 

The foregoing provisions will not apply to the
following:

 

(1)               
transactions between or among the Issuer or any of the Restricted Subsidiaries; provided that in the case of non-Wholly-Owned
Restricted Subsidiaries, no Affiliate of the Issuer (other than another Restricted Subsidiary) owns more than 10% of the Equity Interests
in such Restricted Subsidiary;

 

(2)               
(x) Restricted Payments permitted by Section 1010 and (y) Permitted Investments;

 

(3)               
the payment of reasonable and customary fees paid to, and indemnities provided on behalf of, and ordinary course employment and
severance agreements entered into with, officers, directors, employees or consultants of the Issuer, any of its direct or indirect parent
companies or any Restricted Subsidiary;

 

(4)               
transactions in which the Issuer or any Restricted Subsidiary, as the case may be, delivers to the Trustee a letter from a Nationally
Recognized Independent Financial Advisor stating that such transaction is fair to the Issuer or such Restricted Subsidiary from a financial
point of view or meets the requirements of clause (a) of the preceding paragraph;

 

(5)               
other than in respect of the Consulting Services Agreement (which is addressed in clause (12) below), any agreement as in effect
as of the Issue Date, or any amendment thereto (so long as any such agreement, together with all amendments thereto, taken as a whole,
is not more disadvantageous as determined by the Issuer to the Holders in any material respect than the agreement in effect as of the
Issue Date) or any transactions contemplated thereby;

 

(6)                the
existence of, or the performance by the Issuer or any of its Restricted Subsidiaries of its obligations under the terms of, any
stockholders agreement (including any registration rights agreement or purchase agreement related thereto) to which it is a party as
of the Issue Date and any similar agreements which it may enter into thereafter; provided, however, that the existence
of, or the performance by the Issuer or any Restricted Subsidiary of obligations under any future amendment to any such existing
agreement or under any similar agreement entered into after the Issue Date shall only be permitted by this clause (6) to the extent
that the terms of any such agreement, together with all amendments thereto, taken as a whole, or new agreement are not more
disadvantageous as determined by the Issuer to the Holders or the Issuer and its Restricted Subsidiaries in any material respect
than the agreement in effect as of the Issue Date;

 

    -105-

     

    

 

(7)               
any payments of tax distributions in accordance with Section 3.7 of the Ancillary Agreement and clause (10)(A) of the second paragraph
of Section 1010 that do not exceed US$2,000,000 per calendar year;

 

(8)               
any transaction with a joint venture or similar entity which would constitute an Affiliate Transaction solely because the Issuer
or a Restricted Subsidiary owns an equity interest in or otherwise controls such joint venture or similar entity; provided that
no Affiliate of the Issuer or any of its Subsidiaries other than the Issuer or a Restricted Subsidiary shall have a beneficial interest
in such joint venture or similar entity;

 

(9)               
the issuance of Equity Interests (other than Disqualified Stock) of the Issuer to any Person;

 

(10)           
  payments or loans (or cancellation of loans) to employees or consultants of the Issuer, any of its direct or indirect parent companies
or any Restricted Subsidiary which are approved by a majority of the Board of Directors of the Issuer in good faith;

 

(11)           
  any Spectrum Repurposing;

 

(12)             
(a) the annual fee of US$5,000,000 to be paid to Loral pursuant to the Consulting Services Agreement as in effect on the Issue
Date, which fee may be payable in the form of cash or Mezzanine Securities, (b) reimbursements for payments to non-affiliated third parties
made by any Permitted Holders on behalf of the Issuer and/or its Restricted Subsidiaries pursuant to the Consulting Services Agreement
not to exceed US$2,000,000 in the aggregate in any calendar year, (c) payment for services rendered under the Consulting Services Agreement
as in effect on the Issue Date not to exceed US$5,000,000 per calendar year to the extent such payments are approved by the Independent
Directors in accordance with the provisions of the Consulting Services Agreement as in effect on the Issue Date and (d) the payment to
any purchaser who purchases all or a majority of the Equity Interests of the Issuer in accordance with the terms of this Indenture (and
such purchase is not a Change of Control Triggering Event) of reasonable management, monitoring, consulting and advisory fees, indemnities
and related expenses, as reasonably determined by the Issuer and such purchaser in an aggregate amount pursuant to this clause (d) not
to exceed 2% of Consolidated EBITDA in any year;

 

(13)           
   any Unrestricted Subsidiary Support Transaction;

 

(14)           
   pledges of Equity Interests of Unrestricted Subsidiaries;

 

(15)           
   transactions permitted by, and complying with, the provisions of Article Eight;

 

(16)           
  any contribution of capital to the Issuer;

 

(17)             
 (a) transactions with customers, clients, suppliers or purchasers or sellers of goods or services, or transactions otherwise relating
to the purchase or sale of goods or services, in each case in the ordinary course of business and otherwise in compliance with the terms
of this Indenture, which are fair to the Issuer and its Restricted Subsidiaries in the reasonable determination of the Board of Directors
or the senior management of the Issuer, or are on terms at least as favorable as might reasonably have been obtained at such time from
an unaffiliated party or (b) transactions with joint ventures or Unrestricted Subsidiaries entered into in the ordinary course of business;
and

 

(18)           
  the incurrence by the Issuer of Dividend Obligations and payments of interest and principal related thereto.

 

    -106-

     

    

 

Section
1014.         Limitations
on Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries. The Issuer will not, and will not permit any Restricted
Subsidiary to, directly or indirectly, create or otherwise cause or suffer to exist or become effective any consensual encumbrance or
consensual restriction on the ability of any such Restricted Subsidiary to:

 

(a)           (1)
pay dividends or make any other distributions to the Issuer or any Restricted Subsidiary:

 

		·	on its Capital Stock or

 

		·	with respect to any other interest or participation in, or measured by, its profits or

 

(2)               
pay any Indebtedness owed to the Issuer or any Restricted Subsidiary;

 

(b)               
make loans or advances to the Issuer or any Restricted Subsidiary; or

 

(c)               
sell, lease or transfer any of its properties or assets to the Issuer or any Restricted Subsidiary,

 

except (in each case) for such encumbrances or restrictions existing
under or by reason of:

 

(1)               
contractual encumbrances or restrictions in effect on the Issue Date, including pursuant to the Senior Credit Facilities, the Existing
Secured Notes Indenture, the Existing Unsecured Notes Indenture, the Existing Notes and, in each case, related documentation as in effect
on the Issue Date;

 

(2)               
this Indenture, the Notes, the Guarantees, the Security Documents and the First Lien Intercreditor Agreement;

 

(3)               
purchase money obligations and Finance Lease Obligations for property acquired in the ordinary course of business that impose restrictions
of the nature discussed in clause (c) above on the property so acquired or leased;

 

(4)               
applicable law or any applicable rule, regulation or order;

 

(5)                any
agreement or other instrument of a Person acquired by the Issuer or any Restricted Subsidiary in existence at the time of such
acquisition (but not created in contemplation thereof), which encumbrance or restriction is not applicable to any Person, or the
properties or assets of any Person, other than the Person, or the property or assets of the Person, so acquired;

 

(6)               
contracts for the sale of assets, including customary restrictions with respect to a Subsidiary pursuant to an agreement that has
been entered into for the sale or disposition of all or substantially all of the Capital Stock or assets of such Subsidiary;

 

(7)               
Secured Indebtedness otherwise permitted to be incurred pursuant to Section 1011 and Section 1012 that limit the right of the debtor
to dispose of the assets securing such Indebtedness;

 

(8)               
restrictions on cash or other deposits or net worth imposed by customers under contracts entered into in the ordinary course of
business;

 

(9)               
customary provisions in joint venture agreements and other similar agreements;

 

(10)           
   customary provisions contained in leases and other agreements entered into in the ordinary course of business;

 

    -107-

     

    

 

(11)           
  other Indebtedness of the Issuer or any Restricted Subsidiary that is incurred subsequent to the Issue Date pursuant to Section
1011; provided that such encumbrances or restrictions (1) are no less favorable to the Issuer or such Restricted Subsidiary, taken
as a whole, than those included in the Senior Credit Facilities as in effect as of the Issue Date (as determined by the Issuer in good
faith) or (2) will not materially affect the Co-Issuers’ ability to make anticipated principal or interest payments on the Notes
(as determined by the Issuer in good faith); and

 

(12)           
  any encumbrances or restrictions of the type referred to in clauses (a), (b) and (c) above imposed by any amendments, modifications,
restatements, renewals, increases, supplements, refundings, replacements or refinancings of the contracts, instruments or obligations
referred to in clauses (1) through (11) above, provided that such amendments, modifications, restatements, renewals, increases,
supplements, refundings, replacements or refinancings are, as determined by the Issuer in good faith, not materially more restrictive
with respect to such encumbrance and other restrictions than those prior to such amendment, modification, restatement, renewal, increase,
supplement, refunding, replacement or refinancing.

 

Section
1015.        Limitation
on Guarantees of Indebtedness by Restricted Subsidiaries. The Issuer will not permit any Restricted Subsidiary, other than a Guarantor,
to guarantee the payment of the Senior Credit Facilities, the Existing Notes or any Public Debt issued by the Issuer or a Restricted Subsidiary,
unless:

 

(a)               
such Restricted Subsidiary within 30 days executes and delivers a supplemental indenture to this Indenture providing for a Guarantee
by such Restricted Subsidiary, except that with respect to a guarantee of Indebtedness of any Issuer or any Guarantor if such Indebtedness
is by its express terms subordinated in right of payment to the Notes or such Guarantor’s Guarantee of the Notes, any such guarantee
of such Restricted Subsidiary with respect to such Indebtedness shall be subordinated in right of payment to such Restricted Subsidiary’s
Guarantee substantially to the same extent as such Indebtedness is subordinated to the Notes or such Guarantor’s Guarantee;

 

(b)               
 such supplemental indenture shall provide that such Restricted Subsidiary waives and will not in any manner whatsoever claim or
take the benefit or advantage of, any rights of reimbursement, indemnity or subrogation or any other rights against the Issuer or any
other Restricted Subsidiary as a result of any payment by such Restricted Subsidiary under its Guarantee until all amounts then due and
payable by the Co-Issuers with respect to the Notes shall have been paid in full; and

 

(c)               
such Restricted Subsidiary shall have delivered to the Trustee an Officer’s Certificate stating that all conditions precedent
provided for or relating to the execution of the supplemental indenture providing for a Guarantee have been complied with;

 

provided that this Section 1015 shall not be applicable to any
guarantee of any Restricted Subsidiary that existed at the time such Person became a Restricted Subsidiary and was not incurred in connection
with, or in contemplation of, such Person becoming a Restricted Subsidiary. The Issuer may elect, in its sole discretion, to cause any
Subsidiary that is not otherwise required to be a Guarantor to become a Guarantor, in which case such Subsidiary shall not be required
to comply with the 30 day period described in clause (a) above.

 

Each Person that becomes a Guarantor after the
Issue Date shall also become a party to the applicable Security Documents and shall execute and deliver within the time period set forth
in Section 1023 of this Indenture or the Security Documents such security instruments, financing statements, mortgages, deeds of trust
and other related real estate deliverables (in substantially the same form of as, and to the same extent as, those executed and delivered
with respect to the Collateral on the Issue Date or on the date first delivered in the case of Collateral delivered after the Issue Date
as may be necessary to give the applicable Notes Collateral Agent a perfected (or equivalent under applicable law) security interest (subject
to Agreed Security Principles and Permitted Liens) in properties and assets of such Guarantor (other than Excluded Assets) as security
for such Guarantor’s Guarantee and as may be necessary to have such property or assets added to the Collateral as required under
the Security Documents and Section 1023 of this Indenture, and thereupon all provisions of this Indenture relating to the Collateral shall
be deemed to relate to such properties and assets to the same extent and with the same force and effect.

 

Each Guarantee shall be released in accordance
with the provisions of Section 1208 of this Indenture.

 

    -108-

     

    

 

Section
1016.        [Reserved].

 

Section
1017.        Change
of Control Triggering Event. If a Change of Control Triggering Event occurs after the Issue Date, unless, prior to, or concurrently
with, the time the Co-Issuers are required to make a Change of Control Offer, the Co-Issuers have previously or concurrently mailed or
delivered, or otherwise sent through electronic transmission, a redemption notice with respect to all the outstanding Notes as described
in Section 401 or 1105 of this Indenture, the Co-Issuers will make an offer to repurchase all of the Notes pursuant to the offer described
below (the “Change of Control Offer”) at a price (as calculated by the Issuer) in cash (the “Change of Control
Payment”) equal to 101% of the aggregate principal amount thereof plus accrued and unpaid interest and Additional Amounts,
if any, to, but excluding, the date of repurchase, subject to the right of Holders of record on the relevant record date to receive interest
due on the relevant Interest Payment Date falling on or prior to the Change of Control Payment Date. Within 30 days following any Change
of Control Triggering Event, the Issuer will send notice of such Change of Control Offer electronically or by first class mail, with a
copy to the Trustee, to each Holder to the address of such Holder appearing in the Note Register or otherwise in accordance with the procedures
of DTC, with the following information:

 

(1)               
 that a Change of Control Offer is being made pursuant to this Section 1017 and that all Notes properly tendered pursuant to such
Change of Control Offer will be accepted for payment;

 

(2)               
the repurchase price and the repurchase date, which will be no earlier than 15 days nor later than 60 days from the date such notice
is sent (the “Change of Control Payment Date”), except in the case of a conditional Change of Control Offer made in
advance of a Change of Control Triggering Event as described below;

 

(3)               
that any Note not properly tendered will remain outstanding and continue to accrue interest;

 

(4)               
that, unless the Co-Issuers default in the payment of the Change of Control Payment, all Notes accepted for payment pursuant to
the Change of Control Offer will cease to accrue interest on the Change of Control Payment Date;

 

(5)               
that Holders electing to have any Notes repurchased pursuant to a Change of Control Offer will be required to surrender the Notes,
with the form entitled “Option of Holder to Elect Repurchase” on the reverse of the Notes completed or otherwise in accordance
with the procedures of DTC, to the Paying Agent specified in the notice at the address specified in the notice prior to the close of business
on the third Business Day preceding the Change of Control Payment Date;

 

(6)               
that Holders will be entitled to withdraw their tendered Notes and their election to require the Issuer to repurchase such Notes,
provided that the Paying Agent receives, not later than the close of business on the second Business Day prior to the Change of
Control Payment Date, a facsimile or other electronic transmission or letter setting forth the name of the Holder or otherwise in accordance
with the procedures of DTC, the principal amount of Notes tendered for repurchase, and a statement that such Holder is withdrawing such
Holder’s tendered Notes and such Holder’s election to have such Notes repurchased;

 

(7)               
that Holders whose Notes are being repurchased only in part will be issued new Notes equal in principal amount to the unrepurchased
portion of the Notes surrendered, which unrepurchased portion must be equal to US$2,000 or a US$1,000 integral multiple in excess thereof;

 

(8)               
if such notice is sent prior to the occurrence of a Change of Control Triggering Event, stating that the Change of Control Offer
is conditional on the occurrence of such Change of Control Triggering Event and any other conditions and describing each such condition,
and, if applicable, stating that, in the Co-Issuers’ discretion, the Change of Control Payment Date may be delayed until such time
(including more than 60 days after the notice is mailed or delivered, including by electronic transmission) as any or all such conditions
shall be satisfied, or that such purchase may not occur and such notice may be rescinded in the event that the Co-Issuers shall determine
that the Change of Control Triggering Event will not occur by the Change of Control Payment Date, or by the Change of Control Payment
Date as so delayed; and

 

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(9)               
such other instructions, as determined by the Co-Issuers, consistent with this Section 1017, that a Holder must follow.

 

If the Notes are in global form and the Co-Issuers
make an offer to repurchase all of the Notes pursuant to the Change of Control Offer, a Holder may exercise its option to elect for the
repurchase of the Notes through the facilities of DTC, subject to its rules and regulations.

 

The notice, if sent in a manner herein provided,
shall be conclusively presumed to have been given, whether or not the Holder receives such notice. If (a) the notice is sent in a manner
herein provided and (b) any Holder fails to receive such notice or a Holder receives such notice but it is defective, such Holder’s
failure to receive such notice or such defect shall not affect the validity of the proceedings for the purchase of the Notes as to all
other Holders that properly received such notice without defect.

 

The Co-Issuers will comply with the requirements
of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent such laws or regulations are
applicable in connection with the repurchase of the Notes pursuant to a Change of Control Offer. To the extent that the provisions of
any securities laws or regulations conflict with the provisions of this Indenture, the Co-Issuers will comply with the applicable securities
laws and regulations and shall not be deemed to have breached their obligations described in this Indenture by virtue thereof.

 

On the Change of Control Payment Date, the Co-Issuers
will, to the extent permitted by law,

 

(1)               
accept for payment all Notes or portions thereof properly tendered pursuant to the Change of Control Offer,

 

(2)               
deposit with the Paying Agent an amount equal to the aggregate Change of Control Payment in respect of all Notes or portions thereof
so tendered and

 

(3)               
deliver, or cause to be delivered, to the Trustee for cancellation the Notes so accepted together with an Officer’s Certificate
stating that such Notes or portions thereof have been tendered to and repurchased by the Co-Issuers.

 

The Paying Agent will promptly send to each Holder
of Notes that were properly tendered and not withdrawn the Change of Control Payment for such Notes, and the Trustee will promptly authenticate
and deliver to each Holder a new Note equal in principal amount to any unrepurchased portion of the Notes surrendered, if any, provided
that each such new Note will be in a principal amount of US$2,000 or a US$1,000 integral multiple in excess thereof.

 

The Co-Issuers will not be required to make a Change
of Control Offer if a third party makes such Change of Control Offer contemporaneously with or upon a Change of Control Triggering Event
in the manner, at the times and otherwise in compliance with the requirements of this Indenture and purchases all Notes validly tendered
and not withdrawn under such Change of Control Offer. Notwithstanding anything to the contrary herein, a Change of Control Offer may be
made in advance of a Change of Control Triggering Event, and conditioned upon and settlement delayed until such Change of Control Triggering
Event, if a definitive agreement is in place for the Change of Control at the time of making such a Change of Control Offer.

 

Notwithstanding any other provision hereof, in
connection with any tender offer, Change of Control Offer or Asset Sale Offer, if Holders of not less than 90% in aggregate principal
amount of the then-Outstanding Notes validly tender and do not validly withdraw such Notes in such offer and the Co-Issuers, or any third-party
making such offer in lieu of the Co-Issuers, purchases all of the Notes validly tendered and not validly withdrawn by such Holders, the
Co-Issuers or such third-party will have the right upon not less than 15 days nor more than 60 days’ prior notice, given not more
than 60 days following such purchase date, to redeem all Notes that remain Outstanding following such purchase at a price equal to the
price offered to each other Holder in such offer (which may be less than par) plus, to the extent not included in the offer payment,
accrued and unpaid interest, if any, thereon, to, but excluding, the Redemption Date, subject to the right of Holders of record on the
relevant record date to receive interest due on the relevant interest payment date falling prior to or on the Redemption Date.

 

    -110-

     

    

 

Section
1018.        Asset
Sales. The Issuer will not, and will not permit any Restricted Subsidiary to, cause, make or suffer to exist an Asset Sale, unless:

 

(a)               
the Issuer or such Restricted Subsidiary, as the case may be, receives consideration at the time of such Asset Sale at least equal
to the Fair Market Value (measured at the time of contractually agreeing to such Asset Sale) of the assets sold or otherwise disposed
of; and

 

(b)               
except in the case of a Permitted Asset Swap, at least 75% of the consideration therefor received by the Issuer or such Restricted
Subsidiary, as the case may be, is in the form of cash or Cash Equivalents; provided that the amount of:

 

(1)               
any liabilities (as shown on the Issuer’s, or such Restricted Subsidiary’s, most recent balance sheet or in the footnotes
thereto or if incurred, accrued or increased subsequent to the date of such balance sheet, such liabilities that would have been reflected
on the Issuer’s or such Restricted Subsidiary’s balance sheet or in the footnotes thereto if such incurrence, accrual or increase
had taken place on or prior to the date of such balance sheet, as determined by the Issuer) of the Issuer or any Restricted Subsidiary,
other than liabilities that are by their terms subordinated in right of payment to the Notes, that are assumed by the transferee of any
such assets (or are directly associated with such assets and are otherwise extinguished in connection with the transactions relating to
such Asset Sale) and for which the Issuer and all Restricted Subsidiaries have been unconditionally released by all creditors or their
representatives in writing,

 

(2)               
any notes or other obligations or securities or assets received by the Issuer or such Restricted Subsidiary from such transferee
that are converted by the Issuer or such Restricted Subsidiary into cash or Cash Equivalents, or by their terms are required to be satisfied
for cash or Cash Equivalents (to the extent of the cash or Cash Equivalents received), in each case, within 180 days following the closing
of such Asset Sale, and

 

(3)                any
Designated Noncash Consideration received by the Issuer or any Restricted Subsidiary in such Asset Sale having an aggregate Fair
Market Value, taken together with all other Designated Noncash Consideration received pursuant to this clause (3) that is at that
time outstanding, not to exceed an amount equal to the greater of US$120,000,000 or 2.75% of Total Assets at the time of the receipt
of such Designated Noncash Consideration, with the Fair Market Value of each item of Designated Noncash Consideration being measured
at the time received and without giving effect to subsequent changes in value,

 

shall be deemed to be Cash Equivalents for purposes
of this provision and for no other purpose.

 

Within 395 days after the Issuer’s or any
Restricted Subsidiary’s receipt of the Net Proceeds of any Asset Sale (or Event of Loss Proceeds) (such 395 day period, the “Reinvestment
Period”), the Issuer or such Restricted Subsidiary, at its option, may apply the Net Proceeds from such Asset Sale (together
with any Event of Loss Proceeds required to be applied as provided in Section 1007(d)):

 

(1)               
to repay:

 

(a)                Obligations
under the Notes (at a price equal to or greater than the aggregate principal amount of Notes purchased) or any other First Priority
Obligations (and, in the case of revolving obligations, to correspondingly permanently reduce commitments with respect thereto); provided, however,
that (x) to the extent that the terms of such First Priority Obligations (other than Additional Notes) require Net Proceeds (or
Event of Loss Proceeds, as applicable) to repay Obligations outstanding under such First Priority Obligations prior to the repayment
of other First Priority Obligations, the Issuer or such Restricted Subsidiary shall be entitled to repay such Obligations prior to
repaying Obligations under the Notes and (y) except as provided in the foregoing subclause (x), to the extent the Issuer or such
Restricted Subsidiary so reduces any other First Priority Obligations, the Issuer will either (1) reduce Obligations under the Notes
on a pro rata basis by, at its option, (A) redeeming notes as provided in Section 1101 of this Indenture, or (B) purchasing Notes
through open market purchases at a price equal to or greater than the aggregate principal amount of Notes purchased, or (2) make an
offer (in accordance with the procedures set forth below for an Asset Sale Offer) to all Holders to purchase their Notes on a
ratable basis with such other First Priority Obligations for no less than 100% of the principal amount thereof, plus the
amount of accrued but unpaid interest, if any, thereon;

 

(b)               
solely to the extent such Net Proceeds (or Event of Loss Proceeds, as applicable) are not derived from an Asset Sale or other disposition,
including an Event of Loss, of Collateral, to reduce any other Pari Passu Indebtedness (other than First Priority Obligations) (and, in
the case of revolving obligations to correspondingly permanently reduce commitments with respect thereto); provided that if the
Issuer or any Restricted Subsidiary shall so repay any Pari Passu Indebtedness other than the Notes, the Issuer will either (1) reduce
Obligations under the Notes on a pro rata basis by, at its option, (A) redeeming Notes as described in Section 1101 of this Indenture
or (B) purchasing Notes through open market purchases at a price equal to or greater than the aggregate principal amount of Notes purchased,
or (2) make an offer (in accordance with the procedures set forth below for an Asset Sale Offer) to all Holders to purchase their Notes
on a ratable basis with such other Pari Passu Indebtedness for no less than 100% of the principal amount thereof, plus the amount
of accrued but unpaid interest, if any, thereon; or

 

(c)               
Indebtedness of a Restricted Subsidiary that is not a Guarantor, other than Indebtedness owed to the Issuer or another Restricted
Subsidiary;

 

    -111-

     

    

 

(2)               
to make an investment in (a) any one or more businesses, provided that such investment in any business is in the form of
the acquisition of Capital Stock and results in the Issuer or a Restricted Subsidiary, as the case may be, owning an amount of the Capital
Stock of such business such that it constitutes a Restricted Subsidiary, (b) capital expenditures or (c) acquisitions of other assets,
in each of clauses (a), (b) and (c), used or useful in a Similar Business; provided, further, that to the extent that the
Net Proceeds (or Event of Loss Proceeds, as applicable) are derived from an Asset Sale or other disposition, including an Event of Loss,
of Collateral, any such acquired assets shall be added to the Collateral securing the Notes to the extent required by this Indenture and
the Security Documents,

 

(3)                to
make an investment in (a) any one or more businesses engaged in a Similar Business, provided that such investment in any
business is in the form of the acquisition of Capital Stock and results in the Issuer or a Restricted Subsidiary, as the case may
be, owning an amount of the Capital Stock of such business such that it constitutes a Restricted Subsidiary, (b) properties used or
useful in a Similar Business or (c) other assets used or useful in a Similar Business that, in each of (a), (b) and (c), replace the
businesses, properties and assets that are the subject of such Asset Sale or Event of Loss; provided, further, that to
the extent that the Net Proceeds (or Event of Loss Proceeds, as applicable) are derived from an Asset Sale or other disposition,
including an Event of Loss, of Collateral, any such acquired assets shall be added to the Collateral securing the Notes to the
extent required by the Indenture and the Security Documents; or

 

(4)               
any combination of the foregoing.

 

provided that, in the case of clauses (2) and (3) above, a binding
commitment entered into prior to the end of the Reinvestment Period shall be treated as a permitted application of the Net Proceeds (or
Event of Loss Proceeds, as applicable) from the date of such commitment so long as the Issuer or such Restricted Subsidiary enters into
such commitment with the good faith expectation that such Net Proceeds (or Event of Loss Proceeds, as applicable) will be applied to satisfy
such commitment (an “Acceptable Commitment”) and, in the event any Acceptable Commitment is later canceled or terminated
for any reason before such Net Proceeds (or Event of Loss Proceeds, as applicable) are so applied, the Issuer or such Restricted Subsidiary
enters into another Acceptable Commitment (a “Replacement Commitment”) within nine months of such cancellation or termination;
provided, further, that if any Replacement Commitment is later cancelled or terminated for any reason before such Net Proceeds
(or Event of Loss Proceeds, as applicable) are applied, then such Net Proceeds shall constitute Excess Proceeds.

 

Any Net Proceeds from the Asset Sale (or Event
of Loss Proceeds) that are not invested or applied as provided and within the Reinvestment Period will be deemed to constitute “Excess
Proceeds.” When the aggregate amount of Excess Proceeds exceeds US$25,000,000, the Co-Issuers shall make an offer to all Holders,
and, if required by the terms of any First Priority Obligations containing comparable repurchase rights, to the holders of such First
Priority Obligations (an “Asset Sale Offer”), to purchase the maximum principal amount of Notes and such First Priority
Obligations that may be purchased out of the Excess Proceeds at an offer price in cash in an amount equal to 100% of the principal amount
thereof, plus accrued and unpaid interest, if any, to, but excluding, the date fixed for the closing of such offer, in accordance
with the procedures set forth in this Indenture and, if applicable, the other documents governing the applicable First Priority Obligations.
The Co-Issuers will commence an Asset Sale Offer with respect to Excess Proceeds within fifteen Business Days after the date that Excess
Proceeds exceed US$25,000,000 by transmitting electronically or mailing the notice required pursuant to the terms of this Indenture, with
a copy to the Trustee. The Co-Issuers may satisfy the foregoing obligation with respect to such Net Proceeds from an Asset Sale by making
an Asset Sale Offer prior to the expiration of the Reinvestment Period (the “Advance Offer”) with respect to all or
a part of the available Net Proceeds (the “Advance Portion”) in advance of being required to do so by this Indenture.

 

To the extent that the aggregate amount of Notes
and such First Priority Obligations tendered pursuant to an Asset Sale Offer is less than the Excess Proceeds (or, in the case of an Advance
Offer, the Advance Portion), the Issuer may use any remaining Excess Proceeds (or, in the case of an Advance Offer, the Advance Portion)
in any manner not prohibited by this Indenture. If the aggregate principal amount of Notes or the First Priority Obligations surrendered
by such holders thereof exceeds the amount of Excess Proceeds, the Trustee shall select the Notes (subject to applicable DTC procedures
as to global notes) and the Issuer or the representative of such First Priority Obligations shall select such First Priority Obligations
to be purchased or repaid on a pro rata basis based on the accreted value or principal amount of the Notes or such First Priority Obligations
tendered in accordance with Section 1110. Upon completion of any such Asset Sale Offer, the amount of Excess Proceeds shall be reset at
zero (regardless of whether there are any remaining Excess Proceeds upon such completion), and in the case of an Advance Offer, the amount
of Net Proceeds the Co-Issuers are offering to apply in such Advance Offer shall be excluded in subsequent calculations of Excess Proceeds.
Additionally, upon consummation or expiration of any Advance Offer, any remaining Net Proceeds shall not be deemed Excess Proceeds and
the Issuer may use such Net Proceeds in any manner not otherwise prohibited by this Indenture.

 

    -112-

     

    

 

Pending the final application of any Net Proceeds
(or Event of Loss Proceeds) pursuant to this Section 1018, the Issuer or the applicable Restricted Subsidiary may apply such Net Proceeds
(or Event of Loss Proceeds) temporarily to reduce Indebtedness outstanding under a revolving credit facility or otherwise use such Net
Proceeds (or Event of Loss Proceeds) in any manner not prohibited by this Indenture. The Co-Issuers will comply with the requirements
of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent such laws or regulations are
applicable in connection with the repurchase of the Notes pursuant to an Asset Sale Offer. To the extent that the provisions of any securities
laws or regulations conflict with the provisions of this Indenture, the Co-Issuers will comply with the applicable securities laws and
regulations and shall not be deemed to have breached their obligations described in this Indenture by virtue thereof.

 

Notwithstanding any other provision of this Section
1018, (i) to the extent that any of or all the Net Proceeds of any Asset Sale by a Restricted Subsidiary that is not a Guarantor giving
rise to the obligation to make an Asset Sale Offer (a “Non-Guarantor Asset Sale”) or the Net Proceeds of any Event
of Loss of a Restricted Subsidiary that is not a Guarantor (a “Non-Guarantor Event of Loss”), are prohibited, delayed
or restricted by applicable local law, rule or regulation from being repatriated to the United States or from being distributed to a Guarantor,
an amount equal to the portion of such Net Proceeds so affected will not be required to be applied to make an Asset Sale Offer at the
times provided in this Section 1018 so long, but only so long, as the applicable local law, rule or regulation will not permit repatriation
to the United States or distribution to a Guarantor (the Issuer hereby agreeing to cause the applicable Restricted Subsidiary that is
not a Guarantor to promptly take all commercially reasonable actions required by the applicable local law, rule or regulation to permit
such repatriation or distribution), and once such repatriation or distribution of any of such affected Net Proceeds is permitted under
the applicable local law, rule or regulation, such repatriation or distribution will be immediately effected and an amount equal to such
repatriated or distributed Net Cash Proceeds will be promptly applied (net of additional taxes payable or reserved against as a result
thereof) to make an Asset Sale Offer and (ii) to the extent that the Issuer has determined in good faith that repatriation of any of or
all the Net Proceeds of any Non-Guarantor Asset Sale, any Non-Guarantor Event of Loss would have a material adverse tax cost consequence
with respect to such Net Proceeds (but only for so long as such material adverse tax cost consequence exists), the Net Proceeds so affected
will not be required to be applied to make an Asset Sale Offer at the times provided in this Section 1018; provided that, in the
case of this clause (ii), on or before the date on which an amount equal to any Net Proceeds from any Non-Guarantor Asset Sale or
Non-Guarantor Event of Loss so retained would otherwise have been required to be applied to reinvestments or prepayments pursuant the
provisions of this Section 1018 above, (x) the Issuer applies an amount equal to such Net Proceeds to such reinvestments or prepayments
as if such Net Proceeds had been received by the Issuer rather than such Restricted Subsidiary that is not a Guarantor, less the
amount of additional taxes that would have been payable or reserved against if such Net Proceeds had been repatriated (or, if less, the
Net Proceeds that would be calculated if received by such Restricted Subsidiary that is not a Guarantor) or (y) such Net Proceeds are
applied to the repayment of Indebtedness of a Restricted Subsidiary that is not a Guarantor.

 

If less than all of the Notes or such First Priority
Obligations are to be redeemed at any time, selection of such Notes for redemption, will be made by the Trustee on a pro rata basis to
the extent practicable; provided that if the Notes are represented by global notes, interests on the Notes shall be selected for
redemption or purchase by DTC in accordance with its standard procedures; provided, further, that no Notes of US$2,000 or
less shall be purchased or redeemed in part.

 

Notices of purchase or redemption shall be
delivered electronically or mailed by first class mail, postage prepaid, at least 15 but not more than 60 days before the purchase
or redemption date to each Holder of Notes to be purchased or redeemed at such Holder’s registered address or otherwise in
accordance with the procedures of DTC, with a copy to the Trustee, except that redemption notices may be delivered or mailed more
than 60 days prior to a Redemption Date if the notice is issued in connection with a defeasance of the Notes or a satisfaction and
discharge of this Indenture. If any Note is to be purchased or redeemed in part only, any notice of purchase or redemption that
relates to such Note shall state the portion of the principal amount thereof that has been or is to be purchased or redeemed.

 

A new Note in principal amount equal to the unpurchased
or unredeemed portion of any Note purchased or redeemed in part will be issued in the name of the Holder thereof upon cancellation of
the original Note. Notes called for redemption or purchase become due on the date fixed for redemption or purchase, unless such redemption
or purchase is conditioned on the happening of a future event. On and after the purchase or redemption date, unless the Co-Issuers default
in payment of the purchase or Redemption Price, interest shall cease to accrue on Notes or portions thereof purchased or called for redemption,
unless such redemption remains conditioned upon the happening of a future event.

 

    -113-

     

    

 

Section
1019.        Suspension
of Covenants. During any period of time that: (1) the Notes have Investment Grade Ratings from at least two of the Rating Agencies
and (2) no Default or Event of Default has occurred and is continuing under this Indenture (the occurrence of the events described in
the foregoing clauses (1) and (2) being collectively referred to as a “Covenant Suspension Event”), the Issuer and
the Restricted Subsidiaries will not be subject to the following provisions of this Indenture:

 

(A)             
Section 1007;

 

(B)             
Section 1010;

 

(C)             
Section 1011;

 

(D)             
Section 1013;

 

(E)              
Section 1014;

 

(F)              
Section 1015;

 

(G)             
Section 1018; and

 

(H)             
clause (4) of the first paragraph of Section 801

 

(collectively, the “Suspended Covenants”).
Upon the occurrence of a Covenant Suspension Event, the amount of Excess Proceeds from Net Proceeds (and Event of Loss Proceeds)
shall be set at zero. In addition, the Guarantees of the Guarantors will also be suspended as of such date (the “Suspension
Date”). The Issuer shall provide prompt written notice to the Trustee of the occurrence of the Suspension Date. In the
absence of such notice, the Trustee shall assume that a Suspension Date has not occurred. In the event that the Issuer and the
Restricted Subsidiaries are not subject to the Suspended Covenants for any period of time as a result of the foregoing, and on any
subsequent date (the “Reversion Date”) one or more of the Rating Agencies withdraw their Investment Grade Rating
or downgrade the rating assigned to the Notes below an Investment Grade Rating and as a result less than two Rating Agencies have
assigned an Investment Grade Rating to the Notes, then the Issuer and the Restricted Subsidiaries will thereafter again be subject
to the Suspended Covenants with respect to future events and the Guarantees will be reinstated. The period of time between the
Suspension Date and the Reversion Date is referred to in this description as the “Suspension Period.”
Notwithstanding that the Suspended Covenants may be reinstated, no Default or Event of Default will be deemed to have occurred as a
result of a failure to comply with the Suspended Covenants during the Suspension Period (or upon termination of the Suspension
Period or after that time based solely on events that occurred during the Suspension Period). Solely for the purpose of determining
compliance with Section 1012 during the Suspension Period, it shall be assumed that the provisions of Section 1011 are applicable
during such period as if the applicable Covenant Suspension Event had not occurred.

 

On the Reversion Date, all Indebtedness incurred
during the Suspension Period (or deemed incurred or issued in connection with a Limited Condition Transaction entered into during the
Suspension Period) will be classified to have been incurred pursuant to the first paragraph of Section 1011. To the extent such Indebtedness
would not be so permitted to be incurred or issued pursuant to the first paragraph of Section 1011, such Indebtedness will be deemed to
have been outstanding on the Issue Date, so that it is classified as permitted under clause (c) of the second paragraph of Section 1011.
Calculations made after the Reversion Date of the amount available to be made as Restricted Payments under Section 1010 will be made as
though Section 1010 had been in effect since the Issue Date, but not during the Suspension Period (including with respect to a Limited
Condition Transaction entered into during the Suspension Period). Accordingly, Restricted Payments made during the Suspension Period will
not reduce the amount available to be made as Restricted Payments under the first paragraph of Section 1010. Any Affiliate Transaction
entered into after such reinstatement pursuant to an agreement entered into during any Suspension Period shall be deemed to be permitted
pursuant to clause (6) of the second paragraph of Section 1013. Any encumbrance or restriction on the ability of any Restricted Subsidiary
that is not the Issuer or a Guarantor to take any action described in clauses (a) through (c) of the first paragraph of Section 1014 that
becomes effective during any Suspension Period shall be deemed to be permitted pursuant to clause (1) of Section 1014. All Investments
made during the Suspension Period (or deemed made in connection with a Limited Condition Transaction entered into during the Suspension
Period) will be classified to have been made under clause (5) of the definition of “Permitted Investments.” Notwithstanding
anything contained in the definition of “Unrestricted Subsidiary,” during a Suspension Period the Issuer may not designate
any Subsidiary as an Unrestricted Subsidiary.

 

    -114-

     

    

 

Section
1020.        [Reserved].

 

Section
1021.        Limitation
on Activities of the Co-Issuer. The Co-Issuer may not hold any material assets, become liable for any material obligations, engage
in any trade or business, or conduct any business activity, other than (1) the issuance of its Equity Interests to the Issuer or any Wholly-Owned
Restricted Subsidiary of the Issuer, (2) the incurrence of Indebtedness as a co-obligor or guarantor, as the case may be, of the Notes,
the Senior Credit Facilities and any other Indebtedness that is permitted to be incurred by the Issuer under Section 1011; provided
that the net proceeds of such Indebtedness are not retained by the Co-Issuer, and (3) activities incidental thereto. Neither the Issuer
nor any Restricted Subsidiary shall engage in any transactions with the Co-Issuer in violation of the immediately preceding sentence.

 

Section
1022.        Additional
Amounts. All payments made by a Co-Issuer or a Guarantor under or with respect to the Notes or the Guarantees will be made free
and clear of and without withholding or deduction for or on account of any present or future Taxes imposed or levied by or on behalf
of any Taxing Authority in any jurisdiction in which a Co-Issuer or Guarantor is incorporated or organized or is (or is deemed to
be) resident or doing business for tax purposes or any jurisdiction from or through which payment is made (each a “Relevant
Taxing Jurisdiction”), unless any such withholding or deduction is required by law. If any withholding or deduction for or
on account of any Taxes imposed by a Relevant Taxing Jurisdiction is required from any payment made under or with respect to the
Notes or the Guarantees, (a) the applicable withholding agent will make such withholding or deduction and remit the full amount
deducted or withheld to the relevant authority in accordance with and in the time required under applicable law, and (b) the
applicable Co-Issuer or Guarantor will pay such additional amounts (“Additional Amounts”) as may be necessary so
that the net amount received by each Holder or beneficial owner of the Notes after such withholding or deduction (including any
withholding or deduction attributable to Additional Amounts) will equal the amount the Holder or beneficial owner would have
received if such Taxes had not been withheld or deducted; provided, however, that no Additional Amounts will be
payable with respect to any estate, inheritance, gift, sales, capital gains, or personal property Tax or any similar Tax, or any Tax
that would not have been imposed, payable or due:

 

(1)               
but for the existence of any present or former connection between the Holder (or the beneficial owner of, such Notes) and the Relevant
Taxing Jurisdiction (including being a citizen or resident or national of, or carrying on a business or maintaining a permanent establishment
in, the Relevant Taxing Jurisdiction) other than the mere acquisition, ownership, holding or disposition of the Notes or enforcement of
rights thereunder or the receipt of payments in respect thereof;

 

(2)               
but for the failure by the Holder or beneficial owner to satisfy any certification, identification or other reporting requirements
whether imposed by statute, treaty, regulation or administrative practice; provided, however, that the Issuer and/or Co-Issuer
has delivered a request to the Holder or beneficial owner to comply with such requirements at least 30 days prior to the date by which
such compliance is required and such Holder or beneficial owner can legally comply with such requirements;

 

(3)               
if the presentation of Notes (where presentation is required) for payment had occurred within 30 days after the date such payment
was due and payable or was duly provided for, whichever is later, but only to the extent such Additional Amounts would not have been required
had the note been presented on the last day of the applicable 30 day period;

 

(4)               
but for the fact that (i) the Holder or beneficial owner does not deal at arm’s length (within the meaning of the Income
Tax Act (Canada)) with the Issuer, the Co-Issuer or a Guarantor or (ii) a payment was made in respect of a debt or other obligation
to pay an amount to a Person with whom the Issuer, the Co-Issuer or a Guarantor does not deal at arm’s length (within the meaning
of the Income Tax Act (Canada));

 

(5)               
but for the fact that the Holder or beneficial owner is a “specified non-resident shareholder” (within the meaning
of subsection 18(5) of the Income Tax Act (Canada)) of the Issuer or a Guarantor, or the Holder or beneficial owner does not deal
at arm’s length (within the meaning of the Income Tax Act (Canada)) with a “specified shareholder” (within the
meaning of subsection 18(5) of the Income Tax Act (Canada)) of the Issuer or a Guarantor;

 

(6)               
but for the requirements of Sections 1471 through 1474 of the United States Internal Revenue Code of 1986, as of the Issue Date
(or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any regulations
or official interpretations thereof, or any intergovernmental agreements implementing the foregoing; or

 

(7)               
but for any combination of the items listed above.

 

Each of the Co-Issuers and the Guarantors
will indemnify and hold harmless each Holder and beneficial owner from and against (x) any Taxes (other than Taxes excluded by
clauses (1) through (7) above) levied or imposed on a Holder or beneficial owner as a result of payments made under or with respect
to the Notes or any Guarantee (including any such Tax imposed under Part XIII of the Income Tax Act (Canada) and arising on
an assignment (other than an assignment that is not effected in accordance with the provisions of this Indenture) of a note to a
person resident of or deemed resident of Canada (other than a person with whom the Holder does not deal at arm’s length for
purposes of the Income Tax Act (Canada)) that is withheld from or levied or imposed on a Holder or beneficial owner), and (y)
any Taxes (other than Taxes excluded by clauses (1) through (7) above) so levied or imposed with respect to any indemnification
payments under the foregoing clause (x) or this clause (y) such that the net amount received by such Holder or beneficial owner
after such indemnification payments will not be less than the net amount the Holder or beneficial owner would have received if the
Taxes described in clauses (x) and (y) above had not been imposed.

 

    -115-

     

    

 

In any context, the payment of amounts based upon
the principal amount of the Notes or of principal, interest or of any other amount payable under or with respect to any of the Notes or
Guarantees, shall be deemed to include mention of the payment of Additional Amounts to the extent that, in such context, Additional Amounts
are, were or would be payable in respect thereof.

 

Upon request, the Issuer will provide the Trustee
with documentation evidencing the payment of the Taxes giving rise to the Additional Amounts.

 

The Co-Issuers will pay any present or future stamp,
registration, court or documentary taxes, or any other excise, property or similar taxes, charges or levies (including any interest and
penalties related thereto) that arise in any Relevant Taxing Jurisdiction from the execution, issuance, delivery, or registration, or
in any jurisdiction from the enforcement of, the Notes or Guarantees or any other document or instrument referred to therein, or the receipt
of any payments with respect to the Notes or Guarantees (“Documentary Taxes”).

 

The obligation to pay Additional Amounts and Documentary
Taxes under the terms and conditions described above will survive any termination, defeasance or discharge of this Indenture and will
apply mutatis mutandis to any successor to any Co-Issuer or Guarantor and to any jurisdiction in which any such successor is incorporated
or organized or is (or is deemed to be) resident or doing business for tax purposes, or from or through which such successor makes any
payment under or with respect to the Notes or the Guarantees.

 

At least 30 days prior to each date on which any
payment under, or with respect to, the Notes is due and payable or such later date as agreed by the Trustee (unless such obligation to
pay Additional Amounts arises after the 30th day prior to the date on which payment under or with respect to the Notes is due and payable,
in which case it will be promptly thereafter), if the Co-Issuers will be obligated to pay Additional Amounts with respect to such payment,
the Issuer will deliver to the Trustee an Officer’s Certificate stating that such Additional Amounts will be payable and the amounts
so payable and setting forth such other information as is necessary to enable the Trustee to pay such Additional Amounts to the Holders
of such Notes on the payment date.

 

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Section
1023.        After-Acquired
Property.

 

(a)                From
and after the Issue Date, upon the acquisition by any of the Co-Issuers or the Guarantors of any After-Acquired Property or upon any
new Subsidiary becoming a Guarantor, the Issuer, the Co-Issuer or such Guarantor shall execute and deliver such mortgages, deeds of
trust, security instruments, financing statements, certificates and opinions of counsel as shall be necessary to give the applicable
Notes Collateral Agent a perfected (or equivalent under applicable law) security interest, subject only to the Agreed Security
Principles and Permitted Liens, in such After-Acquired Property or in the Collateral of such Guarantor and to have such
After-Acquired Property or such Collateral (but subject to the Agreed Security Principles and the Applicable Collateral Limitations)
added to the Collateral, and thereupon all provisions of this Indenture relating to the Collateral shall be deemed to relate to such
After-Acquired Property or Collateral to the same extent and with the same force and effect; provided, however, that
if granting such security interest in such After-Acquired Property or Collateral requires the consent of a third party, the Issuer
will use commercially reasonable efforts to obtain such consent with respect to the security interest for the benefit of the
applicable Notes Collateral Agent on behalf of the Trustee and the Holders of the Notes; provided, further, however,
that if such third party does not consent to the granting of such security interest after the use of such commercially reasonable
efforts, the Issuer, the Co-Issuer or such Guarantor, as the case may be, will not be required to provide such security interest; provided, further,
that a lien over such property shall be consistent with the liens granted over similar property in the applicable jurisdiction (or
in the case of any jurisdiction where no liens were previously granted, to the extent customary and reasonably achievable under
applicable local law) (or, in the case of a new Guarantor, such of its property consistent with the liens granted over similar
property in the applicable jurisdiction (or in the case of any jurisdiction where no liens were previously granted, to the extent
customary and reasonably achievable under applicable local law)) in favor of the applicable Notes Collateral Agent and the owner of
such property or such Guarantor will promptly deliver certificates and opinions in respect thereof consistent with the certificates
and opinions delivered to the Notes Collateral Agents in connection with the liens granted over similar property, all as and to the
extent required by this Indenture or the Security Documents.

 

(b)               
Notwithstanding anything to the contrary set forth in this Section 1023 or otherwise in this Indenture or the Security Documents,
(i) any Person organized under the laws of Canada or the United States (or any political subdivision thereof) shall not be required to
take any actions outside of the United States and Canada to perfect the security interest in any assets of any such Person (including
registered intellectual property) located outside of the United States and Canada, (ii) each Guarantor (other than any Guarantor organized
under the laws of Canada or the United States (or any political subdivision thereof)) shall not be required to take any actions outside
of its jurisdiction of organization to perfect the security interest in any assets of such Person (including registered intellectual
property) located outside of such Person’s jurisdiction of organization, and (iii) other than the pledge by the Co-Issuers and the
Guarantors of their equity interest in their Subsidiaries organized in Isle of Man and Brazil (to the extent required), if a Subsidiary
organized outside of the United States and Canada is excluded from being a Guarantor because it is not a Material Subsidiary (“Excluded
Foreign Subsidiary”), the Co-Issuers and the Guarantors shall not be required to grant or perfect their pledge of such equity
interest in the Excluded Foreign Subsidiary under any law other than the laws of the United States or Canada. Each Notes Collateral Agent
agrees that its lien (which such Notes Collateral Agent shall be permitted to release at any time at the written direction of the Trustee
or the requisite Holders of the Notes) on the Satellite (as defined in the APT Satellite Agreement) is subject to the rights of APT under
the APT Satellite Agreement (as defined therein) and does not encompass the Excluded APT Elements.

 

(c)               
The amount recoverable in respect of the Collateral provided by the Guarantors being subsidiaries of the Issuer will be limited
by the Agreed Security Principles.

 

(d)               
In addition, the Co-Issuers and the Guarantors shall not be required to perfect by control security interest in Deposit Accounts,
Securities Accounts, commodity accounts or similar accounts and to perfect a security interest in any asset if such asset does not constitute
 “Collateral” (or equivalent term) under the Senior Credit Facilities security documents or where the Co-Issuers and the Guarantors
are not required to take such actions under the Senior Credit Facilities security documents.

 

(e)               
The limitations set forth in clauses (b) through (d) above are referred to as the “Applicable Collateral Limitations.”

 

    -117-

     

    

 

Section
1024.        Additional
Material Real Property. To the extent acquired after the Issue Date, (i) in the case of owned real property having a Fair Market
Value (as determined in good faith by the Issuer) at the time of acquisition in excess of $10,000,000 (each such property a “Material
Owned Real Property”), grant, and cause each of the Guarantors to grant, within 60 days after the closing of such acquisition
to the applicable Notes Collateral Agent (or such longer period as may be reasonably necessary in the good faith determination of the
Issuer), mortgages in and charges on such Material Owned Real Property of any Guarantor as are not covered by existing mortgages and
(ii) in the case of each ground leased real property on which earth station equipment worth more than $10,000,000 (as determined in good
faith by the Issuer) are located (each such property a “Material Leased Real Property”), use commercially reasonable
efforts (it being understood that in no event shall such efforts require the making of payments or material concessions in exchange for
such consent) to obtain from the applicable landlord consent to grant a leasehold mortgage in such lease, and if such consent is obtained,
to grant, and cause the Loan Party to grant, within 60 days after such consent is received (or such longer period as may be reasonably
necessary in the good faith determination of the Issuer), to the Collateral Agent, leasehold mortgages in and charges on such leased
real property of any Loan Party as are not covered by existing mortgages, in each case pursuant to customary documentation and constituting
valid and enforceable perfected Liens superior to and prior to the rights of all third persons subject to no other Liens except as are
permitted by Section 1012 or arising by operation of law, at the time of perfection thereof, record or file, and cause each such Subsidiary
to record or file, the mortgage or instruments related thereto in such manner and in such places as is required by law to establish,
perfect, preserve and protect the Liens in favor of the Notes Collateral Agent required to be granted pursuant to the mortgage and pay,
and cause each such Subsidiary to pay, in full, all taxes, fees and other charges payable in connection therewith, in each case subject
to the definition of “Excluded Collateral.”

 

Section
1025.        Post-Closing
Collateral Covenant. With respect to any Liens on or security interests in the Collateral that are not created or perfected on or
before the Issue Date, the Issuer will use commercially reasonable efforts to cause any such security interests to be created or perfected
within one hundred twenty (120) days after the Issue Date (as such date may be extended to the extent the applicable Notes Collateral
Agent consents, as directed by the Trustee, acting at the direction of the requite Holders pursuant to Section 902 hereof).

 

Notwithstanding anything to the contrary herein,
other than with respect to Section 1025(a), no Opinion of Counsel (other than as provided by Brazilian counsel) or Officer’s Certificate
shall be required to be delivered in connection with entry into the Security Documents and related documentation contemplated by this
Section 1025.

  

Article
Eleven

 

REDEMPTION OF NOTES

 

Section
1101.        Right
of Redemption. At any time prior to December 6, 2023, the Co-Issuers may on one or more occasions redeem the Notes, in whole or in
part, upon not less than 15 nor more than 60 days’ prior notice delivered electronically to each Holder or mailed by first-class
mail, postage prepaid, to each Holder of the Notes to the address of such Holder appearing in the Note Register, in each case with a copy
to the Trustee, at a redemption price equal to 100% of the principal amount of Notes redeemed plus the Applicable Premium as of,
and accrued and unpaid interest and Additional Amounts, if any, to, but excluding, the date of redemption (the “Redemption Date”),
subject to the rights of Holders on the relevant record date to receive interest due on the relevant interest payment date falling on
or prior to the Redemption Date.

 

    -118-

     

    

 

On and after December 6, 2023 (the “First
Call Date”), the Co-Issuers may on one or more occasions redeem the Notes, in whole or in part, upon not less than 15 nor more
than 60 days’ prior notice delivered electronically to each Holder or mailed by first class mail, postage prepaid, to each Holder
of the Notes to the address of such Holder appearing in the Note Register, in each case with a copy to the Trustee, at the Redemption
Prices (expressed as percentages of principal amount of the Notes to be redeemed) set forth below, plus accrued and unpaid interest
thereon and Additional Amounts, if any, to, but excluding, the applicable Redemption Date, subject to the right of Holders of record on
the relevant Record Date to receive interest due on the relevant Interest Payment Date falling on or prior to the Redemption Date, if
redeemed during the twelve-month period beginning on December 6 of each of the years indicated below:

 

	Year	 	Percentage	 
	2023	 	 	102.8125	%
	2024	 	 	101.4063	%
	2025 and thereafter	 	 	100.000	%

 

In addition, prior to December 6, 2023, the Co-Issuers
may on one or more occasions, at their option, redeem up to 40% of the aggregate principal amount of Notes (including Additional Notes)
issued under this Indenture at a redemption price equal to 105.625% of the aggregate principal amount thereof, plus accrued and
unpaid interest thereon and Additional Amounts, if any, to, but excluding, the applicable Redemption Date, subject to the right of Holders
of record on the relevant record date to receive interest due on the relevant interest payment date falling on or prior to the Redemption
Date, with the net cash proceeds of one or more Equity Offerings of the Issuer or any direct or indirect parent of the Issuer to the extent
such net cash proceeds are contributed to the Issuer; provided that at least 50% of the aggregate principal amount of Notes originally
issued under this Indenture remains outstanding immediately after the occurrence of each such redemption; provided, further,
that each such redemption occurs within 180 days of the date of closing of each such Equity Offering.

 

Section
1102.        Applicability
of Article. Redemption of Notes at the election of the Company or otherwise, as permitted or required by any provision of this Indenture,
shall be made in accordance with such provision and this Article Eleven.

 

Section
1103.        Election
To Redeem; Notice to Trustee. In case of any redemption at the election of the Company, the Company shall, at least five Business
Days before notice of redemption is required to be sent to Holders pursuant to Section 1105 hereof (unless a shorter notice shall be satisfactory
to the Trustee), notify the Trustee of such Redemption Date and of the principal amount of Notes to be redeemed and shall deliver to the
Trustee such documentation and records as shall enable the Trustee to select the Notes to be redeemed pursuant to Section 1104.

 

Section
1104.        Selection
by Trustee of Notes to Be Redeemed. If less than all of the Notes or such Pari Passu Indebtedness is to be redeemed at any time, selection
of such Notes for redemption, will be made by the Trustee on a pro rata basis to the extent practicable; provided that if the Notes
are represented by Global Notes, interests in the Notes shall be selected for redemption or purchase by DTC in accordance with its standard
procedures; provided, further, that no Notes of US$2,000 or less shall be purchased or redeemed in part.

 

Notices of purchase or redemption shall be
delivered electronically or mailed by first class mail, postage prepaid, at least 15 but not more than 60 days before the purchase
or redemption date to each Holder of Notes to be purchased or redeemed at such Holder’s registered address or otherwise in
accordance with the procedures of DTC, with a copy to the Trustee, except that redemption notices may be delivered or mailed more
than 60 days prior to a Redemption Date if the notice is issued in connection with a defeasance of the Notes or a satisfaction and
discharge of this Indenture. If any Note is to be purchased or redeemed in part only, any notice of purchase or redemption that
relates to such Note shall state the portion of the principal amount thereof that has been or is to be purchased or redeemed.

 

    -119-

     

    

 

A new Note in principal amount equal to the unpurchased
or unredeemed portion of any Note purchased or redeemed in part will be issued in the name of the Holder thereof upon cancellation of
the original Note. Notes called for redemption or purchase become due on the date fixed for redemption or purchase, unless such redemption
or purchase is conditioned on the happening of a future event. On and after the purchase or Redemption Date, unless the Co-Issuers default
in payment of the purchase or Redemption Price, interest shall cease to accrue on Notes or portions thereof purchased or called for redemption,
unless such redemption remains conditioned upon the happening of a future event.

 

Section
1105.        Notice
of Redemption. Notice of redemption shall be given in the manner provided for in Section 107 not less than 15 nor more than 60 days
prior to the Redemption Date, to each Holder to be redeemed.

 

All notices of redemption shall state:

 

(1)               
the Redemption Date,

 

(2)               
the Redemption Price, or if not then ascertainable, the manner of calculation thereof,

 

(3)               
in the case of certificated Notes, if less than all Outstanding Notes are to be redeemed, the identification (and, in the case
of a partial redemption, the principal amounts) of the particular Notes to be redeemed,

 

(4)               
in case any Note is to be redeemed in part only, the notice which relates to such Note shall state that on and after the Redemption
Date, upon surrender of such Note, the Holder will receive, without charge, a new Note or Notes of authorized denominations for the principal
amount thereof remaining unredeemed,

 

(5)               
that on the Redemption Date, the Redemption Price (and accrued but unpaid interest, if any, to, but not including, the Redemption
Date payable as provided in Section 1107) will become due and payable upon each such Note, or the portion thereof, to be redeemed, and
that interest thereon will cease to accrue on and after the Redemption Date,

 

(6)               
any condition precedent to the redemption,

 

(7)               
the place or places where such Notes are to be surrendered for payment of the Redemption Price and accrued but unpaid interest,
if any,

 

(8)               
the name and address of the Paying Agent,

 

(9)               
that Notes called for redemption must be surrendered to the Paying Agent to collect the Redemption Price,

 

(10)           
   the “CUSIP” number, ISIN or “Common Code” number and that no representation is made as to the accuracy
or correctness of the “CUSIP” number, ISIN or “Common Code” number, if any, listed in such notice or printed on
the Notes, and

 

(11)           
   the paragraph of the Notes pursuant to which the Notes are to be redeemed.

 

Notice of redemption of Notes to be redeemed at
the election of the Co-Issuers shall be given by the Co-Issuers or, at the Co-Issuers’ request, by the Trustee in the name and at
the expense of the Co-Issuers.

 

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Notice of any redemption of the Notes (including
upon an Equity Offering or in connection with another transaction (or series of related transactions) or an event that constitutes a Change
of Control Triggering Event) may, at the Co-Issuers’ discretion, be given prior to the completion or the occurrence thereof and
any such redemption or notice may, at the Co-Issuers’ discretion, be subject to one or more conditions precedent, including, but
not limited to, completion or occurrence of the related Equity Offering or other transaction or event, as the case may be. In addition,
if such redemption or purchase is subject to satisfaction of one or more conditions precedent, such notice shall describe each such condition,
and if applicable, shall state that, in the Co-Issuers’ discretion, the Redemption Date may be delayed until such time (including
more than 60 days after the date the notice of redemption was mailed or delivered, including by electronic transmission) as any or all
such conditions shall be satisfied, or such redemption or purchase may not occur and such notice may be rescinded in the event that any
or all such conditions shall not have been satisfied by the Redemption Date, or by the Redemption Date as so delayed, or such notice may
be rescinded at any time in the Co-Issuers’ discretion if in the good faith judgment of the Co-Issuers any or all of such conditions
will not be satisfied. In addition, the Co-Issuers may provide in such notice that payment of the redemption price and performance of
the Co-Issuers’ obligations with respect to such redemption may be performed by another Person.

 

If any such condition precedent has not been satisfied,
the Company shall provide written notice to the Trustee thereof. Upon receipt, the Trustee shall provide such notice to each Holder of
the Notes in the same manner in which the notice of redemption was given.

 

Section
1106.        Deposit
of Redemption Price. On or prior to any Redemption Date, the Co-Issuers shall deposit with the Trustee or with a Paying Agent (or,
if the Co-Issuers is acting as its own Paying Agent, segregate and hold in trust as provided in Section 1003) an amount of money sufficient
to pay the Redemption Price of, and accrued but unpaid interest, if any, on, all the Notes which are to be redeemed on such Redemption
Date.

 

Section
1107.        Notes
Payable on Redemption Date. Notice of redemption having been given as aforesaid, the Notes so to be redeemed shall, on the Redemption
Date, become due and payable, unless such redemption is conditioned on the happening of a future event, at the Redemption Price therein
specified (together with accrued but unpaid interest, if any, to the Redemption Date), and from and after such Redemption Date (unless
the Co-Issuers shall default in the payment of the Redemption Price and accrued but unpaid interest, if any) such Notes shall cease to
bear interest. Upon surrender of any such Note for redemption in accordance with said notice, such Note shall be paid by the Co-Issuers
at the Redemption Price, together with accrued but unpaid interest, if any, to, but not including, the Redemption Date and such Notes
shall be canceled by the Trustee; provided, however, that installments of interest whose Stated Maturity is on or prior
to the Redemption Date shall be payable to the Holders of such Notes, or one or more Predecessor Notes, registered as such at the close
of business on the relevant Record Date according to their terms and the provisions of Section 306.

 

If any Note called for redemption shall not be
so paid upon surrender thereof for redemption, the principal (and premium, if any) shall, until paid, bear interest from the Redemption
Date at the rate borne by the Notes.

 

Section
1108.        Notes
Redeemed in Part. Any Note which is to be redeemed only in part (pursuant to the provisions of this Article Eleven) shall be
surrendered at the office or agency of the Co-Issuers maintained for such purpose pursuant to Section 1002 (with, if the Co-Issuers
or the Trustee so requires, due endorsement by, or a written instrument of transfer in form satisfactory to the Co-Issuers and the
Trustee duly executed by, the Holder thereof or such Holder’s attorney duly authorized in writing), and the Co-Issuers shall
execute, and the Trustee shall authenticate and deliver to the Holder of such Note without service charge, a new Note or Notes, of
any authorized denomination as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed
portion of the principal of the Note so surrendered.

 

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Section
1109.        Redemption
for Changes in Withholding Taxes. In addition, the Co-Issuers may, at their option, redeem all (but not less than all) of the Notes
then outstanding, in each case at 100% of the principal amount of the Notes, plus accrued and unpaid interest, if any, to, but
excluding, the Redemption Date, if any Co-Issuer or a Guarantor has become or would become obligated to pay, on the next date on which
any amount would be payable with respect to the Notes, any Additional Amounts (or make indemnity payments) as a result of any change in
law of a Relevant Taxing Jurisdiction (including any regulations promulgated thereunder) or in the official interpretation or administration
of law or relevant position or policy of any applicable taxing authority of a Relevant Taxing Jurisdiction, if such change is announced
and becomes effective on or after the Issue Date (or, if the Relevant Taxing Jurisdiction did not become a Relevant Taxing Jurisdiction
until after the Issue Date, after such later date); provided that the obligation to pay such Additional Amounts or indemnification
payments cannot be avoided by the use of reasonable measures available to it (including, for the avoidance of doubt, the appointment of
a new Paying Agent or payment through another Co-Issuer or Guarantor). Notice of any such redemption must be given not less than 15 nor
more than 60 days prior to the date fixed for redemption pursuant to this paragraph; provided that no such notice will be given
earlier than 90 days prior to the earliest date on which such Co-Issuer or Guarantor would be obliged to pay such Additional Amounts.

 

Prior to giving any notice of redemption of the
Notes pursuant to this Section 1109, the Issuer will deliver to the Trustee:

 

(1)               
an Officer’s Certificate stating that the Co-Issuers are entitled to effect such redemption and setting forth a statement
of facts showing that the conditions precedent to the right of the Co-Issuers so to redeem have occurred; and

 

(2)               
a written opinion of recognized independent tax counsel in the Relevant Taxing Jurisdiction acceptable to the Trustee, that the
Issuer, Co-Issuer or any Guarantor, as the case may be, has or will become obliged to pay Additional Amounts as a result of such change
as described above. Such certificate and opinion will be made available for inspection by the Holders.

 

Section
1110.        Offers
to Repurchase by Application of Proceeds.

 

(a)               
In the event that, pursuant to Section 1018 hereof, the Co-Issuers shall be required to commence an Asset Sale Offer, they shall
follow the procedures specified below.

 

(b)               
The Asset Sale Offer shall remain open for a period of 20 Business Days following its commencement and no longer, except to the
extent that a longer period is required by applicable law (the “Offer Period”). No later than five Business Days after
the termination of the Offer Period (the “Purchase Date”), the Co-Issuers shall apply all Excess Proceeds (the “Offer
Amount”) to the purchase of Notes and, if required, Pari Passu Indebtedness (on a pro rata basis, if applicable), or, if less
than the Offer Amount has been tendered, all Notes and Pari Passu Indebtedness tendered in response to the Asset Sale Offer. Payment for
any Notes so purchased shall be made in the same manner as interest payments are made.

 

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(c)               
 If the Purchase Date is on or after a Record Date and on or before the related Interest Payment Date, any accrued and unpaid interest
and additional interest, if any, up to but excluding the Purchase Date, shall be paid to the Person in whose name a Note is registered
at the close of business on such Record Date, and no additional interest shall be payable to Holders who tender Notes pursuant to the
Asset Sale Offer.

 

(d)               
Upon the commencement of an Asset Sale Offer, the Co-Issuers shall electronically deliver or send, by first-class mail, a notice
to each of the Holders, with a copy to the Trustee. The notice shall contain all instructions and materials necessary to enable such Holders
to tender Notes pursuant to the Asset Sale Offer. The Asset Sale Offer shall be made to all Holders and holders of Pari Passu Indebtedness.
The notice, which shall govern the terms of the Asset Sale Offer, shall state:

 

(1)               
that the Asset Sale Offer is being made pursuant to this Section 1110 and Section 1018 hereof and the length of time the Asset
Sale Offer shall remain open;

 

(2)               
the Offer Amount, the purchase price and the Purchase Date;

 

(3)               
that any Note not tendered or accepted for payment shall continue to accrue interest;

 

(4)               
that, unless the Co-Issuers default in making such payment, any Note accepted for payment pursuant to the Asset Sale Offer shall
cease to accrue interest on and after the Purchase Date;

 

(5)               
that Holders electing to have a Note purchased pursuant to an Asset Sale Offer may elect to have Notes purchased in integral multiples
of US$2,000 only;

 

(6)               
that Holders electing to have a Note purchased pursuant to any Asset Sale Offer shall be required to surrender the Note, with the
form entitled “Option of Holder to Elect Repurchase” attached to the Note completed, or transfer such Note by book-entry transfer,
to the Issuer, the Depositary, if appointed by the Issuer, or a Paying Agent at the address specified in the notice at least three days
before the Purchase Date;

 

(7)               
that Holders shall be entitled to withdraw their election if the Co-Issuers, the Depositary or the Paying Agent, as the case may
be, receive, not later than the expiration of the Offer Period, a telegram, facsimile transmission or letter setting forth the name of
the Holder, the principal amount of the Note the Holder delivered for purchase and a statement that such Holder is withdrawing his election
to have such Note purchased;

 

(8)               
that, if the aggregate principal amount of Notes and Pari Passu Indebtedness surrendered by the holders thereof exceeds the Offer
Amount, the Trustee shall select the Notes and the Co-Issuers, or, if so elected by the Co-Issuers, the agent for such Pari Passu Indebtedness,
shall select such Pari Passu Indebtedness to be purchased on a pro rata basis based on the accreted value or principal amount of the Notes
or such Pari Passu Indebtedness tendered (with such adjustments as may be deemed appropriate by the Trustee so that only Notes in denominations
of US$2,000, or integral multiples of US$1,000 in excess thereof, shall be purchased); and

 

(9)               
that Holders whose Notes were purchased only in part shall be issued new Notes equal in principal amount to the unpurchased portion
of the Notes surrendered (or transferred by book-entry transfer) representing the same indebtedness to the extent not repurchased.

 

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(e)               
 On or before the Purchase Date, the Co-Issuers shall, to the extent lawful, (1) accept for payment, on a pro rata basis to the
extent necessary, the Offer Amount of Notes or portions thereof validly tendered pursuant to the Asset Sale Offer, or if less than the
Offer Amount has been tendered, all Notes tendered and (2) deliver or cause to be delivered to the Trustee the Notes properly accepted
together with an Officer’s Certificate stating the aggregate principal amount of Notes or portions thereof so tendered.

 

(f)                
The Co-Issuers, the Depositary or the Paying Agent, as the case may be, shall promptly mail or deliver to each tendering Holder
an amount equal to the purchase price of the Notes properly tendered by such Holder and accepted by the Co-Issuers for purchase, and the
Co-Issuers shall promptly issue a new Note, and the Trustee, upon receipt of an Authentication Order, shall authenticate and mail or deliver
(or cause to be transferred by book-entry) such new Note to such Holder (it being understood that, notwithstanding anything in this Indenture
to the contrary, no Opinion of Counsel or Officer’s Certificate is required for the Trustee to authenticate and mail or deliver
such new Note) in a principal amount equal to any unpurchased portion of the Note surrendered representing the same indebtedness to the
extent not repurchased; provided that each such new Note shall be in a principal amount of US$2,000 or an integral multiple of
US$1,000 in excess thereof. Any Note not so accepted shall be promptly mailed or delivered by the Co-Issuers to the Holder thereof. The
Co-Issuers shall publicly announce the results of the Asset Sale Offer on or as soon as practicable after the Purchase Date.

 

Other than as specifically provided in this Section
1110 or Section 1018 hereof, any purchase pursuant to this Section 1110 shall be made pursuant to the applicable provisions of this Article
Eleven.

 

Section
1111.        Mandatory
Redemption; Open Market Purchases. The Co-Issuers shall not be required to make any mandatory redemption or sinking fund payments
with respect to the Notes. The Co-Issuers may at any time and from time to time acquire Notes by means other than a redemption, whether
by tender offer, open market purchases, negotiated transactions or otherwise.

 

Article
Twelve

 

GUARANTEES

 

Section
1201.        Guarantees.
The Guarantors hereby jointly and severally irrevocably and unconditionally guarantee, on a senior secured basis, the Notes and obligations
of the Co-Issuers hereunder and thereunder, and guarantee to each Holder of a Note authenticated and delivered by the Trustee, and to
the Trustee and Notes Collateral Agents for themselves and on behalf of such Holder, that: (1) the principal of (and premium, if any)
and interest on the Notes will be paid in full when due, whether at Stated Maturity, by acceleration or otherwise (including the amount
that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Law), together with interest
on the overdue principal, if any, interest on any overdue interest, to the extent lawful, expenses, indemnification and all other obligations
of the Co-Issuers to the Holders or the Trustee hereunder or thereunder will be paid in full or performed, all in accordance with the
terms hereof and thereof; and (2) in case of any extension of time of payment or renewal of any Notes or of any such other obligations,
the same shall be paid in full when due or performed in accordance with the terms of the extension or renewal, whether at Stated Maturity,
by acceleration or otherwise, subject, however, in the case of clauses (1) and (2) above, to the limitation set forth in Section 1204
hereof.

 

Each Guarantor hereby agrees that its
obligations hereunder shall be unconditional, irrespective of the validity, regularity or enforceability of the Notes or this
Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder with respect to any provisions hereof
or thereof, any release of any other Guarantor, the recovery of any judgment against the Issuer, any action to enforce the same or
any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a Guarantor.

 

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Each Guarantor hereby waives (to the extent permitted
by law) the benefits of diligence, presentment, demand for payment, filing of claims with a court in the event of insolvency or bankruptcy
of the Issuer, any right to require a proceeding first against the Issuer or any other Person, protest, notice and all demands whatsoever
and covenants that the Guarantee of such Guarantor shall not be discharged as to any Note except by complete performance of the obligations
contained in such Note, this Indenture and such Guarantee. Each Guarantor acknowledges that the Guarantee is a guarantee of payment, performance
and compliance when due and not of collection. Each of the Guarantors hereby agrees that, in the event of a default in payment of principal
(or premium, if any) or interest on such Note, whether at its Stated Maturity, by acceleration, purchase or otherwise, legal proceedings
may be instituted by the Trustee on behalf of, or by, the Holder of such Note, subject to the terms and conditions set forth in this Indenture,
directly against each of the Guarantors to enforce such Guarantor’s Guarantee without first proceeding against the Issuer or any
other Guarantor. Each Guarantor agrees that if, after the occurrence and during the continuance of an Event of Default, the Trustee or
any of the Holders are prevented by applicable law from exercising their respective rights to accelerate the Maturity of the Notes, to
collect interest on the Notes, or to enforce or exercise any other right or remedy with respect to the Notes, such Guarantor shall pay
to the Trustee for the account of the Holder, upon demand therefor, the amount that would otherwise have been due and payable had such
rights and remedies been permitted to be exercised by the Trustee or any of the Holders.

 

If any Holder or the Trustee is required by any
court or otherwise to return to the Issuer or any Guarantor, or any custodian, trustee, liquidator or other similar official acting in
relation to either the Issuer or any Guarantor, any amount paid by any of them to the Trustee or such Holder, the Guarantee of each of
the Guarantors, to the extent theretofore discharged, shall be reinstated in full force and effect. Each Guarantor further agrees that,
as between each Guarantor, on the one hand, and the Holders and the Trustee on the other hand, (1) subject to this Article Twelve, the
Maturity of the obligations guaranteed hereby may be accelerated as provided in Article Five hereof for the purposes of the Guarantee
of such Guarantor notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect of the obligations
guaranteed hereby, and (2) in the event of any acceleration of such obligation as provided in Article Five hereof, such obligations (whether
or not due and payable) shall forthwith become due and payable by each Guarantor for the purpose of the Guarantee of such Guarantor.

 

Each Guarantee shall remain in full force and effect
and continue to be effective should any petition be filed by or against the Issuer for liquidation, reorganization, should the Issuer
become insolvent or make an assignment for the benefit of creditors or should a receiver or trustee be appointed for all or any significant
part of the Issuer’s assets, and shall, to the fullest extent permitted by law, continue to be effective or be reinstated, as the
case may be, if at any time payment and performance of the Notes are, pursuant to applicable law, rescinded or reduced in amount, or must
otherwise be restored or returned by any obligee on the Notes, whether as a “voidable preference,” “fraudulent transfer”
or otherwise, all as though such payment or performance had not been made. In the event that any payment or any part thereof, is rescinded,
reduced, restored or returned, the Notes shall, to the fullest extent permitted by law, be reinstated and deemed reduced only by such
amount paid and not so rescinded, reduced, restored or returned.

 

To the extent concerning Brazilian Guarantors,
each Guarantor hereby expressly waives the legal benefits provided for in articles 333 (sole paragraph), 366, 827, 828, 831, 834, 835,
837, 838 and 839 of Law 10,406/2002 (the “Brazilian Civil Code”) and articles 130 and 794 of Law 13,105/2015 (the “Brazilian
Code of Civil Procedure”), until all amounts due and payable by the Co-Issuers with respect to the Notes shall have been paid
in full.

 

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Section
1202.        Severability.
In case any provision of any Guarantee shall be invalid, illegal or unenforceable, the validity, legality, and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby to the extent permitted by applicable law.

 

Section
1203.        Restricted
Subsidiaries. The Issuer shall cause any Restricted Subsidiary required to guarantee payment of the Notes pursuant to the terms and
provisions of Section 1015 to execute and deliver to the Trustee a supplement to this Indenture substantially in the form of Exhibit
A hereto (or otherwise as agreed by the Issuer and the Trustee) in accordance with the provisions of Article Nine of this Indenture
pursuant to which such Restricted Subsidiary shall guarantee all of the obligations on the Notes, whether for principal, premium, if any,
interest (including interest accruing after the filing of, or which would have accrued but for the filing of, a petition by or against
the Issuer under any Bankruptcy Law, whether or not such interest is allowed as a claim after such filing in any proceeding under such
law) and other amounts due in connection therewith (including any fees, expenses and indemnities), on a senior secured basis. Upon the
execution of any such amendment or supplement, the obligations of the Guarantors and any such Restricted Subsidiary under their respective
Guarantees shall become joint and several and each reference to the “Guarantor” in this Indenture shall, subject to Section
1207, be deemed to refer to all Guarantors, including such Restricted Subsidiary. Such Guarantee shall be released in accordance with
Section 803 and Section 1208.

 

Section
1204.        Limitation
of Guarantors’ Liability. Each Guarantor and by its acceptance hereof each Holder confirms that it is the intention of all such
parties that the guarantee by each such Guarantor pursuant to its Guarantee not constitute a fraudulent transfer or conveyance for purposes
of the Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal, provincial or
state law or the provisions of its local law relating to fraudulent transfer or conveyance. To effectuate the foregoing intention, the
Holders and each such Guarantor hereby irrevocably agree that the obligations of such Guarantor under its Guarantee shall be limited to
an amount not to exceed the maximum amount, after giving effect to all other contingent and fixed liabilities of such Guarantor and after
giving effect to any collections from or payments made by or on behalf of any other Guarantor in respect of the obligations of such other
Guarantor under its Guarantee or pursuant to this Section 1204, that can be guaranteed by the applicable Guarantor without rendering the
Guarantee, as it relates to such Guarantor, voidable under applicable Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform
Fraudulent Transfer Act, the Fraudulent Conveyances Act or any similar applicable federal, provincial or state law or the provisions of
its local law relating to fraudulent transfer or conveyance. Each Guarantor that makes a payment under its Guarantee will be entitled
upon payment in full of all guaranteed Obligations under this Indenture to a contribution from each other Guarantor in an amount equal
to such other Guarantor’s pro rata portion of such payment based on the respective net assets of all of the Guarantors at the time
of such payment determined in accordance with GAAP.

 

Section
1205.        Contribution.
In order to provide for just and equitable contribution among the Guarantors, the Guarantors agree, inter se, that in the
event any payment or distribution is made by any Guarantor (a “Funding Guarantor”) under a Guarantee, such
Funding Guarantor shall be entitled to a contribution from all other Guarantors in a pro rata amount based on the Adjusted Net
Assets (as defined below) of each Guarantor (including the Funding Guarantor) for all payments, damages and expenses incurred by
that Funding Guarantor in discharging the Issuer’s obligations with respect to the Notes or any other Guarantor’s
obligations with respect to the Guarantee of such Guarantor. “Adjusted Net Assets” of such Guarantor at any date
shall mean the lesser of (1) the amount by which the fair value of the property of such Guarantor exceeds the total amount of
liabilities, including contingent liabilities (after giving effect to all other fixed and contingent liabilities incurred or assumed
on such date), but excluding liabilities under the Guarantee of such Guarantor at such date and (2) the amount by which the present
fair salable value of the assets of such Guarantor at such date exceeds the amount that will be required to pay the probable
liability of such Guarantor on its debts (after giving effect to all other fixed and contingent liabilities incurred or assumed on
such date), excluding debt in respect of the Guarantee of such Guarantor, as they become absolute and matured.

 

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Section
1206.        Subrogation.
Each Guarantor shall be subrogated to all rights of Holders against the Co-Issuers in respect of any amounts paid by any Guarantor pursuant
to the provisions of Section 1201; provided, however, that, each Guarantor waives and will not in any manner whatsoever
claim or take the benefit or advantage of, any rights of reimbursement, indemnity or subrogation or any other rights against the Issuer
or any other Restricted Subsidiary as a result of any payment by such Restricted Subsidiary under its Guarantee until all amounts then
due and payable by the Co-Issuers with respect to the Notes shall have been paid in full.

 

Section
1207.        Reinstatement.
Each Guarantor hereby agrees (and each Person who becomes a Guarantor shall agree) that the Guarantee provided for in Section 1201 shall
continue to be effective or be reinstated, as the case may be, if at any time, payment, or any part thereof, of any obligations or interest
thereon is rescinded or must otherwise be restored by a Holder to the Issuer upon the bankruptcy or insolvency of the Issuer or any Guarantor.

 

Section
1208.        Release
of a Guarantor. Any Guarantee by a Restricted Subsidiary of the Notes shall be automatically and unconditionally released and discharged
upon:

 

(1)               
(A) any sale, exchange, transfer or other disposition (by merger, amalgamation or otherwise) of the Issuer’s and/or Restricted
Subsidiary’s Capital Stock in such Guarantor following which the applicable Guarantor is no longer a Restricted Subsidiary or all
or substantially all the assets of such Guarantor (other than any sale, exchange or transfer to the Issuer, any Guarantor and/or any Restricted
Subsidiary), which sale, exchange or transfer is made in compliance with the applicable provisions of this Indenture;

 

(B)             
the release or discharge of the guarantee by such Guarantor of the Senior Credit Facilities or the other guarantee which resulted
in the creation of such Guarantee, except a discharge or release by or as a result of payment under such guarantee;

 

(C)             
(i) if the Issuer properly designates any Restricted Subsidiary that is a Guarantor as an Unrestricted Subsidiary upon effectiveness
of such designation or (ii) when any Restricted Subsidiary that is a Guarantor first ceases to be a Restricted Subsidiary;

 

(D)             
exercise of the option of Legal Defeasance of the Notes under Section 1302 hereof, or the option of Covenant Defeasance of the
Notes under Section 1303 hereof, or if the Co-Issuers’ obligations under this Indenture are discharged in accordance with Section
401; or

 

(E)              
the merger, amalgamation or consolidation of any Guarantor with and into the Issuer or another Guarantor that is the surviving,
continuing or resulting Person in such merger, amalgamation or consolidation, or upon the liquidation of a Guarantor following the transfer
of all of its assets to the Issuer or another Guarantor; and

 

(2)               
the Issuer’s and such Guarantor’s delivery to the Trustee of an Officer’s Certificate and Opinion of Counsel,
each stating that all conditions precedent herein provided for relating to the release and discharge of the Guarantee have been complied
with.

 

Section
1209.        Benefits
Acknowledged. Each Guarantor acknowledges that it will receive direct and indirect benefits from the financing arrangements contemplated
by this Indenture and from its guarantee and waivers pursuant to its Guarantees under this Article Twelve.

 

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Section
1210.        Matters
of Brazilian Law. As it relates to any Person party to this Indenture that is incorporated or formed under Brazilian law, the transactions
contemplated hereby have been proposed by the Trustee for the purposes of paragraph 2 of Article 9 of the Brazilian Decree-Law No. 4,657
dated September 4, 1942 and for no other purpose or reason whatsoever.

 

Article
Thirteen

 

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

 

Section
1301.        Issuer’s
Option To Effect Legal Defeasance or Covenant Defeasance. The Issuer may, at its option, at any time, with respect to the Notes, elect
to have either Section 1302 or Section 1303 be applied to all Outstanding Notes upon compliance with the conditions set forth below in
this Article Thirteen.

 

Section
1302.        Legal
Defeasance and Discharge. Upon the Issuer’s exercise under Section 1301 of the option applicable to this Section 1302, each
of the Co-Issuers and the Guarantors shall be deemed to have been discharged from their respective obligations with respect to all Outstanding
Notes and the Guarantees, and the Collateral will be released from the Lien securing the Notes outstanding under this Indenture, on the
date the conditions set forth in Section 1304 are satisfied (hereinafter, “Legal Defeasance”). For this purpose, such
Legal Defeasance means that each of the Co-Issuers and the Guarantors shall be deemed to have paid and discharged the entire indebtedness
represented by the Outstanding Notes, which shall thereafter be deemed to be “Outstanding” only for the purposes of Section
1305 and the other Sections of this Indenture referred to in (1) and (2) below, and the Guarantees and to have satisfied all its other
obligations under such Notes, the Guarantees, this Indenture and the Security Documents insofar as such Notes are concerned (and the Trustee,
at the expense of the Issuer, shall execute proper instruments acknowledging the same), except for the following which shall survive until
otherwise terminated or discharged hereunder: (1) the rights of Holders of Outstanding Notes to receive payments in respect of the principal
of, premium, if any, and interest on such Notes when such payments are due, solely out of the trust described in Section 1304 (including,
but not limited to the Issuer’s obligation to pay an Applicable Premium Deficit, if applicable), (2) the Issuer’s and/or the
Co-Issuer’s obligations with respect to such Notes under Sections 303, 304, 305, 1002 and 1003, (3) the rights, powers, trusts,
duties and immunities of the Trustee hereunder (including Section 607), and the obligations of each of the Co-Issuers and the Guarantors
in connection therewith and (4) this Article Thirteen. Subject to compliance with this Article Thirteen, the Issuer may exercise its option
under this Section 1302 notwithstanding the prior exercise of its option under Section 1303 with respect to the Notes.

 

Section
1303.        Covenant
Defeasance. Upon the Issuer’s exercise under Section 1301 of the option applicable to this Section 1303, each of the
Co-Issuers and the Guarantors shall be released from their respective obligations under any covenant contained in Sections 801, 802,
1005, 1007 and 1009 through and including 1018 with respect to the Outstanding Notes, and the Collateral will be released from the
Lien securing the Notes outstanding under this Indenture, on and after the date the conditions set forth below are satisfied
(hereinafter, “Covenant Defeasance”), and the Notes shall thereafter be deemed not to be
 “Outstanding” for the purposes of any direction, waiver, consent or declaration or Act of Holders (and the consequences
of any thereof) in connection with such covenants, but shall continue to be deemed “Outstanding” for all other purposes
hereunder. For this purpose, such Covenant Defeasance means that, with respect to the Outstanding Notes, the Issuer or any
Guarantor, as applicable, may omit to comply with and shall have no liability in respect of any term, condition or limitation set
forth in any such covenant, whether directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by
reason of any reference in any such covenant to any other provision herein or in any other document and such omission to comply
shall not constitute a Default or an Event of Default under Sections 501(3), 501(4), 501(5), 501(6), 501(8) and 501(9) and, with
respect to only the Issuer or any Significant Subsidiary and not the Issuer, Section 501(7), but, except as specified above, the
remainder of this Indenture and such Notes shall be unaffected thereby.

 

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Section
1304.        Conditions
to Legal Defeasance or Covenant Defeasance. The following shall be the conditions to application of either Section 1302 or Section
1303 to the Outstanding Notes:

 

(1)               
the Issuer shall irrevocably have deposited or caused to be deposited with the Trustee (or another trustee satisfying the requirements
of Section 608 who shall agree to comply with the provisions of this Article Thirteen applicable to it) as trust funds in trust for the
purpose of making the following payments, specifically pledged as security for, and dedicated solely to the benefit of the Holders of
such Notes: (A) cash in U.S. dollars, or (B) non-callable Government Securities, or (C) a combination thereof (without consideration of
any reinvestment of interest), in such amounts as will be sufficient, in the opinion of a nationally recognized firm of independent public
accountants (solely with respect to a deposit of assets other than cash in U.S. dollars), to pay and discharge, and which shall be applied
by the Trustee (or other qualifying trustee) to pay and discharge, the principal of (and premium, if any) and interest on the Outstanding
Notes on the Stated Maturity (or Redemption Date, if applicable) of such principal (and premium, if any) or, interest due on the Notes;
provided that the Trustee shall have been irrevocably instructed to apply such cash or the proceeds of such Government Securities
to said payments with respect to the Notes. Before such a deposit, the Company may give to the Trustee, in accordance with Section 1103
hereof, a notice of its election to redeem all of the Outstanding Notes at a future date in accordance with Article Eleven hereof, which
notice shall be irrevocable. Such irrevocable redemption notice, if given, shall be given effect in applying the foregoing; provided
that upon any redemption that requires the payment of the Applicable Premium, the amount deposited shall be sufficient for purposes
of this Indenture to the extent that an amount is deposited with the Trustee equal to the Applicable Premium calculated as of the date
of the notice of redemption, with any deficit as of the Redemption Date (any such amount, the “Applicable Premium Deficit”)
only required to be deposited with the Trustee on or prior to the Redemption Date. Any Applicable Premium Deficit shall be set forth in
an Officer’s Certificate delivered to the Trustee (upon which the Trustee may conclusively rely) simultaneously with the deposit
of such Applicable Premium Deficit that confirms that such Applicable Premium Deficit shall be applied toward such redemption;

 

(2)               
in the case of Legal Defeasance, the Issuer shall have delivered to the Trustee an Opinion of Counsel in the United States confirming
that, subject to customary assumptions and exclusions,

 

(A)             
the Issuer has received from, or there has been published by, the United States Internal Revenue Service a ruling, or

 

(B)             
since the issuance of the Notes, there has been a change in the applicable U.S. Federal income tax law,

 

in either case to the effect that, and based thereon such
Opinion of Counsel in the United States shall confirm that, subject to customary assumptions and exclusions, the beneficial owners of
the Outstanding Notes will not recognize income, gain or loss for U.S. Federal income tax purposes as a result of such Legal Defeasance
and will be subject to U.S. Federal income tax on the same amounts, in the same manner and at the same times as would have been the case
if such Legal Defeasance had not occurred;

 

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(3)               
 (x) in the case of Covenant Defeasance, the Issuer shall have delivered to the Trustee an Opinion of Counsel in the United States
confirming that, subject to customary assumptions and exclusions, the beneficial owners of the Outstanding Notes will not recognize income,
gain or loss for U.S. Federal income tax purposes as a result of such Covenant Defeasance and will be subject to such tax on the same
amounts, in the same manner and at the same times as would have been the case if such Covenant Defeasance had not occurred; and (y) in
the case of Covenant Defeasance or Legal Defeasance, the Issuer shall have delivered to the Trustee an Opinion of Counsel in Canada confirming
that the beneficial owners will not recognize income, gain or loss for Canadian federal tax purposes as a result of such Covenant Defeasance
or Legal Defeasance and will be subject to Canadian federal tax on the same amounts and in the same manner and at the same times as would
have been the case if such Covenant Defeasance or Legal Defeasance had not occurred;

 

(4)               
no Default or Event of Default (other than that resulting from borrowing funds to be applied to make such deposit) shall have occurred
and be continuing on the date of such deposit;

 

(5)               
such Legal Defeasance or Covenant Defeasance shall not result in a breach or violation of, or constitute a default under the Senior
Credit Facilities or any other material agreement or instrument (other than this Indenture) to which, the Issuer or any Guarantor is a
party or by which the Issuer or any Guarantor is bound;

 

(6)               
the Issuer shall have delivered to the Trustee an Officer’s Certificate stating that the deposit was not made by the Issuer
with the intent of preferring the Holders over any of its other creditors defeating, hindering, delaying or defrauding any creditors of
the Issuer or any Guarantor or others; and

 

(7)               
the Issuer shall have delivered to the Trustee an Officer’s Certificate and an Opinion of Counsel in the United States (which
Opinion of Counsel may be subject to customary assumptions and exclusions) each stating that all conditions precedent provided for or
relating to the Legal Defeasance or the Covenant Defeasance, as the case may be, have been complied with.

 

Section
1305.        Deposited
Money and Government Securities To Be Held in Trust; Other Miscellaneous Provisions. Subject to the provisions of the last paragraph
of Section 1003, all cash and Government Securities (including the proceeds thereof) deposited with the Trustee (or other qualifying trustee,
collectively for purposes of this Section 1305, the “Qualifying Trustee”) pursuant to Section 1304 in respect of the
Outstanding Notes shall be held in trust and applied by the Qualifying Trustee, in accordance with the provisions of such Notes and this
Indenture, to the payment, either directly or through any Paying Agent (including the Issuer acting as its own Paying Agent) as the Qualifying
Trustee may determine, to the Holders of such Notes of all sums due and to become due thereon in respect of principal (and premium, if
any) and interest, but such money or Government Securities need not be segregated from other funds except to the extent required by law.

 

The Issuer shall pay and indemnify the Qualifying
Trustee against any tax, fee or other charge imposed on or assessed against the Government Securities deposited pursuant to Section 1304
or the principal and interest received in respect thereof other than any such tax, fee or other charge which by law is for the account
of the Holders of the Outstanding Notes.

 

Anything in this Article Thirteen to the
contrary notwithstanding, the Qualifying Trustee shall deliver or pay to the Issuer from time to time upon Company Request any money
or Government Securities held by it as provided in Section 1304 which are in excess of the amount thereof which would then be
required to be deposited to effect an equivalent Legal Defeasance or Covenant Defeasance, as applicable, in accordance with this
Article Thirteen.

 

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Section
1306.        Reinstatement.
If the Trustee or any Paying Agent is unable to apply any money or Government Securities in accordance with Section 1305 by reason of
any order or judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting such application, then the
Issuer’s and each Guarantor’s obligations under this Indenture and the Outstanding Notes shall be revived and reinstated as
though no deposit had occurred pursuant to Section 1302 or 1303, as the case may be, until such time as the Trustee or Paying Agent is
permitted to apply all such money or Government Securities in accordance with Section 1305; provided, however, that if the
Issuer makes any payment of principal of (or premium, if any) or interest on any Note following the reinstatement of its obligations,
the Issuer shall be subrogated to the rights of the Holders of such Notes to receive such payment from the money or Government Securities
held by the Trustee or Paying Agent.

 

Article
Fourteen

 

COLLATERAL

 

Section
1401.        Security
Documents

 

(a)               
The due and punctual payment of the principal of, premium and interest on the Notes when and as the same shall be due and payable,
whether on an interest payment date, at maturity, by acceleration, repurchase, redemption or otherwise, and interest on the overdue principal
of, premium and interest on the Notes and performance of all other First Lien Notes Obligations of the Issuer, the Co-Issuer and the Guarantors
to the Secured Parties under this Indenture, the Notes, the Guarantees and the Security Documents, according to the terms hereunder or
thereunder, shall be secured as provided in the Security Documents, which define the terms of the Liens that secure the First Lien Notes
Obligations, subject to the terms of the First Lien Intercreditor Agreement. The Trustee, the Company and the Co-Issuer hereby acknowledge
and agree that the Notes Collateral Agents hold the Collateral in trust for the benefit of the Secured Parties and pursuant to the terms
of this Indenture and the Security Documents. Each Holder, by accepting a Note, and each beneficial owner of an interest in a Note, consents
and agrees to the terms of the Security Documents (including the provisions providing for the possession, use, release and foreclosure
of Collateral) and the First Lien Intercreditor Agreement as the same may be in effect or may be amended from time to time in accordance
with their terms and this Indenture and the First Lien Intercreditor Agreement, and authorizes and directs each Notes Collateral Agent
to enter into the Security Documents and to perform its obligations and exercise its rights thereunder in accordance therewith. Subject
to the Applicable Collateral Limitations, the Company shall deliver to each Notes Collateral Agent copies of all documents required to
be filed pursuant to the Security Documents to which such Notes Collateral Agent is a party, and will do or cause to be done all such
acts and things as may be reasonably required by the next sentence of this Section 1401, to provide to the Notes Collateral Agents the
security interest in the Collateral contemplated hereby and/or by the Security Documents or any part thereof, as from time to time constituted,
so as to render the same available for the security and benefit of this Indenture and of the Notes secured hereby, according to the intent
and purposes herein expressed. Subject to the Applicable Collateral Limitations, the Company shall, and shall cause the Subsidiaries of
the Company to, take any and all actions and make all filings (including, without limitation, the filing of UCC or PPSA financing statements,
continuation statements and amendments thereto (or analogous procedures under the applicable laws in the relevant jurisdiction)) required
to cause the Security Documents to create and maintain, as security for the First Lien Notes Obligations of the Co-Issuers and the Guarantors
to the Secured Parties, a valid and enforceable perfected Lien and security interest in and on all of the Collateral (subject to the terms
of the Security Documents), in favor of the Notes Collateral Agents for the benefit of the Secured Parties subject to no Liens other than
Permitted Liens.

 

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(b)               
 Notwithstanding any provision hereof to the contrary, the provisions of this Article Fourteen are qualified in their entirety
by the Applicable Collateral Limitations and neither the Company, the Co-Issuer nor any Guarantor shall be required pursuant to this Indenture
or any Security Document to take any action limited by the Applicable Collateral Limitations.

 

Section
1402.        Release
of Collateral.

 

(a)               
The Liens securing the Notes will be automatically released, all without delivery of any instrument or performance of any act by
any party, at any time and from time to time as provided by this Section 1402. Upon such release, subject to the terms of the Security
Documents, all rights in the released Collateral securing First Lien Notes Obligations shall revert to the Co-Issuers and the Guarantors,
as applicable. The Collateral shall be automatically released from the Lien and security interest created by the Security Documents and
the Trustee (subject to its receipt of an Officer’s Certificate and Opinion of Counsel as provided below) shall execute documents
evidencing such release, and instruct the applicable Notes Collateral Agent in writing to execute, as applicable, the same at the Company’s
sole cost and expense, under one or more of the following circumstances:

 

(i)              
in whole upon:

 

(A)             
payment in full of the principal of, together with accrued and unpaid interest and premium, if any, on, the Notes issued under
this Indenture and all other First Lien Notes Obligations (for the avoidance of doubt, other than contingent Obligations in respect of
which no claims have been made) that are due and payable at or prior to the time such principal, together with accrued and unpaid interest
and premium, if any, are paid;

 

(B)             
satisfaction and discharge of this Indenture with respect to the Notes as set forth under Section 401; or

 

(C)             
a Legal Defeasance or Covenant Defeasance of this Indenture with respect to the Notes as set forth under Sections 1302 or 1303,
as applicable;

 

(i)              
in whole or in part, with the consent of Holders of the Notes in accordance with Article Nine of this Indenture, including consents
obtained in connection with a tender offer or exchange offer for, or purchase of, Notes;

 

(ii)              
in part, as to any asset:

 

(A)             
constituting Collateral that is sold, transferred or otherwise disposed of by any of the Co-Issuers or the Guarantors to any Person
that is not the Issuer, the Co-Issuer or a Guarantor in a transaction permitted by this Indenture (to the extent of the interest sold,
transferred or disposed of), or

 

(B)             
constituting Shared Collateral, in accordance with the First Lien Intercreditor Agreement,

 

(C)             
that is held by a Guarantor that ceases to be a Guarantor,

 

(D)              that
becomes an Excluded Asset, including so long as the Senior Credit Facilities are outstanding, any asset that is not pledged to
secure obligations arising in respect of the Senior Credit Facilities (whether pursuant to the terms of the Senior Credit Facilities
(and any related documents) or as a result of any determination made thereunder, or by amendment, waiver or otherwise), or

 

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(E)              
that is otherwise released in accordance with, and as expressly provided for by the terms of, this Indenture and the Security Documents;

 

provided that, in the case of clause (iii)(B),
the proceeds of such Shared Collateral shall be applied in accordance with the First Lien Intercreditor Agreement.

 

(b)               
With respect to any release of Collateral, upon receipt of an Officer’s Certificate and an Opinion of Counsel stating that
all conditions precedent under this Indenture and the Security Documents, as applicable, to such release have been met and that it is
permitted for the Trustee and/or a Notes Collateral Agent to execute and deliver the documents requested by the Company in connection
with such release, and any necessary or proper instruments of termination, satisfaction, discharge or release prepared by the Company,
the Trustee shall, or shall cause the applicable Notes Collateral Agent to, execute, deliver or acknowledge (at the Company’ expense)
such instruments or releases (whether electronically or in writing) to evidence, and shall do or cause to be done all other acts reasonably
necessary to effect or evidence, as applicable, in each case as soon as reasonably practicable, the release and discharge of any Collateral
permitted to be released pursuant to this Indenture or the Security Documents. Neither the Trustee nor any Notes Collateral Agent shall
be liable for any such release undertaken in reliance upon any such Officer’s Certificate or Opinion of Counsel, and notwithstanding
any term hereof or in any Security Document to the contrary, but without limiting any automatic release provided hereunder or under any
Security Document, the Trustee and each Notes Collateral Agent shall not be under any obligation to release any such Lien and security
interest, or execute and deliver any such instrument of release, satisfaction, discharge or termination, unless and until it receives
such Officer’s Certificate and Opinion of Counsel.

 

Section
1403.        Suits
to Protect the Collateral. Subject to the provisions of Article Six hereof and the Security Documents, the Trustee, at the direction
of a majority of the Holders, on behalf of the Holders, following the occurrence of an Event of Default that is continuing, may or may
instruct the applicable Notes Collateral Agent in writing to take all actions it reasonably determines are necessary in order to:

 

(i)              
enforce any of the terms of the Security Documents; and

 

(ii)              collect and receive any and all amounts payable in respect of the Obligations hereunder.

 

Subject to the provisions of the Security Documents,
the Trustee and each Notes Collateral Agent shall have power to institute and to maintain such suits and proceedings as the Trustee may
deem expedient to prevent any impairment of the Collateral by any acts which may be unlawful or in violation of any of the Security Documents
or this Indenture, and such suits and proceedings to preserve or protect its interests and the interests of the Holders in the Collateral.
Nothing in this Section 1403 shall be considered to impose any such duty or obligation to act on the part of the Trustee or any Notes
Collateral Agent.

 

Section
1404.        Authorization
of Receipt of Funds by the Trustee Under the Security Documents. Subject to the provisions of the First Lien Intercreditor Agreement,
the Trustee is authorized to receive any funds for the benefit of the Holders distributed under the Security Documents, and to make further
distributions of such funds to the Holders according to the provisions of this Indenture.

 

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Section
1405.        Purchaser
Protected. In no event shall any purchaser or other transferee in good faith of any property or asset purported to be released hereunder
be bound to ascertain the authority of a Notes Collateral Agent or the Trustee to execute the release or to inquire as to the satisfaction
of any conditions required by the provisions hereof for the exercise of such authority or to see to the application of any consideration
given by such purchaser or other transferee; nor shall any purchaser or other transferee of any property, asset or rights permitted by
this Article Fourteen to be sold be under any obligation to ascertain or inquire into the authority of the Company, the Co-Issuer or
the applicable Guarantor to make any such sale or other transfer.

 

Section
1406.        Powers
Exercisable by Receiver or Trustee. In case the Collateral shall be in the possession of a receiver or trustee, lawfully appointed,
the powers conferred in this Article Fourteen upon the Company, the Co-Issuer or a Guarantor with respect to the release, sale or other
disposition of such property or asset may be exercised by such receiver or trustee, and an instrument signed by such receiver or trustee
shall be deemed the equivalent of any similar instrument of the Company, the Co-Issuer or a Guarantor or of any Officer or Officers thereof
required by the provisions of this Article Fourteen; and if the Trustee shall be in the possession of the Collateral under any provision
of this Indenture, then such powers may be exercised by the Trustee.

 

Section
1407.        [Reserved].

 

Section
1408.        Notes
Collateral Agents.

 

(a)               
The Issuer and each of the Holders by acceptance of the Notes, and each beneficial owner of an interest in a Note, hereby designate
and appoint each Notes Collateral Agent as its agent under this Indenture, the Security Documents and each of the Holders by acceptance
of the Notes hereby irrevocably authorizes each Notes Collateral Agent to take such action on its behalf under the provisions of this
Indenture, the Security Documents and to exercise such powers and perform such duties as are expressly delegated to the Notes Collateral
Agents by the terms of this Indenture and the Security Documents, and consents and agrees to the terms of each Security Document, as the
same may be in effect or may be amended, restated, supplemented or otherwise modified from time to time in accordance with their respective
terms or the terms of this Indenture. Each Notes Collateral Agent agrees to act as such on the express conditions contained in this Section
1408. The provisions of this Section 1408 are solely for the benefit of the Notes Collateral Agents and none of the Holders nor any of
the Grantors shall have any rights as a third party beneficiary of any of the provisions contained herein. Each Holder agrees that any
action taken by any Notes Collateral Agent in accordance with the provision of this Indenture and/or the applicable Security Documents,
and the exercise by any Notes Collateral Agent of any rights or remedies set forth herein and therein shall be authorized and binding
upon all Holders. Notwithstanding any provision to the contrary contained elsewhere in this Indenture, the Security Documents, the duties
of the Notes Collateral Agents shall be ministerial and administrative in nature, and no Notes Collateral Agent shall have any duties
or responsibilities, except those expressly set forth herein and in the other Notes Documents to which the applicable Notes Collateral
Agent is a party, nor shall any Notes Collateral Agent have or be deemed to have any trust or other fiduciary relationship with the Trustee,
any Holder or any Grantor, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into
this Indenture, the Security Documents or otherwise exist against any Notes Collateral Agent. Without limiting the generality of the foregoing
sentence, the use of the term “agent” in this Indenture with reference to the Notes Collateral Agents is not intended to connote
any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law. Instead, such term is used
merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting
parties.

 

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(b)               
 Each Notes Collateral Agent may perform any of its duties under this Indenture or the Security Documents by or through receivers,
agents, employees, attorneys-in-fact or with respect to any specified Person, such Person’s Affiliates, and the respective officers,
directors, employees, agents, advisors and attorneys-in-fact of such Person and its Affiliates (a “Related Person”)
and shall be entitled to advice of counsel concerning all matters pertaining to such duties, and shall be entitled to act upon, and shall
be fully protected in taking action in reliance upon any advice or opinion given by legal counsel. No Notes Collateral Agent shall be
responsible for the negligence or willful misconduct of any receiver, agent, employee, attorney-in-fact or Related Person that it selects
as long as such selection was made in good faith.

 

(c)               
No Notes Collateral Agent nor any of their respective Related Persons shall (i) be liable for any action taken or omitted to be
taken by any of them under or in connection with this Indenture or the transactions contemplated hereby (except for its own bad faith,
gross negligence or willful misconduct) or under or in connection with any Security Document or the transactions contemplated thereby
(except for its own bad faith, gross negligence or willful misconduct), or (ii) be responsible in any manner to any of the Trustee or
any Holder for any recital, statement, representation, warranty, covenant or agreement made by the Company, the Co-Issuer or any other
Grantor or Affiliate of any Grantor, or any Officer or Related Person thereof, contained in this Indenture, or any other Notes Documents,
or in any certificate, report, statement or other document referred to or provided for in, or received by the applicable Notes Collateral
Agent under or in connection with, this Indenture or the Security Documents, or the validity, effectiveness, genuineness, enforceability
or sufficiency of this Indenture or the Security Documents, or for any failure of any Grantor or any other party to this Indenture or
the Security Documents to perform its obligations hereunder or thereunder. No Notes Collateral Agent nor any of their respective Related
Persons shall be under any obligation to the Trustee or any Holder to ascertain or to inquire as to the observance or performance of any
of the agreements contained in, or conditions of, this Indenture or the Security Documents or to inspect the properties, books, or records
of any Grantor or any Grantor’s Affiliates.

 

(d)               
Each Notes Collateral Agent shall be entitled (in the absence of bad faith) to rely, and shall be fully protected in relying, upon
any writing, resolution, notice, consent, certificate, affidavit, letter, telegram, facsimile, certification, telephone message, statement,
or other communication, document or conversation (including those by telephone or e-mail) believed by it to be genuine and correct and
to have been signed, sent, or made by the proper Person or Persons, and upon advice and statements of legal counsel (including, without
limitation, counsel to the Company or any other Grantor), independent accountants and/or other experts and advisors selected by such Notes
Collateral Agent. No Notes Collateral Agent shall be bound to make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request, direction, consent, order, bond, debenture, or other paper or document.
Unless otherwise expressly required hereunder or pursuant to any Security Document, each Notes Collateral Agent shall be fully justified
in failing or refusing to take any action under this Indenture or the Security Documents, and shall incur no liability by reason of such
failure or refusal to take action, unless it shall first receive such written advice or concurrence of the Trustee or the Holders of a
majority in aggregate principal amount of the Notes as it determines and, if it so requests, it shall first be indemnified to its satisfaction
by the Holders against any and all liability, fees and expense which may be incurred by it by reason of taking or continuing to take any
such action. Each Notes Collateral Agent shall in all cases be fully protected from claims by any Holders in acting, or in refraining
from acting, under this Indenture or the Security Documents in accordance with a request, direction, instruction or consent of the Trustee
or the Holders of a majority in aggregate principal amount of the then outstanding Notes and such request and any action taken or failure
to act pursuant thereto shall be binding upon all of the Holders.

 

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(e)               
 No Notes Collateral Agent shall be deemed to have knowledge or notice of the occurrence of any Default or Event of Default, unless
a Responsible Officer of such Notes Collateral Agent shall have received written notice from the Trustee or the Company referring to this
Indenture, describing such Default or Event of Default and stating that such notice is a “notice of default.” Such Notes Collateral
Agent shall take such action with respect to such Default or Event of Default as may be requested by the Trustee in accordance with Article
Five or the Holders of a majority in aggregate principal amount of the Notes (subject to this Section 1408).

 

(f)                
Each Notes Collateral Agent may resign at any time by notice to the Trustee and the Company, such resignation to be effective upon
the acceptance of a successor agent to its appointment as Notes Collateral Agent. If any Notes Collateral Agent resigns under this Indenture,
the Company shall appoint a successor collateral agent. If no successor collateral agent is appointed prior to the intended effective
date of the resignation of such Notes Collateral Agent (as stated in the notice of resignation), such Notes Collateral Agent or 25% of
Holders in aggregate principal amount of Notes may appoint, after consulting with the Trustee, subject to the consent of the Company (which
shall not be unreasonably withheld and which shall not be required during a continuing Event of Default), a successor collateral agent.
If no successor collateral agent is appointed and consented to by the Company pursuant to the preceding sentence within thirty (30) days
after the intended effective date of resignation (as stated in the notice of resignation) such Notes Collateral Agent shall be entitled
to petition a court of competent jurisdiction to appoint a successor at the sole expense of the Issuer. Upon the acceptance of its appointment
as successor collateral agent hereunder, such successor collateral agent shall succeed to all the rights, powers and duties of the retiring
Notes Collateral Agent, and the term “Notes Collateral Agents” shall mean such successor collateral agent, and the retiring
Notes Collateral Agent’s appointment, powers and duties as a Notes Collateral Agent shall be terminated. After the retiring Notes
Collateral Agent’s resignation hereunder, such Notes Collateral Agent shall be fully and immediately discharged of all responsibilities
under this Indenture and the Security Documents to which it is party, provided that the provisions of this Section 1408 (and Section
607) shall continue to inure to its benefit and the retiring Notes Collateral Agent shall not by reason of such resignation be deemed
to be released from liability as to any actions taken or omitted to be taken by it while it was a Notes Collateral Agent under this Indenture.

 

(g)               
The Trustee and each Notes Collateral Agent shall be authorized to appoint co-Notes Collateral Agents or sub-agents or other additional
Notes Collateral Agents as necessary in its sole discretion or in accordance with applicable law and any such appointment shall be reflected
in documentation (which the Issuer, the Trustee and each Notes Collateral Agent are hereby authorized to enter into). Except as otherwise
explicitly provided herein or in the Security Documents, no Notes Collateral Agent nor any of its respective officers, directors, employees
or agents or other Related Persons shall be liable for failure to demand, collect or realize upon any of the Collateral or for any delay
in doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of any other Person or to
take any other action whatsoever with regard to the Collateral or any part thereof. Each Notes Collateral Agent shall be accountable only
for amounts that it actually receives as a result of the exercise of such powers, and neither any Notes Collateral Agent nor any of their
respective officers, directors, employees or agents shall be responsible for any act or failure to act hereunder, except for its own gross
negligence or willful misconduct.

 

(h)                Each
Notes Collateral Agent is authorized and directed to (i) enter into the Security Documents to which it is party, whether executed on
or after the Issue Date, (ii) enter into the First Lien Intercreditor Agreement, (iii) make the representations of the Holders set
forth in the Security Documents, (iv) bind the Holders on the terms as set forth in the Security Documents and (v) perform and
observe its obligations under the Security Documents. Any execution of a Security Document by any Notes Collateral Agent shall be at
the direction and expense of the Issuer, upon delivery to the applicable Notes Collateral Agent of an Officer’s Certificate
and an Opinion of Counsel stating that the execution is authorized or permitted pursuant to the Indenture and applicable Security
Documents.

 

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(i)                
If applicable, each Notes Collateral Agent is each Holder’s agent for the purpose of perfecting the Holders’ security
interest in assets which, in accordance with Article 9 of the UCC can be perfected only by possession. Should the Trustee obtain possession
of any such Collateral, upon request from the Company, the Trustee shall notify the Notes Collateral Agents thereof and promptly shall
deliver such Collateral to the applicable Notes Collateral Agent.

 

(j)                
No Notes Collateral Agent shall have any obligation whatsoever to the Trustee or any of the Holders to assure that the Collateral
exists or is owned by the Issuer or any Grantor or is cared for, protected, or insured or has been encumbered, or that such Notes Collateral
Agent’s Liens have been properly or sufficiently or lawfully created, perfected, protected, maintained or enforced or are entitled
to any particular priority, or to determine whether all or such Grantor’s property constituting collateral intended to be subject
to the Lien and security interest of the Security Documents has been properly and completely listed or delivered, as the case may be,
or the genuineness, validity, marketability or sufficiency thereof or title thereto, or to exercise at all or in any particular manner
or under any duty of care, disclosure, or fidelity, or to continue exercising, any of the rights, authorities, and powers granted or available
to the Notes Collateral Agents pursuant to this Indenture or any Security Document other than pursuant to the instructions of the Trustee
or the Holders of a majority in aggregate principal amount of the Notes, it being understood and agreed that in respect of the Collateral,
or any act, omission, or event related thereto, no Notes Collateral Agent shall have any other duty or liability whatsoever to the Trustee
or any Holder or any other Notes Collateral Agent as to any of the foregoing.

 

(k)               
If the Company, the Co-Issuer or any Guarantor (i) incurs any obligations in respect of First Priority Obligations at any time
when no First Lien Intercreditor Agreement is in effect or at any time when Indebtedness constituting First Priority Obligations entitled
to the benefit of an existing First Lien Intercreditor Agreement is concurrently retired, or incurs any other obligations permitted hereunder
and required to be subject to an intercreditor agreement, and (ii) delivers to the Notes Collateral Agents an Officer’s Certificate
so stating and requesting the Notes Collateral Agents to enter into an intercreditor agreement (on substantially the same terms as the
First Lien Intercreditor Agreement) in favor of a designated agent or representative for the holders of the First Priority Obligations
so incurred, or on reasonable and customary terms with respect to any other such intercreditor agreement, the Notes Collateral Agents
and the Trustee (as applicable) shall (and are hereby authorized and directed to) enter into such intercreditor agreement (at the sole
expense and cost of the Company, including fees (including legal fees) and expenses of the Notes Collateral Agents), bind the Holders
on the terms set forth therein and perform and observe its obligations thereunder.

 

(l)                
No provision of this Indenture or any Security Document shall require any Notes Collateral Agent to expend or risk its own funds
or otherwise incur any financial liability in the performance of any of its duties hereunder or thereunder or in the exercise of any
of its rights or powers unless it shall have first received reasonable indemnity against potential costs and liabilities incurred by
such Notes Collateral Agent relating thereto, if it shall have reasonable grounds for believing that repayment of such funds or reasonable
indemnity against such risk of liability is not reasonably assured to it. Each Notes Collateral Agent (i) shall not be liable for any
action taken or omitted to be taken by it in connection with this Indenture, the First Lien Intercreditor Agreement and the Security
Documents or instrument referred to herein or therein, except to the extent that any of the foregoing are found by a final, non-appealable
judgment of a court of competent jurisdiction to have resulted from its own bad faith, gross negligence or willful misconduct, (ii) shall
not be liable for interest on any money received by it except as such Notes Collateral Agent may agree in writing with the Company (and
money held in trust by such Notes Collateral Agent need (a) shall be held uninvested without liability for interest, unless otherwise
agreed in writing, (b) shall be held in a non-interest bearing trust account and (c) not be segregated from other funds except to the
extent required by law) and (iii) may consult with counsel of its selection and the advice or opinion of such counsel as to matters of
law shall be full and complete authorization and protection from liability in respect of any action taken, omitted or suffered by it
in good faith and in accordance with the advice or opinion of such counsel. The grant of permissive rights or powers to each Notes Collateral
Agent shall not be construed to impose duties to act.

 

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(m)             
No Notes Collateral Agent shall be responsible or liable for any failure or delay in the performance of its obligations under this
Indenture arising out of or caused, directly or indirectly, by circumstances beyond its control, including, without limitation, acts of
God; earthquakes; fire; flood; terrorism; wars and other military disturbances; sabotage; epidemics; riots; interruptions; loss or malfunctions
of utilities, computer (hardware or software) or communication services; accidents; labor disputes; acts of civil or military authority
and governmental action.

 

(n)               
No Notes Collateral Agent assumes any responsibility for any failure or delay in performance or any breach by the Company, the
Co-Issuer or any other Grantor under this Indenture and the Security Documents. No Notes Collateral Agent shall be responsible to the
Holders or any other Person for any recitals, statements, information, representations or warranties contained in any Notes Documents
or in any certificate, report, statement, or other document referred to or provided for in, or received by any Notes Collateral Agent
under or in connection with, this Indenture or any Security Document; the execution, validity, genuineness, effectiveness or enforceability
of the First Lien Intercreditor Agreement and any Security Documents of any other party thereto; the genuineness, enforceability, collectability,
value, sufficiency, location or existence of any Collateral, or the validity, effectiveness, enforceability, sufficiency, extent, perfection
or priority of any Lien therein; the validity, enforceability or collectability of any Obligations; the assets, liabilities, financial
condition, results of operations, business, creditworthiness or legal status of any obligor; or for any failure of any obligor to perform
its Obligations under this Indenture and the Security Documents. No Notes Collateral Agent shall have any obligation to any Holder or
any other Person to ascertain or inquire into the existence of any Default or Event of Default, the observance or performance by any obligor
of any terms of this Indenture, the Senior Credit Facilities or the Security Documents, or the satisfaction of any conditions precedent
contained in this Indenture or any Security Documents. No Notes Collateral Agent shall be required to initiate or conduct any litigation
or collection or other proceeding under this Indenture and the Security Documents unless expressly set forth hereunder or thereunder.
Without limiting its obligations as expressly set forth herein, each Notes Collateral Agent shall have the right at any time to seek instructions
from the Holders with respect to the administration of the Notes Documents.

 

(o)                The
parties hereto and the Holders hereby agree and acknowledge that the Notes Collateral Agents shall not assume, be responsible for or
otherwise be obligated for any liabilities, claims, causes of action, suits, losses, allegations, requests, demands, penalties,
fines, settlements, damages (including foreseeable and unforeseeable), judgments, expenses and costs (including but not limited to,
any remediation, corrective action, response, removal or remedial action, or investigation, operations and maintenance or monitoring
costs, for personal injury or property damages, real or personal) of any kind whatsoever, pursuant to any environmental law as a
result of this Indenture, the Security Documents or any actions taken pursuant hereto or thereto. Further, the parties hereto and
the Holders hereby agree and acknowledge that in the exercise of its rights under this Indenture and the Security Documents, a Notes
Collateral Agent may, but shall in no event be required to, hold or obtain indicia of ownership primarily to protect the security
interest of such Notes Collateral Agent in the Collateral and that any such actions taken by such Notes Collateral Agent shall not
be construed as or otherwise constitute any participation in the management of such Collateral. However, if the Notes Collateral
Agent is required to acquire title to an asset pursuant to this Indenture which in the Notes Collateral Agent’s reasonable
discretion may cause the Notes Collateral Agent to be considered an “owner or operator” under the provisions of the
Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), 42 U.S.C. § 9601, et seq.,
or otherwise cause the Collateral Agent to incur liability under CERCLA or any equivalent federal, state or local law, the
Collateral Agent reserves the right, instead of taking such action, to either resign as the Notes Collateral Agent or arrange for
the transfer of the title or control of the asset to a court-appointed receiver.

 

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(p)               
Subject to the provisions of the applicable Security Documents, each Holder, by acceptance of the Notes, agrees that each Notes
Collateral Agent shall execute and deliver the First Lien Intercreditor Agreement and the Security Documents to which it is a party and
all agreements, documents and instruments incidental thereto (including any releases permitted hereunder), and act in accordance with
the terms thereof. For the avoidance of doubt, the Notes Collateral Agents shall not be required to exercise discretion under this Indenture
or the Security Documents and shall not be required to make or give any determination, consent, approval, request or direction without
the written direction of the Holders of a majority in aggregate principal amount of the then outstanding Notes or the Trustee, as applicable,
except as otherwise expressly provided for herein or in any Security Document. For purposes of clarity, phrases such as “satisfactory
to the Notes Collateral Agent”, “approved by the Notes Collateral Agent”, “acceptable to the Notes Collateral
Agent”, “in the Notes Collateral Agent’s discretion”, “selected by the Notes Collateral Agent”, “requested
by the Notes Collateral Agent” and phrases of similar import authorize and permit the applicable Notes Collateral Agent to approve,
disapprove, determine, act or decline to act in its discretion.

 

(q)               
After the occurrence of an Event of Default (at the direction of a majority of Holders), the Trustee may direct the Notes Collateral
Agents in connection with any action required or permitted by this Indenture or the Security Documents.

 

(r)                
Each Notes Collateral Agent is authorized to receive any funds for the benefit of itself, the Trustee and the Holders distributed
under the Security Documents and to the extent not prohibited under the First Lien Intercreditor Agreement, for turnover to the Trustee
to make further distributions of such funds to itself, the other Notes Collateral Agents, the Trustee and the Holders in accordance with
the provisions of Section 506 hereof and the other provisions of this Indenture.

 

(s)                
Subject to the terms of the Security Documents, in each case that a Notes Collateral Agent may or is required hereunder or under
any other Notes Document to take any action (an “Action”), including without limitation to make any determination,
to give consents, to exercise rights, powers or remedies, to release or sell Collateral or otherwise to act hereunder or under any other
Notes Document, the Notes Collateral Agents may seek direction from the Holders of a majority in aggregate principal amount of the then
outstanding Notes. Each Notes Collateral Agent shall not be liable with respect to any Action taken or omitted to be taken by it in accordance
with the direction from the Holders of a majority in aggregate principal amount of the then outstanding Notes. Subject to the terms of
the Security Documents, if a Notes Collateral Agent shall request direction from the Trustee or the Holders of a majority in aggregate
principal amount of the then outstanding Notes with respect to any Action, such Notes Collateral Agent shall be entitled to refrain from
such Action unless and until such Notes Collateral Agent shall have received direction from the Trustee or the Holders of a majority in
aggregate principal amount of the then outstanding Notes, and such Notes Collateral Agent shall not incur liability to any Person by reason
of so refraining.

 

(t)                 Notwithstanding
anything to the contrary in this Indenture or any other Notes Document, in no event shall any Notes Collateral Agent or the Trustee
be responsible for, or have any duty or obligation with respect to, the preparation, recording, filing, registering, perfection,
protection or maintenance of the security interests or Liens intended to be created by this Indenture or the other Notes Documents
(including without limitation the filing or continuation of any UCC or PPSA financing or continuation statements or similar
documents or instruments (or analogous procedures under the applicable laws in the relevant jurisdiction), nor shall any Notes
Collateral Agent or the Trustee be responsible for, and neither the Notes Collateral Agents nor the Trustee makes any representation
regarding, the validity, effectiveness or priority of any of the Security Documents or the security interests or Liens intended to
be created thereby.

 

    -139-

     

    

 

(u)               
The Company shall pay compensation to, reimburse expenses of and indemnify each Notes Collateral Agent in accordance with Section
607. Accordingly, the reference to the “Trustee” in Section 607 and Section 609 shall be deemed to include the reference to
the Notes Collateral Agents.

 

(v)               
The Brazilian Collateral Agent may undertake foreign exchange closings in order to remit funds abroad. The Trustee or the Company,
as applicable, shall deliver to the Brazilian Collateral Agent, within the term set forth by such Brazilian Collateral Agent, the documentation
required for each foreign exchange closing, as requested by the Brazilian Collateral Agent, in accordance with the provisions hereof.
In order to perform the transfer of any amounts paid under the terms and conditions of this Indenture and/or of the Security Documents,
as applicable, the Brazilian Collateral Agent shall undertake a foreign exchange transaction to convert the amounts in Reais into US Dollars,
in the amount specified by the Trustee (provided that possible deductions of any commissions or taxes levied on the foreign exchange
transactions under discussion and/or any other withholding or charge levied on the related payments may apply), and upon possible deductions
mentioned above, the Brazilian Collateral Agent shall transfer the values in US dollars pursuant to instructions provided by the Trustee.
The Brazilian Collateral Agent (i) shall solely be obligated to undertake any foreign exchange transaction as from the second Business
Day subsequent to the Business Day on which the Brazilian Collateral Agent receives the instruction from the Trustee to perform such foreign
exchange transaction; (ii) shall transfer funds, as requested by the Trustee, no later than (a) the second Business Day subsequent to
the Business Day in which US dollars are available for transfer; and (b) the second Business Day in which such transfer is allowed, under
the terms of the respective Registry of Financial Transactions of the Brazilian Central Bank (“ROF”), if applicable;
and (iii) shall not assume the obligation to undertake any foreign exchange transaction or transfer funds, unless the Brazilian Collateral
Agent has received (a) all documents and information it deems necessary for the remittance of funds; and (b) the payment of the respective
commissions, fees and expenses.

 

(w)             
Anything in this Indenture or any Security Document notwithstanding, in no event shall any Notes Collateral Agent be responsible
or liable for special, indirect, incidental, punitive, or consequential loss or damage of any kind whatsoever (including, but not limited
to, loss of profit) irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and regardless of the
form of action

 

    -140-

     

    

 

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

 

	 	TELESAT CANADA
	 	TELESAT SATELLITE GP, LLC
	 	 
	 	By:	Telesat Canada, as sole member
	 	 	 	 
	 	TELESAT SATELLITE LP
	 	 
	 	By:	
    Telesat Satellite GP, LLC, as general partner

	 	 	 
	 	By:	Telesat Canada, as sole member
	 	 	 	 
	 	By:	/s/ Christopher S. DiFrancesco
	 	 	Name:	Christopher S. DiFrancesco
	 	 	Title:	Vice President, General Counsel, and Secretary

 

[Signature Page to Indenture]

 

     

     

    

 

	 	SKYNET SATELLITE CORPORATION
	 	TELESAT INTERNATIONAL, L.L.C.
	 	 
	 	By:	Skynet Satellite Corporation, as sole member
	 	 	 	 
	 	TELESAT BRAZIL HOLDINGS LLC
	 	 
	 	By:	Skynet Satellite Corporation, as sole member
	 	 	 	 
	 	TELESAT NETWORK SERVICES, INC.
	 	TELESAT LLC
	 	TELESAT NETWORK SERVICES HOLDINGS L.L.C.
	 	 
	 	By:	Telesat Network Services, Inc., as sole member
	 	 	 	 
	 	TELESAT SATELLITE HOLDINGS CORPORATION
	 	INFOSAT ABLE HOLDINGS, INC.
	 	INFOSAT COMMUNICATIONS GP INC.
	 	INFOSAT COMMUNICATIONS LP
	 	TELESAT 2016 ULC
	 	 
	 	By:	Infosat Communications GP Inc., as general partner
	 	 	 	 
	 	By:	/s/ Christopher S. DiFrancesco
	 	 	Name:	Christopher S. DiFrancesco
	 	 	Title:	Secretary

 

[Signature Page to Indenture]

 

     

     

    

 

	 	TELESAT SPECTRUM GENERAL PARTNERSHIP
	 	 
	 	By:	Telesat Canada, as general partner
	 	 	 	 
	 	By:	/s/ Christopher S. DiFrancesco
	 	 	Name:	Christopher S. DiFrancesco
	 	 	Title:	Vice President, General Counsel, and Secretary
	 	 	 	 
	 	
    By:
	Telesat 2016 ULC, as general partner

	 	 	 	 
	 	By:	/s/ Christopher S. DiFrancesco
	 	 	Name:	Christopher S. DiFrancesco
	 	 	Title:	Secretary

 

[Signature Page to Indenture]

 

     

     

    

 

	 	TELESAT INTERNATIONAL LIMITED
	 	 	 	 
	 	By:	/s/ Clarissa R. Offwood
	 	 	Name:	Clarissa R. Offwood
	 	 	Title:	Director

 

[Signature Page to Indenture]

 

     

     

    

 

	 	TELESAT (IOM) LIMITED
	 	 	 	 
	 	By:	/s/ Ross Byrne
	 	 	Name:	Ross Byrne
	 	 	Title:	Director
	 	 	 	 
	 	TELESAT (IOM) HOLDINGS LIMITED
	 	 	 	 
	 	By:	/s/ Ross Byrne
	 	 	Name:	Ross Byrne
	 	 	Title:	Director

 

[Signature Page to Indenture]

 

     

     

    

 

	 	TELESAT SPACE PARTICIPAÇÕES LTDA.
	 	TELESAT BRASIL CAPACIDADE DE
	 	SATÉLITES LTDA.
	 	TELESAT BRASIL LTDA.
	 	TELESAT SERVIÇOS DE
	 	TELECOMUNICAÇÃO LTDA.
	 	(Signing as Guarantors)

	 	 	 	 
	 	By:	/s/ Mauro Wajnberg
	 	 	Name:	Mauro Wajnberg
	 	 	Title:	Officer

 

[Signature Page to Indenture]

 

     

     

    

 

	 	THE
    SPACECONNECTION, INC.
	 	 	 
	 	By:	/s/
    Andrew Browne
	 	 	Name:	Andrew
    Browne
	 	 	Title:	Director

 

[Signature Page to Indenture]

 

     

     

    

 

	 	THE BANK OF NEW
    YORK MELLON, as Trustee
	 	 	 
	 	By:	/s/
    Teresa H. Wyszomiersky
	 	 	Name:	Teresa H. Wyszomiersky
	 	 	Title:	Vice President
	 	 	 
	 	THE BANK OF NEW
    YORK MELLON, as Notes Collateral Agent
	 	 	 
	 	By:	/s/
    Teresa H. Wyszomiersky
	 	 	Name:	Teresa H. Wyszomiersky
	 	 	Title:	Vice President

 

	 	TMF
    TRUSTEE LIMITED, as an On-Shore Notes Collateral Agent
	 	 	 
	 	By:	/s/ Nita Savjani 
	 	 	Name:	Nita Savjani
	 	 	Title:	Director

 

	 	TMF
                                            Brasil AdministraÇÃo e GestÃo de Ativos Ltda.,
                                            as an On-Shore Notes Collateral Agent

	 	 	 
	 	By:	/s/ Karla Fernandes
	 	 	Name:	Karla Fernandes

 

	 	TMF
                                            Brasil AdministraÇÃo e GestÃo de Ativos Ltda.,
                                            as an On-Shore Notes Collateral Agent

	 	 	 
	 	By:	/s/ Danilo Batista de Oliveria
	 	 	Name:	Danilo Batista de Oliveria

 

 

[Signature Page to Indenture]

 

     

     

    

 

Rule 144A / Regulation S / IAI Appendix

 

PROVISIONS RELATING TO NOTES 

 

1.                
Definitions.

 

1.1              
Definitions.

 

For the purposes of this Appendix the following
terms shall have the meanings indicated below:

 

“Applicable Procedures” means,
with respect to any transfer or transaction involving a Temporary Regulation S Global Note or beneficial interest therein, the rules and
procedures of the Depositary for such a Temporary Regulation S Global Note, to the extent applicable to such transaction and as in effect
from time to time.

 

“Definitive Note” means a certificated
Note bearing, if required, the appropriate restricted notes legend set forth in Section 2.3(e).

 

“Distribution Compliance Period,”
with respect to any Notes, means the period of 40 consecutive days beginning on and including the later of (i) the day on which such Notes
are first offered to Persons other than distributors (as defined in Regulation S under the Securities Act) in reliance on Regulation S
and (ii) the issue date with respect to such Notes.

 

“IAI” means an institutional
 “accredited investor,” as defined in Rule 501(a)(1), (2), (3) and (7) of Regulation D under the Securities Act.

 

“Initial Purchasers” means (1)
with respect to the Initial Notes issued on the Issue Date, J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC, and (2) with respect
to each issuance of Additional Notes, the Persons purchasing such Additional Notes under the related Purchase Agreement.

 

“Notes” means (1) US$500,000,000
aggregate principal amount of 5.625% Senior Secured Notes due 2026 issued on the Issue Date and (2) any Additional Notes, if any, issued
in a transaction exempt from the registration requirements of the Securities Act.

 

“Notes Custodian” means the
custodian with respect to a Global Notes (as appointed by the Depositary), or any successor Person thereto and shall initially be the
Trustee.

 

“Purchase Agreement” means (1)
with respect to the Initial Notes issued on the Issue Date, the Purchase Agreement dated April 13, 2021, among the Co-Issuers, the Guarantors
party thereto and Goldman Sachs & Co. LLC, as Representative (the “Representative”) on behalf of the Initial Purchasers
party thereto, and (2) with respect to each issuance of Additional Notes, the purchase agreement or underwriting agreement among the Co-Issuers,
the Guarantors and the Persons purchasing such Additional Notes.

 

“QIB” means a “qualified
institutional buyer” as defined in Rule 144A.

 

“Securities Act” means the Securities
Act of 1933, as amended, and the rules and regulations of the SEC promulgated thereunder.

 

“Transfer Restricted Notes”
means Notes that bear or are required to bear the legend relating to restrictions on transfer relating to the Securities Act set forth
in Section 2.3(e) hereto.

 

     

     

    

 

1.2              
 Other Definitions.

 

	
    Term
	 	
    Defined in Section:

	“Agent Members”	 	2.1(b)
	“Global Notes”	 	2.1(a)
	“IAI Global Note”	 	2.1(a)
	“Permanent Regulation S Global Note”	 	2.1(a)
	“Regulation S”	 	2.1(a)
	“Regulation S Global Note”	 	2.1(a)
	“Rule 144A”	 	2.1(a)
	“Rule 144A Global Note”	 	2.1(a)
	“Temporary Regulation S Global Note”	 	2.1(a)

 

2.                  
The Notes.

 

2.1              
(a) Form and Dating. The Notes will be offered and sold by the Co-Issuers pursuant to a Purchase Agreement. The Notes
will be resold initially only to (i) QIBs in reliance on Rule 144A under the Securities Act (“Rule 144A”) and (ii)
Persons other than U.S. Persons (as defined in Regulation S) outside the United States in reliance on Regulation S under the Securities
Act (“Regulation S”). Notes may thereafter be transferred to, among others, QIBs, IAIs and purchasers in reliance on
Regulation S, subject to the restrictions on transfer set forth herein. Notes initially resold pursuant to Rule 144A shall be issued initially
in the form of one or more permanent global Notes in definitive, fully registered form (collectively, the “Rule 144A Global Note”);
Notes initially resold to IAIs shall be issued initially in the form of one or more permanent global Notes in definitive, fully registered
form (collectively, the “IAI Global Note”); and Notes initially resold pursuant to Regulation S shall be issued initially
in the form of one or more temporary global notes in fully registered form (collectively, the “Temporary Regulation S Global
Note”), in each case without interest coupons and with the global notes legend and the applicable restricted notes legend set
forth in Exhibit 1 hereto, which shall be deposited on behalf of the purchasers of the Notes represented thereby with the Notes
Custodian and registered in the name of the Depositary or a nominee of the Depositary, duly executed by the Co-Issuers and authenticated
by the Trustee as provided in this Indenture. Except as set forth in this Section 2.1(a), beneficial ownership interests in the Temporary
Regulation S Global Note will not be exchangeable for interests in a permanent global note (the “Permanent Regulation S Global
Note,” and together with the Temporary Regulation S Global Note, the “Regulation S Global Note”) or any other
Note prior to the expiration of the Distribution Compliance Period and then, after the expiration of the Distribution Compliance Period,
may be exchanged for interests in a Rule 144A Global Note, an IAI Global Note or the Permanent Regulation S Global Note only upon certification
in form reasonably satisfactory to the Trustee that (i) beneficial ownership interests in such Temporary Regulation S Global Note are
owned either by non-U.S. persons or U.S. persons who purchased such interests in a transaction that did not require registration under
the Securities Act and (ii) in the case of an exchange for an IAI Global Note, certification that the interest in the Temporary Regulation
S Global Note is being transferred to an institutional “accredited investor” under the Securities Act that is an institutional
accredited investor acquiring the Notes for its own account or for the account of an institutional accredited investor.

 

Beneficial interests in Temporary Regulation
S Global Notes and IAI Global Notes may be exchanged for interests in Rule 144A Global Notes if (1) such exchange occurs in
connection with a transfer of Notes in compliance with Rule 144A and (2) the transferor of the beneficial interest in the Temporary
Regulation S Global Note or the IAI Global Note, as applicable, first delivers to the Trustee a written certificate (substantially
in the form provided in the Indenture) to the effect that the beneficial interest in the Temporary Regulation S Global Note or the
IAI Global Note, as applicable, is being transferred to a Person (a) who the transferor reasonably believes to be a QIB, (b)
purchasing for its own account or the account of a QIB in a transaction meeting the requirements of Rule 144A, and (c) in accordance
with all applicable securities laws of the States of the United States and other jurisdictions.

 

    -2-

     

    

 

Beneficial interests in Temporary Regulation S
Global Notes and Rule 144A Global Notes may be exchanged for an interest in IAI Global Notes if (1) such exchange occurs in connection
with a transfer of the Notes in compliance with an exemption under the Securities Act and (2) the transferor of the Regulation S Global
Note or Rule 144A Global Note, as applicable, first delivers to the trustee a written certificate (substantially in the form of Exhibit
2) to the effect that (A) the Regulation S Global Note or Rule 144A Global Note, as applicable, is being transferred (a) to an “accredited
investor” within the meaning of 501(a)(1),(2),(3) and (7) of Regulation D under the Securities Act that is an institutional investor
acquiring the Notes for its own account or for the account of such an institutional accredited investor, in each case in a minimum principal
amount of the Notes of US$250,000, for investment purposes and not with a view to or for offer or sale in connection with any distribution
in violation of the Securities Act and (B) in accordance with all applicable securities laws of the States of the United States and other
jurisdictions.

 

Beneficial interests in a Rule 144A Global Note
or an IAI Global Note may be transferred to a Person who takes delivery in the form of an interest in a Regulation S Global Note, whether
before or after the expiration of the Distribution Compliance Period, only if the transferor first delivers to the Trustee a written certificate
(in the form provided in the Indenture) to the effect that such transfer is being made in accordance with Rule 903 or 904 of Regulation
S or Rule 144 (if applicable).

 

The Rule 144A Global Note, the IAI Global Note
and the Regulation S Global Note are collectively referred to herein as the “Global Notes.” The aggregate principal
amount of the Global Notes may from time to time be increased or decreased by adjustments made on the records of the Trustee and the Depositary
or its nominee as hereinafter provided.

 

(b)               
Book-Entry Provisions. This Section 2.1(b) shall apply only to a Global Note deposited with or on behalf of the Depositary.

 

Upon issuance, the Issuer shall execute and the
Trustee shall, in accordance with this Section 2.1(b), authenticate and deliver initially one or more Global Notes that (a) shall be registered
in the name of the Depositary for such Global Note or Global Notes or the nominee of such Depositary and (b) shall be delivered by the
Trustee to such Depositary or pursuant to such Depositary’s instructions or held by the Trustee as custodian for the Depositary,
in each case for credit to an account of a direct or indirect participant in the Depositary as described below.

 

Members of, or participants in, the Depositary
(“Agent Members”) shall have no rights under this Indenture with respect to any Global Note held on their behalf by
the Depositary or by the Trustee as the custodian of the Depositary or under such Global Note, and the Issuer, the Trustee and any agent
of the Issuer or the Trustee shall be entitled to treat the Depositary as the absolute owner of such Global Note for all purposes whatsoever.
Notwithstanding the foregoing, nothing herein shall prevent the Issuer, the Trustee or any agent of the Issuer or the Trustee from giving
effect to any written certification, proxy or other authorization furnished by the Depositary or impair, as between the Depositary and
its Agent Members, the operation of customary practices of such Depositary governing the exercise of the rights of a holder of a beneficial
interest in any Global Note.

 

(c)               
Definitive Notes. Except as provided in this Section 2.1 or Section 2.3 or 2.4, owners of beneficial interests in
Global Notes shall not be entitled to receive physical delivery of Definitive Notes.

 

    -3-

     

    

 

2.2              
 Authentication. The Trustee shall authenticate and deliver: (1) on the Issue Date, an aggregate principal amount
of US$500,000,000 5.625% Senior Secured Notes due 2026 and (2) any Additional Notes for an original issue in an aggregate principal amount
specified in the written order of the Issuer pursuant to Section 202 of the Indenture. Such order shall specify the amount of the Notes
to be authenticated and the date on which the original issue of Notes is to be authenticated and, in the case of any issuance of Additional
Notes pursuant to Section 312 of the Indenture, shall certify that such issuance is in compliance with Section 1011 of the Indenture.

 

2.3              
Transfer and Exchange.

 

(a)               
Transfer and Exchange of Definitive Notes. When Definitive Notes are presented to the Note Registrar with a request:

 

(x)       to
register the transfer of such Definitive Notes; or

 

(y)       to
exchange such Definitive Notes for an equal principal amount of Definitive Notes of other authorized denominations,

 

the Note Registrar shall register the transfer or make the exchange
as requested if its reasonable requirements for such transaction are met; provided, however, that the Definitive Notes surrendered
for transfer or exchange:

 

(i)              
shall be duly endorsed or accompanied by a written instrument of transfer in form reasonably satisfactory to the Issuer
and the Note Registrar, duly executed by the Holder thereof or its attorney duly authorized in writing; and

 

(ii)             
if such Definitive Notes are required to bear a restricted notes legend, they are being transferred or exchanged pursuant
to an effective registration statement under the Securities Act, pursuant to Section 2.3(b) or pursuant to clause (A), (B) or (C) below,
and are accompanied by the following additional information and documents, as applicable:

 

(A)            
if such Definitive Notes are being delivered to the Note Registrar by a Holder for registration in the name of such Holder,
without transfer, a certification from such Holder to that effect; or

 

(B)             
if such Definitive Notes are being transferred to the Issuer, a certification to that effect; or

 

(C)             
if such Definitive Notes are being transferred (x) pursuant to an exemption from registration in accordance with Rule 144A,
Regulation S or Rule 144 under the Securities Act; or (y) in reliance upon another exemption from the requirements of the Securities Act:
(i) a certification to that effect (in the form set forth on the reverse of the Note) and (ii) if the Issuer so requests, an opinion of
counsel or other evidence reasonably satisfactory to it as to the compliance with the restrictions set forth in the legend set forth in
Section 2.3(e)(i).

 

(b)               
Restrictions on Transfer of a Definitive Note for a Beneficial Interest in a Global Note. A Definitive Note may not
be exchanged for a beneficial interest in a Rule 144A Global Note, an IAI Global Note or a Permanent Regulation S Global Note except upon
satisfaction of the requirements set forth below. Upon receipt by the Trustee of a Definitive Note, duly endorsed or accompanied by appropriate
instruments of transfer, in form satisfactory to the Trustee, together with:

 

    -4-

     

    

 

(i)              
 certification, in the form set forth on the reverse of the Note, that such Definitive Note is either (A) being transferred
to a QIB in accordance with Rule 144A, (B) being transferred to an IAI or (C) being transferred after expiration of the Distribution Compliance
Period by a Person who initially purchased such Note in reliance on Regulation S to a buyer who elects to hold its interest in such Note
in the form of a beneficial interest in the Permanent Regulation S Global Note; and

 

(ii)              
written instructions directing the Trustee to make, or to direct the Notes Custodian to make, an adjustment on its books
and records with respect to such Rule 144A Global Note (in the case of a transfer pursuant to clause (b)(i)(A)), IAI Global Note (in the
case of a transfer pursuant to clause (b)(i)(B)) or Permanent Regulation S Global Note (in the case of a transfer pursuant to clause (b)(i)(C))
to reflect an increase in the aggregate principal amount of the Notes represented by the Rule 144A Global Note, IAI Global Note or Permanent
Regulation S Global Note, as applicable, such instructions to contain information regarding the Depositary account to be credited with
such increase,

 

then the Trustee shall cancel such Definitive Note and cause, or direct
the Notes Custodian to cause, in accordance with the standing instructions and procedures existing between the Depositary and the Notes
Custodian, the aggregate principal amount of Notes represented by the Rule 144A Global Note, IAI Global Note or Permanent Regulation S
Global Note, as applicable, to be increased by the aggregate principal amount of the Definitive Note to be exchanged and shall credit
or cause to be credited to the account of the Person specified in such instructions a beneficial interest in the Rule 144A Global Note,
IAI Global Note or Permanent Regulation S Global Note, as applicable, equal to the principal amount of the Definitive Note so canceled.
If no Rule 144A Global Notes, IAI Global Notes or Permanent Regulation S Global Notes, as applicable, are then outstanding, the Issuer
shall issue and the Trustee shall authenticate, upon written order of the Issuer in the form of an Officer’s Certificate of the
Issuer, a new Rule 144A Global Note, IAI Global Note or Permanent Regulation S Global Note, as applicable, in the appropriate principal
amount.

 

(c)               
Transfer and Exchange of Global Notes.

 

(i)              
The transfer and exchange of Global Notes or beneficial interests therein shall be effected through the Depositary, in accordance
with the Indenture (including applicable restrictions on transfer set forth herein, if any) and the procedures of the Depositary therefor.
A transferor of a beneficial interest in a Global Note shall deliver to the Note Registrar a written order given in accordance with the
Depositary’s procedures containing information regarding the participant account of the Depositary to be credited with a beneficial
interest in the Global Note. The Note Registrar shall, in accordance with such instructions instruct the Depositary to credit to the account
of the Person specified in such instructions a beneficial interest in the Global Note and to debit the account of the Person making the
transfer the beneficial interest in the Global Note being transferred.

 

(ii)              
If the proposed transfer is a transfer of a beneficial interest in one Global Note to a beneficial interest in another Global
Note, the Note Registrar shall reflect on its books and records the date and an increase in the principal amount of the Global Note to
which such interest is being transferred in an amount equal to the principal amount of the interest to be so transferred, and the Note
Registrar shall reflect on its books and records the date and a corresponding decrease in the principal amount of the Global Note from
which such interest is being transferred.

 

(iii)               Notwithstanding
any other provisions of this Appendix (other than the provisions set forth in Section 2.4), a Global Note may not be transferred as
a whole except by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or another
nominee of the Depositary or by the Depositary or any such nominee to a successor Depositary or a nominee of such successor
Depositary.

 

    -5-

     

    

 

(iv)              
In the event that a Global Note is exchanged for Definitive Notes pursuant to Section 2.4 of this Appendix, such Notes may
be exchanged only in accordance with such procedures as are substantially consistent with the provisions of this Section 2.3 (including
the certification requirements set forth on the reverse of the Notes intended to ensure that such transfers comply with Rule 144A, Regulation
S or another applicable exemption under the Securities Act, as the case may be) and such other procedures as may from time to time be
adopted by the Issuer.

 

(d)               
Restrictions on Transfer of Temporary Regulation S Global Notes. During the Distribution Compliance Period, beneficial
ownership interests in Temporary Regulation S Global Notes may only be sold, pledged or transferred in accordance with the Applicable
Procedures and only (i) to the Issuer, (ii) in an offshore transaction in accordance with Regulation S (other than a transaction resulting
in an exchange for an interest in a Permanent Regulation S Global Note) or (iii) pursuant to an effective registration statement under
the Securities Act, in each case in accordance with any applicable securities laws of any State of the United States.

 

(e)               
Legend.

 

(i)              
Except as permitted by the following paragraph (ii), each Note certificate evidencing the Global Notes (and all Notes issued
in exchange therefor or in substitution thereof), in the case of Notes offered otherwise than in reliance on Regulation S shall bear a
legend in substantially the following form:

 

THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A
TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
AND THIS NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM.
EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5
OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER.

 

THE HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF THE
CO-ISSUERS THAT (A) THIS NOTE MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO TELESAT CANADA OR ITS
SUBSIDIARIES, (II) IN THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS
DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (III) TO AN INSTITUTIONAL
ACCREDITED INVESTOR (AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT) THAT, PRIOR TO
SUCH TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO THE TRANSFER OF
THIS NOTE (THE FORM OF WHICH CAN BE OBTAINED FROM THE TRUSTEE) AND IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT
OF NOTES OF AT LEAST US$250,000, (IV) OUTSIDE THE UNITED STATES TO NON-U.S. PERSONS IN COMPLIANCE WITH REGULATION S UNDER THE
SECURITIES ACT, (V) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR (VI)
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT IN EACH OF CASES (I) THROUGH (VI) IN ACCORDANCE WITH ANY
APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO,
NOTIFY ANY PURCHASER OF THIS NOTE FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

 

    -6-

     

    

 

Each certificate evidencing a Note offered in reliance
on Regulation S shall, in addition to the foregoing, bear a legend in substantially the following form:

 

THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A
TRANSACTION ORIGINALLY EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
AND MAY NOT BE TRANSFERRED IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, ANY UNITED STATES PERSON EXCEPT PURSUANT TO AN
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS. TERMS USED ABOVE
HAVE THE MEANINGS GIVEN TO THEM IN REGULATION S UNDER THE SECURITIES ACT.

 

Each Definitive Note shall also bear the following
additional legend:

 

IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL DELIVER
TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM THAT
THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

 

(ii)              
Upon any sale or transfer of a Transfer Restricted Note (including any Transfer Restricted Note represented by a Global
Note) pursuant to Rule 144 under the Securities Act, the Note Registrar shall permit the transferee thereof to exchange such Transfer
Restricted Note for a certificated Note that does not bear the legend set forth above and rescind any restriction on the transfer of such
Transfer Restricted Note, if the transferor thereof certifies in writing to the Note Registrar that such sale or transfer was made in
reliance on Rule 144 (such certification to be in the form set forth on the reverse of the Note).

 

(f)                
Cancellation or Adjustment of Global Note. At such time as all beneficial interests in a Global Note have either
been exchanged for Definitive Notes, redeemed, purchased or canceled, such Global Note shall be returned to the Depositary for cancellation
or retained and canceled by the Trustee. At any time prior to such cancellation, if any beneficial interest in a Global Note is exchanged
for certificated Notes, redeemed, purchased or canceled, the principal amount of Notes represented by such Global Note shall be reduced
and an adjustment shall be made on the books and records of the Trustee (if it is then the Notes Custodian for such Global Note) with
respect to such Global Note, by the Trustee or the Notes Custodian, to reflect such reduction.

 

(g)               
No Obligation of the Trustee.

 

(i)               None
of the Trustee, Paying Agent or Note Registrar shall have any responsibility or obligation to any beneficial owner of a Global Note,
a member of, or a participant in the Depositary or other Person with respect to the accuracy of the records of the Depositary or its
nominee or of any participant or member thereof, with respect to any ownership interest in the Notes or with respect to the delivery
to any participant, member, beneficial owner or other Person (other than the Depositary) of any notice (including any notice of
redemption) or the payment of any amount, under or with respect to such Notes. All notices and communications to be given to the
Holders and all payments to be made to Holders under the Notes shall be given or made only to or upon the order of the registered
Holders (which shall be the Depositary or its nominee in the case of a Global Note). The rights of beneficial owners in any Global
Note shall be exercised only through the Depositary subject to the applicable rules and procedures of the Depositary. The Trustee
may rely and shall be fully protected in relying upon information furnished by the Depositary with respect to its members,
participants and any beneficial owners. None of the Trustee, the Paying Agent or the Note Registrar shall have any responsibility or
liability for any acts or omissions of the Depositary with respect to such Global Note, for the records of any such depositary,
including records in respect of beneficial ownership interests in respect of any such Global Note, for any transactions between the
Depositary and any Agent Member or between or among the Depositary, any such Agent Member and/or any holder or owner of a beneficial
interest in such Global Note, or for any transfers of beneficial interests in any such Global Note.

 

    -7-

     

    

 

(ii)                 
The Trustee shall have no obligation or duty to monitor, determine or inquire as to compliance with any restrictions on
transfer imposed under the Indenture or under applicable law with respect to any transfer of any interest in any Note (including any transfers
between or among Depositary participants, members or beneficial owners in any Global Note) other than to require delivery of such certificates
and other documentation or evidence as are expressly required by, and to do so if and when expressly required by, the terms of the Indenture,
and to examine the same to determine substantial compliance as to form with the express requirements hereof.

 

2.4              
Definitive Notes.

 

(a)               
A Global Note deposited with the Depositary or with the Trustee as Notes Custodian for the Depositary pursuant to Section
2.1 shall be transferred to the beneficial owners thereof in the form of Definitive Notes in an aggregate principal amount equal to the
principal amount of such Global Note, in exchange for such Global Note, only if such transfer complies with Section 2.3 hereof and (i)
the Depositary notifies the Issuer that it is unwilling or unable to continue as Depositary for such Global Note and the Depositary fails
to appoint a successor depositary or if at any time such Depositary ceases to be a “clearing agency” registered under the
Exchange Act, and in either case, a successor depositary is not appointed by the Issuer or (ii) an Event of Default has occurred and is
continuing.

 

(b)               
Any Global Note that is transferable to the beneficial owners thereof pursuant to this Section 2.4 shall be surrendered
by the Depositary to the Trustee located at the Corporate Trust Office (as defined in the Indenture), to be so transferred, in whole or
from time to time in part, without charge, and the Trustee shall authenticate and deliver, upon such transfer of each portion of such
Global Note, an equal aggregate principal amount of Definitive Notes of authorized denominations. Any portion of a Global Note transferred
pursuant to this Section 2.4 shall be executed, authenticated and delivered only in denominations of US$2,000 principal amount and integral
multiples of US$1,000 thereof and registered in such names as the Depositary shall direct. Any Definitive Note delivered in exchange for
an interest in the Transfer Restricted Note shall, except as otherwise provided by Section 2.3(e) hereof, bear the applicable restricted
notes legend and definitive notes legend set forth in Exhibit 1 hereto.

 

(c)               
Subject to the provisions of Section 2.4(b) hereof, the registered Holder of a Global Note shall be entitled to grant proxies
and otherwise authorize any Person, including Agent Members and Persons that may hold interests through Agent Members, to take any action
which a Holder is entitled to take under the Indenture or the Notes.

 

(d)                In
the event of the occurrence of one of the events specified in Section 2.4(a) hereof, the Issuer shall promptly make available to the
Trustee a reasonable supply of Definitive Notes in definitive, fully registered form without interest coupons. In the event that
such Definitive Notes are not issued, the Issuer expressly acknowledges, with respect to the right of any Holder to pursue a remedy
pursuant to the Indenture, including pursuant to Section 507 of the Indenture, the right of any beneficial owner of Notes to pursue
such remedy with respect to the portion of the Global Note that represents such beneficial owner’s Notes as if such Definitive
Notes had been issued.

 

    -8-

     

    

 

EXHIBIT 1

to Rule 144A / Regulation S / IAI Appendix

 

[FORM OF FACE OF NOTE]

 

[Global Notes Legend]

 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW YORK, TO THE ISSUER OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR
SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO., OR TO SUCH OTHER ENTITY
AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC) ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

 

TRANSFERS OF THIS GLOBAL NOTE SHALL BE LIMITED
TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF
PORTIONS OF THIS GLOBAL NOTE SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED
TO ON THE REVERSE HEREOF.

 

[[FOR REGULATION S GLOBAL NOTE ONLY] UNTIL 40 DAYS
AFTER THE LATER OF COMMENCEMENT OR COMPLETION OF THE OFFERING, AN OFFER OR SALE OF SECURITIES WITHIN THE UNITED STATES BY A DEALER (AS
DEFINED IN THE SECURITIES ACT) MAY VIOLATE THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT IF SUCH OFFER OR SALE IS MADE OTHERWISE
THAN IN ACCORDANCE WITH RULE 144A THEREUNDER.]

 

[Restricted Notes Legend for Notes offered otherwise

than in Reliance on Regulation S]

 

THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY
ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE
 “SECURITIES ACT”), AND THIS NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH
REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY
BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. THE HOLDER OF
THIS NOTE AGREES FOR THE BENEFIT OF THE CO-ISSUERS THAT (A) THIS NOTE MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY
(I) TO TELESAT CANADA OR ITS SUBSIDIARIES, (II) IN THE UNITED STATES TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (III)
TO AN INSTITUTIONAL ACCREDITED INVESTOR (AS DEFINED IN RULE 501(A)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT)
THAT, PRIOR TO SUCH TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN REPRESENTATIONS AND AGREEMENTS RELATING TO
THE TRANSFER OF THIS NOTE (THE FORM OF WHICH CAN BE OBTAINED FROM THE TRUSTEE) AND, IF SUCH TRANSFER IS IN RESPECT OF AN AGGREGATE
PRINCIPAL AMOUNT OF NOTES OF AT LEAST US$250,000, (IV) OUTSIDE THE UNITED STATES TO NON-U.S. PERSONS IN COMPLIANCE WITH REGULATION S
UNDER THE SECURITIES ACT, (V) PURSUANT TO ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR
(VI) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT IN EACH OF CASES (I) THROUGH (VI) IN ACCORDANCE WITH
ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED
TO, NOTIFY ANY PURCHASER OF THIS NOTE FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.

 

     

     

    

 

[Restricted Notes Legend for Notes Offered in Reliance
on Regulation S]

 

THIS NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED
IN A TRANSACTION ORIGINALLY EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), AND MAY NOT BE TRANSFERRED IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, ANY UNITED STATES PERSON EXCEPT
PURSUANT TO AN AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ALL APPLICABLE STATE SECURITIES LAWS.
TERMS USED ABOVE HAVE THE MEANINGS GIVEN TO THEM IN REGULATION S UNDER THE SECURITIES ACT.

 

[Temporary Regulation S Global Note Legend]

 

EXCEPT AS SET FORTH BELOW, BENEFICIAL OWNERSHIP
INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL NOTE WILL NOT BE EXCHANGEABLE FOR INTERESTS IN THE PERMANENT REGULATION S GLOBAL NOTE
OR ANY OTHER NOTE REPRESENTING AN INTEREST IN THE NOTES REPRESENTED HEREBY WHICH DO NOT CONTAIN A LEGEND CONTAINING RESTRICTIONS ON TRANSFER,
UNTIL THE EXPIRATION OF THE “40-DAY DISTRIBUTION COMPLIANCE PERIOD” (WITHIN THE MEANING OF RULE 903(b)(2) OF REGULATION S
UNDER THE SECURITIES ACT) AND THEN ONLY UPON CERTIFICATION IN FORM REASONABLY SATISFACTORY TO THE TRUSTEE THAT SUCH BENEFICIAL INTERESTS
ARE OWNED EITHER BY NON-U.S. PERSONS OR U.S. PERSONS WHO PURCHASED SUCH INTERESTS IN A TRANSACTION THAT DID NOT REQUIRE REGISTRATION UNDER
THE SECURITIES ACT. DURING SUCH 40-DAY DISTRIBUTION COMPLIANCE PERIOD, BENEFICIAL OWNERSHIP INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL
NOTE MAY ONLY BE SOLD, PLEDGED OR TRANSFERRED (I) TO THE COMPANY, (II) OUTSIDE THE UNITED STATES IN A TRANSACTION IN ACCORDANCE WITH RULE
904 OF REGULATION S UNDER THE SECURITIES ACT, OR (III) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH
OF CASES (I) THROUGH (III) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. HOLDERS OF INTERESTS IN
THIS TEMPORARY REGULATION S GLOBAL NOTE WILL NOTIFY ANY PURCHASER OF THIS NOTE OF THE RESALE RESTRICTIONS REFERRED TO ABOVE, IF THEN APPLICABLE.

 

AFTER THE EXPIRATION OF THE DISTRIBUTION
COMPLIANCE PERIOD BENEFICIAL INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL NOTE MAY BE EXCHANGED FOR INTERESTS IN A RULE 144A
GLOBAL NOTE ONLY IF (1) SUCH EXCHANGE OCCURS IN CONNECTION WITH A TRANSFER OF THE NOTES IN COMPLIANCE WITH RULE 144A AND (2) THE
TRANSFEROR OF THE REGULATION S GLOBAL NOTE FIRST DELIVERS TO THE TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM ATTACHED TO THIS
CERTIFICATE) TO THE EFFECT THAT THE REGULATION S GLOBAL NOTE IS BEING TRANSFERRED (A) TO A PERSON WHO THE TRANSFEROR REASONABLY
BELIEVES TO BE A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A, (B) TO A PERSON WHO IS PURCHASING FOR ITS OWN
ACCOUNT OR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, AND (C) IN
ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES AND OTHER JURISDICTIONS.

 

    -2-

     

    

 

AFTER THE EXPIRATION OF THE DISTRIBUTION COMPLIANCE
PERIOD, BENEFICIAL INTERESTS IN THIS TEMPORARY REGULATION S GLOBAL NOTE MAY BE EXCHANGED FOR INTERESTS IN AN IAI GLOBAL NOTE ONLY IF (1)
SUCH EXCHANGE OCCURS IN CONNECTION WITH A TRANSFER OF THE NOTES IN COMPLIANCE WITH AN EXEMPTION UNDER THE SECURITIES ACT AND (2) THE TRANSFEROR
OF THE REGULATION S GLOBAL NOTE FIRST DELIVERS TO THE TRUSTEE A WRITTEN CERTIFICATE (IN THE FORM ATTACHED TO THIS CERTIFICATE) TO THE
EFFECT THAT THE REGULATION S GLOBAL NOTE IS BEING TRANSFERRED (A) TO AN “ACCREDITED INVESTOR” WITHIN THE MEANING OF RULE 501(A)(1),(2),(3)
OR (7) OF REGULATION D UNDER THE SECURITIES ACT THAT, PRIOR TO SUCH TRANSFER, FURNISHES THE TRUSTEE A SIGNED LETTER CONTAINING CERTAIN
REPRESENTATIONS AND AGREEMENTS RELATING TO THE TRANSFER OF THIS NOTE (THE FORM OF WHICH CAN BE OBTAINED FROM THE TRUSTEE) AND, IF SUCH
TRANSFER IS IN RESPECT OF AN AGGREGATE PRINCIPAL AMOUNT OF NOTES LESS THAN US$250,000, AN OPINION OF COUNSEL ACCEPTABLE TO THE ISSUER
THAT SUCH TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT AND (B) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF
THE UNITED STATES AND OTHER JURISDICTIONS.

 

BENEFICIAL INTERESTS IN A RULE 144A GLOBAL NOTE
OR AN IAI GLOBAL NOTE MAY BE TRANSFERRED TO A PERSON WHO TAKES DELIVERY IN THE FORM OF AN INTEREST IN THE REGULATION S GLOBAL NOTE, WHETHER
BEFORE OR AFTER THE EXPIRATION OF THE 40-DAY DISTRIBUTION COMPLIANCE PERIOD, ONLY IF THE TRANSFEROR FIRST DELIVERS TO THE TRUSTEE A WRITTEN
CERTIFICATE (IN THE FORM ATTACHED TO THIS CERTIFICATE) TO THE EFFECT THAT SUCH TRANSFER IS BEING MADE IN ACCORDANCE WITH RULE 903 OR 904
OF REGULATION S OR RULE 144 (IF AVAILABLE).

 

[Definitive Notes Legend]

 

IN CONNECTION WITH ANY TRANSFER, THE HOLDER WILL
DELIVER TO THE REGISTRAR AND TRANSFER AGENT SUCH CERTIFICATES AND OTHER INFORMATION AS SUCH TRANSFER AGENT MAY REASONABLY REQUIRE TO CONFIRM
THAT THE TRANSFER COMPLIES WITH THE FOREGOING RESTRICTIONS.

 

    -3-

     

    

 

	No. [   ]	US$[   ]

5.625% Senior Secured Notes due 2026

 

Telesat Canada, a Canadian corporation (the “Issuer”
or “Company”), and Telesat LLC, a Delaware limited liability company (the “Co-Issuer,” and together
with the Issuer, the “Co-Issuers”), promise to pay to [          ],
or registered assigns, the principal sum of [          ] US Dollars (US$[          ])
on December 6, 2026 (the “Maturity Date”).

 

Interest Payment Dates: June 1 and December 1 (each,
an “Interest Payment Date”) commencing December 1, 2021.

 

Record Dates: May 15 and November 15 (each, a “Record
Date”).

 

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

 

Dated:

 

	 	TELESAT CANADA
	 	 	 
	 	By:	
	 	 	Name:
	 	 	Title:
	 	 	 
	 	TELESAT LLC
	 	 	 
	 	By:	
	 	 	Name:
	 	 	Title:

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

THE BANK OF NEW YORK MELLON

as Trustee, certifies that this is one of the

Notes referred to in the Indenture.

 

	By:		 
	 	Authorized Signatory	 

 

    -4-

     

    

 

[FORM OF REVERSE SIDE OF NOTE]

 

5.625% Senior Secured Note due 2026

 

		1.	Principal and Interest.

 

The Co-Issuers will pay the principal of this Note
on December 6, 2026.

 

The Co-Issuers promise to pay interest and Additional
Amounts, if any, on the principal amount of this Note on each Interest Payment Date, as set forth below, at the rate of 5.625% per annum.

 

Interest and Additional Amounts, if any, will be
payable semi-annually (to the Holders of record of the Notes (or any Predecessor Notes) at the close of business on the Record Date immediately
preceding the applicable Interest Payment Date) on each Interest Payment Date, commencing December 1, 2021.

 

Interest on this Note will accrue from the most
recent date to which interest has been paid or, if no interest has been paid, from April 27, 2021.1
Interest will be computed on the basis of a 360-day year of twelve 30-day months.

 

The Co-Issuers shall pay interest and Additional
Amounts, if any, on overdue principal, and interest on overdue installments of interest, to the extent lawful, at a rate per annum equal
to the rate of interest applicable to the Notes.

 

		2.	Method of Payment.

 

The Issuer will pay interest (except defaulted
interest) on the principal amount of the Notes on each Interest Payment Date to the Persons who are Holders (as reflected in the Note
Register at the close of business on the Record Date immediately preceding the applicable Interest Payment Date), in each case, even if
the Note is cancelled on registration of transfer or registration of exchange after such Record Date; provided that, with respect
to the payment of principal, the Issuer will make payment to the Holder that surrenders this Note to any Paying Agent on or after the
Maturity Date.

 

The Issuer will pay principal (premium, if any)
and interest in U.S. dollars. The Issuer will make payments in respect of the Notes represented by the Global Notes (including principal,
premium, if any, interest and additional interest, if any) by wire transfer of immediately available funds to the accounts specified by
the Global Note Holder. The Issuer will make all payments of principal, interest and premium and additional interest, if any, with respect
to Definitive Notes by wire transfer of immediately available funds to the accounts specified by the Holders of the Definitive Notes or,
if no such account is specified, by mailing a check to each such Holder’s registered address. If a payment date is a date other
than a Business Day at a place of payment, payment may be made at that place on the next succeeding day that is a Business Day and no
interest shall accrue for the intervening period.

 

		3.	Paying Agent and Note Registrar.

 

Initially, The Bank of New York Mellon, a New
York banking corporation (the “Trustee”) will act as Paying Agent and Note Registrar. The Issuer may change any
Paying Agent or Note Registrar upon written notice thereto. The Co-Issuers, any Subsidiary or any Affiliate of any of them may act
as Paying Agent, Note Registrar or co-registrar.

 

 

 

	1	With respect to Additional Notes, this form of Note shall be adjusted to either accrue interest from the date of issuance of such Additional
Note (“settle flat”) or for interest thereunder to be deemed to have accrued since last interest payment date.

 

    -5-

     

    

 

		4.	Indenture.

 

The Co-Issuers issued the Notes under an Indenture
dated as of April 27, 2021 (the “Indenture”), among the Co-Issuers, the Guarantors and the Trustee. Capitalized terms
herein are used as defined in the Indenture unless otherwise indicated. The terms of the Notes include those stated in the Indenture.
The Notes are subject to all such terms, and Holders are referred to this Indenture for a statement of all such terms. To the extent permitted
by applicable law, in the event of any inconsistency between the terms of this Note and the terms of the Indenture, the terms of the Indenture
shall control.

 

The Notes are senior secured obligations of the
Co-Issuers. The Indenture does not limit the aggregate principal amount of the Notes.

 

		5.	Redemption.

 

Optional Redemption. At any time prior to
December 6, 2023 the Co-Issuers may on one or more occasions redeem the Notes, in whole or in part, upon not less than 15 nor more than
60 days’ prior notice delivered electronically to each Holder or mailed by first-class mail, postage prepaid, to each Holder of
the Notes to the address of such Holder appearing in the Note Register, in each case with a copy to the Trustee, at a redemption price
equal to 100% of the principal amount of Notes redeemed plus the Applicable Premium as of, and accrued and unpaid interest and
Additional Amounts, if any, to, but excluding, the Redemption Date, subject to the rights of Holders on the relevant record date to receive
interest due on the relevant interest payment date falling on or prior to the Redemption Date.

 

On and after December 6, 2023, the Co-Issuers may
on one or more occasions redeem the Notes, in whole or in part, upon not less than 15 nor more than 60 days’ prior notice delivered
electronically to each Holder or mailed by first class mail, postage prepaid, to each Holder of the Notes to the address of such Holder
appearing in the Note Register, in each case with a copy to the Trustee, at the Redemption Prices (expressed as percentages of principal
amount of the Notes to be redeemed) set forth below, plus accrued and unpaid interest thereon and Additional Amounts, if any, to,
but excluding, the applicable Redemption Date, subject to the right of Holders of record on the relevant Record Date to receive interest
due on the relevant Interest Payment Date falling on or prior to the Redemption Date, if redeemed during the twelve-month period beginning
on December 6 of each of the years indicated below:

 

	Year	 	Percentage	 
	2023	 	 	102.8125	%
	2024	 	 	101.4063	%
	2025 and thereafter	 	 	100.000	%

 

In addition, prior to December 6, 2023, the
Co-Issuers may on one or more occasions, at their option, redeem up to 40% of the aggregate principal amount of Notes issued under
the Indenture at a redemption price equal to 105.625% of the aggregate principal amount thereof, plus accrued and unpaid
interest thereon and Additional Amounts, if any, to, but excluding, the applicable Redemption Date, subject to the right of Holders
of record on the relevant record date to receive interest due on the relevant interest payment date falling on or prior to the
Redemption Date, with the net cash proceeds of one or more Equity Offerings of the Issuer or any direct or indirect parent of the
Issuer to the extent such net cash proceeds are contributed to the Issuer; provided that at least 50% of the aggregate
principal amount of Notes originally issued under the Indenture remains outstanding immediately after the occurrence of each such
redemption; provided, further, that each such redemption occurs within 180 days of the date of closing of each such
Equity Offering.

 

    -6-

     

    

 

		6.	Repurchase upon a Change of Control Triggering Event and Asset Sales.

 

Upon the occurrence of (a) a Change of Control
Triggering Event, the Holders of the Notes will have the right to require that the Co-Issuers repurchase such Holder’s outstanding
Notes, in whole or in part, at a purchase price of 101% of the principal amount thereof, plus accrued and unpaid interest and Additional
Amounts, if any, to, but excluding, the date of repurchase and (b) Asset Sales or receipt by the Co-Issuers of any Event of Loss Proceeds,
the Co-Issuers may be obligated to make offers to repurchase Notes and Pari Passu Indebtedness with a portion of the Net Proceeds of such
Asset Sales or such Event of Loss Proceeds at a redemption price of 100% of the principal amount thereof plus accrued and unpaid
interest, if any, to, but excluding, the date of repurchase. Notwithstanding any other provision of the Indenture in connection with any
tender offer, Change of Control Offer or Asset Sale Offer, if Holders of not less than 90% in aggregate principal amount of the then-outstanding
Notes validly tender and do not validly withdraw such Notes in such offer and the Co-Issuers, or any third-party making such offer in
lieu of the Co-Issuers, purchases all of the Notes validly tendered and not validly withdrawn by such Holders, the Co-Issuers or such
third-party will have the right upon not less than 15 days nor more than 60 days’ prior notice, given not more than 60 days following
such purchase date, to redeem all Notes that remain outstanding following such purchase at a price equal to the price offered to each
other Holder in such offer (which may be less than par) plus, to the extent not included in the offer payment, accrued and unpaid
interest, if any, thereon, to, but excluding, the Redemption Date, subject to the right of Holders of record on the relevant record date
to receive interest due on the relevant interest payment date falling prior to or on the Redemption Date.

 

		7.	Denominations; Transfer; Exchange.

 

The Notes are in registered form without coupons
in denominations of US$2,000 principal amount and whole multiples of US$1,000. A Holder may transfer or exchange Notes in accordance with
the Indenture. The Note Registrar may require a Holder, among other things, to furnish appropriate endorsements and transfer documents
and to pay any taxes and fees required by law or permitted by the Indenture in connection with such transfer. The Note Registrar need
not register the transfer or exchange of any Notes selected for redemption (except, in the case of a Note to be redeemed in part, the
portion of the Note not to be redeemed) or any Notes for a period of 15 days before a selection of Notes to be redeemed or 15 days before
an interest payment date.

 

		8.	Persons Deemed Owners.

 

A registered Holder may be treated as the owner
of a Note for all purposes.

 

		9.	Unclaimed Money.

 

If money for the payment of principal (premium,
if any) or interest remains unclaimed for two years, the Trustee and the Paying Agent will pay the money back to the Issuer at its written
request. After that, Holders entitled to the money must look to the Issuer for payment, unless an abandoned property law designates another
Person, and all liability of the Trustee and such Paying Agent with respect to such money shall cease.

 

    -7-

     

    

 

		10.	Discharge and Defeasance Prior to Redemption or Maturity.

 

If the Issuer irrevocably deposits, or causes to
be deposited, with the Trustee cash in U.S. dollars, or non-callable Government Securities or a combination thereof (without consideration
of any reinvestment of interest), sufficient to pay the then outstanding principal of (premium, if any) and accrued but unpaid interest
on the Notes (a) to Redemption Date or Maturity Date, the Issuer will be discharged from its obligations under the Indenture and the Notes,
except in certain circumstances for certain covenants thereof, and (b) to the Stated Maturity, the Issuer will be discharged from certain
covenants set forth in the Indenture.

 

		11.	Amendment; Supplement; Waiver.

 

Subject to certain exceptions, the Indenture, the
Notes or the Guarantees may be amended or supplemented with the consent of the Holders of at least a majority in aggregate principal amount
of the Outstanding Notes, and any existing Default or Event of Default or compliance with any provision may be waived with the consent
of the Holders of a majority in aggregate principal amount of the Outstanding Notes. Without notice to or the consent of any Holder, the
parties thereto may amend or supplement the Indenture, the Notes or the Guarantees to, among other things, cure any ambiguity, omission,
mistake, defect or inconsistency and make any change that does not adversely affect the rights of any Holder.

 

		12.	Restrictive Covenants.

 

The Indenture contains certain covenants, including
covenants with respect to the following matters: (i) Restricted Payments; (ii) Incurrence of Indebtedness; (iii) Liens; (iv) transactions
with Affiliates; (v) dividend and other payment restrictions affecting Restricted Subsidiaries; (vi) guarantees of Indebtedness by Restricted
Subsidiaries; (vii) merger and certain transfers of assets; (viii) purchase of Notes upon a Change of Control Triggering Event; and (ix)
disposition of proceeds of Asset Sales.

 

		13.	Successor Persons.

 

Subject to Section 803 of the Indenture, when a
successor Person or other entity assumes all the obligations of its predecessor under the Notes or the Guarantees and the Indenture, the
predecessor Person will be released from those obligations.

 

		14.	Remedies for Events of Default.

 

Subject to Section 502 of 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 Outstanding Notes may declare all the Notes to be immediately due and payable, by a notice in writing to the Issuer
(and to the Trustee if given by Holders); provided that no such declaration may occur with respect to any action taken, and
reported publicly or to Holders, more than two years prior to the date of such declaration. If a bankruptcy or insolvency default
with respect to the Issuer or any of its Significant Subsidiaries occurs and is continuing, the Notes automatically become
immediately due and payable. Subject to the provisions of the Indenture relating to the duties of the Trustee, in case an Event of
Default occurs and is continuing, the Trustee shall be under no obligation to exercise any rights or powers under the Indenture at
the request or direction of any of the Holders of the Notes unless such Holders have offered to the Trustee reasonable security or
indemnity against any loss, liability or expense. Subject to certain restrictions, the Holders of a majority in principal amount of
the outstanding Notes are given the right to direct the time, method and place of conducting any proceeding for any remedy available
to the Trustee or the Notes Collateral Agents or of exercising any trust or power conferred on the Trustee or the Notes Collateral
Agents. The Trustee or the Notes Collateral Agents, however, may refuse to follow any direction that conflicts with law or the
Indenture or that the Trustee or the Notes Collateral Agents determines is unduly prejudicial to the rights of any other Holder of a
Note or that would involve the Trustee or the Notes Collateral Agents, as applicable, in personal liability.

 

    -8-

     

    

 

		15.	Guarantees, Collateral.

 

The Co-Issuers’ obligations under the Notes
are fully, irrevocably and unconditionally guaranteed on an unsubordinated basis and secured by Liens on certain Collateral, in each case
to the extent set forth in the Indenture and the Security Documents, by each of the Guarantors.

 

		16.	Trustee Dealings with Co-Issuers.

 

The Trustee under the Indenture, in its individual
or any other capacity, may become the owner or pledgee of Notes and may make loans to, accept deposits from, perform services for, and
otherwise deal with, the Co-Issuers and their Affiliates as if it were not the Trustee.

 

		17.	Authentication.

 

This Note shall not be valid until the Trustee
signs the certificate of authentication on the other side of this Note.

 

		18.	Abbreviations.

 

Customary abbreviations may be used in the name
of a Holder 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).

 

		19.	CUSIP Numbers.

 

Pursuant to a recommendation promulgated by the
Committee on Uniform Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the Notes and has directed
the Trustee to use CUSIP numbers in notices of redemption as a convenience to Holders. No representation is made as to the accuracy of
such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification
numbers placed thereon.

 

		20.	Governing Law.

 

THIS SECURITY WILL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

The Co-Issuers will furnish to any Holder upon
written request and without charge a copy of the Indenture. Requests may be made to Telesat Canada, 160 Elgin Street, Suite 2100, Ottawa,
Ontario, Canada K2P 2P7, Attention: General Counsel.

 

Capitalized terms used herein but not defined herein
shall have the meanings given to such terms in the Indenture.

 

    -9-

     

    

 

ASSIGNMENT FORM

 

To assign this Note, fill in the form below:

 

I or we assign and transfer this Note to

 

 

(Print or type assignee’s
name, address and zip code)

 

 

(Insert assignee’s
soc. sec. or tax I.D. No.)

 

and irrevocably appoint                                                                                      agent to transfer this Note on the books
of the Issuer. The agent may substitute another to act for him.

 

	Date:  	 	 	Your Signature:	

	 	 	 	 	(Sign exactly as your name appears on the other side of this Note.)

 

Signature Guarantee:

 

	
	 	
    

	Signature must be guaranteed	 	Signature

 

Signatures must be guaranteed by an “eligible
guarantor institution” meeting the requirements of the Note Registrar, which requirements include membership or participation in
the Security Transfer Agent Medallion Program (“STAMP”) or such other “signature guarantee program” as
may be determined by the Note Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange
Act of 1934, as amended.

 

    -10-

     

    

  

FORM OF TRANSFER CERTIFICATE

 

In connection with any transfer of any of the Notes
evidenced by this certificate occurring prior to the expiration of the period referred to in Rule 144 under the Securities Act after the
later of the date of original issuance of such Notes and the last date, if any, on which such Notes were owned by the Issuer or any Affiliate
of the Issuer, the undersigned confirms that such Notes are being transferred in accordance with its terms:

 

CHECK ONE BOX BELOW

 

	(1)	 ̈	to the Issuer; or
	 	 	 
	(2)	 ̈	pursuant to an effective registration statement under the Securities Act of 1933; or
	 	 	 
	(3)	 ̈	inside the United States to a person reasonably believed to be a “qualified institutional buyer” (as defined in Rule 144A under the Securities Act of 1933) that purchases for its own account or for the account of a qualified institutional buyer to whom notice is given that such transfer is being made in reliance on Rule 144A, in each case pursuant to and in compliance with Rule 144A under the Securities Act of 1933; or
	 	 	 
	(4)	 ̈	in an offshore transaction in compliance with Rule 903 or Rule 904 of Regulation S under the Securities Act of 1933; or
	 	 	 
	(5)	 ̈	to an institutional “accredited investor” (as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act of 1933) that has furnished to the Trustee a signed letter containing certain representations and agreements relating to the transfer of this Note (the form of which can be obtained from the Trustee) and, if such transfer is in respect of an aggregate principal amount of notes of at least US$250,000; or
	 	 	 
	(6)	 ̈	pursuant to the exemption from registration provided by Rule 144 under the Securities Act of 1933 or any other available exemption from the registration requirement of the Securities Act of 1933.

 

Unless one of the boxes is checked, the Trustee
will refuse to register any of the Notes evidenced by this certificate in the name of any person other than the registered holder thereof;
provided, however, that if box (6) is checked, the Trustee shall be entitled to require, prior to registering any such transfer
of the Notes, such legal opinions, certifications and other information as the Issuer has reasonably requested to confirm that such transfer
is being made pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of
1933, such as the exemption provided by Rule 144 under such Act.

 

TO BE COMPLETED BY PURCHASER IF (3) ABOVE IS CHECKED.

 

The undersigned represents and warrants that it
is purchasing this Note for its own account or an account with respect to which it exercises sole investment discretion and that it and
any such account is a “qualified institutional buyer” within the meaning of Rule 144A under the Securities Act of 1933, and
is aware that the sale to it is being made in reliance on Rule 144A and acknowledges that it has received such information regarding the
Issuer as the undersigned has requested pursuant to Rule 144A or has determined not to request such information and that it is aware that
the transferor is relying upon the undersigned’s foregoing representations in order to claim the exemption from registration provided
by Rule 144A.

 

    -11-

     

    

 

	Dated:	 	 	 	 
	 	 	 	 
	 	 	Notice: To be executed by an executive officer

 

    -12-

     

    

 

FORM OF EXCHANGE CERTIFICATE

 

Telesat Canada

160 Elgin Street, Suite 2100

Ottawa, Ontario, Canada K2P 2P7

 

The Bank of New York Mellon

240 Greenwich Street, Floor 7 East,

New York, New York, 10286

Attention: Corporate Trust Division — Corporate Finance Unit

 

Re: 5.625% Senior Secured Notes
due 2026

 

Reference is hereby made to the Indenture, dated
as of April 27, 2021 (the “Indenture”), among Telesat Canada, a Canadian corporation, Telesat LLC, a Delaware limited
liability company, the guarantor parties thereto, the Bank of New York Mellon, a New York banking corporation, as trustee and the Notes
Collateral Agents party thereto. Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture.

 

___________ (the “Owner”) owns
and proposes to exchange the Note[s] or interest in such Note[s] specified herein, in the principal amount of $__________ in such Note[s]
or interests (the “Exchange”). In connection with the Exchange, the Owner hereby certifies that in connection with
the Exchange of the Owner’s [CHECK ONE] [   ] Regulation S Global Note [   ] IAI Global Note for a beneficial interest in the Rule 144A
Global Note, with an equal principal amount, the Note[s] or interest in such Note[s] specified herein [is][are] being transferred to a
Person (A) who the transferor reasonably believes to be a QIB, (B) purchasing for its own account or the account of a QIB in a transaction
meeting the requirements of Rule 144A, and (C) in accordance with all applicable securities laws of the States of the United States and
other jurisdictions.

 

This certificate and the statements contained herein
are made for your benefit and the benefit of the Issuer and are dated ______________________.

 

	 	[Insert Name of Transferor]
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

	Dated:		 	 

 

    -13-

     

    

 

[TO BE ATTACHED TO GLOBAL NOTES]

 

SCHEDULE OF INCREASES OR DECREASES IN GLOBAL NOTE

 

The following increases or decreases in this Global
Note have been made:

 

	
    Date of Exchange
	
    Amount of
    

decrease in

 Principal amount

 of this Global

 Note
	
    Amount of
    

increase in 

Principal amount

 of this Global 

Note
	
    Principal
    amount

 of this Global

 Note following 

such decrease or 

increase
	
    Signature
    of 

authorized

 signatory of

 Trustee or Notes 

Custodian

 

    -14-

     

    

 

OPTION OF HOLDER TO ELECT REPURCHASE

 

If you want to elect to have this Note repurchased
by the Issuer pursuant to Section 1017 or 1018 of the Indenture, check the box:  ̈

 

 ̈If
you want to elect to have only part of this Note repurchased by the Issuer pursuant to Section 1017 or 1018 of the Indenture, state the
amount in principal amount: US$

 

	Date:			 	Your Signature:
	

	 	 	 	(Sign exactly as your name appears on the other side of this Note.)

 

	Signature Guarantee:		 
	(Signature must be guaranteed)	 

 

Signatures must be guaranteed by an “eligible guarantor institution”
meeting the requirements of the Note Registrar, which requirements include membership or participation in the Security Transfer Agent
Medallion Program (“STAMP”) or such other “signature guarantee program” as may be determined by the Note
Registrar in addition to, or in substitution for, STAMP, all in accordance with the Securities Exchange Act of 1934, as amended.

 

    -15-

     

    

 

EXHIBIT 2

to Rule 144A / Regulation S / IAI Appendix

 

Form of

Transferee Letter of Representation

 

Telesat Canada

160 Elgin Street, Suite 2100

Ottawa, Ontario, Canada K2P 2P7

 

In care of

[            ]

[            ]

[            ]

 

Ladies and Gentlemen:

 

This certificate is delivered to request a transfer
of US$500,000,000 principal amount of the 5.625% Senior Secured Notes due 2026 (the “Notes”) of Telesat Canada, a Canadian
corporation (the “Issuer”), and Telesat LLC, a Delaware limited liability company (the “Co-Issuer”
and together with the Issuer, the “Co-Issuers”).

 

Upon transfer, the Notes would be registered in
the name of the new beneficial owner as follows:

 

	Name:	 	 

 

	Address:	 	 

 

	Taxpayer ID Number:	 	 

 

The undersigned represents and warrants to you
that:

 

We are an institutional “accredited investor”
(as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act of 1933, as amended (the “Securities
Act”)), purchasing for our own account or for the account of such an institutional “accredited investor” at least
US$250,000 principal amount of the Notes, and we are acquiring the Notes not with a view to, or for offer or sale in connection with,
any distribution in violation of the Securities Act. We have such knowledge and experience in financial and business matters as to be
capable of evaluating the merits and risks of our investment in the Notes, and we invest in or purchase securities similar to the Notes
in the normal course of our business. We, and any accounts for which we are acting, are each able to bear the economic risk of our or
its investment.

 

    

     

    

 

We understand that the Notes have not been
registered under the Securities Act and, unless so registered, may not be sold except as permitted in the following sentence. We
agree on our own behalf and on behalf of any investor account for which we are purchasing Notes to offer, sell or otherwise transfer
such Notes prior to the date that is two years after the later of the date of original issue and the last date on which the Issuer
or any affiliate of the Issuer was the owner of such Notes (or any predecessor thereto) (the “Resale Restriction
Termination Date”) only (i) to the Issuer, (ii) in the United States to a person whom the seller reasonably believes is a
qualified institutional buyer in a transaction meeting the requirements of Rule 144A, (iii) to an institutional “accredited
investor” within the meaning of Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act that is an
institutional accredited investor purchasing for its own account or for the account of an institutional accredited investor, in each
case in a minimum principal amount of the Notes of US$250,000, (iv) outside the United States in a transaction complying with the
provisions of Rule 904 under the Securities Act, (v) pursuant to an exemption from registration under the Securities Act provided by
Rule 144 (if available) or (vi) pursuant to an effective registration statement under the Securities Act, in each of cases (i)
through (vi) subject to any requirement of law that the disposition of our property or the property of such investor account or
accounts be at all times within our or their control and in compliance with any applicable state securities laws. The foregoing
restrictions on resale will not apply subsequent to the Resale Restriction Termination Date. If any resale or other transfer of the
Notes is proposed to be made pursuant to clause (iii) above prior to the Resale Restriction Termination Date, the transferor shall
deliver a letter from the transferee substantially in the form of this letter to the Co-Issuers and the Trustee, which shall
provide, among other things, that the transferee is an institutional “accredited investor” within the meaning of Rule
501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act and that it is acquiring such Notes for investment purposes and
not for distribution in violation of the Securities Act. Each purchaser acknowledges that the Co-Issuers and the Trustee reserve the
right prior to the offer, sale or other transfer prior to the Resale Restriction Termination Date of the Notes pursuant to clause
(iii), (iv) or (v) above to require the delivery of an opinion of counsel, certifications or other information satisfactory to the
Co-Issuers and the Trustee.

 

	 	TRANSFEREE:	 

 

	 	By:	 

 

    -2-

     

    

 

EXHIBIT A

 

FORM OF SUPPLEMENTAL INDENTURE

TO BE DELIVERED BY SUBSEQUENT GUARANTORS

 

SUPPLEMENTAL INDENTURE (this “Supplemental
Indenture”), dated as of [          ], 20[  ], among [          ]
(the “Guaranteeing Subsidiary”), a subsidiary of [Telesat Canada (the “Issuer”)] (or its permitted
successor), [Telesat LLC] (or its permitted successor), [a Delaware limited liability company] (the “Co-Issuer” and
together with the Issuer, the “Co-Issuers”), the Co-Issuers, THE BANK OF NEW YORK MELLON, a New York banking corporation,
as Trustee (in such capacity, the “Trustee”) and notes collateral agent (in such capacity, the “Notes Collateral
Agent”) and TMF Brasil Administração e Gestão de Ativos Ltda.
and TMF Trustee Limited (each, an “On-Shore Notes Collateral Agent”)
and those Persons who become a notes collateral agent pursuant to the terms of the First Lien Intercreditor Agreement (collectively, the
 “Notes Collateral Agents”).

 

W I T N E S E T H

 

WHEREAS, the Co-Issuers have heretofore executed
and delivered to the Trustee an indenture (the “Indenture”), dated as of April 27, 2021 providing for the issuance
of 5.625% Senior Secured Notes due 2026 (the “Notes”);

 

WHEREAS, the Indenture provides that under certain
circumstances the Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental indenture pursuant to which the Guaranteeing
Subsidiary shall unconditionally guarantee all of the Co-Issuers’ Obligations under the Notes and the Indenture on the terms and
conditions set forth herein (the “Guarantee”);

 

WHEREAS, pursuant to Section 901 of the Indenture,
the Trustee is authorized to execute and deliver this Supplemental Indenture; and

 

WHEREAS, the Co-Issuers hereby direct the Trustee
to execute and deliver this Supplemental Indenture.

 

NOW, THEREFORE, in consideration of the foregoing
and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Guaranteeing Subsidiary and the Trustee
mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows:

 

1.                  
CAPITALIZED TERMS. Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

 

2.                  
AGREEMENT TO GUARANTEE. The Guaranteeing Subsidiary hereby agrees to provide an unconditional Guarantee on the terms and subject
to the conditions set forth in the Guarantee and in the Indenture including but not limited to Article Twelve thereof.

 

3.                  
WAIVER OF BENEFIT OR ADVANTAGE. The Guaranteeing Subsidiary hereby waives and will not in any manner whatsoever claim or take the
benefit or advantage of, any rights or reimbursement, indemnity or subrogation or any other rights against the Issuer or any other Restricted
Subsidiary as a result of any payment by such Restricted Subsidiary under its Guarantee until all amount then due and payable by the Co-Issuers
with respect to the Notes shall have been paid in full.

 

    A-1

     

    

 

4.                   NO
RECOURSE AGAINST OTHERS. No past, present or future director, officer, employee, incorporator, stockholder or agent of the
Guaranteeing Subsidiary, as such, shall have any liability for any obligations of the Co-Issuers or any Guaranteeing Subsidiary
under the Notes, any Guarantees, the Indenture or this Supplemental Indenture or for any claim based on, in respect of, or by reason
of, such obligations or their creation. Each Holder of the Notes by accepting a Note waives and releases all such liability. The
waiver and release are part of the consideration for issuance of the Notes. Such waiver may not be effective to waive liabilities
under the federal securities laws and it is the view of the SEC that such a waiver is against public policy.

 

5.                  
NEW YORK LAW TO GOVERN. THIS SUPPLEMENTAL INDENTURE WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF NEW YORK.

 

6.                  
COUNTERPARTS. The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original,
but all of them together represent the same agreement.

 

7.                  
EFFECT OF HEADINGS. The Section headings herein are for convenience only and shall not affect the construction hereof.

 

8.                  
THE TRUSTEE. The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of
this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Guaranteeing
Subsidiary and the Co-Issuers.

 

    A-2

     

    

 

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

 

	Dated: ______________________, 20________	
	 	 
	 	[GUARANTEEING SUBSIDIARY]
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	TELESAT CANADA
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	TELESAT LLC
	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	THE BANK OF NEW YORK MELLON, as Trustee
	 	 
	 	By:	 
	 	 	Authorized Signatory
	 	 
	 	[The applicable Notes Collateral Agent], as a Notes Collateral Agent
	 	 
	 	By:	 
	 	 	Authorized Signatory
	 	 

    A-3

     

    

 

EXHIBIT B

 

FORM OF INCUMBENCY CERTIFICATE

 

The undersigned,           ,
being the            of           
(the “Issuer”) does hereby certify that the individuals listed below are qualified and acting officers of the Issuer
as set forth in the right column opposite their respective names and the signatures appearing in the extreme right column opposite the
name of each such officer is a true specimen of the genuine signature of such officer and such individuals have the authority to execute
documents to be delivered to, or upon the request of, The Bank of New York Mellon, as Trustee under the Indenture dated as of April 27,
2021, by and between the Issuer and The Bank of New York Mellon.

 

	Name	 	
    Title
	 	
    Signature

 

 

IN WITNESS WHEREOF, the undersigned has duly executed
and delivered this Certificate as of the ___ day of__________, 20__.

 

	 	 
	 	Name:
	 	Title:

 

    B-1

     

    

 

EXHIBIT C

 

Agreed Security Principles:
Regulatory Provisions for Security Documents

 

Appropriate modifications approved by the Notes
Collateral Agent may be made to these provisions to conform to requirements under applicable law.

 

Section 1.1Certain Regulatory Requirements.
Any provision contained herein to the contrary notwithstanding (but without limiting the generality of the provisions of Section 1.2 of
this Exhibit C), no action shall be taken hereunder by any Notes Collateral Agent or any Holder with respect to any item of Collateral
unless and until all applicable requirements (if any) of ISED under the Radiocommunication Act (Canada), as amended, the Canadian
Radio-television and Telecommunications Commission (“CRTC”) under the Telecommunications Act (Canada), as amended,
the FCC under the Communications Act of 1934, as amended, the Competition Bureau (the “Competition Bureau”)
under the Competition Act (Canada), as amended, and any other governmental authority, and the respective rules and regulations
under and of each of these laws, have been satisfied with respect to such action and there have been obtained such consents, approvals
and authorizations (if any) as may be required to be obtained from ISED, the CRTC, if applicable, the Competition Bureau, if applicable,
the FCC and any other governmental authority, in each case under the terms of any license or operating right held by the Grantors (or
any entity under the control of the Grantors).

 

Without limiting the generality of the foregoing,
the Notes Collateral Agent (on behalf of itself and the Holders) hereby agrees that (a) to the extent required by applicable law, voting
and consensual rights in the ownership interest of any Grantors (the “Pledged Interest”) will remain with the holders
of such voting and consensual rights upon and following the occurrence of an Event of Default unless and until any required prior approvals
of ISED, the CRTC, the Competition Bureau, if applicable, the FCC or any other governmental authority to the transfer of such voting and
consensual rights to the Notes Collateral Agent shall have been obtained; (b) upon the occurrence of any Event of Default and foreclosure
on the Pledged Interests pursuant to the Indenture there will be either a private or public sale of the Pledged Interests; and (c) prior
to the exercise of voting or consensual rights by the purchaser at any such sale, in each case to the extent required by applicable law,
the prior consent of ISED pursuant to the Radiocommunication Act (Canada) will be obtained, the prior consent of the CRTC under
the Telecommunications Act (Canada) will be obtained, and/or the prior consent of the FCC pursuant to 47 U.S.C. § 310(d)
will be obtained, the prior consent of the Competition Bureau under the Competition Act (Canada) will be obtained, if applicable,
as well as such licenses, approvals, authorizations and consents as may be required by the U.S. Department of State pursuant to the International
Traffic in Arms Regulations; the U.S. Department of Commerce pursuant to the Export Administration Regulations; the U.S. Department of
Defense pursuant to the National Industrial Security Program issued pursuant to Executive Order 12829; the Committee on Foreign Investment
in the United States pursuant to the Exon-Florio amendment to the Defense Production Act and implementing regulation; the U.S. Department
of Treasury pursuant to the Foreign Asset Control Regulations; and the U.S. Department of Justice, the Federal Bureau of Investigation
and the U.S. Department of Homeland Security regarding potential national security, law enforcement and public safety issues.

 

    C-1

     

    

 

It is the intention of the parties to the
Indenture that the exercise of any remedies by the Notes Collateral Agent with respect to the Collateral shall in all relevant
respects be subject to and governed by said statutes, rules and regulations, to the extent applicable, and that nothing in the
Indenture shall be construed to diminish the control exercised by the Grantor over the assets and Pledged Interests subject to said
statutes, rules and regulations except in accordance with or as may not be prohibited by the provisions of such statutory
requirements, rules and regulations. Each Grantor agrees that upon the request from time to time by the Notes Collateral Agent it
will actively pursue obtaining any governmental, regulatory or third party consents, approvals or authorizations referred to in this
Section 1.1, including, upon any request of the Notes Collateral Agent following an Event of Default, the preparation, signing and
filing with (or causing to be prepared, signed and filed with) (i) ISED, and the CRTC or the Competition Bureau, if applicable, of
any application or application for consent to the assignment of the ISED Authorizations or transfer of control required to be signed
by the Issuer or any of its Subsidiaries necessary or appropriate under ISED’s rules and regulations, or the CRTC’s or
the Competition Bureau’s rules and regulations if applicable, for approval of any sale or transfer of any of the Pledged
Interests or the assets of the Issuer or any of its Subsidiaries or any transfer of control in respect of any ISED Authorization,
(ii) the FCC of any application or application for consent to the assignment of the FCC Licenses or transfer of control required to
be signed by the Issuer or any of its Subsidiaries necessary or appropriate under the FCC’s rules and regulations for approval
of any sale or transfer of any of the Pledged Interests or the assets of the Issuer or any of its Subsidiaries or any transfer of
control in respect of any FCC License, and (iii) the U.S. Department of State pursuant to the International Traffic in Arms
Regulations; the U.S. Department of Commerce pursuant to the Export Administration Regulations; the U.S. Department of Defense
pursuant to the National Industrial Security Program issued pursuant to Executive Order 12829; the Committee on Foreign Investment
in the United States pursuant to the Exon-Florio amendment to the Defense Production Act and implementing regulation; the U.S.
Department of Treasury pursuant to the Foreign Asset Control Regulations; and the U.S. Department of Justice, the Federal Bureau of
Investigation and the U.S. Department of Homeland Security regarding potential national security, law enforcement and public safety
issue, as applicable, of any application for consent to transfer the Pledged Interests or the assets of the Issuer or any of its
Subsidiaries necessary or appropriate under such regulations.

 

Section 1.2Certain Regulatory Matters.
The creation of any Lien, and the exercise of any remedy, with respect to any ISED Authorization and any FCC License shall be consistent
with the rules and regulations administered by ISED, the CRTC, the Competition Bureau and the FCC, respectively.

 

Section 1.3Certain Definitions. Capitalized
terms in this Exhibit C have the meanings given to them in the Indenture, except as set forth below. As used herein, the following
terms have the meanings set forth below:

 

“FCC” means the Federal Communications
Commission or any governmental authority in the United States substituted therefor.

 

“Grantor” means the entity granting
liens, mortgages, pledges or security interests under the applicable Security Document.

 

“ISED” means the Department
of Innovation, Science and Economic Development Canada or any successor department of the Government of Canada substituted therefor.

 

“ISED Authorizations” means
all authorizations, orders, licenses and exemptions issued by ISED to the Issuer or any of its Subsidiaries, pursuant to authority under
the Radiocommunication Act (Canada) or the Telecommunications Act (Canada), as amended, under which the Issuer or any of
its Subsidiaries is authorized to launch and operate any of its Satellites or to operate any of its transmit only, receive only or transmit
and receive earth stations or any ancillary terrestrial communications facilities.

 

    C-2Document

EXECUTION VERSION
    
CREDIT AGREEMENT
by and among
WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Agent,
THE LENDERS THAT ARE PARTIES HERETO
as the Lenders,
FARMER BROS. CO.,
as Parent and as a Borrower, and
BOYD ASSETS CO., 
FBC FINANCE COMPANY, 
COFFEE BEAN HOLDING CO., INC.,
COFFEE BEAN INTERNATIONAL, INC., and
CHINA MIST BRANDS, INC., 
as Borrowers
Dated as of April 26, 2021
    
12441181v18 4/22/2021 7:08 PM    1989.726

TABLE OF CONTENTS
Page

						
	1.    DEFINITIONS AND CONSTRUCTION.
	1

	1.1.    Definitions
	1

	1.2.    Accounting Terms
	62

	1.3.    Code
	62

	1.4.    Construction
	62

	1.5.    Time References
	63

	1.6.    Schedules and Exhibits
	63

	1.7.    Divisions
	64

	2.    LOANS AND TERMS OF PAYMENT.
	64

	2.1.    Revolving Loans.
	64

	2.2.    [Reserved]
	65

	2.3.    Borrowing Procedures and Settlements.
	65

	2.4.    Payments; Reductions of Commitments; Prepayments.
	73

	2.5.    Promise to Pay; Promissory Notes.
	78

	2.6.    Interest Rates and Letter of Credit Fee:  Rates, Payments, and Calculations.
	78

	2.7.    Crediting Payments
	80

	2.8.    Designated Account
	80

	2.9.    Maintenance of Loan Account; Statements of Obligations
	81

	2.10.    Fees.
	81

	2.11.    Letters of Credit.
	81

	2.12.    LIBOR Option.
	91

	2.13.    Capital Requirements.
	94

	2.14.    Incremental Facilities
	96

	2.15.    Joint and Several Liability of Borrowers.
	97

	3.    CONDITIONS; TERM OF AGREEMENT.
	101

	3.1.    Conditions Precedent to the Initial Extension of Credit
	101

	3.2.    Conditions Precedent to all Extensions of Credit
	101

	3.3.    Maturity
	102

	3.4.    Effect of Maturity
	102

	3.5.    Early Termination by Borrowers
	102

	3.6.    Conditions Subsequent
	102

	4.    REPRESENTATIONS AND WARRANTIES.
	103

	4.1.    Due Organization and Qualification; Subsidiaries.
	103

	4.2.    Due Authorization; No Conflict.
	104

	4.3.    Governmental Consents
	104

	4.4.    Binding Obligations; Perfected Liens.
	104

	4.5.    Title to Assets; No Encumbrances
	105

	4.6.    Litigation.
	105

	4.7.    Compliance with Laws
	105

	4.8.    No Material Adverse Effect
	105

	4.9.    Solvency.
	106

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(continued)
Page

						
	4.10.    Employee Benefits
	106

	4.11.    Environmental Condition
	107

	4.12.    Complete Disclosure
	108

	4.13.    Patriot Act
	108

	4.14.    Indebtedness
	109

	4.15.    Payment of Taxes
	109

	4.16.    Margin Stock
	109

	4.17.    Governmental Regulation
	109

	4.18.    OFAC; Sanctions; Anti-Corruption Laws; Anti-Money Laundering Laws
	109

	4.19.    Employee and Labor Matters
	110

	4.20.    Material Contracts
	110

	4.21.    Leases
	110

	4.22.    Eligible Accounts
	111

	4.23.    Eligible Inventory
	111

	4.24.    [Reserved]
	111

	4.25.    Location of Inventory
	111

	4.26.    Inventory Records
	111

	4.27.    [Reserved]
	111

	4.28.    Other Documents
	111

	4.29.    Hedge Agreements
	111

	4.30.    Adverse Agreements, Etc.
	112

	4.31.    Permits, Etc.
	112

	4.32.    Insurance
	112

	4.33.    Customers and Suppliers
	112

	5.    AFFIRMATIVE COVENANTS.
	112

	5.1.    Financial Statements, Reports, Certificates
	112

	5.2.    Reporting
	113

	5.3.    Existence
	113

	5.4.    Maintenance of Properties and Intellectual Property
	113

	5.5.    Taxes
	113

	5.6.    Insurance.
	114

	5.7.    Inspection.
	115

	5.8.    Compliance with Laws
	115

	5.9.    Environmental
	115

	5.10.    Disclosure Updates
	116

	5.11.    Formation of Subsidiaries
	116

	5.12.    Further Assurances
	117

	5.13.    Material Contracts
	118

	5.14.    Location of Inventory; Chief Executive Office
	118

	5.15.    OFAC; Sanctions; Anti-Corruption Laws; Anti-Money Laundering Laws
	118

	5.16.    Compliance with ERISA and the IRC
	118

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(continued)
Page

						
	6.    NEGATIVE COVENANTS.
	119

	6.1.    Indebtedness
	119

	6.2.    Liens
	119

	6.3.    Restrictions on Fundamental Changes
	119

	6.4.    Disposal of Assets
	120

	6.5.    Nature of Business
	120

	6.6.    Prepayments and Amendments
	120

	6.7.    Restricted Payments
	121

	6.8.    Accounting Methods
	121

	6.9.    Investments
	121

	6.10.    Transactions with Affiliates
	121

	6.11.    Use of Proceeds
	122

	6.12.    Limitation on Issuance of Equity Interests
	123

	6.13.    Inventory with Bailees
	123

	6.14.    Employee Benefits
	123

	6.15.    Limitations on Dividends and Other Payment Restrictions Affecting Subsidiaries
	124

	6.16.    Limitations on Negative Pledges
	124

	6.17.    Investment Company Act
	125

	7.    FINANCIAL COVENANT.
	125

	8.    EVENTS OF DEFAULT.
	125

	8.1.    Payments
	125

	8.2.    Covenants
	126

	8.3.    Judgments
	126

	8.4.    Voluntary Bankruptcy, etc
	126

	8.5.    Involuntary Bankruptcy, etc
	126

	8.6.    Default Under Other Agreements
	127

	8.7.    Representations, etc
	127

	8.8.    Guaranty
	127

	8.9.    Security Documents
	127

	8.10.    Loan Documents
	127

	8.11.    Change of Control
	127

	8.12.    ERISA and Employee Benefits
	127

	8.13.    Proceedings
	128

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Page

						
	8.14.    Subordinated Indebtedness. (i) There shall occur and be continuing any "Event of Default" (or any comparable term) under and as defined in the documents evidencing or governing any Subordinated Indebtedness, (ii) any of the Obligations for any reason shall cease to be "Senior Loan Obligations" (or any comparable term) under and as defined in the documents evidencing or governing any Subordinated Indebtedness, (iii) any Indebtedness other than the Obligations and the Term Loan Debt shall constitute "Senior Loan Obligations" (or any comparable term) under and as defined in the documents evidencing or governing any Subordinated Indebtedness, (iv) any holder of Subordinated Indebtedness shall fail to perform or comply with any of the subordination provisions of the documents evidencing or governing such Subordinated Indebtedness, or (v) the subordination provisions of the documents evidencing or governing any Subordinated Indebtedness shall, in whole or in part, terminate, cease to be effective or cease to be legally valid, binding and enforceable against any holder of the applicable Subordinated Indebtedness.
	128

	9.    RIGHTS AND REMEDIES.
	128

	9.1.    Rights and Remedies
	128

	9.2.    Remedies Cumulative
	129

	10.    WAIVERS; INDEMNIFICATION.
	129

	10.1.    Demand; Protest; etc
	129

	10.2.    The Lender Group's Liability for Collateral
	129

	10.3.    Indemnification
	129

	11.    NOTICES.
	131

	12.    CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER; JUDICIAL REFERENCE PROVISION.
	132

	13.    ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS.
	133

	13.1.    Assignments and Participations.
	133

	13.2.    Successors
	137

	14.    AMENDMENTS; WAIVERS.
	138

	14.1.    Amendments and Waivers.
	138

	14.2.    Replacement of Certain Lenders.
	140

	14.3.    No Waivers; Cumulative Remedies
	141

	15.    AGENT; THE LENDER GROUP.
	141

	15.1.    Appointment and Authorization of Agent
	141

	15.2.    Delegation of Duties
	142

	15.3.    Liability of Agent
	142

	15.4.    Reliance by Agent
	143

	15.5.    Notice of Default or Event of Default
	143

	15.6.    Credit Decision
	143

	15.7.    Costs and Expenses; Indemnification
	144

	15.8.    Agent in Individual Capacity
	145

	15.9.    Successor Agent
	145

	15.10.    Lender in Individual Capacity
	146

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Page

						
	15.11.    Collateral Matters.
	146

	15.12.    Restrictions on Actions by Lenders; Sharing of Payments.
	148

	15.13.    Agency for Perfection
	149

	15.14.    Payments by Agent to the Lenders
	149

	15.15.    Concerning the Collateral and Related Loan Documents
	149

	15.16.    Field Examination Reports; Confidentiality; Disclaimers by Lenders; Other Reports and Information
	149

	15.17.    Several Obligations; No Liability
	150

	15.18.    .  Notwithstanding that certain of the Loan Documents now or hereafter may have been or will be executed only by or in favor of Agent in its capacity as such, and not by or in favor of the Lenders, any and all obligations on the part of Agent (if any) to make any credit available hereunder shall constitute the several (and not joint) obligations of the respective Lenders on a ratable basis, according to their respective Commitments, to make an amount of such credit not to exceed, in principal amount, at any one time outstanding, the amount of their respective Commitments.  Nothing contained herein shall confer upon any Lender any interest in, or subject any Lender to any liability for, or in respect of, the business, assets, profits, losses, or liabilities of any other Lender.  Each Lender shall be solely responsible for notifying its Participants of any matters relating to the Loan Documents to the extent any such notice may be required, and no Lender shall have any obligation, duty, or liability to any Participant of any other Lender.  Except as provided in Section 15.7, no member of the Lender Group shall have any liability for the acts of any other member of the Lender Group.  No Lender shall be responsible to any Borrower or any other Person for any failure by any other Lender (or Bank Product Provider) to fulfill its obligations to make credit available hereunder, nor to advance for such Lender (or Bank Product Provider) or on its behalf, nor to take any other action on behalf of such Lender (or Bank Product Provider) hereunder or in connection with the financing contemplated herein.
	150

	15.18.    Intercreditor Agreement and Subordination Agreement
	151

	15.19.    .  Each Lender hereby irrevocably appoints, designates and authorizes the Agent to enter into the Intercreditor Agreement and any subordination agreement governing Subordinated Indebtedness on its behalf and to take such action on its behalf under the provisions thereof.  Each Lender further agrees to be bound by the terms, conditions and provisions of the Intercreditor Agreement and any such subordination agreement and agrees that it shall not take any action that is prohibited by or inconsistent with the terms of the Intercreditor Agreement or any such subordination agreement.  Each Lender hereby agrees that no further consent or approval on the part of any Lender is or will be required in connection with the performance by Agent of the terms, conditions and provisions contained in the Intercreditor Agreement and any such subordination agreement.
	151

	15.19.    Erroneous Distribution
	151

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(continued)
Page

						
	15.20.    .  If all or any part of any payment or other distribution by or on behalf of Agent to any Loan Party, Lender or other Person (excluding the proceeds of the Loans made by the Lenders to the Borrowers in accordance with the terms hereof) is determined by Agent in its sole discretion to have been made in error as determined by Agent (any such payment or other distribution, an "Erroneous Distribution"), then the relevant Loan Party, Lender or other Person shall forthwith on written demand (accompanied by a reasonably detailed calculation of such Erroneous Distribution) repay to Agent the amount of such Erroneous Distribution received by such Person (provided, that, without limiting any other rights or remedies (whether at law or in equity), the Agent may not make any such demand under this Section 15.19 from any Lender with respect to any such Erroneous Distribution unless such demand is made within 30 days of the date of receipt of such Erroneous Distribution by the applicable Lender). Any determination by Agent, in its sole discretion, that all or a portion of any payment or other distribution to a Loan Party, Lender or other Person was an Erroneous Distribution shall be conclusive absent manifest error. Each Loan Party, Lender and other potential recipient of an Erroneous Distribution hereunder waives any claim of discharge for value and any other claim of entitlement to, or in respect of, any Erroneous Distribution. The parties hereto agree that an Erroneous Distribution shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by the Borrowers or any other Loan Party, except, in each case, to the extent such Erroneous Distribution is, and solely with respect to the amount of such Erroneous Distribution that is, comprised of funds received by the Agent from a Borrower or any other Loan Party for the purpose of making such Erroneous Distribution. If, notwithstanding the foregoing, the making of an Erroneous Distribution is deemed, as a matter of law or otherwise, to pay, prepay, repay, discharge or otherwise satisfy any portion of the Obligations, such portion shall be deemed reinstated upon the sending of a notice of demand by Agent pursuant to Section 15.19 above.
	151

	16.    WITHHOLDING TAXES.
	151

	16.1.    Payments
	151

	16.2.    Exemptions.
	152

	16.3.    Reductions.
	154

	16.4.    Refunds
	155

	17.    GENERAL PROVISIONS.
	155

	17.1.    Effectiveness
	155

	17.2.    Section Headings
	155

	17.3.    Interpretation
	155

	17.4.    Severability of Provisions
	155

	17.5.    Bank Product Providers
	155

	17.6.    Debtor-Creditor Relationship
	156

	17.7.    Counterparts; Electronic Execution
	156

	17.8.    Revival and Reinstatement of Obligations; Certain Waivers
	157

	17.9.    Confidentiality.
	157

	17.10.    Survival
	159

	17.11.    Patriot Act; Due Diligence
	159

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(continued)
Page

						
	17.12.    Integration
	160

	17.13.    Parent as Agent for Borrowers
	160

	17.14.    Acknowledgement and Consent to Bail-In of EEA Financial Institutions
	160

	17.15.    Acknowledgement Regarding Any Supported QFCs
	161

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EXHIBITS AND SCHEDULES
Exhibit A-1    Form of Assignment and Acceptance
Exhibit B-1    Form of Borrowing Base Certificate
Exhibit C-1    Form of Compliance Certificate
Exhibit J-1    Form of Joinder
Exhibit L-1    Form of LIBOR Notice
Exhibit P-1    Form of Perfection Certificate

Schedule A-1    Agent's Account
Schedule A-2    Authorized Persons
Schedule C-1    Commitments
Schedule C-2     Customs Brokers
Schedule D-1    Designated Account
Schedule F-1    Farmer Trademark
Schedule H-1    Houston Assets
Schedule I-1    Immaterial Marks
Schedule L-1    Existing Obligations
Schedule P-1    Permitted Investments
Schedule P-2    Permitted Liens
Schedule R-1    Real Property Collateral
Schedule S-1    Specified Real Property
Schedule 3.1    Conditions Precedent
Schedule 3.6    Conditions Subsequent
Schedule 4.1(b)    Capitalization of Borrowers
Schedule 4.1(c)    Capitalization of Borrowers' Subsidiaries
Schedule 4.1(d)    Subscriptions, Options, Warrants, Calls
Schedule 4.6(b)    Litigation
Schedule 4.10(a)    Pension Plans and Multiemployer Plans
Schedule 4.10(f)    Employee Benefits
Schedule 4.11    Environmental Matters
Schedule 4.14    Permitted Indebtedness
Schedule 4.20    Material Contracts
Schedule 4.25    Location of Inventory
Schedule 4.32    Insurance
Schedule 5.1    Financial Statements, Reports, Certificates
Schedule 5.2    Collateral Reporting
Schedule 6.5    Nature of Business
Schedule 6.15    Restrictive Agreements
-viii-

CREDIT AGREEMENT
THIS CREDIT AGREEMENT, is entered into as of April 26, 2021 by and among the lenders identified on the signature pages hereof (each of such lenders, together with its successors and permitted assigns, is referred to hereinafter as a "Lender", as that term is hereinafter further defined), WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as administrative agent for each member of the Lender Group and the Bank Product Providers (in such capacity, together with its successors and assigns in such capacity, "Agent"), FARMER BROS. CO., a Delaware corporation ("Parent"), the Subsidiaries of Parent identified on the signature pages hereof as "Borrowers", and those additional entities that hereafter become parties hereto as Borrowers in accordance with the terms hereof by executing the form of Joinder attached hereto as Exhibit J-1 (together with Parent, each, a "Borrower" and individually and collectively, jointly and severally, the "Borrowers").
The parties agree as follows:
1.DEFINITIONS AND CONSTRUCTION.
a..Definitions
.  As used in this Agreement, the following terms shall have the following definitions:
"Acceptable Appraisal" means, with respect to an appraisal of Inventory, the most recent appraisal of such property received by Agent (a) from an appraisal company satisfactory to Agent, (b) the scope and methodology (including, to the extent relevant, any sampling procedure employed by such appraisal company) of which are satisfactory to Agent, and (c) the results of which are satisfactory to Agent, in each case, in Agent's Permitted Discretion.
"Account" means an account (as that term is defined in the Code).
"Account Debtor" means any Person who is obligated on an Account, chattel paper, or a general intangible.
"Account Party" has the meaning specified therefor in Section 2.11(h) of this Agreement.
"Accounting Changes" means changes in accounting principles required by the promulgation of any rule, regulation, pronouncement or opinion by the Financial Accounting Standards Board of the American Institute of Certified Public Accountants (or successor thereto or any agency with similar functions).
"Acquired Indebtedness" means Indebtedness of a Person whose assets or Equity Interests are acquired by a Loan Party or any of its Subsidiaries in a Permitted Acquisition; provided, that such Indebtedness (a) is (i) purchase money Indebtedness, (ii) a Capital Lease with respect to Equipment, (iii) mortgage financing with respect to Real Property, or (iv) other Indebtedness with the prior written consent of Agent, (b) was in existence prior to the date of 
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such Permitted Acquisition, and (c) was not incurred in connection with, or in contemplation of, such Permitted Acquisition.
"Acquisition" means any transaction, or any series of related transactions, consummated on or after the Closing Date, by which any Loan Party or any Subsidiary (a) acquires any division or business line of any Person or all or substantially all of the assets of any Person, whether through purchase of assets, merger or otherwise or (b) purchases or otherwise acquires (whether by means of a merger, consolidation, or otherwise) all of the Equity Interests of any other Person.
"Additional Documents" has the meaning specified therefor in Section 5.12 of this Agreement.
"Administrative Borrower" has the meaning specified therefor in Section 17.13 of this Agreement.
"Administrative Questionnaire" has the meaning specified therefor in Section 13.1(a) of this Agreement.
"Affected Lender" has the meaning specified therefor in Section 2.13(b) of this Agreement.
"Affiliate" means, as applied to any Person, any other Person who controls, is controlled by, or is under common control with, such Person.  For purposes of this definition, "control" means the possession, directly or indirectly through one or more intermediaries, of the power to direct the management and policies of a Person, whether through the ownership of Equity Interests, by contract, or otherwise; provided, that for purposes of the definition of Eligible Accounts and Section 6.10 of this Agreement:  (a) if any Person owns directly or indirectly 10% or more of the Equity Interests having ordinary voting power for the election of directors or other members of the governing body of a Person or 10% or more of the partnership or other ownership interests of a Person (other than as a limited partner of such Person), then both such Persons shall be Affiliates of each other, (b) each director (or comparable manager) of a Person shall be deemed to be an Affiliate of such Person, and (c) each partnership in which a Person is a general partner shall be deemed an Affiliate of such Person.
"Agent" has the meaning specified therefor in the preamble to this Agreement.
"Agent-Related Persons" means Agent, together with its Affiliates, officers, directors, employees, attorneys, and agents.
"Agent's Account" means the Deposit Account of Agent identified on Schedule A-1 to this Agreement (or such other Deposit Account of Agent that has been designated as such, in writing, by Agent to Borrowers and the Lenders).
"Agent's Liens" means the Liens granted by each Loan Party or its Subsidiaries to Agent under the Loan Documents and securing the Obligations.
-2-

"Agreement" means this Credit Agreement, as amended, restated, amended and restated, supplemented or otherwise modified from time to time.
"Anti-Corruption Laws" means the FCPA, the U.K. Bribery Act of 2010, as amended, and all other applicable laws and regulations or ordinances concerning or relating to bribery or corruption in any jurisdiction in which any Loan Party or any of its Subsidiaries or Affiliates is located or is doing business.
"Anti-Money Laundering Laws" means the applicable laws or regulations in any jurisdiction in which any Loan Party or any of its Subsidiaries or Affiliates is located or is doing business that relates to money laundering, any predicate crime to money laundering, or any financial record keeping and reporting requirements related thereto.
"Applicable Margin" means (a) in the case of a Base Rate Loan which is a Revolving Loan, 1.25 percentage points (the "Revolving Loan Base Rate Margin"), and (b) in the case of a LIBOR Rate Loan which is a Revolving Loan, 2.25 percentage points (the "Revolving Loan LIBOR Rate Margin").
"Applicable Unused Line Fee Percentage" means, as of any date of determination, the applicable percentage set forth in the following table that corresponds to the Average Revolver Usage of Borrowers for the most recently completed month as determined by Agent in its Permitted Discretion; provided, that for the period from the Closing Date through and including May 31, 2021, the Applicable Unused Line Fee Percentage shall be set at the rate in the row styled "Level II"; provided further, that any time an Event of Default has occurred and is continuing, the Applicable Unused Line Fee Percentage shall be set at the margin in the row styled "Level II":
									
	Level	Average Revolver Usage	Applicable Unused Line Fee Percentage
	I	> 50% of the Maximum Revolver Amount	0.375 percentage points
	II	≤ 50% of the Maximum Revolver Amount	0.50 percentage points

The Applicable Unused Line Fee Percentage shall be re-determined on the first date of each month by Agent.
"Application Event" means (a) the occurrence of a failure by Borrowers to repay all of the Obligations in full on the Maturity Date, or (b) the occurrence and continuation of an Event of Default and the election by Agent or the Required Lenders to require that payments and proceeds of Collateral be applied pursuant to Section 2.4(b)(iii) of this Agreement.
"Assignee" has the meaning specified therefor in Section 13.1(a) of this Agreement.
-3-

"Assignment and Acceptance" means an Assignment and Acceptance Agreement substantially in the form of Exhibit A-1 to this Agreement, or such other form as approved by Agent.
"Authorized Person" means any one of the individuals identified as an officer of a Borrower on Schedule A-2 to this Agreement, or any other individual identified by Administrative Borrower as an authorized person and authenticated through Agent's electronic platform or portal in accordance with its procedures for such authentication.
"Availability" means, as of any date of determination, the amount that Borrowers are entitled to borrow as Revolving Loans under Section 2.1 of this Agreement (after giving effect to the then outstanding Revolver Usage).
"Available Increase Amount" means, as of any date of determination, an amount equal to the result of (a) $20,000,000, minus (b) the aggregate principal amount of Increases to the Revolver Commitments previously made pursuant to Section 2.14 of this Agreement.
"Average Revolver Usage" means, with respect to any period, the sum of the aggregate amount of Revolver Usage for each day in such period (calculated as of the end of each respective day) divided by the number of days in such period.
"Bail-In Action" means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.
"Bail-In Legislation" means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.
"Bank Product" means any one or more of the following financial products or accommodations extended to any Loan Party or any of its Subsidiaries by a Bank Product Provider:  (a) credit cards (including commercial cards (including so-called "purchase cards", "procurement cards" or "p-cards")), (b) payment card processing services, (c) debit cards, (d) stored value cards, (e) Cash Management Services, or (f) transactions under Hedge Agreements.
"Bank Product Agreements" means those agreements entered into from time to time by any Loan Party or any of its Subsidiaries with a Bank Product Provider in connection with the obtaining of any of the Bank Products.
"Bank Product Collateralization" means providing cash collateral (pursuant to documentation reasonably satisfactory to Agent) to be held by Agent for the benefit of the Bank Product Providers (other than the Hedge Providers) in an amount determined by Agent as sufficient to satisfy the reasonably estimated credit exposure, operational risk or processing risk with respect to the then existing Bank Product Obligations (other than Hedge Obligations).
-4-

"Bank Product Obligations" means (a) all obligations, liabilities, reimbursement obligations, fees, or expenses owing by each Loan Party and its Subsidiaries to any Bank Product Provider pursuant to or evidenced by a Bank Product Agreement and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, (b) all Hedge Obligations, and (c) all amounts that Agent or any Lender is obligated to pay to a Bank Product Provider as a result of Agent or such Lender purchasing participations from, or executing guarantees or indemnities or reimbursement obligations to, a Bank Product Provider with respect to the Bank Products provided by such Bank Product Provider to a Loan Party or its Subsidiaries.
"Bank Product Provider" means Wells Fargo or any of its Affiliates, including each of the foregoing in its capacity, if applicable, as a Hedge Provider.
"Bank Product Reserves" means, as of any date of determination, those reserves that Agent deems necessary or appropriate, in its Permitted Discretion, to establish (based upon the Bank Product Providers' determination of the liabilities and obligations of each Loan Party and its Subsidiaries in respect of Bank Product Obligations) in respect of Bank Products then provided or outstanding.
"Bankruptcy Code" means title 11 of the United States Code, as in effect from time to time.
"Base Rate" means the greatest of (a) the Federal Funds Rate plus 1⁄2%, (b) the LIBOR Rate (which rate shall be calculated based upon an Interest Period of one month and shall be determined on a daily basis), plus one percentage point, and (c) the rate of interest announced, from time to time, within Wells Fargo at its principal office in San Francisco as its "prime rate", with the understanding that the "prime rate" is one of Wells Fargo's base rates (not necessarily the lowest of such rates) and serves as the basis upon which effective rates of interest are calculated for those loans making reference thereto and is evidenced by the recording thereof after its announcement in such internal publications as Wells Fargo may designate (and, if any such announced rate is below zero, then the rate determined pursuant to this clause (c) shall be deemed to be zero).
"Base Rate Loan" means each portion of the Revolving Loans that bears interest at a rate determined by reference to the Base Rate.
"Base Rate Margin" means the Revolving Loan Base Rate Margin.
"Benchmark Replacement" means the sum of:  (a) the alternate benchmark rate (which may include Term SOFR) that has been selected by Agent and Administrative Borrower giving due consideration to (i) any selection or recommendation of a replacement rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a rate of interest as a replacement to the LIBOR Rate for United States dollar-denominated syndicated credit facilities and (b) the Benchmark Replacement Adjustment; provided that, if the Benchmark Replacement as so 
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determined would be less than zero, the Benchmark Replacement shall be deemed to be zero for the purposes of this Agreement.
"Benchmark Replacement Adjustment" means, with respect to any replacement of the LIBOR Rate with an Unadjusted Benchmark Replacement for each applicable Interest Period, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by Agent and Administrative Borrower giving due consideration to (i) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of the LIBOR Rate with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of the LIBOR Rate with the applicable Unadjusted Benchmark Replacement for United States dollar-denominated syndicated credit facilities at such time.
"Benchmark Replacement Conforming Changes" means, with respect to any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "Base Rate", the definition of "Interest Period", timing and frequency of determining rates and making payments of interest and other administrative matters) that Agent (in consultation with Administrative Borrower) decides in its reasonable discretion may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by Agent in a manner substantially consistent with market practice (or, if Agent decides that adoption of any portion of such market practice is not administratively feasible or if Agent determines that no market practice for the administration of the Benchmark Replacement exists, in such other manner of administration as Agent decides (in consultation with Administrative Borrower) is reasonably necessary in connection with the administration of this Agreement).
"Benchmark Replacement Date" means the earlier to occur of the following events with respect to the LIBOR Rate:
(a)in the case of clause (a) or (b) of the definition of "Benchmark Transition Event," the later of (i) the date of the public statement or publication of information referenced therein and (ii) the date on which the administrator of the LIBOR Rate permanently or indefinitely ceases to provide the LIBOR Rate; or
(b)in the case of clause (c) of the definition of "Benchmark Transition Event," the date of the public statement or publication of information referenced therein.
"Benchmark Transition Event" means the occurrence of one or more of the following events with respect to the LIBOR Rate:
(a)a public statement or publication of information by or on behalf of the administrator of the LIBOR Rate announcing that such administrator has ceased or will cease to provide the LIBOR Rate, permanently or indefinitely, provided that, at the time of such 
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statement or publication, there is no successor administrator that will continue to provide the LIBOR Rate;
(b)a public statement or publication of information by the regulatory supervisor for the administrator of the LIBOR Rate, the Federal Reserve System of the United States (or any successor), an insolvency official with jurisdiction over the administrator for the LIBOR Rate, a resolution authority with jurisdiction over the administrator for the LIBOR Rate or a court or an entity with similar insolvency or resolution authority over the administrator for the LIBOR Rate, which states that the administrator of the LIBOR Rate has ceased or will cease to provide the LIBOR Rate permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor administrator that will continue to provide the LIBOR Rate; or
(c)a public statement or publication of information by the regulatory supervisor for the administrator of the LIBOR Rate announcing that the LIBOR Rate is no longer representative.
"Benchmark Transition Start Date" means (a) in the case of a Benchmark Transition Event, the earlier of (i) the applicable Benchmark Replacement Date and (ii) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the 90th day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or publication) and (b) in the case of an Early Opt-in Election, the date specified by Agent or the Required Lenders, as applicable, by notice to Administrative Borrower, Agent (in the case of such notice by the Required Lenders) and the Lenders.
"Benchmark Unavailability Period" means, if a Benchmark Transition Event and its related Benchmark Replacement Date have occurred with respect to the LIBOR Rate and solely to the extent that the LIBOR Rate has not been replaced with a Benchmark Replacement, the period (x) beginning at the time that such Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the LIBOR Rate for all purposes hereunder in accordance with Section 2.12(d)(iii) and (y) ending at the time that a Benchmark Replacement has replaced the LIBOR Rate for all purposes hereunder pursuant to Section 2.12(d)(iii).
"Beneficial Ownership Certification" means a certification regarding beneficial ownership as required by the Beneficial Ownership Regulations.
"Beneficial Ownership Regulation" means 31 C.F.R. § 1010.230.
"BHC Act Affiliate" of a Person means an "affiliate" (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such Person.
"Board of Directors" means, as to any Person, the board of directors (or comparable managers) of such Person, or any committee thereof duly authorized to act on behalf of the board of directors (or comparable managers).
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"Board of Governors" means the Board of Governors of the Federal Reserve System of the United States (or any successor).
"Borrower" and "Borrowers" have the respective meanings specified therefor in the preamble to this Agreement.
"Borrower Materials" has the meaning specified therefor in Section 17.9(c) of this Agreement.
"Borrowing" means a borrowing consisting of Revolving Loans made on the same day by the Lenders (or Agent on behalf thereof), or by Swing Lender in the case of a Swing Loan, or by Agent in the case of an Extraordinary Advance.
"Borrowing Base" means, as of any date of determination, the result of:
(a)85% of the amount of Eligible Accounts, less the amount, if any, of the Dilution Reserve, plus
(b)the lesser of (A) the product of 80% multiplied by the value (calculated at the lower of cost or market on a basis consistent with Borrowers' historical (or, with the prior written consent of Agent, then current) accounting practices) of Eligible Raw Material Inventory, Eligible In-Transit Inventory and Eligible Finished Goods Inventory at such time, and (B) the product of 85% multiplied by the Net Recovery Percentage identified in the most recent Acceptable Appraisal of Inventory, multiplied by the value (calculated at the lower of cost or market on a basis consistent with Borrowers' historical (or, with the prior written consent of Agent, then current) accounting practices) of Eligible Raw Material Inventory, Eligible In-Transit Inventory and Eligible Finished Goods Inventory (such determination may be made as to different categories of Eligible Raw Material Inventory, Eligible In-Transit Inventory and Eligible Finished Goods Inventory based upon the Net Recovery Percentage applicable to such categories) at such time, minus
(c)the aggregate amount of Reserves, if any, established by Agent from time to time under Section 2.1(c) of this Agreement;
provided, however, that not more than $5,000,000 of the Borrowing Base shall be attributable to Eligible Finished Goods Inventory that constitutes Coffee Brewing Equipment.  
"Borrowing Base Certificate" means a certificate substantially in the form of Exhibit B-1 to this Agreement, which such form of Borrowing Base Certificate may be amended, restated, supplemented or otherwise modified from time to time (including without limitation changes to the format thereof), as approved by Agent in Agent's Permitted Discretion.
"Business Day" means any day that is not a Saturday, Sunday, or other day on which commercial banks are authorized or required to close in the state of New York, except that, if a determination of a Business Day shall relate to a LIBOR Rate Loan, the term "Business 
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Day" also shall exclude any day on which banks are closed for dealings in Dollar deposits in the London interbank market.
"Capital Expenditures" means, with respect to any Person for any period, the amount of all expenditures by such Person and its Subsidiaries during such period that are capital expenditures as determined in accordance with GAAP, whether such expenditures are paid in cash or financed, but excluding, without duplication (a) [reserved], (b) with respect to the purchase price of assets that are purchased substantially contemporaneously with the trade-in of existing assets during such period, the amount that the gross amount of such purchase price is reduced by the credit granted by the seller of such assets for the assets being traded in at such time, and (c) expenditures made during such period to consummate one or more Permitted Acquisitions.
"Capitalized Lease Obligation" means that portion of the obligations under a Capital Lease that is required to be capitalized in accordance with GAAP.
"Capital Lease" means a lease that is required to be capitalized for financial reporting purposes in accordance with GAAP, including, without limitation, any "finance lease" under GAAP. 
"Cash Equivalents" means (a) marketable direct obligations issued by, or unconditionally guaranteed by, the United States or issued by any agency thereof and backed by the full faith and credit of the United States, in each case maturing within one year from the date of acquisition thereof, (b) marketable direct obligations issued or fully guaranteed by any state of the United States or any political subdivision of any such state or any public instrumentality thereof maturing within one year from the date of acquisition thereof and, at the time of acquisition, having one of the two highest ratings obtainable from either Standard & Poor's Rating Group ("S&P") or Moody's Investors Service, Inc. ("Moody's"), (c) commercial paper maturing no more than 270 days from the date of creation thereof and, at the time of acquisition, having a rating of at least A-1 from S&P or at least P-1 from Moody's, (d) certificates of deposit, time deposits, overnight bank deposits or bankers' acceptances maturing within one year from the date of acquisition thereof issued by any bank organized under the laws of the United States or any state thereof or the District of Columbia or any United States branch of a foreign bank having at the date of acquisition thereof combined capital and surplus of not less than $1,000,000,000, (e) Deposit Accounts maintained with (i) any bank that satisfies the criteria described in clause (d) above, or (ii) any other bank organized under the laws of the United States or any state thereof so long as the full amount maintained with any such other bank is insured by the Federal Deposit Insurance Corporation, (f) repurchase obligations of any commercial bank satisfying the requirements of clause (d) of this definition or of any recognized securities dealer having combined capital and surplus of not less than $1,000,000,000, having a term of not more than seven days, with respect to securities satisfying the criteria in clauses (a) or (d) above, (g) debt securities with maturities of six months or less from the date of acquisition backed by standby letters of credit issued by any commercial bank satisfying the criteria described in clause (d) above, and (h) Investments in money market funds substantially all of whose assets are invested in the types of assets described in clauses (a) through (g) above.
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"Cash Management Services" means any cash management or related services including treasury, depository, return items, overdraft, controlled disbursement, merchant store value cards, e-payables services, electronic funds transfer, interstate depository network, automatic clearing house transfer (including the Automated Clearing House processing of electronic funds transfers through the direct Federal Reserve Fedline system) and other cash management arrangements.
"Change in Law" means the occurrence after the date of this Agreement of:  (a) the adoption or effectiveness of any law, rule, regulation, judicial ruling, judgment or treaty, (b) any change in any law, rule, regulation, judicial ruling, judgment or treaty or in the administration, interpretation, implementation or application by any Governmental Authority of any law, rule, regulation, guideline or treaty, or (c) the making or issuance by any Governmental Authority of any request, rule, guideline or directive, whether or not having the force of law; provided, that notwithstanding anything in this Agreement to the contrary, (i) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith, and (ii) all requests, rules, guidelines or directives concerning capital adequacy promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities shall, in each case, be deemed to be a "Change in Law," regardless of the date enacted, adopted or issued.
"Change of Control" means that:
(a)any Person or two or more Persons acting in concert shall have acquired beneficial ownership, directly or indirectly, of Equity Interests of Parent (or other securities convertible into such Equity Interests) representing 35% or more of the combined economic or voting power of all Equity Interests of Parent entitled (without regard to the occurrence of any contingency) to vote for the election of members of the Board of Directors of Parent,
(b)any Person or two or more Persons acting in concert shall have acquired by contract or otherwise, or shall have entered into a contract or arrangement that, upon consummation thereof, will result in its or their acquisition of the power to direct, directly or indirectly, the management or policies of Parent or control over the Equity Interests of such Person entitled to vote for members of the Board of Directors of Parent on a fully-diluted basis (and taking into account all such Equity Interests that such Person or group has the right to acquire pursuant to any option right) representing 35% or more of the combined economic or voting power of such Equity Interests,
(c)during any period of 24 consecutive months commencing on or after the Closing Date, the occurrence of a change in the composition of the Board of Directors of Parent such that a majority of the members of such Board of Directors are not Continuing Directors,
(d)Parent fails to own and control, directly or indirectly, 100% of the Equity Interests of each other Loan Party, or
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(e)the occurrence of any "Change of Control" (or any comparable term or provision) under or with respect to the Term Loan Indebtedness, or any other Indebtedness of the Parent or any of its Subsidiaries having an aggregate principal amount outstanding in excess of $5,000,000.  
"Closing Date" means the date of the making of the initial Revolving Loan (or other extension of credit) under this Agreement.
"Code" means the New York Uniform Commercial Code, as in effect from time to time.
"Coffee Brewing Equipment" means coffee brewers and grinders, cocoa and cappuccino dispensing machines and similar machines, including parts and accessories thereto, that are located at the Borrowers' customer locations or locations set forth on Schedule 4.25.  
"Collateral" means all assets and interests in assets and proceeds thereof now owned or hereafter acquired by any Loan Party or its Subsidiaries in or upon which a Lien is granted by such Person in favor of Agent or the Lenders under any of the Loan Documents.  For the avoidance of doubt, the Collateral shall exclude all assets expressly excluded from the Collateral (as defined in the Guaranty and Security Agreement) pursuant to the final paragraph of Section 3 of the Guaranty and Security Agreement.
"Collateral Access Agreement" means a landlord waiver, bailee letter, or acknowledgement agreement of any lessor, warehouseman, processor, consignee, or other Person in possession of, having a Lien upon, or having rights or interests in any Loan Party's or its Subsidiaries' books and records, Equipment, or Inventory, in each case, in form and substance reasonably satisfactory to Agent.
"Collections" means, all cash, checks, notes, instruments, and other items of payment (including insurance proceeds, cash proceeds of asset sales, rental proceeds and tax refunds).
"Commitment" means, with respect to each Lender, its Revolver Commitment, and, with respect to all Lenders, their Revolver Commitments, in each case as such Dollar amounts are set forth beside such Lender's name under the applicable heading on Schedule C-1 to this Agreement or in the Assignment and Acceptance pursuant to which such Lender became a Lender under this Agreement, as such amounts may be reduced or increased from time to time pursuant to assignments made in accordance with the provisions of Section 13.1 of this Agreement.
"Commodity Exchange Act" means the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.
"Compliance Certificate" means a certificate substantially in the form of Exhibit C-1 to this Agreement delivered by the chief financial officer or treasurer of Parent to Agent.
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"Confidential Information" has the meaning specified therefor in Section 17.9(a) of this Agreement.
"Continuing Director" means (a) any member of the Board of Directors who was a director (or comparable manager) of Parent on the Closing Date, and (b) any individual who becomes a member of the Board of Directors after the Closing Date if such individual was approved, appointed or nominated for election to the Board of Directors by a majority of the Continuing Directors.
"Contractual Obligation" means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.
"Control Agreement" means a control agreement, in form and substance reasonably satisfactory to Agent, executed and delivered by a Loan Party or one of its Subsidiaries, Agent, and the applicable securities intermediary (with respect to a Securities Account) or bank (with respect to a Deposit Account).
"Copyright Security Agreement" has the meaning specified therefor in the Guaranty and Security Agreement.
"Covenant Testing Period" means a period (a) commencing on the last day of the fiscal month of Parent most recently ended prior to a Covenant Trigger Event for which Borrowers are required to deliver to Agent monthly, quarterly or annual financial statements pursuant to Schedule 5.1 to this Agreement, and (b) continuing through and including the first day after such Covenant Trigger Event that Excess Availability has equaled or exceeded the greater of (i) 12.5% of the Line Cap or (ii) $10,000,000, in each case, for 30 consecutive days.
"Covenant Trigger Event" means if at any time Excess Availability is less than the greater of (i) 12.5% of the Line Cap and (ii) $10,000,000. 
"Covered Entity" means any of the following:
(a)a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);
(b)a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or
(c)a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).
"Covered Party" has the meaning specified therefor in Section 17.15 of this Agreement.
"Customs Brokers" shall mean the persons listed on Schedule C-2 hereto or such other person or persons as may be selected by Administrative Borrower after the date hereof and 
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after written notice by Administrative Borrower to Agent who are reasonably acceptable to Agent to handle the receipt of Inventory within the United States or to clear Inventory through the Bureau of Customs and Border Protection or other domestic or foreign export control authorities or otherwise perform port of entry services to process Inventory imported by a Borrower from outside the United States (such persons sometimes being referred to herein individually as a "Customs Broker"), provided, that, as to each such person, (a) Agent shall have received a customs broker agreement by such person in favor of Agent (in form and substance reasonably satisfactory to Agent) duly authorized, executed and delivered by such person, (b) such agreement shall be in full force and effect and (c) such person shall be in compliance in all material respects with the terms thereof.
"Default" means an event, condition, or default that, with the giving of notice, the passage of time, or both, would be an Event of Default.
"Defaulting Lender" means any Lender that (a) has failed to (i) fund all or any portion of its Loans within two Business Days of the date such Loans were required to be funded hereunder unless such Lender notifies Agent and Administrative Borrower in writing that such failure is the result of such Lender's good faith determination that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable Default or Event of Default, shall, in each case, be specifically identified in such writing) has not been satisfied, or (ii) pay to Agent, Issuing Bank, or any other Lender any other amount required to be paid by it hereunder (including in respect of its participation in Letters of Credit) within two Business Days of the date when due, (b) has notified any Borrower, Agent or Issuing Bank in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect (unless such writing or public statement relates to such Lender's obligation to fund a Loan hereunder and states that such position is based on such Lender's good faith determination that a condition precedent to funding (which condition precedent, together with any applicable Default or Event of Default, shall, in each case, be specifically identified in such writing or public statement) cannot be satisfied), (c) has failed, within three Business Days after written request by Agent or Administrative Borrower, to confirm in writing to Agent and Administrative Borrower that it will comply with its prospective funding obligations hereunder (provided, that such Lender shall cease to be a Defaulting Lender pursuant to this clause (c) upon receipt of such written confirmation by Agent and Administrative Borrower), or (d) has, or has a direct or indirect parent company that has, (i) become the subject of any Insolvency Proceeding, (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity, or (iii) become the subject of a Bail-in Action; provided, that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender.  Any determination by Agent that a Lender is a Defaulting Lender under 
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any one or more of clauses (a) through (d) above shall be conclusive and binding absent manifest error, and such Lender shall be deemed to be a Defaulting Lender upon delivery of written notice of such determination to Administrative Borrower, Issuing Bank, and each Lender.
"Defaulting Lender Rate" means (a) for the first three days from and after the date the relevant payment is due, the Base Rate, and (b) thereafter, the interest rate then applicable to Revolving Loans that are Base Rate Loans (inclusive of the Base Rate Margin applicable thereto).
"Default Right" has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.
"Deposit Account" means any deposit account (as that term is defined in the Code).
"Designated Account" means the Deposit Account of Administrative Borrower identified on Schedule D-1 to this Agreement (or such other Deposit Account of Administrative Borrower located at Designated Account Bank that has been designated as such, in writing, by Borrowers to Agent).
"Designated Account Bank" has the meaning specified therefor in Schedule D-1 to this Agreement (or such other bank that is located within the United States that has been designated as such, in writing, by Borrowers to Agent).
"Dilution" means, as of any date of determination, a percentage, based upon the experience of the immediately prior twelve months, that is the result of dividing the Dollar amount of (a) bad debt write-downs, discounts, advertising allowances, credits, or other dilutive items with respect to Borrowers' Accounts during such period, by (b) Borrowers' billings with respect to Accounts during such period.
"Dilution Reserve" means, as of any date of determination, an amount sufficient to reduce the advance rate against Eligible Accounts by the extent to which Dilution is in excess of 5%; provided that any Dilution Reserve established by Agent shall not be duplicative of any other reserve established and currently maintained by Agent in accordance with this Agreement, or any eligibility criteria set forth in the definition of Eligible Accounts.
"Disposition" means any transaction, or series of related transactions, pursuant to which any Person or any of its Subsidiaries sells, assigns, transfers, leases, licenses (as licensor) or otherwise disposes of any property or assets (whether now owned or hereafter acquired) to any other Person, in each case, whether or not the consideration therefor consists of cash, securities or other assets owned by the acquiring Person. For purposes of clarification, "Disposition" shall include (a) the sale or other disposition for value of any contracts and (b) any disposition of property through a "plan of division" under the Delaware Limited Liability Company Act or any comparable transaction under any similar law .
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"Disqualified Equity Interests" means any Equity Interests that, by their terms (or by the terms of any security or other Equity Interests into which they are convertible or for which they are exchangeable), or upon the happening of any event or condition (a) matures or are mandatorily redeemable (other than solely for Qualified Equity Interests), pursuant to a sinking fund obligation or otherwise (except as a result of a change of control or asset sale so long as any rights of the holders thereof upon the occurrence of a change of control or asset sale event shall be subject to the prior repayment in full of the Loans and all other Obligations that are accrued and payable and the termination of the Commitments), (b) are redeemable at the option of the holder thereof (other than solely for Qualified Equity Interests), in whole or in part, (c) provide for the scheduled payments of dividends in cash, or (d) are or become convertible into or exchangeable for Indebtedness or any other Equity Interests that would constitute Disqualified Equity Interests, in each case, prior to the date that is 180 days after the Maturity Date.
"Dollars" or "$" means United States dollars.
"Drawing Document" means any Letter of Credit or other document presented for purposes of drawing under any Letter of Credit, including by electronic transmission such as SWIFT, electronic mail, facsimile or computer generated communication.
"Early Opt-in Election" means the occurrence of:
(a)(i) a determination by Agent or (ii) a notification by the Required Lenders to Agent (with a copy to Administrative Borrower) that the Required Lenders have determined that United States dollar-denominated syndicated credit facilities being executed at such time, or that include language similar to that contained in Section 2.12(d)(iii) are being executed or amended, as applicable, to incorporate or adopt a new benchmark interest rate to replace the LIBOR Rate, and
(b)(i) the election by Agent or (ii) the election by the Required Lenders to declare that an Early Opt-in Election has occurred and the provision, as applicable, by Agent of written notice of such election to Administrative Borrower and the Lenders or by the Required Lenders of written notice of such election to Agent.
"Earn-Outs" means unsecured liabilities of a Loan Party arising under an agreement to make any deferred payment as a part of the Purchase Price for a Permitted Acquisition, including performance bonuses or consulting payments in any related services, employment or similar agreement, in an amount that is subject to or contingent upon the revenues, income, cash flow or profits (or the like) of the target of such Permitted Acquisition.
"EBITDA" means, with respect to any fiscal period and with respect to Parent determined, in each case, on a consolidated basis in accordance with GAAP:
(a)the consolidated net income (or loss),
minus
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(b)without duplication, the sum of the following amounts for such period to the extent included in determining consolidated net income (or loss) for such period:
(i)    (A) any unusual or non-recurring non-cash gains, and (B) any unusual or non-recurring cash gains, 
(ii)    interest income,
(iii)    the amount of any non-controlling interest income consisting of gains attributed to non-controlling interests of third parties in any non-wholly owned Subsidiaries of Parent to the extent included in consolidated net income (or loss) and not received in cash by Parent,
(iv)    the amount of net income of any Subsidiary of Parent that is, on the last day of such period, subject to any restriction or limitation on the payment of dividends or the making of other distributions, to the extent of such restriction or limitation,
(v)    unrealized gains in respect of obligations under hedging transactions, and gains resulting from currency translation or transaction gains related to currency re-measurements of Indebtedness, and all other foreign currency translation or transaction gains,
(vi)    any tax credit based on income, profits or capital,
(vii)    gains on sales of fixed assets or discontinued or disposed of operations, and
(viii)    income arising by reason of the application of FAS 141R, ASC 805, or any applicable successor to either of the foregoing,
plus
(c)without duplication, the sum of the following amounts for such period to the extent deducted in determining consolidated net income (or loss) for such period:
(i)    any unusual or non-recurring non-cash losses or non-cash expenses,
(ii)    Interest Expense,
(iii)    tax expense based on income, profits or capital, including federal, foreign, state, franchise and similar taxes (and for the avoidance of doubt, specifically excluding any sales taxes or any other taxes held in trust for a Governmental Authority),
(iv)    depreciation and amortization,
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(v)    with respect to any Permitted Acquisition after the Closing Date, costs, fees, charges, or expenses consisting of out-of-pocket expenses owed by the Loan Parties or any of their Subsidiaries to any Person for services performed by such Person in connection with such Permitted Acquisition incurred within 180 days of the consummation of such Permitted Acquisition, (i) up to an aggregate amount (for all such items in this clause (v)) for such Permitted Acquisition not to exceed $1,000,000, and (ii) in any amount to the extent such costs, fees, charges, or expenses in this clause (v) are paid with proceeds of new equity investments in exchange for Qualified Equity Interests of Parent contemporaneously made that does not constitute a Change of Control,
(vi)    with respect to any Permitted Acquisitions after the Closing Date: (1) non-cash purchase accounting adjustments, including a dollar for dollar adjustment for that portion of revenue that would have been recorded in the relevant period had the balance of deferred revenue (unearned income) recorded on the closing balance sheet and before application of purchase accounting not been adjusted downward to fair value to be recorded on the opening balance sheet in accordance with GAAP purchase accounting rules; and (2) non-cash adjustments in accordance with GAAP purchase accounting rules under FASB Statement No. 141 and EITF Issue No. 01-3 or any applicable successor or successors thereto, in the event that such an adjustment is required by Parent's independent auditors, in each case, as determined in accordance with GAAP,
(vii)    fees, costs, charges and expenses, in respect of Earn-Outs incurred in connection with any Permitted Acquisition to the extent permitted to be incurred under this Agreement that are required by the application of FAS 141R to be and are expensed by the Loan Parties and their Subsidiaries,
(viii)    non-cash compensation expense (including deferred non-cash compensation expense), or other non-cash expenses or charges, arising from the sale or issuance of Equity Interests, the granting of stock options, and the granting of stock appreciation rights and similar arrangements (including any repricing, amendment, modification, substitution, or change of any such Equity Interests, stock option, stock appreciation rights, or similar arrangements),
(ix)    the amount of any non-controlling interest expense consisting of losses attributed to non-controlling interests of third parties in any non-wholly owned Subsidiaries of Parent,
(x)    expenses, charges and fees (including expenses, charges and fees paid to Agent and Lenders) incurred during such period and after the Closing Date in connection with the administration (including in connection with any waiver, amendment, supplementation or other modification thereto of the Loan Documents or the Term Loan Documents) of the Loan Documents and the Term Loan Documents,
(xi)    documented expenses, charges and fees related to an investment or incurrence of Indebtedness permitted by this Agreement (whether or not consummated or incurred, and including any non-consummated sale of Equity Interests to the extent the proceeds 
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thereof were intended to be contributed to the equity of Parent) in an aggregate amount not to exceed $500,000 for such period,
(xii)    costs and expenses incurred (A) to the extent covered by indemnification or reimbursement provisions in any agreement with a Person in connection with any Permitted Acquisition, or (B) to the extent indemnified or reimbursed by a Person that is not an Affiliate of the Loan Parties, and in each case, solely to the extent such indemnification or reimbursement did not increase consolidated net income for such period and such costs and expenses are actually reimbursed in cash by such Persons,
(xiii)    non-cash, unrealized losses in respect of obligations under hedging transactions, and non-cash losses resulting from currency translation or non-cash transaction losses related to currency re-measurements of Indebtedness, and all other non-cash foreign currency translation or transaction losses,
(xiv)    non-cash losses on sales of fixed assets or discontinued or disposed of operations or write-downs of fixed or intangible assets (excluding write-downs of Accounts or Inventory) (provided, that to the extent any non-cash item added back to EBITDA in any period results in a cash payment in such period or a subsequent period such cash payment shall result in a reduction of EBITDA in the period when such payment is made), 
(xv)    unusual or non-recurring cash charges, expenses or losses related to strategic initiatives, integration costs, opening, pre-opening, closing and transition costs for facilities and distribution centers, signing costs, retention or completion bonuses, systems establishment costs, curtailments or modifications to pension and retirement benefit plans and contract termination costs, in an aggregate amount not to exceed $5,000,000 for such period,
(xvi)    non-cash pension costs, net of non-cash gains, associated with the Farmer Bros. Co. Hourly Employees’ Pension Plan and Farmer Bros. Co. Pension Plan, and
(xvii)    other one-time, non-recurring or unusual expenses not otherwise added back to EBITDA, including restructuring expenses, severance expenses, relocation expenses, acquisition costs, integration costs, expenses, charges or losses relating to discontinued facilities, or signing, retention or completeness bonuses (collectively, "Cost Savings") projected by Borrowers in good faith to be realized as a result of any merger, acquisition, joint venture, material disposition taken or to be taken by the Borrowers or any of their Subsidiaries and permitted hereunder during such period (calculated on a pro forma basis as though such Cost-Savings had been realized on the first day of such period), net of the amount of actual benefits realized during such period from such actions; provided, that that in order to be added back pursuant to this clause (xvii), all such expenses and costs shall (A) be based upon actions that have been taken, (B) be reasonably identifiable, factually supportable, reasonably attributable to the actions specified and reasonably anticipated to result from such actions, (C) be incurred within 12 months of such actions and the benefits resulting from such actions are reasonably anticipated by the Borrowers to be realized within twelve (12) months of the date of consummation of such merger, acquisition, joint venture or material disposition, (D) not be duplicative of any expenses or charges that are either excluded in computing consolidated net 
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income (or loss) or included (i.e., added back) in computing EBITDA for such period, and (E) the aggregate amount of Cost-Savings added pursuant to this clause (xvii) shall not exceed 15% of EBITDA for such period (calculated prior to giving effect to this clause (xvii));
provided, that, the aggregate amount added back pursuant to clause (xv) and (xvii) in the 12 month period ending (x) on or prior to June 30, 2022 shall not exceed 20% of EBITDA for such period (calculated prior to giving effect to clauses (xv) and (xvii)), (y) after June 30, 2022 but on or prior to September 30, 2022 shall not exceed 17.5% of EBITDA for such period (calculated prior to giving effect to clauses (xv) and (xvii)) and (z) after September 30, 2022 shall not exceed 15.0% of EBITDA for such period (calculated prior to giving effect to clauses (xv) and (xvii)).
For the purposes of calculating EBITDA for any period of twelve consecutive months (each, a "Reference Period"), if at any time during such Reference Period (and on or after the Closing Date), any Loan Party or any of its Subsidiaries shall have made a Permitted Acquisition, EBITDA for such Reference Period shall be calculated after giving pro forma effect thereto (including pro forma adjustments arising out of events which are directly attributable to such Permitted Acquisition, are factually supportable, and are expected to have a continuing impact, in each case determined on a basis consistent with Article 11 of Regulation SX promulgated under the Securities Act and as interpreted by the staff of the SEC) or in such other manner acceptable to Agent as if any such Permitted Acquisition or adjustment occurred on the first day of such Reference Period.
"EEA Financial Institution" means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority, (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition, or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.
"EEA Member Country" means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.
"EEA Resolution Authority" means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.
"Eligible Accounts" means those Accounts created by a Borrower in the ordinary course of its business, that arise out of such Borrower's sale of goods or rendition of services, that comply in all material respects with each of the representations and warranties respecting Eligible Accounts made in the Loan Documents, and that are not excluded as ineligible by virtue of one or more of the excluding criteria set forth below; provided, that such criteria may be revised from time to time by Agent in Agent's Permitted Discretion to address the results of any information with respect to the Borrowers' business or assets of which Agent becomes aware after the Closing Date, including any field examination performed by (or on behalf of) Agent from time to time after the Closing Date.  In determining the amount to be included, Eligible Accounts shall be calculated net of customer deposits, unapplied cash and service charges, and 
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net of discounts, credits, allowances, and rebates, calculated using methodologies that are consistent with the field examination and applied by Agent in its Permitted Discretion.  Eligible Accounts shall not include the following:
(a)Accounts that the Account Debtor has failed to pay (i) within 150 days of original invoice date or 90 days of due date, solely in the case of Account Debtors classified as direct-ship customers (i.e., goods are direct shipped to customers), and (ii) within 90 days of original invoice date or 60 days of due date, in the case of Account Debtors classified as route business customers (i.e., goods are delivered via route trucks), and any other Account Debtors who are not described by the foregoing clause (a)(i),
(b)Accounts owed by an Account Debtor (or its Affiliates) where 50% or more of all Accounts owed by that Account Debtor (or its Affiliates) are deemed ineligible under clause (a) above,
(c)Accounts with payment terms of more than 90 days,
(d)Accounts with respect to which the Account Debtor is an Affiliate of any Borrower or an employee or agent of any Borrower or any Affiliate of any Borrower,
(e)Accounts (i) arising in a transaction wherein goods are placed on consignment or are sold pursuant to a guaranteed sale, a sale or return, a sale on approval, a bill and hold, or any other terms by reason of which the payment by the Account Debtor may be conditional, or (ii) with respect to which the payment terms are "C.O.D.", cash on delivery or other similar terms,
(f)Accounts that are not payable in Dollars or Canadian dollars,
(g)Accounts with respect to which the Account Debtor either (i) does not maintain its chief executive office in the United States or Canada, or (ii) is not organized under the laws of the United States or Canada or any state or province thereof, or (iii) is the government of any foreign country or sovereign state, or of any state, province, municipality, or other political subdivision thereof, or of any department, agency, public corporation, or other instrumentality thereof, unless (A) the Account is supported by an irrevocable letter of credit satisfactory to Agent in its Permitted Discretion (as to form, substance, and issuer or domestic confirming bank) that has been delivered to Agent and, if requested by Agent, is directly drawable by Agent, or (B) the Account is covered by credit insurance in form, substance, and amount, and by an insurer, satisfactory to Agent in its Permitted Discretion,
(h)Accounts with respect to which the Account Debtor is either (i) the United States or any department, agency, or instrumentality of the United States (exclusive, however, of Accounts with respect to which Borrowers have complied, to the satisfaction of Agent in its Permitted Discretion, with the Assignment of Claims Act, 31 USC §3727), or (ii) any state of the United States or any other Governmental Authority,
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(i)Accounts with respect to which the Account Debtor is a creditor of a Borrower, has or has asserted a right of recoupment or setoff, or has disputed its obligation to pay all or any portion of the Account, to the extent of such claim, right of recoupment or setoff, or dispute,
(j)Accounts with respect to an Account Debtor whose Eligible Accounts owing to Borrowers exceed 15%, or solely with respect to (i) Target Corporation and its Affiliates, taken as whole, (ii) Sturm Foods, Inc. and its Affiliates, taken as a whole, (iii) McDonalds Corporation and its Affiliates, taken as a whole, (iv) Winco Foods, Inc. and its Affiliates, taken as a whole, (v) Amazon.com, Inc. and its Affiliates, taken as a whole, (vi) Sheetz, Inc. and its Affiliates, taken as a whole, (vii) Dunkin Donuts and its Affiliates, taken as a whole, (viii) SuperValu, Inc. and its Affiliates, taken as a whole, (ix) Aramark Corporation and its Affiliates, taken as a whole, (x) Nordstrom, Inc. and its Affiliates, taken as a whole, and (xi) Core-Mark Holding Company, Inc. and its Affiliates, taken as a whole, exceed 25% (such applicable percentage, as applied to a particular Account Debtor, being subject to reduction by Agent in its Permitted Discretion if the creditworthiness of such Account Debtor deteriorates) of all Eligible Accounts, to the extent of the obligations owing by such Account Debtor in excess of such percentage; provided, that in each case, the amount of Eligible Accounts that are excluded because they exceed the foregoing percentage shall be determined by Agent in its Permitted Discretion based on all of the otherwise Eligible Accounts prior to giving effect to any eliminations based upon the foregoing concentration limit,
(k)Accounts with respect to which the Account Debtor is subject to an Insolvency Proceeding (other than post-petition accounts payable of an Account Debtor that is a debtor-in-possession in an Insolvency Proceeding and reasonably acceptable to the Agent), is not Solvent, has gone out of business, or as to which any Borrower has received notice of an imminent Insolvency Proceeding or a material impairment of the financial condition of such Account Debtor,
(l)Accounts, the collection of which, Agent, in its Permitted Discretion, believes to be doubtful, including by reason of the Account Debtor's financial condition,
(m)Accounts that are not subject to a valid and perfected first priority Agent's Lien,
(n)Accounts with respect to which (i) the goods giving rise to such Account have not been shipped and billed to the Account Debtor, or (ii) the services giving rise to such Account have not been performed and billed to the Account Debtor,
(o)Accounts with respect to which the Account Debtor is a Sanctioned Person or Sanctioned Entity,
(p)Accounts (i) that represent the right to receive progress payments or other advance billings that are due prior to the completion of performance by the applicable Borrower of the subject contract for goods or services, or (ii) that represent credit card sales, or
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(q)Accounts owned by a target acquired in connection with a Permitted Acquisition or Permitted Investment, or Accounts owned by a Person that is joined to this Agreement as a Borrower pursuant to the provisions of this Agreement, until the completion of a field examination with respect to such Accounts, in each case, satisfactory to Agent in its Permitted Discretion.
"Eligible Finished Goods Inventory" means Inventory that qualifies as Eligible Inventory and consists of first quality finished goods (a) that are held for sale in the ordinary course of Borrowers' business or (b) constitute Coffee Brewing Equipment.
"Eligible In-Transit Inventory" means those items of Inventory that do not qualify as Eligible Inventory solely because they are not in a location set forth on Schedule 4.25 to this Agreement (as such Schedule 4.25 may be amended from time to time in accordance with Section 5.14), in transit among such locations or in transit to a customer location (including via route truck) and a Borrower does not have actual and exclusive possession thereof, but as to which,
(a)such Inventory currently is in transit (whether by vessel, air, or land) from a location in the continental United States or Canada or, if approved by Agent in writing, any other location outside of the continental United States or Canada, to a location set forth on Schedule 4.25 to this Agreement (as such Schedule 4.25 may be amended from time to time in accordance with Section 5.14),
(b)title to such Inventory has passed to a Borrower and Agent shall have received such evidence thereof as it may from time to time require,
(c)such Inventory is insured against types of loss, damage, hazards, and risks, and in amounts, satisfactory to Agent in its Permitted Discretion, and, if applicable, Agent shall have received a copy of the certificate of marine cargo insurance in connection therewith in which it has been named as an additional insured and loss payee in a manner acceptable to Agent,
(d)unless Agent otherwise agrees in writing, such Inventory either:
(i)    is the subject of a (1) negotiable bill of lading governed by the laws of a state within the United States (x) that is consigned to Agent or one of its Customs Brokers (either directly or by means of endorsements), (y) that was issued by the carrier (including a non-vessel operating common carrier) in possession of the Inventory that is subject to such bill of lading, and (z) that either is in the possession of Agent or a Customs Broker (in each case in the continental United States), or (2) non-negotiable bill of lading governed by the laws of a state within the United States and either (x) Agent has received a written agreement by the seller of such Inventory, in form and substance reasonably satisfactory to Agent, that waives all rights of stoppage, diversion or similar rights of the seller to such Inventory, or (y) the bill of lading provides that the seller does not have any right of stoppage, diversion or similar rights with respect to such Inventory,
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(ii)    is the subject of a (1) negotiable forwarder's cargo receipt governed by the laws of a state within the United States and is not the subject of a bill of lading (other than a negotiable bill of lading consigned to, and in the possession of, a consolidator or Agent, or their respective agents) and such negotiable cargo receipt on its face indicates the name of the Customs Broker as a carrier or multimodal transport operator and has been signed or otherwise authenticated by it in such capacity or as a named agent for or on behalf of the carrier or multimodal transport operator, in any case respecting such Inventory (x) consigned to Agent or one of its Customs Brokers that is handling the importing, shipping and delivery of such Inventory (either directly or by means of endorsements), (y) that was issued by a consolidator respecting the subject Inventory, and (z) that is in the possession of Agent or a Customs Broker (in each case in the continental United States), or (2) a non-negotiable forwarder's cargo receipt governed by the laws of a state within the United States and either (x) Agent has received a written agreement by the seller of such Inventory, in form and substance reasonably satisfactory to Agent, that waives all rights of stoppage, diversion or similar rights of the seller to such Inventory, or (y) the forwarder's cargo receipt provides that the seller does not have any right of stoppage, diversion or similar rights with respect to such Inventory; 
(e)such Inventory is in the possession of a common carrier (including on behalf of any non-vessel operating common carrier) that has issued the bill of lading or other document of title with respect thereto or the Customs Broker handling the importing, shipping and delivery of such Inventory;
(f)the documents of title related thereto are subject to the valid and perfected first priority Lien of Agent;
(g)Agent reasonably determines that such Inventory is not subject to (i) any Person's right of reclamation, repudiation, stoppage in transit or diversion or (ii) any other right or claim of any other Person which is (or is capable of being) senior to, or pari passu with, the Lien of Agent or Agent reasonably determines that any Person's right or claim impairs, or interferes with, in each case in any material respect, directly or indirectly, the ability of Agent to realize on, or reduces in any material respect the amount that Agent may realize from the sale or other disposition of such Inventory;
(h)Administrative Borrower has provided (i) a certificate to Agent that certifies that, to the best knowledge of such Borrower, such Inventory meets all of Borrowers' representations and warranties contained in the Loan Documents concerning Eligible In-Transit Inventory in all material respects, that it knows of no reason why such Inventory would not be accepted by such Borrower when it arrives in the continental United States and that the shipment as evidenced by the documents conforms to the related order documents, and (ii) upon Agent's request, a copy of the invoice, packing slip and manifest with respect thereto,
(i)such Inventory is subject to a Letter of Credit, or
(j)such Inventory shall not have been in transit for more than thirty (30) days.
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"Eligible Inventory" means Inventory of a Borrower, that complies in all material respects with each of the representations and warranties respecting Eligible Inventory made in the Loan Documents, and that is not excluded as ineligible by virtue of one or more of the excluding criteria set forth below; provided, that such criteria may be revised from time to time by Agent in Agent's Permitted Discretion to address the results of any information with respect to the Borrowers' business or assets of which Agent becomes aware after the Closing Date, including any field examination or appraisal performed or received by Agent from time to time after the Closing Date.  In determining the amount to be so included, Inventory shall be valued at the lower of cost or market on a basis consistent with Borrowers' historical accounting practices.  An item of Inventory shall not be included in Eligible Inventory if:
(a)a Borrower does not have good, valid, and marketable title thereto,
(b)a Borrower does not have actual and exclusive possession thereof (either directly or through a bailee or agent of a Borrower),
(c)it is not located at one of the locations in the continental United States set forth on Schedule 4.25 to this Agreement (as such Schedule 4.25 may be amended from time to time in accordance with Section 5.14) (or in-transit from one such location to another such location or from one such location to a customer location, in either case in accordance with the parenthetical set forth in clause (e) below),
(d)except with respect to Inventory in-transit in accordance with the parenthetical set forth in clause (e) below, it is stored at locations holding less than $75,000 of the aggregate value of such Borrower's Inventory,
(e)it is in-transit to or from a location of a Borrower (other than (i) in-transit from one location set forth on Schedule 4.25 to this Agreement to another location set forth on Schedule 4.25 to this Agreement, or (ii) located on a motor vehicle owned by a Loan Party and in-transit from one location set forth on Schedule 4.25 to this Agreement to a customer location) (in each case of this clause (e), as such Schedule 4.25 may be amended from time to time in accordance with Section 5.14),
(f)following the Required Access Agreement Deadline, it is located on real property leased by a Borrower or in a contract warehouse or with a bailee, in each case, which is a Required Access Agreement Location, unless either (i) it is subject to a Collateral Access Agreement executed by the lessor or warehouseman, as the case may be, and it is segregated or otherwise separately identifiable from goods of others, if any, stored on the premises, or (ii) Agent has established a Landlord Reserve with respect to such location,
(g)it is the subject of a bill of lading or other document of title,
(h)it is not subject to a valid and perfected first priority Agent's Lien,
(i)it consists of goods returned or rejected by a Borrower's customers; provided, that this clause (i) shall not exclude any Coffee Brewing Equipment,
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(j)it consists of goods that are obsolete, slow moving, spoiled or are otherwise past the stated expiration, "sell-by" or "use by" date applicable thereto, work-in-process, packaging and shipping materials, supplies used or consumed in Borrowers' business, bill and hold goods, defective goods, "seconds," or Inventory acquired on consignment,
(k)it is subject to third party intellectual property, licensing or other proprietary rights, unless Agent is satisfied that such Inventory can be freely sold by Agent on and after the occurrence of an Event of a Default despite such third party rights, or
(l)it was acquired in connection with a Permitted Acquisition or Permitted Investment, or such Inventory is owned by a Person that is joined to this Agreement as a Borrower pursuant to the provisions of this Agreement, until the completion of an Acceptable Appraisal of such Inventory and the completion of a field examination with respect to such Inventory that is satisfactory to Agent in its Permitted Discretion.
"Eligible Raw Material Inventory" means Inventory that qualifies as Eligible Inventory and consists of goods that are first quality raw materials and that are not located in open containers.
"Employee Benefit Plan" means any employee benefit plan within the meaning of Section 3(3) of ERISA, whether or not subject to ERISA, (a) that is or within the preceding six (6) years has been sponsored, maintained or contributed to by, or required to be contributed to by, any Loan Party or ERISA Affiliate or (b) to which any Loan Party or ERISA Affiliate has, or has had at any time within the preceding six (6) years, any liability, contingent or otherwise. 
"Environmental Action" means any written complaint, summons, citation, notice, directive, order, claim, litigation, investigation, judicial or administrative proceeding, judgment, letter or other written communication from any Governmental Authority, or any third party involving violations of, or non-compliances with,  Environmental Laws or permits issued under Environmental Laws, or releases of Hazardous Materials (a) from any assets, properties, or businesses of any Borrower, any Subsidiary of any Borrower, or any of their predecessors in interest, (b) from adjoining properties or businesses, or (c) from or onto any facilities which received Hazardous Materials generated by any Borrower, any Subsidiary of any Borrower, or any of their predecessors in interest.
"Environmental Law" means any applicable federal, state, provincial, foreign or local statute, law, rule, regulation, ordinance, code, binding and enforceable guideline of any Governmental Authority, binding and enforceable written policy of any Governmental Authority, or rule of common law now or hereafter in effect and enforceable in the applicable jurisdiction, and in each case as amended, or any judicial or administrative interpretation thereof, including any judicial or administrative order, consent decree or judgment, in each case, to the extent binding on any Loan Party or its Subsidiaries, relating to the environment, the effect of the environment on employee health, or Hazardous Materials, in each case as amended from time to time.
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"Environmental Liabilities" means all actual liabilities, monetary obligations, losses, damages, costs and expenses (including all reasonable, documented and out-of-pocket fees, disbursements and expenses of counsel, experts, or consultants, and reasonable, documented and out-of-pocket costs of investigation and feasibility studies), fines, penalties, sanctions, and interest incurred as a result of any claim or demand, or Remedial Action required, by any Governmental Authority or Environmental Law, and which relate to any Environmental Action.
"Environmental Lien" means any Lien in favor of any Governmental Authority for Environmental Liabilities.
"Equipment" means equipment (as that term is defined in the Code).
"Equity Interests" means, with respect to a Person, all of the shares, options, warrants, interests, participations, or other equivalents (regardless of how designated) of or in such Person, whether voting or nonvoting, including capital stock (or other ownership or profit interests or units), preferred stock, or any other "equity security" (as such term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the SEC under the Exchange Act).
"ERISA" means the Employee Retirement Income Security Act of 1974, as amended, and any successor statute thereto.
"ERISA Affiliate" means any trade or business (whether or not incorporated) that is treated as a single employer with any Loan Party under ERISA Section 4001(b), under IRC Section 414(b), (c), (m) or (o).
"ESOP" means the Farmer Bros. Co. Amended and Restated Employee Stock Ownership Plan, effective January 1, 2000, as the same now exists and may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced.
"ESOT" means Farmer Bros. Co. Employee Stock Ownership Benefit Trust, created by Parent pursuant to the ESOT Trust Agreement to implement the ESOP, as the same now exists and may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced.
"ESOT Trust Agreement" means the Farmer Bros. Co. Employee Stock Ownership Trust Agreement, dated September 28, 2005, between Parent and the ESOT Trustee, as the same now exists and may hereafter be amended, modified, supplemented, extended, renewed, restated or replaced.
"ESOT Trustee" means Greatbanc Trust Company and any successors in such capacity.
"EU Bail-In Legislation Schedule" means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.
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"Event of Default" has the meaning specified therefor in Section 8 of this Agreement.
"Excess" has the meaning specified therefor in Section 2.14 of this Agreement.
"Excess Availability" means, as of any date of determination, the amount equal to Availability minus the aggregate amount, if any, of all trade payables of the Loan Parties and their Subsidiaries aged in excess of historical levels with respect thereto and all book overdrafts of the Loan Parties and their Subsidiaries in excess of historical practices with respect thereto, in each case to the extent required by, and if so required, in an amount determined by, Agent in its Permitted Discretion.
"Exchange Act" means the Securities Exchange Act of 1934, as in effect from time to time.
"Excluded Banking Services Account" has the meaning specified therefor in clause (w) of definition of Permitted Liens.
"Excluded L/C Account" has the meaning specified therefor in clause (w) of definition of Permitted Liens.
"Excluded Swap Obligation" means, with respect to any Loan Party, any Swap Obligation if, and to the extent that, all or a portion of the guaranty of such Loan Party of (including by virtue of the joint and several liability provisions of Section 2.15), or the grant by such Loan Party of a security interest to secure, such Swap Obligation (or any guaranty thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Loan Party's failure for any reason to constitute an "eligible contract participant" as defined in the Commodity Exchange Act and the regulations thereunder at the time the guaranty of such Loan Party or the grant of such security interest becomes effective with respect to such Swap Obligation.  If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such guaranty or security interest is or becomes illegal.
"Excluded Taxes" means (i) any tax imposed on the net income or net profits of any Lender or any Participant (including any branch profits taxes), in each case imposed by the jurisdiction (or by any political subdivision or taxing authority thereof) in which such Lender or such Participant is organized or the jurisdiction (or by any political subdivision or taxing authority thereof) in which such Lender's or such Participant's principal office is located in or as a result of a present or former connection between such Lender or such Participant and the jurisdiction or taxing authority imposing the tax (other than any such connection arising solely from such Lender or such Participant having executed, delivered or performed its obligations or received payment under, or enforced its rights or remedies under this Agreement or any other Loan Document), (ii) United States federal withholding taxes that would not have been imposed but for a Lender's or a Participant's failure to comply with the requirements of Section 16.2 of 
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this Agreement, (iii) any United States federal withholding taxes that would be imposed on amounts payable to a Foreign Lender based upon the applicable withholding rate in effect at the time such Foreign Lender becomes a party to this Agreement (or designates a new lending office, other than a designation made at the request of a Loan Party), provided that Excluded Taxes shall not include (A) any amount that such Foreign Lender (or its assignor, if any) was previously entitled to receive pursuant to Section 16.1 of this Agreement, if any, with respect to such withholding tax at the time such Foreign Lender becomes a party to this Agreement (or designates a new lending office), and (B) additional United States federal withholding taxes that may be imposed after the time such Foreign Lender becomes a party to this Agreement (or designates a new lending office), as a result of a change in law, rule, regulation, treaty, order or other decision or other Change in Law with respect to any of the foregoing by any Governmental Authority, and (iv) any United States federal withholding taxes imposed under FATCA.
"Existing Banking Services Obligations" means the banking services obligations of the Loan Parties that are existing on the Closing Date under the Existing Credit Facility.
"Existing Credit Facility" means the loans and other credit accommodations provided pursuant to that certain Amended and Restated Credit Agreement, dated as of November 6, 2018, among each Loan Party, the lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative agent, as such agreement has been amended, restated, supplemented or otherwise modified from time to time.
"Existing Letters of Credit" means the letters of credit for the account of a Loan Party that are existing on the Closing Date and listed on Schedule L-1.
"Extraordinary Advances" has the meaning specified therefor in Section 2.3(d)(iii) of this Agreement.
"Extraordinary Receipts" means any payments received by any Loan Party or any of its Subsidiaries not in the ordinary course of business (and not consisting of proceeds described in Section 2.4(e)(ii) of this Agreement) including, without limitation, (a) foreign, United States, state or local tax refunds, (b) pension plan reversions, (c) proceeds of insurance (other than to the extent such insurance proceeds are (i) immediately payable to a Person that is not the Parent or any of its Subsidiaries in accordance with applicable Requirements of Law or with Contractual Obligations entered into in the ordinary course of business or (ii) received by the Parent or any of its Subsidiaries as reimbursement for any out-of-pocket costs incurred or made by such Person prior to the receipt thereof directly related to the event resulting from the payment of such proceeds), (d) proceeds of judgments, proceeds of settlements, or other consideration of any kind received in connection with any cause of action or claim (and not consisting of proceeds described in Section 2.4(e)(ii) of this Agreement, but including proceeds of business interruption insurance), (e) indemnity payments (other than to the extent such indemnity payments are immediately payable to a Person that is not an Affiliate of any Loan Party or any of its Subsidiaries), and (f) any purchase price adjustment received in connection with any purchase agreement.
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"Farmer Trademark" means, collectively, the trademarks owned by any Loan Party set forth on Schedule F-1.  
"FATCA" means Sections 1471 through 1474 of the IRC, as of the date of this Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), and (a) any current or future regulations or official interpretations thereof, (b) any agreements entered into pursuant to Section 1471(b)(1) of the IRC, and (c) any intergovernmental agreement entered into by the United States (or any fiscal or regulatory legislation, rules, or practices adopted pursuant to any such intergovernmental agreement entered into in connection therewith).
"FCPA" means the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder.
"Federal Funds Rate" means, for any period, a fluctuating interest rate per annum equal to, for each day during such period, the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System, as published on the next succeeding Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations for such day on such transactions received by Agent from three Federal funds brokers of recognized standing selected by it (and, if any such rate is below zero, then the rate determined pursuant to this definition shall be deemed to be zero).
"Federal Reserve Bank of New York's Website" means the website of the Federal Reserve Bank of New York at http://www.newyorkfed.org, or any successor source.
"Fee Letter" means that certain fee letter, dated as of even date with this Agreement, among Borrowers and Agent, in form and substance reasonably satisfactory to Agent.
"Fixed Charges" means, with respect to any fiscal period and with respect to Parent determined on a consolidated basis in accordance with GAAP, the sum, without duplication, of (a) Interest Expense on Indebtedness required to be paid (other than interest paid-in-kind, amortization of financing fees, and other non-cash Interest Expense) during such period, (b) scheduled principal payments in respect of Indebtedness that are required to be paid during such period (including any required payments or prepayments from excess cash flow during such period), (c) all federal, state, and local income taxes required to be paid during such period, (d) all Restricted Payments paid (whether in cash or other property, other than common Equity Interests) during such period, and (e) all payments required to be made during such period in respect of the Farmer Bros. Co. Hourly Employees' Pension Plan or Farmer Bros. Co. Brewmatic Plan or for any Withdrawal Liability, including, without limitation, any funding deficiency or funding shortfall with respect thereto.
"Fixed Charge Coverage Ratio" means, with respect to any fiscal period and with respect to Parent determined on a consolidated basis in accordance with GAAP, the ratio of (a) EBITDA for such period minus Unfinanced Capital Expenditures made (to the extent not 
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already incurred in a prior period) or incurred during such period, to (b) Fixed Charges for such period.
For the purposes of calculating Fixed Charge Coverage Ratio for any Reference Period, if at any time during such Reference Period (and after the Closing Date), any Loan Party or any of its Subsidiaries shall have made a Permitted Acquisition, Fixed Charges and Unfinanced Capital Expenditures for such Reference Period shall be calculated after giving pro forma effect thereto or in such other manner acceptable to Agent as if any such Permitted Acquisition occurred on the first day of such Reference Period.
"Flood Laws" means the National Flood Insurance Act of 1968, Flood Disaster Protection Act of 1973, and related laws, rules and regulations, including any amendments or successor provisions.
"Flow of Funds Agreement" means a flow of funds agreement, dated as of even date with this Agreement, in form and substance reasonably satisfactory to Agent, executed and delivered by Borrowers, Term Loan Agent, lenders under the Term Loan Credit Agreement, Lenders and Agent.
"Foreign Lender" means any Lender or Participant that is not a United States person within the meaning of IRC section 7701(a)(30).
"Funding Date" means the date on which a Borrowing occurs.
"Funding Losses" has the meaning specified therefor in Section 2.12(b)(ii) of this Agreement.
"GAAP" means generally accepted accounting principles as in effect from time to time in the United States, consistently applied.
"Governing Documents" means, with respect to any Person, the certificate or articles of incorporation, by-laws, or other organizational documents of such Person.
"Governmental Authority" means the government of any nation or any political subdivision thereof, whether at the national, state, territorial, provincial, county, municipal or any other level, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of, or pertaining to, government (including any supra-national bodies such as the European Union or the European Central Bank).
"Guarantor" means (a) each Person that guaranties all or a portion of the Obligations, including Parent and any Person that is a "Guarantor" under the Guaranty and Security Agreement, and (b) each other Person that becomes a guarantor after the Closing Date pursuant to Section 5.11 of this Agreement.
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"Guaranty and Security Agreement" means a guaranty and security agreement, dated as of even date with this Agreement, in form and substance reasonably satisfactory to Agent, executed and delivered by each of the Loan Parties to Agent.
"Hazardous Materials" means any element, material, substance, waste, compound or chemical that is defined, listed or otherwise classified as a contaminant, pollutant, toxic or hazardous substance, hazardous waste, universal waste, special waste, or solid waste or is otherwise characterized by words of similar import under any Environmental Law or that is regulated under, or for which liability or standards of care are imposed, pursuant to any Environmental Law, including, without limitation, petroleum, polychlorinated biphenyls; asbestos-containing materials, lead or lead-containing materials, urea formaldehyde-containing materials, radioactive materials, radon, per- and polyfluoroalkyl substances and mold. 
"Hedge Agreement" means a "swap agreement" as that term is defined in Section 101(53B)(A) of the Bankruptcy Code.
"Hedge Obligations" means any and all obligations or liabilities, whether absolute or contingent, due or to become due, now existing or hereafter arising, of each Loan Party and its Subsidiaries arising under, owing pursuant to, or existing in respect of Hedge Agreements entered into with one or more of the Hedge Providers.
"Hedge Provider" means Wells Fargo or any of its Affiliates.
"Houston Assets" means the assets specified on Schedule H-1 to this Agreement.
"Immaterial Marks" means the trademarks specified on Schedule I-1 to this Agreement.
"Increase" has the meaning specified therefor in Section 2.14.
"Increase Date" has the meaning specified therefor in Section 2.14.
"Increase Joinder" has the meaning specified therefor in Section 2.14.
"Increased Reporting Event" means if at any time Excess Availability is less than the greater of (i) 12.5% of the Line Cap and (ii) $10,000,000.  
"Increased Reporting Period" means the period commencing after the continuance of an Increased Reporting Event and continuing until the date when no Increased Reporting Event has occurred for 30 consecutive days.
"Indebtedness" as to any Person means, without duplication (a) all obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures, notes, or other similar instruments and all reimbursement or other obligations in respect of letters of credit, bankers acceptances, or other financial products, (c) all obligations of such Person as a lessee under Capital Leases, but for purposes of clarity, not any lease of real property for a term of years, (d) all obligations or liabilities of others secured by a Lien on any 
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asset of such Person, irrespective of whether such obligation or liability is assumed, (e) all obligations of such Person to pay the deferred purchase price of assets (for the avoidance of doubt, other than royalty payments payable in the ordinary course of business in respect of non-exclusive licenses) and any Earn-Out or similar obligations, (f) all obligations of such Person owing under Hedge Agreements (which amount shall be calculated based on the amount that would be payable by such Person if the Hedge Agreement were terminated on the date of determination), (g) any Disqualified Equity Interests of such Person, and (h) any obligation of such Person guaranteeing or intended to guarantee (whether directly or indirectly guaranteed, endorsed, co-made, discounted, or sold with recourse) any obligation of any other Person that constitutes Indebtedness under any of clauses (a) through (g) above.  For purposes of this definition, (i) the term Indebtedness shall not include (A) trade accounts or accounts payable, accrued expenses and liabilities incurred and customer deposits received, in each instance, in the ordinary course of business and not outstanding for more than 90 days after the date such obligation appears in the liabilities section of such Person’s balance sheet and not constituting indebtedness for borrowed money or evidenced by notes or other instruments or (B) purchase price holdbacks arising in the ordinary course of business in respect of a portion of the purchase price of an asset to satisfy warranties or other unperformed obligations of the seller of such asset, (ii) the amount of any Indebtedness represented by a guaranty or other similar instrument shall be the lesser of the principal amount of the obligations guaranteed and still outstanding and the maximum amount for which the guaranteeing Person may be liable pursuant to the terms of the instrument embodying such Indebtedness, and (iii) the amount of any Indebtedness which is limited or is non-recourse to a Person or for which recourse is limited to an identified asset shall be valued at the lesser of (A) if applicable, the limited amount of such obligations, and (B) if applicable, the fair market value of such assets securing such obligation.
"Indemnified Liabilities" has the meaning specified therefor in Section 10.3 of this Agreement.
"Indemnified Person" has the meaning specified therefor in Section 10.3 of this Agreement.
"Indemnified Taxes" means, (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by, or on account of any obligation of, any Loan Party under any Loan Document, and (b) to the extent not otherwise described in the foregoing clause (a), Other Taxes.
"Ineligible Institution" means a (a) natural person, (b) Defaulting Lender or its Affiliate, or (c) company, investment vehicle or trust for, or owned and operated for the primary benefit of, a natural person or relative(s) thereof; provided that, with respect to this clause (c), such company, investment vehicle or trust shall not constitute an Ineligible Institution if it (x) has not been established for the primary purpose of acquiring any Loans or Commitments, (y) is managed by an advisor who is not such natural person or a relative thereof, and (z) is primarily engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business.
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"Insolvency Proceeding" means any proceeding commenced by or against any Person under any provision of the Bankruptcy Code or under any other state or federal bankruptcy or insolvency law, assignments for the benefit of creditors, formal or informal moratoria, compositions, extensions generally with creditors, or proceedings seeking reorganization, arrangement, or other similar relief.
"Intercompany Subordination Agreement" means an intercompany subordination agreement, dated as of even date with this Agreement, executed and delivered by each Loan Party and each of its Subsidiaries, and Agent, the form and substance of which is reasonably satisfactory to Agent.
"Intercreditor Agreement" means that certain Intercreditor Agreement, dated as of even date with this Agreement, between Agent and Term Loan Agent.
"Interest Expense" means, for any period, the aggregate of the interest expense of Parent for such period, determined on a consolidated basis in accordance with GAAP, including (i) commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance financing, (ii) net cash cost under Hedge Agreements (other than early termination thereof), and (iii) non-cash interest expense in connection with or related to any pension plan of Parent and/or any of its Subsidiaries.
"Interest Period" means, with respect to each LIBOR Rate Loan, a period commencing on the date of the making of such LIBOR Rate Loan (or the continuation of a LIBOR Rate Loan or the conversion of a Base Rate Loan to a LIBOR Rate Loan) and ending 1, 3, or 6 months thereafter or, if agreed to by all Lenders, 9 or 12 months thereafter; provided, that (a) interest shall accrue at the applicable rate based upon the LIBOR Rate from and including the first day of each Interest Period to, but excluding, the day on which any Interest Period expires, (b) any Interest Period that would end on a day that is not a Business Day shall be extended to the next succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day, (c) with respect to an Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period), the Interest Period shall end on the last Business Day of the calendar month that is 1, 3, 6, 9, or 12 months after the date on which the Interest Period began, as applicable, and (d) Borrowers may not elect an Interest Period which will end after the Maturity Date.
"Inventory" means inventory (as that term is defined in the Code).
"Inventory Reserves" means, as of any date of determination, (a) Landlord Reserves in respect of Inventory, (b) those reserves that Agent deems necessary or appropriate, in its Permitted Discretion and subject to Section 2.1(c), to establish and maintain (including reserves for slow moving Inventory and Inventory shrinkage) with respect to Eligible Inventory or the Maximum Revolver Amount, including based on the results of appraisals, and (c) with respect to Eligible In-Transit Inventory, those reserves that Agent deems necessary or appropriate, in its Permitted Discretion and subject to Section 2.1(c), to establish and maintain with respect to Eligible In-Transit Inventory or the Maximum Revolver Amount (i) for the 
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estimated costs relating to unpaid freight charges, warehousing or storage charges, taxes, duties, and other similar unpaid costs associated with the acquisition of such Eligible In-Transit Inventory, plus (ii) for the estimated reclamation claims of unpaid sellers of such Eligible In-Transit Inventory.
"Investment" means, with respect to any Person, any investment by such Person in any other Person (including Affiliates) in the form of loans, guarantees, advances, capital contributions (excluding (a) commission, travel, and similar advances to officers and employees of such Person made in the ordinary course of business, and (b) bona fide accounts receivable arising in the ordinary course of business), or acquisitions of Indebtedness, Equity Interests, or all or substantially all of the assets of such other Person (or of any division or business line of such other Person), and any other items that are or would be classified as investments on a balance sheet prepared in accordance with GAAP.  The amount of any Investment shall be the original cost of such Investment plus the cost of all additions thereto, without any adjustment for increases or decreases in value, or write-ups, write-downs, or write-offs with respect to such Investment.
"IRC" means the Internal Revenue Code of 1986, as in effect from time to time.
"ISP" means, with respect to any Letter of Credit, the International Standby Practices 1998 (International Chamber of Commerce Publication No. 590) and any version or revision thereof accepted by the Issuing Bank for use.
"Issuer Document" means, with respect to any Letter of Credit, a letter of credit application, a letter of credit agreement, or any other document, agreement or instrument entered into (or to be entered into) by a Borrower in favor of Issuing Bank and relating to such Letter of Credit.
"Issuing Bank" means Wells Fargo or any other Lender that, at the request of the Administrative Borrower and with the consent of Agent, agrees, in such Lender's sole discretion, to become an Issuing Bank for the purpose of issuing Letters of Credit pursuant to Section 2.11 of this Agreement, and Issuing Bank shall be a Lender.
"Joinder" means a joinder agreement substantially in the form of Exhibit J-1 to this Agreement.
"Landlord Reserve" means, as to each Required Access Agreement Location as to which a Collateral Access Agreement has not been received by Agent within 90 days following the Closing Date (the “Required Access Agreement Deadline”), a reserve imposed by Agent (at Agent’s option, in its Permitted Discretion), in an amount equal to 2 months' rent, storage charges, fees or other amounts under the lease or other applicable agreement relative to such location.
"Lender" has the meaning set forth in the preamble to this Agreement, shall include Issuing Bank and the Swing Lender, and shall also include any other Person made a party 
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to this Agreement pursuant to the provisions of Section 13.1 of this Agreement and "Lenders" means each of the Lenders or any one or more of them.
"Lender Group" means each of the Lenders (including Issuing Bank and the Swing Lender) and Agent, or any one or more of them.
"Lender Group Expenses" means all (a) costs or expenses (including taxes and insurance premiums) required to be paid by any Loan Party or its Subsidiaries under any of the Loan Documents that are paid, advanced, or incurred by the Lender Group, (b) reasonable, documented and out-of-pocket fees or charges paid or incurred by Agent in connection with the Lender Group's transactions with each Loan Party and its Subsidiaries under any of the Loan Documents, including, photocopying, notarization, couriers and messengers, telecommunication, public record searches, filing fees, recording fees, publication, real estate surveys, real estate title policies and endorsements, and environmental audits, (c) Agent's customary fees and charges imposed or incurred in connection with any background checks or OFAC/PEP searches related to any Loan Party or its Subsidiaries, (d) Agent's customary fees and charges (as adjusted from time to time) with respect to the disbursement of funds (or the receipt of funds) to or for the account of any Borrower (whether by wire transfer or otherwise), together with any reasonable, documented and out-of-pocket costs and expenses incurred in connection therewith, (e) customary charges imposed or incurred by Agent resulting from the dishonor of checks payable by or to any Loan Party, (f) reasonable, documented out-of-pocket costs and expenses paid or incurred by the Lender Group to correct any default or enforce any provision of the Loan Documents, or during the continuance of an Event of Default, in gaining possession of, maintaining, handling, preserving, storing, shipping, selling, preparing for sale, or advertising to sell the Collateral, or any portion thereof, irrespective of whether a sale is consummated, (g) reasonable and documented field examination, appraisal, and valuation fees and expenses of Agent related to any field examinations, appraisals, or valuation to the extent of the fees and charges (and up to the amount of any limitation) provided in Section 5.7(c) of this Agreement, (h) Agent's and Lenders' reasonable, documented and out-of-pocket costs and expenses (including reasonable and documented attorneys' fees and expenses (limited to one primary outside counsel to the Lender Group taken as a whole and, if reasonably necessary, one local and specialty counsel in each relevant jurisdiction and specialty area to all Lender Group, taken as a whole (and, in the event of any actual or potential conflict of interests, one additional primary outside counsel for each group of similarly-situated Lender Group members, and, if reasonably necessary, of one local and specialty counsel in each relevant jurisdiction and specialty area for each group of similarly-situated Lender Group members, taken as a whole)) relative to third party claims or any other lawsuit or adverse proceeding paid or incurred, whether in enforcing or defending the Loan Documents or otherwise in connection with the transactions contemplated by the Loan Documents, Agent's Liens in and to the Collateral, or the Lender Group's relationship with any Loan Party or any of its Subsidiaries, (i) Agent's reasonable, documented and out-of-pocket costs and expenses (including reasonable and documented attorneys' fees and due diligence expenses (limited to one primary outside counsel and, if reasonably necessary, one local and specialty counsel in in each relevant jurisdiction and specialty area)) incurred in advising, structuring, drafting, reviewing, administering (including travel, meals, and lodging), syndicating (including reasonable costs and expenses relative to CUSIP, DXSyndicateTM, 
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SyndTrak or other communication costs incurred in connection with a syndication of the loan facilities), or amending, waiving, or modifying the Loan Documents, and (j) Agent's and each Lender's reasonable, documented and out-of-pocket costs and expenses (including reasonable and documented attorneys, accountants, consultants, and other advisors fees and expenses) incurred in terminating, enforcing (including attorneys, accountants, consultants, and other advisors fees and expenses incurred in connection with a "workout," a "restructuring," or an Insolvency Proceeding concerning any Loan Party or any of its Subsidiaries or in exercising rights or remedies under the Loan Documents), or defending the Loan Documents, irrespective of whether a lawsuit or other adverse proceeding is brought, or in taking any enforcement action or any Remedial Action with respect to the Collateral.  Notwithstanding the foregoing, in no event shall the definition of Lender Group Expenses include any costs, expenses, or charges incurred by a Person in the Lender Group which (A) are determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from the gross negligence or willful misconduct of such Person or (B) arise out of any dispute solely between or among the Persons in the Lender Group (excluding any disputes between or among Agent on the one hand, and any other Person, on the other hand) that do not involve any acts or omissions of any Loan Party or any of its Subsidiaries.
"Lender Group Representatives" has the meaning specified therefor in Section 17.9 of this Agreement.
"Lender-Related Person" means, with respect to any Lender, such Lender, together with such Lender's Affiliates, officers, directors, employees, attorneys, and agents.
"Letter of Credit" means a letter of credit (as that term is defined in the Code) issued by Issuing Bank.
"Letter of Credit Collateralization" means either (a) providing cash collateral (pursuant to documentation reasonably satisfactory to Agent (including that Agent has a first priority perfected Lien in such cash collateral), including provisions that specify that the Letter of Credit Fees and all commissions, fees, charges and expenses provided for in Section 2.11(k) of this Agreement (including any fronting fees) will continue to accrue while the Letters of Credit are outstanding) to be held by Agent for the benefit of the Revolving Lenders in an amount equal to 105% of the then existing Letter of Credit Usage, (b) delivering to Agent documentation executed by all beneficiaries under the Letters of Credit, in form and substance reasonably satisfactory to Agent and Issuing Bank, terminating all of such beneficiaries' rights under the Letters of Credit, or (c) providing Agent with a standby letter of credit, in form and substance reasonably satisfactory to Agent, from a commercial bank acceptable to Agent (in its sole discretion) in an amount equal to 105% of the then existing Letter of Credit Usage (it being understood that the Letter of Credit Fee and all fronting fees set forth in this Agreement will continue to accrue while the Letters of Credit are outstanding and that any such fees that accrue must be an amount that can be drawn under any such standby letter of credit).
"Letter of Credit Disbursement" means a payment made by Issuing Bank pursuant to a Letter of Credit.
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"Letter of Credit Exposure" means, as of any date of determination with respect to any Lender, such Lender's participation in the Letter of Credit Usage pursuant to Section 2.11(e) on such date.
"Letter of Credit Fee" has the meaning specified therefor in Section 2.6(b) of this Agreement.
"Letter of Credit Indemnified Costs" has the meaning specified therefor in Section 2.11(f) of this Agreement.
"Letter of Credit Related Person" has the meaning specified therefor in Section 2.11(f) of this Agreement.
"Letter of Credit Sublimit" means $10,000,000.
"Letter of Credit Usage" means, as of any date of determination, the sum of (a) the aggregate undrawn amount of all outstanding Letters of Credit, plus (b) the aggregate amount of outstanding reimbursement obligations with respect to Letters of Credit which remain unreimbursed or which have not been paid through a Revolving Loan.
"LIBOR Deadline" has the meaning specified therefor in Section 2.12(b)(i) of this Agreement.
"LIBOR Notice" means a written notice in the form of Exhibit L-1 to this Agreement.
"LIBOR Option" has the meaning specified therefor in Section 2.12(a) of this Agreement.
"LIBOR Rate" means the greater of (a) one half of one percent (0.50%) per annum and (b) the rate per annum as published by ICE Benchmark Administration Limited (or any successor page or other commercially available source as the Agent may designate from time to time) as of 11:00 a.m., London time, two Business Days prior to the commencement of the requested Interest Period, for a term, and in an amount, comparable to the Interest Period and the amount of the LIBOR Rate Loan requested (whether as an initial LIBOR Rate Loan or as a continuation of a LIBOR Rate Loan or as a conversion of a Base Rate Loan to a LIBOR Rate Loan) by Borrowers in accordance with this Agreement (and, if any such published rate is below zero, then the rate determined pursuant to this clause (b) shall be deemed to be zero).  Each determination of the LIBOR Rate shall be made by the Agent and shall be conclusive in the absence of manifest error.
"LIBOR Rate Loan" means each portion of a Revolving Loan that bears interest at a rate determined by reference to the LIBOR Rate.
"LIBOR Rate Margin" means the Revolving Loan LIBOR Rate Margin.
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"Lien" means any mortgage, deed of trust, pledge, hypothecation, assignment, charge, deposit arrangement, encumbrance, lien (statutory or other), security interest, or other security arrangement which in each case grants (or purports to grant) a preference, priority, or preferential arrangement to the beneficiary thereunder, including any conditional sale contract or other title retention agreement, the interest of a lessor under a Capital Lease and any synthetic or other financing lease having substantially the same economic effect as any of the foregoing.
"Line Cap" means, as of any date of determination, the lesser of (a) the Maximum Revolver Amount, and (b) the Borrowing Base as of such date of determination.
"Loan" means any Revolving Loan, Swing Loan, or Extraordinary Advance, made (or to be made) hereunder.
"Loan Account" has the meaning specified therefor in Section 2.9 of this Agreement.
"Loan Documents" means this Agreement, the Control Agreements, the Copyright Security Agreement, any Borrowing Base Certificate, the Fee Letter, the Guaranty and Security Agreement, the Intercompany Subordination Agreement, the Intercreditor Agreement, any Issuer Documents, the Letters of Credit, any Loan Manager Side Letter, the Mortgages, the Patent Security Agreement, the Trademark Security Agreement, any note or notes executed by Borrowers in connection with this Agreement and payable to any member of the Lender Group, and any other instrument or agreement entered into, now or in the future, by any Loan Party or any of its Subsidiaries and any member of the Lender Group in connection with this Agreement (but specifically excluding Bank Product Agreements).
"Loan Manager Side Letter" means any letter agreement between the Borrowers and Wells Fargo regarding the terms under which Wells Fargo will provide services to the Borrowers in respect of Wells Fargo's proprietary automated loan management program.
"Loan Party" means any Borrower or any Guarantor.
"Margin Stock" as defined in Regulation U of the Board of Governors as in effect from time to time.
"Material Adverse Effect" means (a) a material adverse effect in the business, operations, results of operations, assets, liabilities or financial condition of the Loan Parties and their Subsidiaries, taken as a whole, (b) a material impairment of the Loan Parties' and their Subsidiaries' ability, taken as a whole, to perform their obligations under the Loan Documents to which they are parties or of the Lender Group's ability to enforce the Obligations or realize upon the Collateral (other than as a result of as a result of an action taken or not taken that is solely in the control of Agent), or (c) a material impairment of the enforceability or priority of Agent's Liens with respect to all or a material portion of the Collateral.
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"Material Contract" means, with respect to any Person, each contract or agreement to which such Person or any of its Subsidiaries is a party, the loss of which could reasonably be expected to result in a Material Adverse Effect.  
"Maturity Date" means April 25, 2025.
"Maximum Revolver Amount" means $80,000,000, decreased by the amount of reductions in the Revolver Commitments made in accordance with Section 2.4(c) of this Agreement and increased by the amount of any Increase made in accordance with Section 2.14 of this Agreement.
"Moody's" has the meaning specified therefor in the definition of Cash Equivalents.
"Mortgages" means, individually and collectively, one or more mortgages, deeds of trust, or deeds to secure debt, executed and delivered by a Loan Party or one of its Subsidiaries in favor of Agent, in form and substance reasonably satisfactory to Agent, that encumber the Real Property Collateral.
"Multiemployer Plan" means any multiemployer plan within the meaning of Section 3(37) or 4001(a)(3) of ERISA with respect to which any Loan Party or ERISA Affiliate has an obligation to contribute or has any liability, contingent or otherwise or could be assessed withdrawal liability assuming a complete or partial withdrawal from any such multiemployer plan. 
"Net Cash Proceeds" means:
(a)with respect to any sale or disposition by any Loan Party or any of its Subsidiaries of assets, the amount of cash proceeds received (directly or indirectly) from time to time (whether as initial consideration or through the payment of deferred consideration) by or on behalf of such Loan Party or such Subsidiary, in connection therewith after deducting therefrom only (i) the amount of any Indebtedness secured by any Permitted Lien on any asset (other than (A) Indebtedness owing to Agent or any Lender under this Agreement or the other Loan Documents, (B) the Term Loan Indebtedness, and (C) Indebtedness assumed by the purchaser of such asset) which is required to be, and is, repaid in connection with such sale or disposition, (ii) reasonable fees, commissions, and expenses related thereto and required to be paid by such Loan Party or such Subsidiary in connection with such sale or disposition, (iii) taxes paid or payable to any taxing authorities by such Loan Party or such Subsidiary in connection with such sale or disposition, in each case to the extent, but only to the extent, that the amounts so deducted are, at the time of receipt of such cash, actually paid or payable to a Person that is not an Affiliate of any Loan Party or any of its Subsidiaries, and are properly attributable to such transaction, and (iv) all amounts that are set aside as a reserve (A) for adjustments in respect of the purchase price of such assets, (B) for any liabilities associated with such sale or casualty, to the extent such reserve is required by GAAP, and (C) for the payment of unassumed liabilities relating to the assets sold or otherwise disposed of at the time of, or within 30 days after, the date of such sale or other disposition, to the extent that in each case the funds described above in this clause (iv) 
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are (x) deposited into escrow with a third party escrow agent or set aside in a separate Deposit Account that is subject to a Control Agreement in favor of Agent, and (y) paid to Agent as a prepayment of the applicable Obligations in accordance with Section 2.4(e) of this Agreement at such time when such amounts are no longer required to be set aside as such a reserve; and
(b)with respect to the issuance or incurrence of any Indebtedness by any Loan Party or any of its Subsidiaries, or the issuance by any Loan Party or any of its Subsidiaries of any Equity Interests, the aggregate amount of cash received (directly or indirectly) from time to time (whether as initial consideration or through the payment or disposition of deferred consideration) by or on behalf of such Loan Party or such Subsidiary in connection with such issuance or incurrence, after deducting therefrom only (i) reasonable fees, commissions, and expenses related thereto and required to be paid by such Loan Party or such Subsidiary in connection with such issuance or incurrence, and (ii) taxes paid or payable to any taxing authorities by such Loan Party or such Subsidiary in connection with such issuance or incurrence, in each case to the extent, but only to the extent, that the amounts so deducted are, at the time of receipt of such cash, actually paid or payable to a Person that is not an Affiliate of any Loan Party or any of its Subsidiaries, and are properly attributable to such transaction.
"Net Recovery Percentage" means, as of any date of determination, the percentage of the book value of Borrowers' Inventory that is estimated to be recoverable in an orderly liquidation of such Inventory net of all associated costs and expenses of such liquidation, such percentage to be determined as to each category of Inventory and to be as specified in the most recent Acceptable Appraisal of Inventory.
"Non-Consenting Lender" has the meaning specified therefor in Section 14.2(a) of this Agreement.
"Non-Defaulting Lender" means each Lender other than a Defaulting Lender.
"Northlake Property" means the real property located at 1912 Farmer Brothers Drive, Northlake, Texas 76262.
"Notification Event" means (a) the occurrence of a "reportable event" described in Section 4043 of ERISA, (b) the withdrawal of any Loan Party or ERISA Affiliate from a Pension Plan during a plan year in which it was a "substantial employer" as defined in Section 4001(a)(2) of ERISA, (c) the termination of a Pension Plan, the filing of a notice of intent to terminate a Pension Plan or the treatment of a Pension Plan amendment as a termination, under Section 4041 of ERISA, or the receipt by any Loan Party or ERISA Affiliate from the PBGC of a written notice relating to an intention to terminate a Pension Plan or to appoint a trustee to administer a Pension Plan under Section 4042 of ERISA, (d) the institution of proceedings to terminate, or the appointment of a trustee with respect to, any Pension Plan by the PBGC or any Pension Plan or Multiemployer Plan administrator, (e) any other event or condition that would constitute grounds under Section 4042(a) of ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan , (f) the imposition of a Lien pursuant to the IRC or ERISA in connection with any Employee Benefit Plan or the existence of any facts or circumstances that could reasonably be expected to result in the imposition of a Lien, (g) the partial or complete 
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withdrawal of any Loan Party or ERISA Affiliate from a Multiemployer Plan, or the receipt by any Loan Party or ERISA Affiliate of a written notice demanding payment of Withdrawal Liability; (h) any event or condition that could reasonably be expected to result in the insolvency of a Multiemployer Plan (within the meaning of Section 4245 of ERISA) or the receipt by any Loan Party or an ERISA Affiliate that a Multiemployer Plan is, or is expected to be, insolvent, (i) any event or condition that results in the termination of a Multiemployer Plan under Section 4041A of ERISA or the institution by the PBGC of proceedings to terminate or to appoint a trustee to administer a Multiemployer Plan under ERISA or the filing of a notice of intent to terminate a Multiemployer Plan, (j) any Pension Plan being in "at risk status" within the meaning of IRC Section 430(i) or Section 303(i) of ERISA, (k) any Multiemployer Plan being in "endangered status" or "critical status" within the meaning of IRC Section 432(b) or Section 305 of ERISA or the receipt by any Loan Party or an ERISA Affiliate that a Multiemployer Plan is, or is expected to be, in “endangered status: or “critical status”, (l) with respect to any Pension Plan, any Loan Party or ERISA Affiliate incurring a substantial cessation of operations within the meaning of ERISA Section 4062(e), (m) the failure of any Loan Party, ERISA Affiliate, Pension Plan or Multiemployer Plan to comply with the Pension Funding Rules, in each case, whether or not waived or to make a required contribution to a Multiemployer Plan, (n) any event that results in or could reasonably be expected to result in a liability by a Loan Party pursuant to Title I of ERISA or any of IRC Sections 4971 through 5000A (other than IRC Sections 4981 and 4982) or any event that results in or could reasonably be expected to result in a liability to any Loan Party or ERISA Affiliate pursuant to Title IV of ERISA or Section 401(a)(29) of the IRC, (o) an Employee Benefit Plan that is intended to be qualified under Section 401(a) of the IRC loses such qualification, (p) the Parent's projected liability, individually or in the aggregate, with respect to unfunded nonqualified deferred compensation and/or post-termination health and/or welfare benefits exceeds $3,000,000 (excluding any amounts with respect to such benefits disclosed on Parent's annual report on Form 10-K for the fiscal year ended June 30, 2020), or (q) any of the foregoing is reasonably likely to occur in the following 30 days.
"Obligations" means (a) all loans (including the Revolving Loans (inclusive of Extraordinary Advances and Swing Loans)), debts, principal, interest (including any interest that accrues after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding), reimbursement or indemnification obligations with respect to Letters of Credit (irrespective of whether contingent), premiums, liabilities (including all amounts charged to the Loan Account pursuant to this Agreement), obligations (including indemnification obligations), fees (including the fees provided for in the Fee Letter), Lender Group Expenses (including any fees or expenses payable under the Loan Documents that accrue after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding), guaranties, and all covenants and duties of any other kind and description owing by any Loan Party arising out of, under, pursuant to, in connection with, or evidenced by this Agreement or any of the other Loan Documents and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, and including all interest not paid when due and all other expenses or other amounts that any Loan Party is required to pay or reimburse by the Loan Documents or by law or otherwise in connection with the Loan Documents, and (b) all Bank Product Obligations; 
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provided that, anything to the contrary contained in the foregoing notwithstanding, the Obligations shall exclude any Excluded Swap Obligation.  Without limiting the generality of the foregoing, the Obligations of Borrowers under the Loan Documents include the obligation to pay (i) the principal of the Revolving Loans, (ii) interest accrued on the Revolving Loans, (iii) the amount necessary to reimburse Issuing Bank for amounts paid or payable pursuant to Letters of Credit, (iv) Letter of Credit commissions, fees (including fronting fees) and charges payable under Sections 2.6 and 2.11, (v) Lender Group Expenses, (vi) fees payable under this Agreement or any of the other Loan Documents, and (vii) indemnities and other amounts payable by any Loan Party under any Loan Document.  Any reference in this Agreement or in the Loan Documents to the Obligations shall include all or any portion thereof and any extensions, modifications, renewals, or alterations thereof, both prior and subsequent to any Insolvency Proceeding.
"OFAC" means The Office of Foreign Assets Control of the U.S. Department of the Treasury.
"Originating Lender" has the meaning specified therefor in Section 13.1(e) of this Agreement.
"Other Taxes" means all present or future stamp, court, excise, value added, or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Loan Document.
"Overadvance" means, as of any date of determination, that the Revolver Usage is greater than any of the limitations set forth in Section 2.1 or Section 2.11 of this Agreement.
"Parent" has the meaning specified therefor in the preamble to this Agreement.
"Participant" has the meaning specified therefor in Section 13.1(e) of this Agreement.
"Participant Register" has the meaning set forth in Section 13.1(i) of this Agreement.
"Patent Security Agreement" has the meaning specified therefor in the Guaranty and Security Agreement.
"Patriot Act" has the meaning specified therefor in Section 4.13 of this Agreement.
"Payment Conditions" means, at the time of determination with respect to a proposed payment to fund a Specified Transaction, that:
(a)no Default or Event of Default then exists or would arise as a result of the consummation of such Specified Transaction,
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(b)either
(i)    Excess Availability, (x) at all times during the 30 consecutive days immediately preceding the date of such proposed payment and the consummation of such Specified Transaction, calculated on a pro forma basis as if such proposed payment was made, and the Specified Transaction was consummated, on the first day of such period, and (y) after giving effect to such proposed payment and Specified Transaction, in each case, is not less than the greater of (A) 32.5% of the Line Cap, and (B) $27,500,000, or 
(ii)    both (A) the Fixed Charge Coverage Ratio of the Loan Parties and their Subsidiaries is equal to or greater than 1.00:1.00 for the trailing 12 month period most recently ended for which financial statements are required to have been delivered to Agent pursuant to Schedule 5.1 to this Agreement (calculated on a pro forma basis as if such proposed payment is a Fixed Charge made on the last day of such 12 month period (it being understood that such proposed payment shall also be a Fixed Charge made on the last day of such 12 month period for purposes of calculating the Fixed Charge Coverage Ratio under this clause (ii) for any subsequent proposed payment to fund a Specific Transaction)), and (B) Excess Availability, (x) at all times during the 30 consecutive days immediately preceding the date of such proposed payment and the consummation of such Specified Transaction, calculated on a pro forma basis as if such proposed payment was made, and the Specified Transaction was consummated, on the first day of such period, and (y) after giving effect to such proposed payment and Specified Transaction, in each case, is not less than the greater of (1) 27.5% of the Line Cap, and (2) $22,500,000, and
(c)Administrative Borrower has delivered a certificate to Agent certifying that all conditions described in clauses (a) and (b) above have been satisfied.
"PBGC" means the Pension Benefit Guaranty Corporation or any successor agency.
"Pension Act" means the Pension Protection Act of 2006.
"Pension Funding Rules" means the rules of the IRC and ERISA regarding minimum funding standards and minimum required contributions (including any installment payment thereof) to Pension Plans and Multiemployer Plans and set forth in, with respect to plan years ending prior to the effective date of the Pension Act, Section 412 of the IRC and Section 302 of ERISA, each as in effect prior to the Pension Act and, thereafter, Sections 412, 430, 431, 432 and 436 of the IRC and Sections 302, 303, 304 and 305 of ERISA.
"Pension Plan" means any Employee Benefit Plan, other than a Multiemployer Plan, which is subject to the provisions of Title IV or Section 302 of ERISA or Sections 412 or 430 of the Code sponsored, maintained, or contributed to by any Loan Party or ERISA Affiliate or to which any Loan Party or ERISA Affiliate has any liability, contingent or otherwise.
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"Perfection Certificate" means a certificate in the form of Exhibit P-1 to this Agreement.
"Permitted Acquisition" means any Acquisition so long as:
(a)no Default or Event of Default shall have occurred and be continuing or would result from the consummation of the proposed Acquisition and the proposed Acquisition is consensual,
(b)no Indebtedness will be incurred, assumed, or would exist with respect to any Loan Party or its Subsidiaries as a result of such Acquisition, other than Indebtedness permitted under clauses (f) or (g) of the definition of Permitted Indebtedness and no Liens will be incurred, assumed, or would exist with respect to the assets of any Loan Party or its Subsidiaries as a result of such Acquisition other than Permitted Liens,
(c)Borrowers have provided Agent with written confirmation, supported by reasonably detailed calculations, that on a pro forma basis (including pro forma adjustments arising out of events which are directly attributable to such proposed Acquisition, are factually supportable, and are expected to have a continuing impact, in each case, determined as if the combination had been accomplished at the beginning of the relevant period; such eliminations and inclusions determined on a basis consistent with Article 11 of Regulation SX promulgated under the Securities Act and as interpreted by the staff of the SEC) created by adding the historical combined financial statements of Parent (including the combined financial statements of any other Person or assets that were the subject of a prior Permitted Acquisition during the relevant period) to the historical consolidated financial statements of the Person to be acquired (or the historical financial statements related to the assets to be acquired) pursuant to the proposed Acquisition, the Loan Parties and their Subsidiaries (i) would have been in compliance with the financial covenant(s) in Section 7 of this Agreement for the fiscal month ended immediately prior to the proposed date of consummation of such proposed Acquisition regardless of whether such financial covenant(s) are required to be tested for such fiscal month, and (ii) are projected to be in compliance with the financial covenant(s) in Section 7 of this Agreement for each of the twelve fiscal months in the period ended one year after the proposed date of consummation of such proposed Acquisition assuming that such financial covenant(s) will be required to be tested in each such fiscal month,
(d)Borrowers have provided Agent with its due diligence package relative to the proposed Acquisition, including forecasted balance sheets, profit and loss statements, and cash flow statements of the Person or assets to be acquired, all prepared on a basis consistent with such Person's (or assets') historical financial statements, together with appropriate supporting details and a statement of underlying assumptions for the one year period following the date of the proposed Acquisition, on a quarter by quarter basis), in form and substance (including as to scope and underlying assumptions) reasonably satisfactory to Agent,
(e)the assets being acquired or the Person whose Equity Interests are being acquired did not have negative EBITDA during the 12 consecutive month period most recently concluded prior to the date of the proposed Acquisition,
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(f)Borrowers have provided Agent with written notice of the proposed Acquisition at least 15 Business Days prior to the anticipated closing date of the proposed Acquisition and, not later than five Business Days prior to the anticipated closing date of the proposed Acquisition, copies of the acquisition agreement and other material documents relative to the proposed Acquisition, which agreement and documents must be reasonably acceptable to Agent,
(g)the assets being acquired (other than a de minimis amount of assets in relation to Borrowers' and their Subsidiaries' total assets), or the Person whose Equity Interests are being acquired, are useful in or engaged in, as applicable, the business of the Loan Parties and their Subsidiaries or a business reasonably related thereto,
(h)the assets being acquired (other than a de minimis amount of assets in relation to the assets being acquired) are located within the United States or the Person whose Equity Interests are being acquired is organized in a jurisdiction located within the United States,
(i)the subject assets or Equity Interests, as applicable, are being acquired directly by a Borrower or one of its Subsidiaries that is a Loan Party, and, in connection therewith, the applicable Loan Party shall have complied with Section 5.11 or 5.12 of this Agreement, as applicable, of this Agreement and, in the case of an acquisition of Equity Interests, the Person whose Equity Interests are acquired shall become a Loan Party and the applicable Loan Party shall have demonstrated to Agent that the new Loan Parties have received consideration sufficient to make the joinder documents binding and enforceable against such new Loan Parties, 
(j)the Purchase Price (including deferred payment obligations) payable in respect of all Acquisitions (including the proposed Acquisition) shall not exceed $10,000,000 in the aggregate during the term of this Agreement, and
(k)except with respect to Specified Acquisitions or Investments, the Payment Conditions are satisfied.
"Permitted Discretion" means a determination made in good faith and in the exercise of reasonable (from the perspective of a secured asset-based lender) business judgment.
"Permitted Dispositions" means:
(a)(i) sales, abandonment, or other dispositions of Equipment in the ordinary course of business that is substantially worn, damaged, or obsolete and (ii) a Loan Party’s election to terminate or not to renew or extend any leases or subleases of Real Property which such Loan Party deems, in its sole but commercially reasonable business judgment, no longer useful in the conduct of the business of the Loan Parties and their Subsidiaries,
(b)(i) sales of Inventory to buyers in the ordinary course of business, and (ii) sales of Coffee Brewing Equipment in the ordinary course of business,
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(c)the use or transfer of money or Cash Equivalents in a manner that is not prohibited by the terms of this Agreement or the other Loan Documents,
(d)the licensing, on a non-exclusive basis, of patents, trademarks, copyrights, and other intellectual property rights in the ordinary course of business,
(e)the granting of Permitted Liens,
(f)the sale or discount, in each case without recourse, of accounts receivable (other than Eligible Accounts) arising in the ordinary course of business, but only in connection with the compromise or collection thereof,
(g)any involuntary loss, damage or destruction of property,
(h)any involuntary condemnation, seizure or taking, by exercise of the power of eminent domain or otherwise, or confiscation or requisition of use of property,
(i)the leasing or subleasing of assets of any Loan Party or its Subsidiaries in the ordinary course of business,
(j)the sale or issuance of Equity Interests (other than Disqualified Equity Interests) of Parent,
(k)(i) the lapse of registered patents, trademarks, copyrights and other intellectual property of any Loan Party or any of its Subsidiaries to the extent not economically desirable in the conduct of its business, or (ii) the abandonment of patents, trademarks, copyrights, or other intellectual property rights in the ordinary course of business so long as (in each case under clauses (i) and (ii)), (A) with respect to copyrights, such copyrights are not material revenue generating copyrights, (B) such lapse is not materially adverse to the interests of the Lender Group, and (C) excluding, for the avoidance of doubt, the Farmer Trademark,
(l)the making of Restricted Payments that are expressly permitted to be made pursuant to this Agreement,
(m)the making of Permitted Investments,
(n)so long as no Event of Default has occurred and is continuing or would immediately result therefrom, transfers of assets (i) from any Loan Party or any of its Subsidiaries to a Loan Party, and (ii) from any Subsidiary of any Loan Party that is not a Loan Party to any other Subsidiary of any Loan Party,
(o)Disposition of any Specified Real Property, or other real property owned in fee (other than the Northlake Property); provided that (i) written notice thereof shall be provided to the Agent at least ten (10) days in advance thereof, (ii) such sale shall be on commercially reasonable prices and terms and conducted as part of a bona fide arm's length transaction, (iii) no Event of Default shall have then occurred and be continuing or would result therefrom (it being agreed, however, that if an Event of Default shall occur during the pendency 
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of any agreement of purchase and sale, Loan Party shall be permitted to consummate the transaction as required by such agreement of purchase and sale with the prior written consent of the Agent), and (iv) the aggregate fair market value of all real property sold pursuant to this clause (o) (other than the Specified Real Property) shall not exceed $15,000,000; 
(p)Dispositions of Equipment or Real Property to the extent that (i) such property is exchanged for credit against the purchase price of similar replacement property, or (ii) the proceeds of such disposition are promptly applied to the purchase price of such replacement property; provided, that to the extent the property being transferred constitutes Collateral, such replacement property shall constitute Collateral,
(q)Dispositions of assets acquired by the Loan Parties and their Subsidiaries pursuant to a Permitted Acquisition consummated within 12 months of the date of the proposed Disposition so long as (i) the consideration received for the assets to be so disposed is at least equal to the fair market value of such assets, (ii) the assets to be so disposed are not necessary or economically desirable in connection with the business of the Loan Parties and their Subsidiaries, and (iii) the assets to be so disposed are readily identifiable as assets acquired pursuant to the subject Permitted Acquisition,
(r)any Disposition of Houston Assets so long as (i) such sale shall be on commercially reasonable prices and terms and conducted as part of a bona fide arm's length transaction and (ii) the Net Cash Proceeds of such Dispositions do not exceed $1,000,000,
(s)any Disposition of investments in joint ventures to the extent required by, or made pursuant to customary buy/sell arrangements between, the joint venture parties set forth in joint venture arrangements and similar binding arrangements,
(t)the unwinding of any Hedge Agreement,
(u)any disposition by any Loan Party of assets in connection with the closing of a warehouse or facility which consist of leasehold interests in the premises of such warehouse or facility, the equipment and fixtures located at such premises and the books and records relating exclusively and directly to the operations of such warehouse or facility (and not related to Eligible Accounts or Eligible Inventory); provided that (i) written notice thereof shall be provided to the Agent at least ten (10) days in advance thereof, (ii) such sale shall be on commercially reasonable prices and terms in a bona fide arm's length transaction, (iii) no Event of Default shall have then occurred and be continuing or would result therefrom, and (iv) the aggregate fair market value of all assets disposed of pursuant to this clause (u) in any fiscal year shall not exceed $2,500,000, and
(v)Dispositions of fixed assets (including intangible property related to such fixed assets) not otherwise permitted in clauses (a) through (u) above in an aggregate amount not less than the fair market value of such assets; provided that the Net Cash Proceeds of such Dispositions (including the proposed Disposition) do not exceed $5,000,000 in the aggregate in any fiscal year, 
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provided, that if, as of any date of determination, sales or dispositions by the Loan Parties during the period of time from the first day of the month in which such date of determination occurs until such date of determination, either individually or in the aggregate, involve $2,500,000 or more of assets included in the Borrowing Base (based on the fair market value of the assets so disposed) (the "Threshold Amount"), then Borrowers shall have, prior to consummation of the sale or disposition that causes the assets included in the Borrowing that are disposed of during such period to exceed the Threshold Amount, delivered to Agent an updated Borrowing Base Certificate that reflects the removal of the applicable assets from the Borrowing Base.
"Permitted Indebtedness" means:
(a)Indebtedness in respect of the Obligations,
(b)Indebtedness as of the Closing Date set forth on Schedule 4.14 to this Agreement and any Refinancing Indebtedness in respect of such Indebtedness,
(c)Permitted Purchase Money Indebtedness and any Refinancing Indebtedness in respect of such Indebtedness,
(d)Indebtedness arising in connection with the endorsement of instruments or other payment items for deposit,
(e)Indebtedness consisting of (i) unsecured guarantees incurred in the ordinary course of business with respect to surety and appeal bonds, performance bonds, bid bonds, appeal bonds, completion guarantee and similar obligations; (ii) unsecured guarantees arising with respect to customary indemnification obligations to purchasers in connection with Permitted Dispositions; and (iii) unsecured guarantees with respect to Indebtedness of any Loan Party or one of its Subsidiaries, to the extent that the Person that is obligated under such guaranty could have incurred such underlying Indebtedness,
(f)unsecured Indebtedness of any Loan Party that is incurred on the date of the consummation of a Permitted Acquisition solely for the purpose of consummating such Permitted Acquisition so long as (i) no Event of Default has occurred and is continuing or would result therefrom, (ii) such unsecured Indebtedness is not incurred for working capital purposes, (iii) such unsecured Indebtedness does not mature prior to the date that is 12 months after the Maturity Date, (iv) such unsecured Indebtedness does not amortize until 12 months after the Maturity Date, (v) such unsecured Indebtedness does not provide for the payment of interest thereon in cash or Cash Equivalents prior to the date that is 12 months after the Maturity Date, and (vi) such Indebtedness is subordinated in right of payment to the Obligations on terms and conditions reasonably satisfactory to Agent and is otherwise on terms and conditions (including economic terms and absence of covenants) reasonably satisfactory to Agent,
(g)Acquired Indebtedness in an amount not to exceed $10,000,000 outstanding at any one time,
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(h)Indebtedness incurred in the ordinary course of business under performance, surety, statutory, or appeal bonds,
(i)Indebtedness owed to any Person providing property, casualty, liability, or other insurance to any Loan Party or any of its Subsidiaries, so long as the amount of such Indebtedness is not in excess of the amount of the unpaid cost of, and shall be incurred only to defer the cost of, such insurance for the year in which such Indebtedness is incurred and such Indebtedness is outstanding only during such year,
(j)the incurrence by any Loan Party or its Subsidiaries of Indebtedness under Hedge Agreements that is incurred for the bona fide purpose of hedging the interest rate, commodity, or foreign currency risks associated with such Loan Party's or such Subsidiary's operations and not for speculative purposes,
(k)Indebtedness incurred in the ordinary course of business in respect of credit cards, credit card processing services, debit cards, stored value cards, commercial cards (including so-called "purchase cards", "procurement cards" or "p-cards"), or Cash Management Services,
(l)unsecured Indebtedness of any Loan Party owing to employees, former employees, former officers, directors, or former directors (or any spouses, ex-spouses, or estates of any of the foregoing) incurred in connection with the repurchase or redemption by such Loan Party of the Equity Interests of Parent that has been issued to such Persons, so long as (i) no Default or Event of Default has occurred and is continuing or would result from the incurrence of such Indebtedness, (ii) the aggregate amount of all such Indebtedness outstanding at any one time does not exceed $3,000,000, and (iii) such Indebtedness is subordinated in right of payment to the Obligations on terms and conditions reasonably acceptable to Agent,
(m)contingent liabilities in respect of any indemnification obligation, adjustment of purchase price, non-compete, or similar obligation of any Loan Party incurred in connection with the consummation of one or more Permitted Acquisitions,
(n)Indebtedness comprising Permitted Investments,
(o)unsecured Indebtedness incurred in respect of netting services, overdraft protection, and other like services, in each case, incurred in the ordinary course of business,
(p)unsecured Indebtedness of any Loan Party or its Subsidiaries in respect of Earn-Outs owing to sellers of assets or Equity Interests to such Loan Party or its Subsidiaries that is incurred in connection with the consummation of one or more Permitted Acquisitions so long as such unsecured Indebtedness is (i) on terms and conditions reasonably acceptable to Agent, and (ii) is subordinated in right of payment to the Obligations on terms and conditions reasonably acceptable to Agent,
(q)Subordinated Indebtedness not to exceed an aggregate outstanding principal amount of $2,500,000 at any time,
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(r)accrual of interest, accretion or amortization of original issue discount, or the payment of interest in kind, in each case, on Indebtedness that otherwise constitutes Permitted Indebtedness,
(s)the Term Loan Indebtedness, not in excess of the Maximum Term Principal Obligations (as defined in the Intercreditor Agreement), 
(t)any Refinance Indebtedness in respect of any Indebtedness permitted under clauses (f) and (g) hereof,
(u)Indebtedness owed to any Person providing workers' compensation, health, disability or other employee benefits or property, casualty or liability insurance, pursuant to reimbursement or indemnification obligations to such Person, in each case incurred in the ordinary course of business,
(v)Indebtedness representing deferred compensation to employees, directors and officers of any Loan Party incurred in the ordinary course of business, 
(w)(i) prior to the scheduled expiration date of each Existing Letter of Credit, reimbursement obligations with respect to such Existing Letter of Credit; provided, that the aggregate face amount of all Existing Letters of Credit shall not exceed $4,548,443.55 at any time and (ii) reimbursement obligations with respect to Existing Banking Services Obligations; provided, that the aggregate face amount of all Existing Banking Services Obligations shall not exceed $250,000.00 at any time, and
(x)any other unsecured Indebtedness incurred by any Loan Party or any of its Subsidiaries in an aggregate outstanding amount not to exceed $10,000,000 at any one time.  
"Permitted Intercompany Advances" means loans made by (a) a Loan Party to another Loan Party other than Parent, (b) a Subsidiary of a Loan Party that is not a Loan Party to another Subsidiary of a Loan Party that is not a Loan Party, (c) a Subsidiary of a Loan Party that is not a Loan Party to a Loan Party, so long as the parties thereto are party to the Intercompany Subordination Agreement, and (d) a Loan Party to a Subsidiary of a Loan Party that is not a Loan Party so long as (i) the aggregate amount of all such loans (by type, not by the borrower) does not exceed $5,000,000 outstanding at any one time, and (ii) at the time of the making of such loan, no Event of Default has occurred and is continuing or would result therefrom.
"Permitted Investments" means:
(a)Investments in cash and Cash Equivalents,
(b)Investments in negotiable instruments deposited or to be deposited for collection in the ordinary course of business,
(c)advances made in connection with purchases of goods or services in the ordinary course of business,
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(d)Investments received in settlement of amounts due to any Loan Party or any of its Subsidiaries effected in the ordinary course of business or owing to any Loan Party or any of its Subsidiaries as a result of Insolvency Proceedings involving an account debtor or upon the foreclosure or enforcement of any Lien in favor of a Loan Party or its Subsidiaries,
(e)Investments owned by any Loan Party or any of its Subsidiaries on the Closing Date and set forth on Schedule P-1 to this Agreement,
(f)guarantees permitted under the definition of Permitted Indebtedness,
(g)Permitted Intercompany Advances,
(h)Equity Interests or other securities acquired in connection with the satisfaction or enforcement of Indebtedness or claims due or owing to a Loan Party or its Subsidiaries (in bankruptcy of customers or suppliers or otherwise outside the ordinary course of business) or as security for any such Indebtedness or claims,
(i)deposits of cash made in the ordinary course of business to secure performance of operating leases,
(j)(i) non-cash loans and advances to employees, officers, and directors of a Loan Party or any of its Subsidiaries for the purpose of purchasing Equity Interests in Parent so long as the proceeds of such loans are used in their entirety to purchase such Equity Interests in Parent, and (ii) loans and advances to employees and officers of a Loan Party or any of its Subsidiaries in the ordinary course of business for any other business purpose and in an aggregate amount not to exceed $3,000,000 at any one time,
(k)Permitted Acquisitions,
(l)Investments in the form of capital contributions and the acquisition of Equity Interests made by any Loan Party in any other Loan Party (other than capital contributions to or the acquisition of Equity Interests of Parent),
(m)Investments resulting from entering into (i) Bank Product Agreements, or (ii) agreements relative to obligations permitted under clause (j) of the definition of Permitted Indebtedness,
(n)equity Investments by any Loan Party in any Subsidiary of such Loan Party which is required by law to maintain a minimum net capital requirement or as may be otherwise required by applicable law,
(o)Investments held by a Person acquired in a Permitted Acquisition to the extent that such Investments were not made in contemplation of or in connection with such Permitted Acquisition and were in existence on the date of such Permitted Acquisition,
(p)Investments in the form of financings of certain Coffee Brewing Equipment to "ampm" franchisees through equipment sale and security agreements pursuant to a 
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product upcharge option thereunder in an aggregate amount not to exceed $2,000,000 at any time outstanding,
(q)Investments by any Loan Party in Equity Interests in their respective Subsidiaries that are not Loan Parties, provided, that the aggregate amount of such Investments shall not exceed $1,000,000 in the aggregate at any time outstanding (determined without regard to any write-downs or write-offs),
(r)Investments constituting deposits described in clauses (h) and (i) of the definition of the term "Permitted Liens",
(s)deposits, prepayments, advances and other credits to suppliers, vendors, customers, lessors and landlords or in connection with marketing promotions, such as sweepstakes, in each instance, made in the ordinary course of business,
(t)advances of payroll payments to employees in the ordinary course of business, and
(u)other Investments (other than Acquisitions) so long as the Payment Conditions are satisfied.
"Permitted Liens" means:
(a)Liens granted to, or for the benefit of, Agent to secure the Obligations,
(b)Liens for unpaid taxes, assessments, or other governmental charges or levies that either (i) are not yet delinquent, or (ii) do not have priority over Agent's Liens and the underlying taxes, assessments, or charges or levies are the subject of Permitted Protests,
(c)judgment Liens (other than for the payment of taxes, assessments, or other governmental charges or levies) arising solely as a result of the existence of judgments, orders, or awards that do not constitute an Event of Default under Section 8.3 of this Agreement,
(d)Liens set forth on Schedule P-2 to this Agreement; provided, that to qualify as a Permitted Lien, any such Lien described on Schedule P-2 to this Agreement shall only secure the Indebtedness that it secures on the Closing Date and any Refinancing Indebtedness in respect thereof,
(e)(i) the interests of lessors and sublessors under operating leases and non-exclusive licensors or sublicensors under license agreements, and (ii) Liens arising from precautionary financing statement filings under the Code (or similar filings under applicable law regarding operating leases), 
(f)purchase money Liens on fixed assets or the interests of lessors under Capital Leases to the extent that such Liens or interests secure Permitted Purchase Money Indebtedness and so long as (i) such Lien attaches only to the fixed asset purchased or acquired 
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and the proceeds thereof, and (ii) such Lien only secures the Indebtedness that was incurred to acquire the fixed asset purchased or acquired or any Refinancing Indebtedness in respect thereof,
(g)Liens arising by operation of law in favor of warehousemen, landlords, carriers, mechanics, materialmen, laborers, or suppliers, incurred in the ordinary course of business and not in connection with the borrowing of money, and which Liens either (i) are for sums not yet delinquent, or (ii) are the subject of Permitted Protests,
(h)Liens on amounts deposited to secure any Borrower's and its Subsidiaries obligations in connection with worker's compensation or other unemployment insurance,
(i)Liens on amounts deposited to secure any Borrower's and its Subsidiaries obligations in connection with the making or entering into of bids, tenders, leases, trade contracts, statutory obligations, surety, appeal bonds, performance bonds and other obligations of like nature, in each case, in the ordinary course of business and not in connection with the borrowing of money,
(j)Liens on Immaterial Marks described on Schedule I-1 to this Agreement existing on the Closing Date so long as (i) the fair market value of the Immaterial Marks does not exceed $50,000 in the aggregate and (ii) such Immaterial Mark is not material to, or necessary in the conduct of, the business of any Loan Party or its Subsidiaries,
(k)with respect to any Real Property, easements, rights of way, and zoning restrictions (i) which are disclosed on a policy of title insurance issued in favor of any of the Lender Group solely in connection with any of the Real Property Collateral, (ii) that do not secure obligations for the payment of money, or (iii) that do not materially impair the value of such Real Property or its use by any Loan Party or any of its Subsidiaries in the normal conduct of such Person's business, 
(l)non-exclusive licenses of patents, trademarks, copyrights, and other intellectual property rights in the ordinary course of business,
(m)Liens that are replacements of Permitted Liens to the extent that the original Indebtedness is the subject of permitted Refinancing Indebtedness and so long as the replacement Liens only encumber those assets that secured the original Indebtedness,
(n)rights of setoff or bankers' liens upon deposits of funds in favor of banks or other depository institutions, solely to the extent incurred in connection with the maintenance of such Deposit Accounts in the ordinary course of business,
(o)Liens granted in the ordinary course of business on the unearned portion of insurance premiums securing the financing of insurance premiums to the extent the financing is permitted under the definition of Permitted Indebtedness,
(p)Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods,
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(q)Liens solely on any cash earnest money deposits, escrow arrangements or similar arrangements made by a Loan Party or any of its Subsidiaries in connection with any letter of intent or purchase agreement with respect to a Permitted Acquisition,
(r)Liens in favor of the Term Loan Agent securing the Term Loan Indebtedness, subject to the Intercreditor Agreement and not in excess of the Maximum Term Principal Obligations (as defined in the Intercreditor Agreement (as in effect on the date hereof or as amended pursuant to an amendment agreed to in writing by Agent)),
(s)(A) Liens on deposits made to secure obligations under coffee-related Hedge Agreements in an amount outstanding at any time not to exceed $1,000,000, and (B) Liens on deposits made to secure obligations under Hedge Agreements permitted under Section 6.1 that are not coffee-related so long as the aggregate amount of deposits subject to such Liens, when taken together with the aggregate amount of obligations secured by Liens permitted under clause (y) below, does not exceed $1,000,000 at any time outstanding,
(t)Liens assumed by any Loan Party or its Subsidiaries in connection with a Permitted Acquisition that secure Acquired Indebtedness that is Permitted Indebtedness, 
(u)Liens or rights of setoff against credit balances of any Loan Party with credit card issuers or credit card processors to secure obligations of such Loan Party to any such credit card issuer or credit card processor solely to the extent incurred in the ordinary course of business as a result of fees and chargebacks,
(v)Liens in the nature of the right of setoff in favor of counterparties to contractual agreements with any Loan Party in the ordinary course of business,
(w)cash collateral and cash on deposit in deposit accounts of the Loan Parties specified on Schedule L-1 securing (i) Existing Letters of Credit constituting Permitted Indebtedness under clause (w)(i) of the definition of Permitted Indebtedness (the "Excluded L/C Account"); provided that the aggregate amount of such cash collateral and cash in Excluded L/C Account does not exceed 105% of the face amount of the Existing Letters of Credit, and (ii) Existing Banking Services Obligations constituting Permitted Indebtedness under clause (w)(ii) of the definition of Permitted Indebtedness (the "Excluded Banking Services Account"); provided that the aggregate amount of such cash collateral and cash in Excluded Banking Services Account does not exceed $250,000,
(x)customary restrictions on subletting and assignments thereof contained in leases not otherwise prohibited hereunder, and
(y)other Liens which do not secure Indebtedness for borrowed money or letters of credit, when taken together with the aggregate amount of deposits subject to Liens permitted under clause (s)(B) above, and as to which the aggregate amount of the obligations secured thereby does not exceed $1,000,000.
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"Permitted Protest" means the right of any Loan Party or any of its Subsidiaries to protest any Lien (other than any Lien that secures the Obligations), taxes (other than payroll taxes or taxes that are the subject of a United States federal tax lien), or rental payment; provided, that (a) a reserve with respect to such obligation is established on such Loan Party's or its Subsidiaries' books and records in such amount as is required under GAAP, (b) any such protest is instituted promptly and prosecuted diligently by such Loan Party or its Subsidiary, as applicable, in good faith, and (c) Agent is satisfied (in its sole but commercially reasonable judgment) that, while any such protest is pending, there will be no impairment of the enforceability, validity, or priority of any of Agent's Liens.
"Permitted Purchase Money Indebtedness" means, as of any date of determination, Indebtedness (other than the Obligations, but including Capitalized Lease Obligations), incurred at the time of, or within 90 days after, the acquisition of any fixed assets for the purpose of financing all or any part of the acquisition cost thereof, in an aggregate principal amount outstanding at any one time not in excess of $6,500,000.
"Person" means natural persons, corporations, limited liability companies, limited partnerships, general partnerships, limited liability partnerships, joint ventures, trusts, land trusts, business trusts, or other organizations, irrespective of whether they are legal entities, and governments and agencies and political subdivisions thereof.
"Plan Asset Regulations" means 29 CFR § 2510.3-101 et seq., as modified by Section 3(42) of ERISA.
"Platform" has the meaning specified therefor in Section 17.9(c) of this Agreement.
"Post-Increase Revolver Lenders" has the meaning specified therefor in Section 2.14 of this Agreement.
"Pre-Increase Revolver Lenders" has the meaning specified therefor in Section 2.14 of this Agreement.
"Projections" means Parent's forecasted (a) balance sheets, (b) profit and loss statements, and (c) cash flow statements, all prepared on a basis consistent with Parent's historical financial statements, together with appropriate supporting details and a statement of underlying assumptions.
"Pro Rata Share" means, as of any date of determination:
(a)with respect to a Lender's obligation to make all or a portion of the Revolving Loans, with respect to such Lender's right to receive payments of interest, fees, and principal with respect to the Revolving Loans, and with respect to all other computations and other matters related to the Revolver Commitments or the Revolving Loans, the percentage obtained by dividing (i) the Revolving Loan Exposure of such Lender, by (ii) the aggregate Revolving Loan Exposure of all Lenders,
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(b)with respect to a Lender's obligation to participate in the Letters of Credit, with respect to such Lender's obligation to reimburse Issuing Bank, and with respect to such Lender's right to receive payments of Letter of Credit Fees, and with respect to all other computations and other matters related to the Letters of Credit, the percentage obtained by dividing (i) the Revolving Loan Exposure of such Lender, by (ii) the aggregate Revolving Loan Exposure of all Lenders; provided, that if all of the Revolving Loans have been repaid in full and all Revolver Commitments have been terminated, but Letters of Credit remain outstanding, Pro Rata Share under this clause shall be the percentage obtained by dividing (A) the Letter of Credit Exposure of such Lender, by (B) the Letter of Credit Exposure of all Lenders,
(c)[reserved], and
(d)with respect to all other matters and for all other matters as to a particular Lender (including the indemnification obligations arising under Section 15.7 of this Agreement), the percentage obtained by dividing (i) the Revolving Loan Exposure of such Lender, by (ii) the aggregate Revolving Loan Exposure of all Lenders, in any such case as the applicable percentage may be adjusted by assignments permitted pursuant to Section 13.1; provided, that if all of the Loans have been repaid in full and all Commitments have been terminated, Pro Rata Share under this clause shall be the percentage obtained by dividing (A) the Letter of Credit Exposure of such Lender, by (B) the Letter of Credit Exposure of all Lenders.
"Protective Advances" has the meaning specified therefor in Section 2.3(d)(i) of this Agreement.
"Public Lender" has the meaning specified therefor in Section 17.9(c) of this Agreement.
"Purchase Price" means, with respect to any Acquisition, an amount equal to the aggregate consideration, whether cash, property or securities (including the fair market value of any Equity Interests of Parent issued in connection with such Acquisition and including the maximum amount of Earn-Outs), paid or delivered by a Loan Party or one of its Subsidiaries in connection with such Acquisition (whether paid at the closing thereof or payable thereafter and whether fixed or contingent), but excluding therefrom (a) any cash of the seller and its Affiliates used to fund any portion of such consideration, and (b) any cash or Cash Equivalents acquired in connection with such Acquisition.
"Qualified Equity Interests" means and refers to any Equity Interests issued by Parent (and not by one or more of its Subsidiaries) that is not a Disqualified Equity Interest.
"QFC" has the meaning assigned to the term "qualified financial contract" in, and shall be interpreted in accordance with, 12 U.S.C. § 5390(c)(8)(D).
"QFC Credit Support" has the meaning specified therefor in Section 17.15 of this Agreement.
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"Real Property" means any estates or interests in real property now owned or hereafter acquired by any Loan Party or one of its Subsidiaries and the improvements thereto.
"Real Property Collateral" means (a) the Real Property identified on Schedule R-1 to this Agreement, and (b) any Real Property hereafter acquired by any Loan Party or one of its Subsidiaries.
"Receivable Reserves" means, as of any date of determination, those reserves that Agent deems necessary or appropriate, in its Permitted Discretion and subject to Section 2.1(c), to establish and maintain (including Landlord Reserves for books and records locations and reserves for rebates, discounts, warranty claims, and returns) with respect to the Eligible Accounts or the Maximum Revolver Amount; provided that any Receivable Reserve established by Agent shall not be duplicative of any other reserve established and currently maintained by Agent in accordance with this Agreement, or any eligibility criteria set forth in the definition of Eligible Accounts.
"Record" means information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form.
"Reference Period" has the meaning set forth in the definition of EBITDA.
"Refinancing Indebtedness" means refinancings, renewals, or extensions of Indebtedness so long as:
(a)such refinancings, renewals, or extensions do not result in an increase in the principal amount of the Indebtedness so refinanced, renewed, or extended, other than by the amount of premiums paid thereon and the fees and expenses incurred in connection therewith and by the amount of unfunded commitments with respect thereto,
(b)such refinancings, renewals, or extensions do not result in a shortening of the final stated maturity or the average weighted maturity (measured as of the refinancing, renewal, or extension) of the Indebtedness so refinanced, renewed, or extended, nor are they on terms or conditions that, taken as a whole, are or could reasonably be expected to be materially adverse to the interests of the Lenders,
(c)if the Indebtedness that is refinanced, renewed, or extended was subordinated in right of payment to the Obligations, then the terms and conditions of the refinancing, renewal, or extension must include subordination terms and conditions that are at least as favorable to the Lender Group as those that were applicable to the refinanced, renewed, or extended Indebtedness,
(d)the Indebtedness that is refinanced, renewed, or extended is not recourse to any Person that is liable on account of the Obligations other than those Persons which were obligated with respect to the Indebtedness that was refinanced, renewed, or extended,
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(e)if the Indebtedness that is refinanced, renewed or extended was unsecured, such refinancing, renewal or extension shall be unsecured, and
(f)if the Indebtedness that is refinanced, renewed, or extended was secured (i) such refinancing, renewal, or extension shall be secured by substantially the same or less collateral as secured such refinanced, renewed or extended Indebtedness on terms no less favorable to Agent or the Lender Group and (ii) the Liens securing such refinancing, renewal or extension shall not have a priority more senior than the Liens securing such Indebtedness that is refinanced, renewed or extended.
"Register" has the meaning set forth in Section 13.1(h) of this Agreement.
"Registered Loan" has the meaning set forth in Section 13.1(h) of this Agreement.
"Related Fund" means any Person (other than an Ineligible Institution) that is engaged in making, purchasing, holding or investing in bank loans and similar extensions of credit in the ordinary course and that is administered, advised or managed by (a) a Lender, (b) an Affiliate of a Lender, or (c) an entity or an Affiliate of an entity that administers, advises or manages a Lender.
"Relevant Governmental Body" means the Federal Reserve Board and/or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Federal Reserve Board and/or the Federal Reserve Bank of New York or any successor thereto.
"Remedial Action" means all actions taken to (a) clean up, remove, remediate, contain, treat, monitor, assess, evaluate, or in any way address Hazardous Materials in the indoor or outdoor environment, (b) prevent or minimize a release or threatened release of Hazardous Materials so they do not migrate or endanger or threaten to endanger public health or welfare or the indoor or outdoor environment, (c) restore or reclaim natural resources or the environment, (d) perform any pre-remedial studies, investigations, or post-remedial operation and maintenance activities, or (e) conduct any other actions with respect to Hazardous Materials required by Environmental Laws.
"Replacement Lender" has the meaning specified therefor in Section 2.13(b) of this Agreement.
"Report" has the meaning specified therefor in Section 15.16 of this Agreement.
"Required Access Agreement Deadline" has the meaning specified therefor in the definition of "Landlord Reserve".
"Required Access Agreement Location" has the meaning specified therefor in Section 5.14.
"Required Availability" means that the sum of Excess Availability plus unrestricted cash and Cash Equivalents of the Loan Parties that is in Deposit Accounts or in 
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Securities Accounts, or any combination thereof, and is maintained by a branch office of the bank or securities intermediary located within the United States, is at least $27,500,000.
"Required Lenders" means, at any time, Lenders having or holding more than 50% of the aggregate Revolving Loan Exposure of all Lenders; provided, that (i) the Revolving Loan Exposure of any Defaulting Lender shall be disregarded in the determination of the Required Lenders, and (ii) at any time there are two or more Lenders (who are not Affiliates of one another or Defaulting Lenders), "Required Lenders" must include at least two Lenders (who are not Affiliates of one another).
"Reserves" means, as of any date of determination, Inventory Reserves, Receivables Reserves, Bank Product Reserves and those other reserves that Agent deems necessary or appropriate, in its Permitted Discretion and subject to Section 2.1(c), to establish and maintain (including reserves with respect to (a) sums that any Loan Party or its Subsidiaries are required to pay under any Section of this Agreement or any other Loan Document (such as taxes, assessments, insurance premiums, or, in the case of leased assets, rents or other amounts payable under such leases) and has failed to pay, (b) amounts owing by any Loan Party or its Subsidiaries to any Person to the extent secured by a Lien on, or trust over, any of the Collateral (other than a Permitted Lien), which Lien or trust, in the Permitted Discretion of Agent likely would have a priority superior to the Agent's Liens (such as Liens or trusts in favor of landlords, warehousemen, carriers, mechanics, materialmen, laborers, or suppliers, or Liens or trusts for ad valorem, excise, sales, or other taxes where given priority under applicable law) in and to such item of the Collateral, and (c) reserves for up to two weeks of payroll for route truck drivers (plus any past due payroll amounts) with respect to the Borrowing Base or the Maximum Revolver Amount.
"Restricted Payment" means (a) any declaration or payment of any dividend or the making of any other payment or distribution, directly or indirectly, on account of Equity Interests issued by Parent or any of its Subsidiaries (including any payment in connection with any merger or consolidation involving Parent) or to the direct or indirect holders of Equity Interests issued by Parent or any of its Subsidiaries in their capacity as such (other than dividends or distributions payable in Qualified Equity Interests issued by Parent or any of its Subsidiaries), together with any payment or distribution pursuant to a "plan of division", (b) any purchase, redemption, making of any sinking fund or similar payment, or other acquisition or retirement for value (including in connection with any merger or consolidation involving Parent) any Equity Interests issued by Parent or any of its Subsidiaries, or (c) any making of any payment to retire, or to obtain the surrender of, any outstanding warrants, options, or other rights to acquire Equity Interests of Parent or any of its Subsidiaries now or hereafter outstanding.
"Revolver Commitment" means, with respect to each Revolving Lender, its Revolver Commitment, and, with respect to all Revolving Lenders, their Revolver Commitments, in each case as such Dollar amounts are set forth beside such Revolving Lender's name under the applicable heading on Schedule C-1 to this Agreement or in the Assignment and Acceptance or Increase Joinder pursuant to which such Revolving Lender became a Revolving Lender under this Agreement, as such amounts may be reduced or increased from time to time 
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pursuant to assignments made in accordance with the provisions of Section 13.1 of this Agreement, and as such amounts may be decreased by the amount of reductions in the Revolver Commitments made in accordance with Section 2.4(c) hereof.
"Revolver Usage" means, as of any date of determination, the sum of (a) the amount of outstanding Revolving Loans (inclusive of Swing Loans and Protective Advances), plus (b) the amount of the Letter of Credit Usage.
"Revolving Lender" means a Lender that has a Revolving Loan Exposure or Letter of Credit Exposure.
"Revolving Loan Base Rate Margin" has the meaning set forth in the definition of Applicable Margin.
"Revolving Loan Exposure" means, with respect to any Revolving Lender, as of any date of determination (a) prior to the termination of the Revolver Commitments, the amount of such Lender's Revolver Commitment, and (b) after the termination of the Revolver Commitments, the aggregate outstanding principal amount of the Revolving Loans of such Lender.
"Revolving Loan LIBOR Rate Margin" has the meaning set forth in the definition of Applicable Margin.
"Revolving Loans" has the meaning specified therefor in Section 2.1(a) of this Agreement.
"Sanctioned Entity" means (a) a country or territory or a government of a country or territory, (b) an agency of the government of a country or territory, (c) an organization directly or indirectly controlled by a country or territory or its government, or (d) a Person resident in or determined to be resident in a country or territory, in each case of clauses (a) through (d) that is a target of Sanctions, including a target of any country sanctions program administered and enforced by OFAC.
"Sanctioned Person" means, at any time (a) any Person named on the list of Specially Designated Nationals and Blocked Persons maintained by OFAC, OFAC's consolidated Non-SDN list or any other Sanctions-related list maintained by any Governmental Authority, (b) a Person or legal entity that is a target of Sanctions, (c) any Person operating, organized or resident in a Sanctioned Entity, or (d) any Person directly or indirectly owned or controlled (individually or in the aggregate) by or acting on behalf of any such Person or Persons described in clauses (a) through (c) above.
"Sanctions" means individually and collectively, respectively, any and all economic sanctions, trade sanctions, financial sanctions, sectoral sanctions, secondary sanctions, trade embargoes anti-terrorism laws and other sanctions laws, regulations or embargoes, including those imposed, administered or enforced from time to time by:  (a) the United States of America, including those administered by OFAC, the U.S. Department of State, the U.S. 
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Department of Commerce, or through any existing or future executive order, (b) the United Nations Security Council, (c) the European Union or any European Union member state, (d) Her Majesty's Treasury of the United Kingdom, or (e) any other Governmental Authority with jurisdiction over any member of Lender Group or any Loan Party or any of their respective Subsidiaries or Affiliates.
"S&P" has the meaning specified therefor in the definition of Cash Equivalents.
"SEC" means the United States Securities and Exchange Commission and any successor thereto.
"Securities Account" means a securities account (as that term is defined in the Code).
"Securities Act" means the Securities Act of 1933, as amended from time to time, and any successor statute.
"Settlement" has the meaning specified therefor in Section 2.3(e)(i) of this Agreement.
"Settlement Date" has the meaning specified therefor in Section 2.3(e)(i) of this Agreement.
"SOFR" with respect to any day means the secured overnight financing rate published for such day by the Federal Reserve Bank of New York, as the administrator of the benchmark, (or a successor administrator) on the Federal Reserve Bank of New York's Website.
"Solvent" means, with respect to any Person as of any date of determination, that (a) at fair valuations, the sum of such Person's debts (including contingent liabilities) is less than all of such Person's assets, (b) such Person is not engaged or about to engage in a business or transaction for which the remaining assets of such Person are unreasonably small in relation to the business or transaction or for which the property remaining with such Person is an unreasonably small capital, (c) such Person has not incurred and does not intend to incur, or reasonably believe that it will incur, debts beyond its ability to pay such debts as they become due (whether at maturity or otherwise) in the ordinary course of business, and (d) such Person is "solvent" or not "insolvent", as applicable within the meaning given those terms and similar terms under applicable laws relating to fraudulent transfers and conveyances.  For purposes of this definition, the amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability (irrespective of whether such contingent liabilities meet the criteria for accrual under Statement of Financial Accounting Standard No. 5).
"Specified Acquisitions or Investments" means Acquisitions or Investments financed solely with the proceeds of substantially contemporaneous issuance by Parent of its 
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Equity Interests, in an amount not to exceed $10,000,000 in the aggregate during any fiscal year of the Parent.
"Specified Real Property" means any Real Property specified on Schedule S-1 to this Agreement.
"Specified Transaction" means, any Investment, prepayment of Indebtedness or Restricted Payment (or declaration of any prepayment or Restricted Payment).
"Standard Letter of Credit Practice" means, for Issuing Bank, any domestic or foreign law or letter of credit practices applicable in the city in which Issuing Bank issued the applicable Letter of Credit or, for its branch or correspondent, such laws and practices applicable in the city in which it has advised, confirmed or negotiated such Letter of Credit, as the case may be, in each case, (a) which letter of credit practices are of banks that regularly issue letters of credit in the particular city, and (b) which laws or letter of credit practices are required or permitted under ISP or UCP, as chosen in the applicable Letter of Credit.
"Subject Holder" has the meaning specified therefor in Section 2.4(e)(v) of this Agreement.
"Subordinated Indebtedness" means Indebtedness of any Loan Party the terms of which (including payment terms, interest rates, security, covenants, remedies, defaults and other material terms) are reasonably satisfactory to Agent and the Required Lenders and which has been expressly subordinated in right of payment to all Obligations (a) by the execution and delivery of a subordination agreement, in form and substance reasonably satisfactory to Agent and the Required Lenders, or (b) otherwise on terms and conditions satisfactory to Agent and the Required Lenders. 
"Subsidiary" of a Person means a corporation, partnership, limited liability company, or other entity in which that Person directly or indirectly owns or controls the Equity Interests having ordinary voting power to elect a majority of the Board of Directors of such corporation, partnership, limited liability company, or other entity.
"Supermajority Lenders" means, at any time, Revolving Lenders having or holding more than 66 2/3% of the aggregate Revolving Loan Exposure of all Revolving Lenders; provided, that (i) the Revolving Loan Exposure of any Defaulting Lender shall be disregarded in the determination of the Supermajority Lenders, and (ii) at any time there are two or more Revolving Lenders (who are not Affiliates of one another), "Supermajority Lenders" must include at least two Revolving Lenders (who are not Affiliates of one another or Defaulting Lenders).
"Supported QFC" has the meaning specified therefor in Section 17.15 of this Agreement.
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"Swap Obligation" means, with respect to any Loan Party, any obligation to pay or perform under any agreement, contract or transaction that constitutes a "swap" within the meaning of section 1a(47) of the Commodity Exchange Act.
"Swing Lender" means Wells Fargo or any other Lender that, at the request of the Administrative Borrower and with the consent of Agent agrees, in such Lender's sole discretion, to become the Swing Lender under Section 2.3(b) of this Agreement.
"Swing Loan" has the meaning specified therefor in Section 2.3(b) of this Agreement.
"Swing Loan Exposure" means, as of any date of determination with respect to any Lender, such Lender's Pro Rata Share of the Swing Loans on such date.
"Taxes" means any taxes, levies, imposts, duties, fees, withholdings (including backup withholdings), assessments or other charges of whatever nature now or hereafter imposed by any jurisdiction or by any political subdivision or taxing authority thereof or therein, and all interest, penalties or similar liabilities with respect thereto.
"Tax Lender" has the meaning specified therefor in Section 14.2(a) of this Agreement.
"Term Loan" means the "Term Loan" as such term is defined in the Term Loan Credit Agreement.
"Term Loan Agent" means MGG Investment Group LP, a Delaware limited partnership, as administrative agent, and its successors and assigns.
"Term Loan Credit Agreement" means that certain Credit Agreement, dated as of the Closing Date, by and among the Borrowers, Term Loan Agent, the other Loan Parties and the lenders from time to time party thereto, as the same may be amended, restated, replaced, modified or supplemented from time to time, including, without limitation, amendments, modifications, supplements, restatements and/or replacements thereof giving effect to increases, renewals, extensions, refundings, deferrals, restructurings, replacements or refinancings of, or additions to, the arrangements provided in such Term Loan Credit Agreement in accordance with the terms thereof and the Intercreditor Agreement.
"Term Loan Documents" means the Term Loan Credit Agreement and the other "Loan Documents" as defined in the Term Loan Credit Agreement, all as amended, restated, supplemented or modified from time to time, or refinanced or replaced, in each case in accordance therewith and in accordance with the Intercreditor Agreement.
"Term Loan Indebtedness" means the "Obligations" as such term is defined in the Term Loan Credit Agreement. 
"Term Priority Collateral" has the meaning specified therefor in the Intercreditor Agreement.
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"Term SOFR" means the forward-looking term rate based on SOFR that has been selected or recommended by the Relevant Governmental Body.
"Trademark Security Agreement" has the meaning specified therefor in the Guaranty and Security Agreement.
"UCP" means, with respect to any Letter of Credit, the Uniform Customs and Practice for Documentary Credits 2007 Revision, International Chamber of Commerce Publication No. 600 and any version or revision thereof accepted by Issuing Bank for use.
"Unadjusted Benchmark Replacement" means the Benchmark Replacement excluding the Benchmark Replacement Adjustment.
"Unfinanced Capital Expenditures" means Capital Expenditures (a) not financed with the proceeds of any incurrence of Indebtedness (other than the incurrence of any Revolving Loans), the proceeds of any sale or issuance of Equity Interests or equity contributions, the proceeds of any asset sale (other than the sale of Inventory in the ordinary course of business) or any insurance proceeds, and (b) that are not reimbursed by a third person (excluding any Loan Party or any of its Affiliates) in the period such expenditures are made pursuant to a written agreement.
"United States" means the United States of America.
"Unused Line Fee" has the meaning specified therefor in Section 2.10(b) of this Agreement.
"U.S. Special Resolution Regimes" has the meaning specified therefor in Section 17.15 of this Agreement.
"Voidable Transfer" has the meaning specified therefor in Section 17.8 of this Agreement.
"Wells Fargo" means Wells Fargo Bank, National Association, a national banking association.
"Withdrawal Liability" means liability with respect to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle E of Title IV of ERISA.
"Write-Down and Conversion Powers" means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.
b..Accounting Terms
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.  All accounting terms not specifically defined herein shall be construed in accordance with GAAP; provided, that if Administrative Borrower notifies Agent that Borrowers request an amendment to any provision hereof to eliminate the effect of any Accounting Change occurring after the Closing Date or in the application thereof on the operation of such provision (or if Agent notifies Administrative Borrower that the Required Lenders request an amendment to any provision hereof for such purpose), regardless of whether any such notice is given before or after such Accounting Change or in the application thereof, then Agent and Borrowers agree that they will negotiate in good faith amendments to the provisions of this Agreement that are directly affected by such Accounting Change with the intent of having the respective positions of the Lenders and Borrowers after such Accounting Change conform as nearly as possible to their respective positions immediately before such Accounting Change took effect and, until any such amendments have been agreed upon and agreed to by the Required Lenders, the provisions in this Agreement shall be calculated as if no such Accounting Change had occurred.  When used herein, the term "financial statements" shall include the notes and schedules thereto.  Whenever the term "Parent" or "Borrowers" is used in respect of a financial covenant or a related definition, it shall be understood to mean the Loan Parties and their Subsidiaries on a consolidated basis, unless the context clearly requires otherwise.  Notwithstanding anything to the contrary contained herein, (a) all financial statements delivered hereunder shall be prepared, and all financial covenants contained herein shall be calculated, without giving effect to any election under the Statement of Financial Accounting Standards Board's Accounting Standards Codification Topic 825 (or any similar accounting principle) permitting a Person to value its financial liabilities or Indebtedness at the fair value thereof, and (b) the term "unqualified opinion" as used herein to refer to opinions or reports provided by accountants shall mean an opinion or report that is (i) unqualified, and (ii) does not include any explanation, supplemental comment, or other comment concerning the ability of the applicable Person to continue as a going concern or concerning the scope of the audit.
c..Code
.  Any terms used in this Agreement that are defined in the Code shall be construed and defined as set forth in the Code unless otherwise defined herein; provided, that to the extent that the Code is used to define any term herein and such term is defined differently in different Articles of the Code, the definition of such term contained in Article 9 of the Code shall govern.
d..Construction
.  Unless the context of this Agreement or any other Loan Document clearly requires otherwise, references to the plural include the singular, references to the singular include the plural, the terms "includes" and  "including" are not limiting, and the term "or" has, except where otherwise indicated, the inclusive meaning represented by the phrase "and/or."  The words "hereof," "herein," "hereby," "hereunder," and similar terms in this Agreement or any other Loan Document refer to this Agreement or such other Loan Document, as the case may be, as a whole and not to any particular provision of this Agreement or such other Loan Document, as the case may be.  Section, subsection, clause, schedule, and exhibit references herein are to this Agreement unless otherwise specified.  Any reference in this Agreement or in any other Loan 
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Document to any agreement, instrument, or document shall include all alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements, thereto and thereof, as applicable (subject to any restrictions on such alterations, amendments, changes, extensions, modifications, renewals, replacements, substitutions, joinders, and supplements set forth herein).  A Default or Event of Default shall be deemed to exist at all times during the period commencing on the date that such Default or Event of Default occurs to the date on which such Default or Event of Default is waived in writing pursuant to this Agreement or, in the case of a Default, is cured within any period of cure expressly provided for in this Agreement; and an Event of Default shall "continue" or be "continuing" until such Event of Default has been waived in writing by the Required Lenders.  The words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties.  Any reference herein or in any other Loan Document to the satisfaction, repayment, or payment in full of the Obligations shall mean (a) the payment or repayment in full in immediately available funds of (i) the principal amount of, and interest accrued and unpaid with respect to, all outstanding Loans, together with the payment of any premium applicable to the repayment of the Loans, (ii) all Lender Group Expenses that have accrued and are unpaid regardless of whether demand has been made therefor, and (iii) all fees or charges that have accrued hereunder or under any other Loan Document (including the Letter of Credit Fee and the Unused Line Fee) and are unpaid, (b) in the case of contingent reimbursement obligations with respect to Letters of Credit, providing Letter of Credit Collateralization, (c) in the case of obligations with respect to Bank Products (other than Hedge Obligations), providing Bank Product Collateralization, (d) the receipt by Agent of cash collateral in order to secure any other contingent Obligations for which a claim or demand for payment has been made on or prior to such time or in respect of matters or circumstances known to Agent or a Lender at such time that are reasonably expected to result in any loss, cost, damage, or expense (including attorneys' fees and legal expenses) payable under the Loan Documents, such cash collateral to be in such amount as Agent reasonably determines is appropriate to secure such contingent Obligations, (e) the payment or repayment in full in immediately available funds of all other outstanding Obligations (including the payment of any termination amount then applicable (or which would or could become applicable as a result of the repayment of the other Obligations) under Hedge Agreements provided by Hedge Providers) other than (i) unasserted contingent indemnification Obligations, (ii) any Bank Product Obligations (other than Hedge Obligations) that, at such time, are allowed by the applicable Bank Product Provider to remain outstanding without being required to be repaid or cash collateralized, and (iii) any Hedge Obligations that, at such time, are allowed by the applicable Hedge Provider to remain outstanding without being required to be repaid, and (f) the termination of all of the Commitments of the Lenders.  Any reference herein to any Person shall be construed to include such Person's successors and assigns.  Any requirement of a writing contained herein or in any other Loan Document shall be satisfied by the transmission of a Record.
e..Time References
.  Unless the context of this Agreement or any other Loan Document clearly requires otherwise, all references to time of day refer to Mountain standard time or Mountain daylight saving time, as in effect in Phoenix, Arizona on such day.  For purposes of the computation of a 
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period of time from a specified date to a later specified date, unless otherwise expressly provided, the word "from" means "from and including" and the words "to" and "until" each means "to and including"; provided, that with respect to a computation of fees or interest payable to Agent or any Lender, such period shall in any event consist of at least one full day.
f..Schedules and Exhibits
.  All of the schedules and exhibits attached to this Agreement shall be deemed incorporated herein by reference.
g..Divisions
.  For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction's laws): (a) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such new Person shall be deemed to have been organized on the first date of its existence by the holders of its Equity Interests at such time.
2.LOANS AND TERMS OF PAYMENT.
a..Revolving Loans.
(a)Subject to the terms and conditions of this Agreement, and during the term of this Agreement, each Revolving Lender agrees (severally, not jointly or jointly and severally) to make revolving loans ("Revolving Loans") to Borrowers in an amount at any one time outstanding not to exceed the lesser of:
1.such Lender's Revolver Commitment, or
2.such Lender's Pro Rata Share of an amount equal to the lesser of:
i.the amount equal to (1) the Maximum Revolver Amount, less (2) the sum of (y) the Letter of Credit Usage at such time, plus (z) the principal amount of Swing Loans outstanding at such time, and
ii.the amount equal to (1) the Borrowing Base as of such date (based upon the most recent Borrowing Base Certificate delivered by Borrowers to Agent, as adjusted for Reserves established by Agent in accordance with Section 2.1(c)), less (2) the sum of (x) the Letter of Credit Usage at such time, plus (y) the principal amount of Swing Loans outstanding at such time.
(b)Amounts borrowed pursuant to this Section 2.1 may be repaid and, subject to the terms and conditions of this Agreement, reborrowed at any time during the term of this Agreement.  The outstanding principal amount of the Revolving Loans, together with interest accrued and unpaid thereon, shall constitute Obligations and shall be due and payable on the 
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Maturity Date or, if earlier, on the date on which they otherwise become due and payable pursuant to the terms of this Agreement.
(c)Anything to the contrary in this Section 2.1 notwithstanding, Agent shall have the right (but not the obligation) at any time, in the exercise of its Permitted Discretion, to establish and increase or decrease Reserves against the Borrowing Base or the Maximum Revolver Amount; provided, that Agent shall notify Borrowers at least 2 Business Days prior to the date on which any such reserve is to be established or increased (during which period Agent shall be available to discuss any such proposed Reserve with Administrative Borrower); provided further, that (A) the Borrowers may not obtain any new Revolving Loans (including Swing Loans) or Letters of Credit to the extent that such Revolving Loan (including Swing Loans) or Letter of Credit would cause an Overadvance after giving effect to the establishment or increase of such Reserve as set forth in such notice; (B) no such prior notice shall be required for changes to any Reserves resulting solely by virtue of mathematical calculations of the amount of the Reserve in accordance with the methodology of calculation set forth in this Agreement or previously utilized; and (C) no such prior notice shall be required during the continuance of any Event of Default and (D) no such prior notice shall be required with respect to any Reserve established in respect of any Lien that has priority over Agent's Liens on the Collateral.  The amount of any Reserve (including the Dilution Reserve) established by Agent, and any changes to the eligibility criteria set forth in the definitions of Eligible Accounts, Eligible Inventory, and Eligible In-Transit Inventory shall have a reasonable relationship to the event, condition, other circumstance, or fact that is the basis for such reserve or change in eligibility and shall not be duplicative of any other reserve established and currently maintained or eligibility criteria. 
b..[Reserved]
. 
c..Borrowing Procedures and Settlements.
(d)Procedure for Borrowing Revolving Loans.  Each Borrowing shall be made by a written request by an Authorized Person delivered to Agent (which may be delivered through Agent's electronic platform or portal) and received by Agent no later than 12:00 p.m. (i) on the Business Day that is the requested Funding Date in the case of a request for a Swing Loan, (ii) on the Business Day that is one Business Day prior to the requested Funding Date in the case of a request for a Base Rate Loan, and (iii) on the Business Day that is three Business Days prior to the requested Funding Date in the case of all other requests, specifying (A) the amount of such Borrowing, and (B) the requested Funding Date (which shall be a Business Day); provided, that Agent may, in its sole discretion, elect to accept as timely requests that are received later than 12:00 p.m. on the applicable Business Day.  All Borrowing requests which are not made on-line via Agent's electronic platform or portal shall be subject to (and unless Agent elects otherwise in the exercise of its sole discretion, such Borrowings shall not be made until the completion of) Agent's authentication process (with results satisfactory to Agent) prior to the funding of any such requested Revolving Loan.
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(e)Making of Swing Loans.  In the case of a Revolving Loan that is a Swing Loan and so long as any of (i) the aggregate amount of Swing Loans made since the last Settlement Date, minus all payments or other amounts applied to Swing Loans since the last Settlement Date, plus the amount of the requested Swing Loan does not exceed $8,000,000, or (ii) Swing Lender, in its sole discretion, agrees to make a Swing Loan notwithstanding the foregoing limitation, Swing Lender shall make a Revolving Loan (any such Revolving Loan made by Swing Lender pursuant to this Section 2.3(b) being referred to as a "Swing Loan" and all such Revolving Loans being referred to as "Swing Loans") available to Borrowers on the Funding Date applicable thereto by transferring immediately available funds in the amount of such Borrowing to the Designated Account.  Each Swing Loan shall be deemed to be a Revolving Loan hereunder and shall be subject to all the terms and conditions (including Section 3) applicable to other Revolving Loans, except that all payments (including interest) on any Swing Loan shall be payable to Swing Lender solely for its own account.  Subject to the provisions of Section 2.3(d)(ii), Swing Lender shall not make and shall not be obligated to make any Swing Loan if Swing Lender has actual knowledge that (i) one or more of the applicable conditions precedent set forth in Section 3 will not be satisfied on the requested Funding Date for the applicable Borrowing, or (ii) the requested Borrowing would exceed the Availability on such Funding Date.  Swing Lender shall not otherwise be required to determine whether the applicable conditions precedent set forth in Section 3 have been satisfied on the Funding Date applicable thereto prior to making any Swing Loan.  The Swing Loans shall be secured by Agent's Liens, constitute Revolving Loans and Obligations, and bear interest at the rate applicable from time to time to Revolving Loans that are Base Rate Loans.
(f)Making of Revolving Loans.
3.In the event that Swing Lender is not obligated to make a Swing Loan, then after receipt of a request for a Borrowing pursuant to Section 2.3(a)(i), Agent shall notify the Lenders by telecopy, telephone, email, or other electronic form of transmission, of the requested Borrowing; such notification to be sent on the Business Day that is (A) in the case of a Base Rate Loan, at least one Business Day prior to the requested Funding Date, or (B) in the case of a LIBOR Rate Loan, prior to 12:00 p.m. at least three Business Days prior to the requested Funding Date.  If Agent has notified the Lenders of a requested Borrowing on the Business Day that is one Business Day prior to the Funding Date, then each Lender shall make the amount of such Lender's Pro Rata Share of the requested Borrowing available to Agent in immediately available funds, to Agent's Account, not later than 11:00 a.m. on the Business Day that is the requested Funding Date.  After Agent's receipt of the proceeds of such Revolving Loans from the Lenders, Agent shall make the proceeds thereof available to Borrowers on the applicable Funding Date by transferring immediately available funds equal to such proceeds received by Agent to the Designated Account; provided, that subject to the provisions of Section 2.3(d)(ii), no Lender shall have an obligation to make any Revolving Loan, if (1) one or more of the applicable conditions precedent set forth in Section 3 will not be satisfied on the requested Funding Date for the applicable Borrowing unless such condition has been waived, or (2) the requested Borrowing would exceed the Availability on such Funding Date.
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4.Unless Agent receives notice from a Lender prior to 10:30 a.m. on the Business Day that is the requested Funding Date relative to a requested Borrowing as to which Agent has notified the Lenders of a requested Borrowing that such Lender will not make available as and when required hereunder to Agent for the account of Borrowers the amount of that Lender's Pro Rata Share of the Borrowing, Agent may assume that each Lender has made or will make such amount available to Agent in immediately available funds on the Funding Date and Agent may (but shall not be so required), in reliance upon such assumption, make available to Borrowers a corresponding amount.  If, on the requested Funding Date, any Lender shall not have remitted the full amount that it is required to make available to Agent in immediately available funds and if Agent has made available to Borrowers such amount on the requested Funding Date, then such Lender shall make the amount of such Lender's Pro Rata Share of the requested Borrowing available to Agent in immediately available funds, to Agent's Account, no later than 11:00 a.m. on the Business Day that is the first Business Day after the requested Funding Date (in which case, the interest accrued on such Lender's portion of such Borrowing for the Funding Date shall be for Agent's separate account).  If any Lender shall not remit the full amount that it is required to make available to Agent in immediately available funds as and when required hereby and if Agent has made available to Borrowers such amount, then that Lender shall be obligated to immediately remit such amount to Agent, together with interest at the Defaulting Lender Rate for each day until the date on which such amount is so remitted.  A notice submitted by Agent to any Lender with respect to amounts owing under this Section 2.3(c)(ii) shall be conclusive, absent manifest error.  If the amount that a Lender is required to remit is made available to Agent, then such payment to Agent shall constitute such Lender's Revolving Loan for all purposes of this Agreement.  If such amount is not made available to Agent on the Business Day following the Funding Date, Agent will notify Administrative Borrower of such failure to fund and, upon demand by Agent, Borrowers shall pay such amount to Agent for Agent's account, together with interest thereon for each day elapsed since the date of such Borrowing, at a rate per annum equal to the interest rate applicable at the time to the Revolving Loans composing such Borrowing.
(g)Protective Advances and Optional Overadvances.
5.Any contrary provision of this Agreement or any other Loan Document notwithstanding (but subject to Section 2.3(d)(iv)), at any time (A) after the occurrence and during the continuance of a Default or an Event of Default, or (B) that any of the other applicable conditions precedent set forth in Section 3 are not satisfied, Agent hereby is authorized by Borrowers and the Lenders, from time to time, in Agent's sole discretion, to make Revolving Loans to, or for the benefit of, Borrowers, on behalf of the Revolving Lenders, that Agent, in its Permitted Discretion, deems necessary or desirable (1) to preserve or protect the Collateral, or any portion thereof, or (2) to enhance the likelihood of repayment of the Obligations (other than the Bank Product Obligations) (the Revolving Loans described in this Section 2.3(d)(i) shall be referred to as "Protective Advances").  
6.Any contrary provision of this Agreement or any other Loan Document notwithstanding, the Lenders hereby authorize Agent or Swing Lender, as applicable, and either Agent or Swing Lender, as applicable, may, but is not obligated to, knowingly and 
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intentionally, continue to make Revolving Loans (including Swing Loans) to Borrowers notwithstanding that an Overadvance exists or would be created thereby, so long as (A) after giving effect to such Revolving Loans, the outstanding Revolver Usage does not exceed the Borrowing Base by more than 10% of the Borrowing Base, and (B) subject to Section 2.3(d)(iv) below, after giving effect to such Revolving Loans, the outstanding Revolver Usage (except for and excluding amounts charged to the Loan Account for interest, fees, or Lender Group Expenses) does not exceed the Maximum Revolver Amount.  In the event Agent obtains actual knowledge that the Revolver Usage exceeds the amounts permitted by this Section 2.3(d), regardless of the amount of, or reason for, such excess, Agent shall notify the Lenders as soon as practicable (and prior to making any (or any additional) intentional Overadvances (except for and excluding amounts charged to the Loan Account for interest, fees, or Lender Group Expenses) unless Agent determines that prior notice would result in imminent harm to the Collateral or its value, in which case Agent may make such Overadvances and provide notice as promptly as practicable thereafter), and the Lenders with Revolver Commitments thereupon shall, together with Agent, jointly determine the terms of arrangements that shall be implemented with Borrowers intended to reduce, within a reasonable time, the outstanding principal amount of the Revolving Loans to Borrowers to an amount permitted by the preceding sentence.  In such circumstances, if any Lender with a Revolver Commitment objects to the proposed terms of reduction or repayment of any Overadvance, the terms of reduction or repayment thereof shall be implemented according to the determination of the Required Lenders.  The foregoing provisions are meant for the benefit of the Lenders and Agent and are not meant for the benefit of Borrowers, which shall continue to be bound by the provisions of Section 2.4(e)(i).
7.Each Protective Advance and each Overadvance (each, an "Extraordinary Advance") shall be deemed to be a Revolving Loan hereunder, except that no Extraordinary Advance shall be eligible to be a LIBOR Rate Loan.  Prior to Settlement of any Extraordinary Advance, all payments with respect thereto, including interest thereon, shall be payable to Agent solely for its own account.  Each Revolving Lender shall be obligated to settle with Agent as provided in Section 2.3(e) (or Section 2.3(g), as applicable) for the amount of such Lender's Pro Rata Share of any Extraordinary Advance.  The Extraordinary Advances shall be repayable on demand, secured by Agent's Liens, constitute Obligations hereunder, and bear interest at the rate applicable from time to time to Revolving Loans that are Base Rate Loans.  The provisions of this Section 2.3(d) are for the exclusive benefit of Agent, Swing Lender, and the Lenders and are not intended to benefit Borrowers (or any other Loan Party) in any way.
8.Notwithstanding anything contained in this Agreement or any other Loan Document to the contrary, no Extraordinary Advance may be made by Agent if such Extraordinary Advance would cause the aggregate Revolver Usage to exceed the Maximum Revolver Amount or any Lender's Pro Rata Share of the Revolver Usage to exceed such Lender's Revolver Commitments; provided that Agent may make Extraordinary Advances in excess of the foregoing limitations so long as such Extraordinary Advances that cause the aggregate Revolver Usage to exceed the Maximum Revolver Amount or a Lender's Pro Rata Share of the Revolver Usage to exceed such Lender's Revolver Commitments are for Agent's sole and separate account and not for the account of any Lender.  No Lender shall have an obligation to settle with Agent for such Extraordinary Advances that cause the aggregate Revolver Usage to exceed the 
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Maximum Revolver Amount or a Lender's Pro Rata Share of the Revolver Usage to exceed such Lender's Revolver Commitments as provided in Section 2.3(e) (or Section 2.3(g), as applicable).
(h)Settlement.  It is agreed that each Lender's funded portion of the Revolving Loans is intended by the Lenders to equal, at all times, such Lender's Pro Rata Share of the outstanding Revolving Loans.  Such agreement notwithstanding, Agent, Swing Lender, and the other Lenders agree (which agreement shall not be for the benefit of Borrowers) that in order to facilitate the administration of this Agreement and the other Loan Documents, settlement among the Lenders as to the Revolving Loans (including Swing Loans and Extraordinary Advances) shall take place on a periodic basis in accordance with the following provisions:
9.Agent shall request settlement ("Settlement") with the Lenders on a weekly basis, or on a more frequent basis if so determined by Agent in its sole discretion (1) on behalf of Swing Lender, with respect to the outstanding Swing Loans, (2) for itself, with respect to the outstanding Extraordinary Advances, and (3) with respect to any Loan Party's or any of their Subsidiaries' payments or other amounts received, as to each by notifying the Lenders by telecopy, telephone, or other similar form of transmission, of such requested Settlement, no later than 3:00 p.m. on the Business Day immediately prior to the date of such requested Settlement (the date of such requested Settlement being the "Settlement Date").  Such notice of a Settlement Date shall include a summary statement of the amount of outstanding Revolving Loans (including Swing Loans and Extraordinary Advances) for the period since the prior Settlement Date.  Subject to the terms and conditions contained herein (including Section 2.3(g)):  (y) if the amount of the Revolving Loans (including Swing Loans and Extraordinary Advances) made by a Lender that is not a Defaulting Lender exceeds such Lender's Pro Rata Share of the Revolving Loans (including Swing Loans and Extraordinary Advances) as of a Settlement Date, then Agent shall, by no later than 1:00 p.m. on the Settlement Date, transfer in immediately available funds to a Deposit Account of such Lender (as such Lender may designate), an amount such that each such Lender shall, upon receipt of such amount, have as of the Settlement Date, its Pro Rata Share of the Revolving Loans (including Swing Loans and Extraordinary Advances), and (z) if the amount of the Revolving Loans (including Swing Loans and Extraordinary Advances) made by a Lender is less than such Lender's Pro Rata Share of the Revolving Loans (including Swing Loans and Extraordinary Advances) as of a Settlement Date, such Lender shall no later than 1:00 p.m. on the Settlement Date transfer in immediately available funds to Agent's Account, an amount such that each such Lender shall, upon transfer of such amount, have as of the Settlement Date, its Pro Rata Share of the Revolving Loans (including Swing Loans and Extraordinary Advances).  Such amounts made available to Agent under clause (z) of the immediately preceding sentence shall be applied against the amounts of the applicable Swing Loans or Extraordinary Advances and, together with the portion of such Swing Loans or Extraordinary Advances representing Swing Lender's Pro Rata Share thereof, shall constitute Revolving Loans of such Lenders.  If any such amount is not made available to Agent by any Lender on the Settlement Date applicable thereto to the extent required by the terms hereof, Agent shall be entitled to recover for its account such amount on demand from such Lender together with interest thereon at the Defaulting Lender Rate.
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10.In determining whether a Lender's balance of the Revolving Loans (including Swing Loans and Extraordinary Advances) is less than, equal to, or greater than such Lender's Pro Rata Share of the Revolving Loans (including Swing Loans and Extraordinary Advances) as of a Settlement Date, Agent shall, as part of the relevant Settlement, apply to such balance the portion of payments actually received in good funds by Agent with respect to principal, interest, fees payable by Borrowers and allocable to the Lenders hereunder, and proceeds of Collateral.
11.Between Settlement Dates, Agent, to the extent Extraordinary Advances or Swing Loans are outstanding, may pay over to Agent or Swing Lender, as applicable, any payments or other amounts received by Agent, that in accordance with the terms of this Agreement would be applied to the reduction of the Revolving Loans, for application to the Extraordinary Advances or Swing Loans.  Between Settlement Dates, Agent, to the extent no Extraordinary Advances or Swing Loans are outstanding, may pay over to Swing Lender any payments or other amounts received by Agent, that in accordance with the terms of this Agreement would be applied to the reduction of the Revolving Loans, for application to Swing Lender's Pro Rata Share of the Revolving Loans.  If, as of any Settlement Date, payments or other amounts of the Loan Parties or their Subsidiaries received since the then immediately preceding Settlement Date have been applied to Swing Lender's Pro Rata Share of the Revolving Loans other than to Swing Loans, as provided for in the previous sentence, Swing Lender shall pay to Agent for the accounts of the Lenders, and Agent shall pay to the Lenders (other than a Defaulting Lender if Agent has implemented the provisions of Section 2.3(g)), to be applied to the outstanding Revolving Loans of such Lenders, an amount such that each such Lender shall, upon receipt of such amount, have, as of such Settlement Date, its Pro Rata Share of the Revolving Loans.  During the period between Settlement Dates, Swing Lender with respect to Swing Loans, Agent with respect to Extraordinary Advances, and each Lender with respect to the Revolving Loans other than Swing Loans and Extraordinary Advances, shall be entitled to interest at the applicable rate or rates payable under this Agreement on the daily amount of funds employed by Swing Lender, Agent, or the Lenders, as applicable.
12.Anything in this Section 2.3(e) to the contrary notwithstanding, in the event that a Lender is a Defaulting Lender, Agent shall be entitled to refrain from remitting settlement amounts to the Defaulting Lender and, instead, shall be entitled to elect to implement the provisions set forth in Section 2.3(g).
(i)Notation.  Consistent with Section 13.1(h), Agent, as a non-fiduciary agent for Borrowers, shall maintain a register showing the principal amount and stated interest of the Revolving Loans owing to each Lender, including the Swing Loans owing to Swing Lender, and Extraordinary Advances owing to Agent, and the interests therein of each Lender, from time to time and such register shall, absent manifest error, conclusively be presumed to be correct and accurate.
(j)Defaulting Lenders.
13.Notwithstanding the provisions of Section 2.4(b)(iii), Agent shall not be obligated to transfer to a Defaulting Lender any payments made by Borrowers to Agent 
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for the Defaulting Lender's benefit or any proceeds of Collateral that would otherwise be remitted hereunder to the Defaulting Lender, and, in the absence of such transfer to the Defaulting Lender, Agent shall transfer any such payments (A) first, to Agent to the extent of any Extraordinary Advances that were made by Agent and that were required to be, but were not, paid by Defaulting Lender, (B) second, to Swing Lender to the extent of any Swing Loans that were made by Swing Lender and that were required to be, but were not, paid by the Defaulting Lender, (C) third, to Issuing Bank, to the extent of the portion of a Letter of Credit Disbursement that was required to be, but was not, paid by the Defaulting Lender, (D) fourth, to each Non-Defaulting Lender ratably in accordance with their Commitments (but, in each case, only to the extent that such Defaulting Lender's portion of a Revolving Loan (or other funding obligation) was funded by such other Non-Defaulting Lender), (E) fifth, in Agent's sole discretion, to a suspense account maintained by Agent, the proceeds of which shall be retained by Agent and may be made available to be re-advanced to or for the benefit of Borrowers (upon the request of Borrowers and subject to the conditions set forth in Section 3.2) as if such Defaulting Lender had made its portion of Revolving Loans (or other funding obligations) hereunder, and (F) sixth, from and after the date on which all other Obligations have been paid in full, to such Defaulting Lender in accordance with tier (L) of Section 2.4(b)(iii).  Subject to the foregoing, Agent may hold and, in its discretion, re-lend to Borrowers for the account of such Defaulting Lender the amount of all such payments received and retained by Agent for the account of such Defaulting Lender.  Solely for the purposes of voting or consenting to matters with respect to the Loan Documents (including the calculation of Pro Rata Share in connection therewith) and for the purpose of calculating the fee payable under Section 2.10(b), such Defaulting Lender shall be deemed not to be a "Lender" and such Lender's Commitment shall be deemed to be zero; provided, that the foregoing shall not apply to any of the matters governed by Section 14.1(a)(i) through (iii).  The provisions of this Section 2.3(g) shall remain effective with respect to such Defaulting Lender until the earlier of (y) the date on which all of the Non-Defaulting Lenders, Agent, Issuing Bank, and Borrowers shall have waived, in writing, the application of this Section 2.3(g) to such Defaulting Lender, or (z) the date on which such Defaulting Lender makes payment of all amounts that it was obligated to fund hereunder, pays to Agent all amounts owing by Defaulting Lender in respect of the amounts that it was obligated to fund hereunder, and, if requested by Agent, provides adequate assurance of its ability to perform its future obligations hereunder (on which earlier date, so long as no Event of Default has occurred and is continuing, any remaining cash collateral held by Agent pursuant to Section 2.3(g)(ii) shall be released to Borrowers).  The operation of this Section 2.3(g) shall not be construed to increase or otherwise affect the Commitment of any Lender, to relieve or excuse the performance by such Defaulting Lender or any other Lender of its duties and obligations hereunder, or to relieve or excuse the performance by any Borrower of its duties and obligations hereunder to Agent, Issuing Bank, or to the Lenders other than such Defaulting Lender.  Any failure by a Defaulting Lender to fund amounts that it was obligated to fund hereunder shall constitute a material breach by such Defaulting Lender of this Agreement and shall entitle Borrowers, at their option, upon written notice to Agent, to arrange for a substitute Lender to assume the Commitment of such Defaulting Lender, such substitute Lender to be reasonably acceptable to Agent.  In connection with the arrangement of such a substitute Lender, the Defaulting Lender shall have no right to refuse to be replaced hereunder, and agrees to execute and deliver a completed form of Assignment and Acceptance in favor of the substitute Lender (and agrees that it shall be deemed to have executed 
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and delivered such document if it fails to do so) subject only to being paid its share of the outstanding Obligations (other than Bank Product Obligations, but including (1) all interest, fees, and other amounts that may be due and payable in respect thereof, and (2) an assumption of its Pro Rata Share of its participation in the Letters of Credit); provided, that any such assumption of the Commitment of such Defaulting Lender shall not be deemed to constitute a waiver of any of the Lender Groups' or Borrowers' rights or remedies against any such Defaulting Lender arising out of or in relation to such failure to fund.  In the event of a direct conflict between the priority provisions of this Section 2.3(g) and any other provision contained in this Agreement or any other Loan Document, it is the intention of the parties hereto that such provisions be read together and construed, to the fullest extent possible, to be in concert with each other.  In the event of any actual, irreconcilable conflict that cannot be resolved as aforesaid, the terms and provisions of this Section 2.3(g) shall control and govern.
14.If any Swing Loan or Letter of Credit is outstanding at the time that a Lender becomes a Defaulting Lender then:
iii.such Defaulting Lender's Swing Loan Exposure and Letter of Credit Exposure shall be reallocated among the Non-Defaulting Lenders in accordance with their respective Pro Rata Shares but only to the extent (x) the sum of all Non-Defaulting Lenders' Pro Rata Share of Revolver Usage plus such Defaulting Lender's Swing Loan Exposure and Letter of Credit Exposure does not exceed the total of all Non-Defaulting Lenders' Revolver Commitments and (y) the conditions set forth in Section 3.2 are satisfied at such time;
iv.if the reallocation described in clause (A) above cannot, or can only partially, be effected, Borrowers shall within one Business Day following notice by the Agent (x) first, prepay such Defaulting Lender's Swing Loan Exposure (after giving effect to any partial reallocation pursuant to clause (A) above), and (y) second, cash collateralize such Defaulting Lender's Letter of Credit Exposure (after giving effect to any partial reallocation pursuant to clause (A) above), pursuant to a cash collateral agreement to be entered into in form and substance reasonably satisfactory to the Agent, for so long as such Letter of Credit Exposure is outstanding; provided, that Borrowers shall not be obligated to cash collateralize any Defaulting Lender's Letter of Credit Exposure if such Defaulting Lender is also Issuing Bank;
v.if Borrowers cash collateralize any portion of such Defaulting Lender's Letter of Credit Exposure pursuant to this Section 2.3(g)(ii), Borrowers shall not be required to pay any Letter of Credit Fees to Agent for the account of such Defaulting Lender pursuant to Section 2.6(b) with respect to such cash collateralized portion of such Defaulting Lender's Letter of Credit Exposure during the period such Letter of Credit Exposure is cash collateralized;
vi.to the extent the Letter of Credit Exposure of the Non-Defaulting Lenders is reallocated pursuant to this Section 2.3(g)(ii), then the Letter of Credit Fees payable to the Non-Defaulting Lenders pursuant to Section 2.6(b) shall be adjusted in accordance with such Non-Defaulting Lenders' Letter of Credit Exposure;
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vii.to the extent any Defaulting Lender's Letter of Credit Exposure is neither cash collateralized nor reallocated pursuant to this Section 2.3(g)(ii), then, without prejudice to any rights or remedies of Issuing Bank or any Lender hereunder, all Letter of Credit Fees that would have otherwise been payable to such Defaulting Lender under Section 2.6(b) with respect to such portion of such Letter of Credit Exposure shall instead be payable to Issuing Bank until such portion of such Defaulting Lender's Letter of Credit Exposure is cash collateralized or reallocated;
viii.so long as any Lender is a Defaulting Lender, the Swing Lender shall not be required to make any Swing Loan and Issuing Bank shall not be required to issue, amend, or increase any Letter of Credit, in each case, to the extent (x) the Defaulting Lender's Pro Rata Share of such Swing Loans or Letter of Credit cannot be reallocated pursuant to this Section 2.3(g)(ii), or (y) the Swing Lender or Issuing Bank, as applicable, has not otherwise entered into arrangements reasonably satisfactory to the Swing Lender or Issuing Bank, as applicable, and Borrowers to eliminate the Swing Lender's or Issuing Bank's risk with respect to the Defaulting Lender's participation in Swing Loans or Letters of Credit; and
ix.Agent may release any cash collateral provided by Borrowers pursuant to this Section 2.3(g)(ii) to Issuing Bank and Issuing Bank may apply any such cash collateral to the payment of such Defaulting Lender's Pro Rata Share of any Letter of Credit Disbursement that is not reimbursed by Borrowers pursuant to Section 2.11(d).  Subject to Section 17.14, no reallocation hereunder shall constitute a waiver or release of any claim of any party hereunder against a Defaulting Lender arising from that Lender having become a Defaulting Lender, including any claim of a Non-Defaulting Lender as a result of such Non-Defaulting Lender's increased exposure following such reallocation.
(k)Independent Obligations.  All Revolving Loans (other than Swing Loans and Extraordinary Advances) shall be made by the Lenders contemporaneously and in accordance with their Pro Rata Shares.  It is understood that (i) no Lender shall be responsible for any failure by any other Lender to perform its obligation to make any Revolving Loan (or other extension of credit) hereunder, nor shall any Commitment of any Lender be increased or decreased as a result of any failure by any other Lender to perform its obligations hereunder, and (ii) no failure by any Lender to perform its obligations hereunder shall excuse any other Lender from its obligations hereunder.
d..Payments; Reductions of Commitments; Prepayments.
(l)Payments by Borrowers.
15.(i)    Except as otherwise expressly provided herein, all payments by Borrowers shall be made to Agent's Account for the account of the Lender Group and shall be made in immediately available funds, no later than 2:30 p.m. on the date specified herein; provided that, for the avoidance of doubt, any payments deposited into a Controlled Account shall be deemed not to be received by Agent on any Business Day unless immediately available funds have been credited to Agent's Account prior to 2:30 p.m. on such Business Day.  Any payment received by Agent in immediately available funds in Agent's Account later than 
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2:30 p.m. shall be deemed to have been received (unless Agent, in its sole discretion, elects to credit it on the date received) on the following Business Day and any applicable interest or fee shall continue to accrue until such following Business Day.
16.Unless Agent receives notice from Borrowers prior to the date on which any payment is due to the Lenders that Borrowers will not make such payment in full as and when required, Agent may assume that Borrowers have made (or will make) such payment in full to Agent on such date in immediately available funds and Agent may (but shall not be so required), in reliance upon such assumption, distribute to each Lender on such due date an amount equal to the amount then due such Lender.  If and to the extent Borrowers do not make such payment in full to Agent on the date when due, each Lender severally shall repay to Agent on demand such amount distributed to such Lender, together with interest thereon at the Defaulting Lender Rate for each day from the date such amount is distributed to such Lender until the date repaid.
(m)Apportionment and Application.
17.So long as no Application Event has occurred and is continuing and except as otherwise provided herein with respect to Defaulting Lenders, all principal and interest payments received by Agent shall be apportioned ratably among the Lenders (according to the unpaid principal balance of the Obligations to which such payments relate held by each Lender) and all payments of fees and expenses received by Agent (other than fees or expenses that are for Agent's separate account or for the separate account of Issuing Bank) shall be apportioned ratably among the Lenders having a Pro Rata Share of the type of Commitment or Obligation to which a particular fee or expense relates.
18.Subject to Section 2.4(b)(v), Section 2.4(d)(ii), and Section 2.4(e), all payments to be made hereunder by Borrowers shall be remitted to Agent and all such payments, and all proceeds of Collateral received by Agent, shall be applied, so long as no Application Event has occurred and is continuing and except as otherwise provided herein with respect to Defaulting Lenders, to reduce the balance of the Revolving Loans outstanding and, thereafter, to Borrowers (to be wired to the Designated Account) or such other Person entitled thereto under applicable law.
19.At any time that an Application Event has occurred and is continuing and except as otherwise provided herein with respect to Defaulting Lenders, all payments remitted to Agent and all proceeds of Collateral received by Agent shall be applied as follows:
x.first, to pay any Lender Group Expenses (including cost or expense reimbursements) or indemnities then due to Agent under the Loan Documents and to pay interest and principal on Extraordinary Advances that are held solely by Agent pursuant to the terms of Section 2.4(d)(iv), until paid in full,
xi.second, to pay any fees or premiums then due to Agent under the Loan Documents, until paid in full,
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xii.third, to pay interest due in respect of all Protective Advances, until paid in full,
xiii.fourth, to pay the principal of all Protective Advances, until paid in full,
xiv.fifth, ratably, to pay any Lender Group Expenses (including cost or expense reimbursements) or indemnities then due to any of the Lenders under the Loan Documents, until paid in full,
xv.sixth, ratably, to pay any fees or premiums then due to any of the Lenders under the Loan Documents, until paid in full,
xvi.seventh, to pay interest accrued in respect of the Swing Loans, until paid in full,
xvii.eighth, to pay the principal of all Swing Loans, until paid in full,
xviii.ninth, ratably, to pay interest accrued in respect of the Revolving Loans (other than Protective Advances and Swing Loans), until paid in full,
xix.tenth, ratably
i.ratably, to pay the principal of all Revolving Loans (other than Protective Advances and Swing Loans), until paid in full,
ii.to Agent, to be held by Agent, for the benefit of Issuing Bank (and for the ratable benefit of each of the Lenders that have an obligation to pay to Agent, for the account of Issuing Bank, a share of each Letter of Credit Disbursement), as cash collateral in an amount up to 105% of the Letter of Credit Usage (to the extent permitted by applicable law, such cash collateral shall be applied to the reimbursement of any Letter of Credit Disbursement as and when such disbursement occurs and, if a Letter of Credit expires undrawn, the cash collateral held by Agent in respect of such Letter of Credit shall, to the extent permitted by applicable law, be reapplied pursuant to this Section 2.4(b)(iii), beginning with tier (A) hereof),
iii.ratably, to (y) the Bank Product Providers based upon amounts then certified by each applicable Bank Product Provider to Agent (in form and substance satisfactory to Agent) to be due and payable to such Bank Product Provider on account of Bank Product Obligations, and (z) with any balance to be paid to Agent, to be held by Agent, for the ratable benefit of the Bank Product Providers, as cash collateral (which cash collateral may be released by Agent to the applicable Bank Product Provider and applied by such Bank Product Provider to the payment or reimbursement of any amounts due and payable with respect to Bank Product Obligations owed to the applicable Bank Product Provider as and when such amounts first become due and payable and, if and at such time as all such Bank Product Obligations are paid or otherwise satisfied in full, the cash collateral held by Agent in respect of 
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such Bank Product Obligations shall be reapplied pursuant to this Section 2.4(b)(iii), beginning with tier (A) hereof, 
xx.eleventh, to pay any other Obligations other than Obligations owed to Defaulting Lenders,
xxi.twelfth, ratably to pay any Obligations owed to Defaulting Lenders; and
xxii.thirteenth, to Borrowers (to be wired to the Designated Account) or such other Person entitled thereto under applicable law.
20.Notwithstanding the foregoing, no payments remitted to Agent or proceeds of Collateral shall be applied to any Excluded Swap Obligation.  Agent promptly shall distribute to each Lender, pursuant to the applicable wire instructions received from each Lender in writing, such funds as it may be entitled to receive, subject to a Settlement delay as provided in Section 2.3(e).
21.In each instance, so long as no Application Event has occurred and is continuing, Section 2.4(b)(ii) shall not apply to any payment made by Borrowers to Agent and specified by Borrowers to be for the payment of specific Obligations then due and payable (or prepayable) under any provision of this Agreement or any other Loan Document.
22.For purposes of Section 2.4(b)(iii), "paid in full" of a type of Obligation means payment in cash or immediately available funds of all amounts owing on account of such type of Obligation, including interest accrued after the commencement of any Insolvency Proceeding, default interest, interest on interest, and expense reimbursements, irrespective of whether any of the foregoing would be or is allowed or disallowed in whole or in part in any Insolvency Proceeding.
23.In the event of a direct conflict between the priority provisions of this Section 2.4 and any other provision contained in this Agreement or any other Loan Document, it is the intention of the parties hereto that such provisions be read together and construed, to the fullest extent possible, to be in concert with each other.  In the event of any actual, irreconcilable conflict that cannot be resolved as aforesaid, if the conflict relates to the provisions of Section 2.3(g) and this Section 2.4, then the provisions of Section 2.3(g) shall control and govern, and if otherwise, then the terms and provisions of this Section 2.4 shall control and govern.
(n)Reduction of Revolver Commitments.  The Revolver Commitments shall terminate on the Maturity Date or earlier termination thereof pursuant to the terms of this Agreement.  Borrowers may reduce the Revolver Commitments, without premium or penalty, to an amount (which may be zero) not less than the sum of (A) the Revolver Usage as of such date, plus (B) the principal amount of all Revolving Loans not yet made as to which a request has been given by Borrowers under Section 2.3(a), plus (C) the amount of all Letters of Credit not yet issued as to which a request has been given by Borrowers pursuant to Section 2.11(a).  Each such 
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reduction shall be in an amount which is not less than $5,000,000 (unless the Revolver Commitments are being reduced to zero and the amount of the Revolver Commitments in effect immediately prior to such reduction are less than $5,000,000), shall be made by providing not less than ten Business Days prior written notice to Agent, and shall be irrevocable.  The Revolver Commitments, once reduced, may not be increased.  Each such reduction of the Revolver Commitments shall reduce the Revolver Commitments of each Lender proportionately in accordance with its ratable share thereof.  In connection with any reduction in the Revolver Commitments prior to the Maturity Date, if any Loan Party or any of its Subsidiaries owns any Margin Stock, Borrowers shall deliver to Agent an updated Form U-1 (with sufficient additional originals thereof for each Lender), duly executed and delivered by the Borrowers, together with such other documentation as Agent shall reasonably request, in order to enable Agent and the Lenders to comply with any of the requirements under Regulations T, U or X of the Federal Reserve Board.
(o)Optional Prepayments. Borrowers may prepay the principal of any Revolving Loan at any time in whole or in part, without premium or penalty.
(p)Mandatory Prepayments.
24.Borrowing Base.  If, at any time, (A) the Revolver Usage on such date exceeds (B) the lesser of (x) the Borrowing Base reflected in the Borrowing Base Certificate most recently delivered by Borrowers to Agent, or (y) the Maximum Revolver Amount, in all cases as adjusted for Reserves established by Agent in accordance with Section 2.1(c), then Borrowers shall immediately prepay the Obligations in accordance with Section 2.4(f)(i) in an aggregate amount equal to the amount of such excess.
25.Dispositions.  Within three Business Days of the date of receipt by any Loan Party or any of its Subsidiaries of the Net Cash Proceeds of any voluntary or involuntary sale or disposition of assets of any Loan Party or any of its Subsidiaries (including Net Cash Proceeds of insurance or arising from casualty losses or condemnations and payments in lieu thereof,  but excluding Net Cash Proceeds from sales or dispositions which qualify as Permitted Dispositions (other than under clauses (g), (h), (q) or (v) of the definition of Permitted Dispositions)), Borrowers shall prepay the outstanding principal amount of the Obligations in accordance with Section 2.4(f)(ii) in an amount equal to 100% of such Net Cash Proceeds received by such Person in connection with such sales or dispositions; provided, that so long as (A) no Default or Event of Default shall have occurred and is continuing or would result therefrom, (B) Borrowers shall have given Agent prior written notice of Borrowers' intention to apply such monies to the costs of replacement, substitution or restoration of the properties or assets that are the subject of such sale or disposition or casualty loss or condemnation, or the cost of purchase or construction of other assets useful in the business of such Loan Party or its Subsidiaries (in any case, other than current assets except to the extent the assets subject to the applicable Disposition were current assets), (C) the monies are held in a Deposit Account in which Agent has a perfected first-priority (subject to Permitted Liens to the extent any such Liens would have priority over the Agent's Liens pursuant to any applicable law or an agreement expressly permitted hereunder to have such senior priority) security interest, and (D) such Loan 
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Party or its Subsidiary, as applicable, completes such replacement, restoration, purchase, or construction within 180 days after the initial receipt of such monies, then the Loan Party or such Loan Party's Subsidiary whose assets were the subject of such disposition or casualty loss or condemnation shall have the option to apply such monies to the costs of replacement, substitution or restoration or casualty loss or condemnation of the assets that are the subject of such sale or disposition or casualty loss or condemnation or the costs of purchase or construction of other assets useful in the business of such Loan Party or such Subsidiary unless and to the extent that such applicable period shall have expired without such replacement, restoration, purchase, or construction being made or completed, in which case, any amounts remaining in the Deposit Account referred to in clause (C) above shall be paid to Agent and applied in accordance with Section 2.4(f)(ii); provided, that no Loan Party nor any of its Subsidiaries shall have the right to use such Net Cash Proceeds to make such replacements, restorations, purchases, or construction in excess of $5,000,000 in any given fiscal year.  Nothing contained in this Section 2.4(e)(ii) shall permit any Loan Party or any of its Subsidiaries to sell or otherwise dispose of any assets other than in accordance with Section 6.4.
26.Extraordinary Receipts.  Within three Business Days of the date of receipt by any Loan Party or any of its Subsidiaries of any Extraordinary Receipts, Borrowers shall prepay the outstanding principal amount of the Obligations in accordance with Section 2.4(f)(ii) in an amount equal to 100% of such Extraordinary Receipts, net of any reasonable expenses incurred in collecting such Extraordinary Receipts that are properly attributable to such transaction, to the extent the aggregate amount of Extraordinary Receipts received by the Loan Parties and their Subsidiaries (and not paid to Agent as a prepayment of the Obligations) exceeds $5,000,000 (and, with respect to any such amounts in excess of $5,000,000, other than, prior to the payment in full of the Term Loan Indebtedness, Extraordinary Receipts that constitute Term Priority Collateral).
27.Indebtedness.  Within three Business Days of the date of incurrence by any Loan Party or any of its Subsidiaries of any Indebtedness (other than Permitted Indebtedness), Borrowers shall prepay the outstanding principal amount of the Obligations in accordance with Section 2.4(f)(ii) in an amount equal to 100% of the Net Cash Proceeds received by such Person in connection with such incurrence.  The provisions of this Section 2.4(e)(iv) shall not be deemed to be implied consent to any such incurrence otherwise prohibited by the terms of this Agreement.
(q)Application of Payments.
28.Each prepayment pursuant to Section 2.4(e)(i) shall, (1) so long as no Application Event shall have occurred and be continuing, be applied, first, to the outstanding principal amount of the Revolving Loans until paid in full, and second, to cash collateralize the Letters of Credit in an amount equal to 105% of the then outstanding Letter of Credit Usage, and (2) if an Application Event shall have occurred and be continuing, be applied in the manner set forth in Section 2.4(b)(iii).  
29.Each prepayment pursuant to Section 2.4(e)(ii), 2.4(e)(iii) or 2.4(e)(iv) shall (A) so long as no Application Event shall have occurred and be continuing, be 
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applied, first, to the outstanding principal amount of the Revolving Loans (without a corresponding permanent reduction in the Maximum Revolver Amount), until paid in full, and second, to cash collateralize the Letters of Credit in an amount equal to 105% of the then outstanding Letter of Credit Usage (without a corresponding permanent reduction in the Maximum Revolver Amount), and (B) if an Application Event shall have occurred and be continuing, be applied in the manner set forth in Section 2.4(b)(iii); provided that (1) in the case of any prepayment pursuant to Section 2.4(e)(ii) or Section 2.4(e)(iii), in the case of any Net Cash Proceeds of such sale or disposition of any Term Priority Collateral or any Extraordinary Receipts constituting Term Priority Collateral, as the case may be, such Net Cash Proceeds or Extraordinary Receipts shall be applied, first, to prepay the Term Loan Indebtedness, to the extent required by the Term Loan Credit Agreement, and, second, to the Revolving Loans in accordance with the foregoing provisions of this Section 2.4(f) and (2) in the case of any prepayment pursuant to Section 2.4(e)(iv) or Section 2.4(e)(v), such prepayment shall be applied, first, to prepay the Term Loan Indebtedness, to the extent required by the Term Loan Credit Agreement, and, second, to the Revolving Loans in accordance with the foregoing provisions of this Section 2.4(f). 
e..Promise to Pay; Promissory Notes.
(r)Borrowers agree to pay the Lender Group Expenses on the earlier of (i) the first day of the month following the date on which the applicable Lender Group Expenses were first incurred, or (ii) the date on which demand therefor is made by Agent (it being acknowledged and agreed that any charging of such costs, expenses or Lender Group Expenses to the Loan Account pursuant to the provisions of Section 2.6(d) shall be deemed to constitute a demand for payment thereof for the purposes of this subclause (ii)).  Borrowers promise to pay all of the Obligations (including principal, interest, premiums, if any, fees, costs, and expenses payable under the Loan Documents (including Lender Group Expenses)) in full on the Maturity Date or, if earlier, on the date on which the Obligations (other than the Bank Product Obligations) become due and payable pursuant to the terms of this Agreement.  Borrowers agree that their obligations contained in the first sentence of this Section 2.5(a) shall survive payment or satisfaction in full of all other Obligations.
(s)Any Lender may request that any portion of its Commitments or the Loans made by it be evidenced by one or more promissory notes.  In such event, Borrowers shall execute and deliver to such Lender the requested promissory notes payable to the order of such Lender in a form furnished by Agent and reasonably satisfactory to Borrowers.  Thereafter, the portion of the Commitments and Loans evidenced by such promissory notes and interest thereon shall at all times be represented by one or more promissory notes in such form payable to the order of the payee named therein.
f..Interest Rates and Letter of Credit Fee:  Rates, Payments, and Calculations.
(t)Interest Rates.  Except as provided in Section 2.6(c) and Section 2.12(d), all Obligations (except for undrawn Letters of Credit) that have been charged to the Loan Account pursuant to the terms hereof shall bear interest as follows:
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30.if the relevant Obligation is a LIBOR Rate Loan, at a per annum rate equal to the LIBOR Rate plus the LIBOR Rate Margin, and
31.otherwise, at a per annum rate equal to the Base Rate plus the Base Rate Margin.
(u)Letter of Credit Fee.  Borrowers shall pay Agent (for the ratable benefit of the Revolving Lenders), a Letter of Credit fee (the "Letter of Credit Fee") (which fee shall be in addition to the fronting fees and commissions, other fees, charges and expenses set forth in Section 2.11(k)) that shall accrue at a rate equal to 2.25% per annum times the average amount of the Letter of Credit Usage during the immediately preceding month (or portion thereof).
(v)Default Rate.  (i) Automatically upon the occurrence and during the continuation of an Event of Default under Section 8.4 or 8.5 and (ii) upon the occurrence and during the continuation of any other Event of Default (other than an Event of Default under Section 8.4 or 8.5), at the direction of Agent or the Required Lenders, and upon written notice by Agent to Borrowers of such direction (provided, that such notice shall not be required for any Event of Default under Section 8.1), (A) all Loans and all Obligations (except for undrawn Letters of Credit) that have been charged to the Loan Account pursuant to the terms hereof shall bear interest at a per annum rate equal to two percentage points above the per annum rate otherwise applicable thereunder, effective as of the date of the occurrence of such Event of Default, and (B) the Letter of Credit Fee shall be increased to two percentage points above the per annum rate otherwise applicable hereunder.  
(w)Payment.  Except to the extent provided to the contrary in Section 2.10, Section 2.11(k) or Section 2.12(a), (i) all interest and all other fees payable hereunder or under any of the other Loan Documents (other than Letter of Credit Fees) shall be due and payable, in arrears, on the first day of each month, (ii) all Letter of Credit Fees payable hereunder, and all fronting fees and all commissions, other fees, charges and expenses provided for in Section 2.11(k) shall be due and payable, in arrears, on the first Business Day of each month, and (iii) all costs and expenses payable hereunder or under any of the other Loan Documents, and all other Lender Group Expenses shall be due and payable on (x) with respect to Lender Group Expenses outstanding as of the Closing Date, the Closing Date, and (y) otherwise, the earlier of (A) the first day of the month following the date on which the applicable costs, expenses, or Lender Group Expenses were first incurred, or (B) the date on which demand therefor is made by Agent (it being acknowledged and agreed that any charging of such costs, expenses or Lender Group Expenses to the Loan Account pursuant to the provisions of the following sentence shall be deemed to constitute a demand for payment thereof for the purposes of this subclause (y)).  Borrowers hereby authorize Agent, from time to time without prior notice to Borrowers, to charge to the Loan Account (A) on the first day of each month, all interest accrued during the prior month on the Revolving Loans hereunder, (B) on the first Business Day of each month, all Letter of Credit Fees accrued or chargeable hereunder during the prior month, (C) as and when incurred or accrued, all fees and costs provided for in Section 2.10(a) or (c), (D) on the first day of each month the Unused Line Fee accrued during the prior month pursuant to Section 2.10(b), (E) as and when due and payable, all other fees payable hereunder or under any of the other Loan 
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Documents, (F) on the Closing Date and thereafter as and when incurred or accrued, all other Lender Group Expenses, and (G) as and when due and payable all other payment obligations payable under any Loan Document or any Bank Product Agreement (including any amounts due and payable to the Bank Product Providers in respect of Bank Products).  All amounts (including interest, fees, costs, expenses, Lender Group Expenses, or other amounts payable hereunder or under any other Loan Document or under any Bank Product Agreement) charged to the Loan Account shall thereupon constitute Revolving Loans hereunder, shall constitute Obligations hereunder, and shall initially accrue interest at the rate then applicable to Revolving Loans that are Base Rate Loans (unless and until converted into LIBOR Rate Loans in accordance with the terms of this Agreement).
(x)Computation.  All interest and fees chargeable under the Loan Documents shall be computed on the basis of a 360 day year, in each case, for the actual number of days elapsed in the period during which the interest or fees accrue.  In the event the Base Rate is changed from time to time hereafter, the rates of interest hereunder based upon the Base Rate automatically and immediately shall be increased or decreased by an amount equal to such change in the Base Rate.
(y)Intent to Limit Charges to Maximum Lawful Rate.  In no event shall the interest rate or rates payable under this Agreement, plus any other amounts paid in connection herewith, exceed the highest rate permissible under any law that a court of competent jurisdiction shall, in a final determination, deem applicable.  Borrowers and the Lender Group, in executing and delivering this Agreement, intend legally to agree upon the rate or rates of interest and manner of payment stated within it; provided, that anything contained herein to the contrary notwithstanding, if such rate or rates of interest or manner of payment exceeds the maximum allowable under applicable law, then, ipso facto, as of the date of this Agreement, Borrowers are and shall be liable only for the payment of such maximum amount as is allowed by law, and payment received from Borrowers in excess of such legal maximum, whenever received, shall be applied to reduce the principal balance of the Obligations to the extent of such excess.
g..Crediting Payments
.  The receipt of any payment item by Agent shall not be required to be considered a payment on account unless such payment item is a wire transfer of immediately available funds made to Agent's Account or unless and until such payment item is honored when presented for payment.  Should any payment item not be honored when presented for payment, then Borrowers shall be deemed not to have made such payment.  Anything to the contrary contained herein notwithstanding, any payment item shall be deemed received by Agent only if it is received into Agent's Account on a Business Day on or before 2:30 p.m.  If any payment item is received into Agent's Account on a non-Business Day or after 2:30 p.m. on a Business Day (unless Agent, in its sole discretion, elects to credit it on the date received), it shall be deemed to have been received by Agent as of the opening of business on the immediately following Business Day.
h..Designated Account
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.  Agent is authorized to make the Revolving Loans, and Issuing Bank is authorized to issue the Letters of Credit, under this Agreement based upon telephonic or other instructions received from anyone purporting to be an Authorized Person or, without instructions, if pursuant to Section 2.6(d).  Borrowers agree to establish and maintain the Designated Account with the Designated Account Bank for the purpose of receiving the proceeds of the Revolving Loans requested by Borrowers and made by Agent or the Lenders hereunder.  Unless otherwise agreed by Agent and Borrowers, any Revolving Loan or Swing Loan requested by Borrowers and made by Agent or the Lenders hereunder shall be made to the Designated Account.
i..Maintenance of Loan Account; Statements of Obligations
.  Agent shall maintain an account on its books in the name of Borrowers (the "Loan Account") on which Borrowers will be charged with all Revolving Loans (including Extraordinary Advances and Swing Loans) made by Agent, Swing Lender, or the Lenders to Borrowers or for Borrowers' account, the Letters of Credit issued or arranged by Issuing Bank for Borrowers' account, and with all other payment Obligations hereunder or under the other Loan Documents, including, accrued interest, fees and expenses, and Lender Group Expenses.  In accordance with Section 2.7, the Loan Account will be credited with all payments received by Agent from Borrowers or for Borrowers' account.  Agent shall make available to Borrowers monthly statements regarding the Loan Account, including the principal amount of the Revolving Loans, interest accrued hereunder, fees accrued or charged hereunder or under the other Loan Documents, and a summary itemization of all charges and expenses constituting Lender Group Expenses accrued hereunder or under the other Loan Documents, and each such statement, absent manifest error, shall be conclusively presumed to be correct and accurate and constitute an account stated between Borrowers and the Lender Group unless, within 30 days after Agent first makes such a statement available to Borrowers, Borrowers shall deliver to Agent written objection thereto describing the error or errors contained in such statement.
j..Fees.
(z)Agent Fees.  Borrowers shall pay to Agent, for the account of Agent, as and when due and payable under the terms of the Fee Letter, the fees set forth in the Fee Letter.
(aa)Unused Line Fee.  Borrowers shall pay to Agent, for the ratable account of the Revolving Lenders, an unused line fee (the "Unused Line Fee") in an amount equal to the Applicable Unused Line Fee Percentage per annum times the result of (i) the aggregate amount of the Revolver Commitments, less (ii) the Average Revolver Usage during the immediately preceding month (or portion thereof), which Unused Line Fee shall be due and payable, in arrears, on the first day of each month from and after the Closing Date up to the first day of the month prior to the date on which the Obligations are paid in full and on the date on which the Obligations are paid in full.
(ab)Field Examination and Other Fees.  Subject to any limitations set forth in Section 5.7(c), Borrowers shall pay to Agent, field examination, appraisal, and valuation fees and charges, as and when incurred or chargeable, as follows (i) a fee of $1,000 per day, per examiner, plus reasonable, documented and out-of-pocket expenses (including reasonable travel, 
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reasonable meals, and reasonable lodging) for each field examination of any Loan Party or its Subsidiaries performed by or on behalf of Agent, and (ii) reasonable and documented fees, charges or expenses paid or incurred by Agent if it elects to employ the services of one or more third Persons to appraise the Collateral, or any portion thereof.
k..Letters of Credit.
(ac)Subject to the terms and conditions of this Agreement, upon the request of Borrowers made in accordance herewith, and prior to the Maturity Date, Issuing Bank agrees to issue a requested standby Letter of Credit or a sight commercial Letter of Credit for the account of Borrowers.  By submitting a request to Issuing Bank for the issuance of a Letter of Credit, Borrowers shall be deemed to have requested that Issuing Bank issue the requested Letter of Credit.  Each request for the issuance of a Letter of Credit, or the amendment or extension of any outstanding Letter of Credit, shall be (i) irrevocable and made in writing by an Authorized Person, (ii) delivered to Agent and Issuing Bank via telefacsimile or other electronic method of transmission reasonably acceptable to Agent and Issuing Bank and reasonably in advance of the requested date of issuance, amendment or extension, and (iii) subject to Issuing Bank's authentication procedures with results satisfactory to Issuing Bank.  Each such request shall be in form and substance reasonably satisfactory to Agent and Issuing Bank and (i) shall specify (A) the amount of such Letter of Credit, (B) the date of issuance, amendment or extension of such Letter of Credit, (C) the proposed expiration date of such Letter of Credit, (D) the name and address of the beneficiary of the Letter of Credit, and (E) such other information (including, the conditions to drawing, and, in the case of an amendment or extension, identification of the Letter of Credit to be so amended or extended) as shall be necessary to prepare, amend or extend such Letter of Credit, and (ii) shall be accompanied by such Issuer Documents as Agent or Issuing Bank may request or require, to the extent that such requests or requirements are consistent with the Issuer Documents that Issuing Bank generally requests for Letters of Credit in similar circumstances.  Issuing Bank's records of the content of any such request will be conclusive absent manifest or demonstrable error.  Anything contained herein to the contrary notwithstanding, Issuing Bank may, but shall not be obligated to, issue a Letter of Credit that supports the obligations of a Loan Party or one of its Subsidiaries in respect of (x) a lease of real property, or (y) an employment contract.
(ad)Issuing Bank shall have no obligation to issue a Letter of Credit if any of the following would result after giving effect to the requested issuance:
32.the Letter of Credit Usage would exceed the Letter of Credit Sublimit, or
33.the Letter of Credit Usage would exceed the Maximum Revolver Amount less the outstanding amount of Revolving Loans (including Swing Loans), or
34.the Letter of Credit Usage would exceed the Borrowing Base at such time less the outstanding principal balance of the Revolving Loans (inclusive of Swing Loans) at such time.
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(ae)In the event there is a Defaulting Lender as of the date of any request for the issuance of a Letter of Credit, Issuing Bank shall not be required to issue or arrange for such Letter of Credit to the extent (i) the Defaulting Lender's Letter of Credit Exposure with respect to such Letter of Credit may not be reallocated pursuant to Section 2.3(g)(ii), or (ii) Issuing Bank has not otherwise entered into arrangements reasonably satisfactory to it and Borrowers to eliminate Issuing Bank's risk with respect to the participation in such Letter of Credit of the Defaulting Lender, which arrangements may include Borrowers cash collateralizing such Defaulting Lender's Letter of Credit Exposure in accordance with Section 2.3(g)(ii).  Additionally, Issuing Bank shall have no obligation to issue or extend a Letter of Credit if (A) any order, judgment, or decree of any Governmental Authority or arbitrator shall, by its terms, purport to enjoin or restrain Issuing Bank from issuing such Letter of Credit, or any law applicable to Issuing Bank or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over Issuing Bank shall prohibit or request that Issuing Bank refrain from the issuance of letters of credit generally or such Letter of Credit in particular, (B) the issuance of such Letter of Credit would violate one or more policies of Issuing Bank applicable to letters of credit generally, or (C) if amounts demanded to be paid under any Letter of Credit will not or may not be in United States Dollars.
(af)Any Issuing Bank (other than Wells Fargo or any of its Affiliates) shall notify Agent in writing no later than the Business Day prior to the Business Day on which such Issuing Bank issues any Letter of Credit.  In addition, each Issuing Bank (other than Wells Fargo or any of its Affiliates) shall, on the first Business Day of each week, submit to Agent a report detailing the daily undrawn amount of each Letter of Credit issued by such Issuing Bank during the prior calendar week.  Each Letter of Credit shall be in form and substance reasonably acceptable to Issuing Bank, including the requirement that the amounts payable thereunder must be payable in Dollars.  If Issuing Bank makes a payment under a Letter of Credit, Borrowers shall pay to Agent an amount equal to the applicable Letter of Credit Disbursement on the Business Day such Letter of Credit Disbursement is made and, in the absence of such payment, the amount of the Letter of Credit Disbursement immediately and automatically shall be deemed to be a Revolving Loan hereunder (notwithstanding any failure to satisfy any condition precedent set forth in Section 3) and, initially, shall bear interest at the rate then applicable to Revolving Loans that are Base Rate Loans. If a Letter of Credit Disbursement is deemed to be a Revolving Loan hereunder, Borrowers' obligation to pay the amount of such Letter of Credit Disbursement to Issuing Bank shall be automatically converted into an obligation to pay the resulting Revolving Loan.  Promptly following receipt by Agent of any payment from Borrowers pursuant to this paragraph, Agent shall distribute such payment to Issuing Bank or, to the extent that Revolving Lenders have made payments pursuant to Section 2.11(e) to reimburse Issuing Bank, then to such Revolving Lenders and Issuing Bank as their interests may appear.
(ag)Promptly following receipt of a notice of a Letter of Credit Disbursement pursuant to Section 2.11(d), each Revolving Lender agrees to fund its Pro Rata Share of any Revolving Loan deemed made pursuant to Section 2.11(d) on the same terms and conditions as if Borrowers had requested the amount thereof as a Revolving Loan and Agent shall promptly pay to Issuing Bank the amounts so received by it from the Revolving Lenders.  By the issuance of a Letter of Credit (or an amendment or extension of a Letter of Credit) and without any further 
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action on the part of Issuing Bank or the Revolving Lenders, Issuing Bank shall be deemed to have granted to each Revolving Lender, and each Revolving Lender shall be deemed to have purchased, a participation in each Letter of Credit issued by Issuing Bank, in an amount equal to its Pro Rata Share of such Letter of Credit, and each such Revolving Lender agrees to pay to Agent, for the account of Issuing Bank, such Revolving Lender's Pro Rata Share of any Letter of Credit Disbursement made by Issuing Bank under the applicable Letter of Credit.  In consideration and in furtherance of the foregoing, each Revolving Lender hereby absolutely and unconditionally agrees to pay to Agent, for the account of Issuing Bank, such Revolving Lender's Pro Rata Share of each Letter of Credit Disbursement made by Issuing Bank and not reimbursed by Borrowers on the date due as provided in Section 2.11(d), or of any reimbursement payment that is required to be refunded (or that Agent or Issuing Bank elects, based upon the advice of counsel, to refund) to Borrowers for any reason.  Each Revolving Lender acknowledges and agrees that its obligation to deliver to Agent, for the account of Issuing Bank, an amount equal to its respective Pro Rata Share of each Letter of Credit Disbursement pursuant to this Section 2.11(e) shall be absolute and unconditional and such remittance shall be made notwithstanding the occurrence or continuation of an Event of Default or Default or the failure to satisfy any condition set forth in Section 3.  If any such Revolving Lender fails to make available to Agent the amount of such Revolving Lender's Pro Rata Share of a Letter of Credit Disbursement as provided in this Section, such Revolving Lender shall be deemed to be a Defaulting Lender and Agent (for the account of Issuing Bank) shall be entitled to recover such amount on demand from such Revolving Lender together with interest thereon at the Defaulting Lender Rate until paid in full.
(ah)Each Borrower agrees to indemnify, defend and hold harmless each member of the Lender Group (including Issuing Bank and its branches, Affiliates, and correspondents) and each such Person's respective directors, officers, employees, attorneys and agents (each, including Issuing Bank, a "Letter of Credit Related Person") (to the fullest extent permitted by law) from and against any and all claims, demands, suits, actions, investigations, proceedings, liabilities, fines, costs, penalties, and damages, and all reasonable and documented fees and disbursements of attorneys (limited to one primary attorney, one local attorney in each reasonably necessary jurisdiction, one specialty attorney in each reasonably necessary specialty area, and one or more additional attorney if one or more actual conflicts of interest arise), experts, or consultants and all other reasonable, documented and out-of-pocket costs and expenses actually incurred in connection therewith or in connection with the enforcement of this indemnification (as and when they are incurred and irrespective of whether suit is brought), which may be incurred by or awarded against any such Letter of Credit Related Person (other than Taxes, which shall be governed by Section 16) (the "Letter of Credit Indemnified Costs"), and which arise out of or in connection with, or as a result of:
35.any Letter of Credit or any pre-advice of its issuance;
36.any transfer, sale, delivery, surrender or endorsement (or lack thereof) of any Drawing Document at any time(s) held by any such Letter of Credit Related Person in connection with any Letter of Credit;
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37.any action or proceeding arising out of, or in connection with, any Letter of Credit (whether administrative, judicial or in connection with arbitration), including any action or proceeding to compel or restrain any presentation or payment under any Letter of Credit, or for the wrongful dishonor of, or honoring a presentation under, any Letter of Credit;
38.any independent undertakings issued by the beneficiary of any Letter of Credit;
39.any unauthorized instruction or request made to Issuing Bank in connection with any Letter of Credit or requested Letter of Credit, or any error, omission, interruption or delay in such instruction or request, whether transmitted by mail, courier, electronic transmission, SWIFT, or any other telecommunication including communications through a correspondent;
40.an adviser, confirmer or other nominated person seeking to be reimbursed, indemnified or compensated;
41.any third party seeking to enforce the rights of an applicant, beneficiary, nominated person, transferee, assignee of Letter of Credit proceeds or holder of an instrument or document;
42.the fraud, forgery or illegal action of parties other than the Letter of Credit Related Person;
43.any prohibition on payment or delay in payment of any amount payable by Issuing Bank to a beneficiary or transferee beneficiary of a Letter of Credit arising out of Anti-Corruption Laws, Anti-Money Laundering Laws, or Sanctions;
44.Issuing Bank's performance of the obligations of a confirming institution or entity that wrongfully dishonors a confirmation;
45.any foreign language translation provided to Issuing Bank in connection with any Letter of Credit;
46.any foreign law or usage as it relates to Issuing Bank's issuance of a Letter of Credit in support of a foreign guaranty including the expiration of such guaranty after the related Letter of Credit expiration date and any resulting drawing paid by Issuing Bank in connection therewith; or
47.the acts or omissions, whether rightful or wrongful, of any present or future de jure or de facto governmental or regulatory authority or cause or event beyond the control of the Letter of Credit Related Person;
provided, that such indemnity shall not be available to any Letter of Credit Related Person claiming indemnification under clauses (i) through (xiii) above to the extent that such Letter of Credit Indemnified Costs (A) are determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from the gross negligence or willful misconduct of the 
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Letter of Credit Related Person claiming indemnity, (B) are determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from a material breach of this Agreement by such Letter of Credit Related Person pursuant to proceedings initiated by any Person party to this Agreement, or (C) arise solely out of any dispute among Persons in the Lender Group that do not involve any acts or omissions of the Loan Parties or any of their Affiliates; it being understood and agreed that this clause (C) shall not exclude Letter of Credit Indemnified Costs of Agent or Issuing Bank (but shall exclude costs, expenses and charges of Lenders unless the dispute involves an act or omission of a Loan Party) relative to disputes between or among Agent and/or Issuing Bank, on the one hand, and one or more Lenders, or one or more of their Affiliates, on the other hand.  Borrowers hereby agree to pay the Letter of Credit Related Person claiming indemnity on demand from time to time all amounts owing under this Section 2.11(f).  If and to the extent that the obligations of Borrowers under this Section 2.11(f) are unenforceable for any reason, Borrowers agree to make the maximum contribution to the Letter of Credit Indemnified Costs permissible under applicable law.  This indemnification provision shall survive termination of this Agreement and all Letters of Credit.
(ai)The liability of Issuing Bank (or any other Letter of Credit Related Person) under, in connection with or arising out of any Letter of Credit (or pre-advice), regardless of the form or legal grounds of the action or proceeding, shall be limited to direct damages suffered by Borrowers that are caused directly by Issuing Bank's gross negligence or willful misconduct in (i) honoring a presentation under a Letter of Credit that on its face does not at least substantially comply with the terms and conditions of such Letter of Credit, (ii) failing to honor a presentation under a Letter of Credit that strictly complies with the terms and conditions of such Letter of Credit, or (iii) retaining Drawing Documents presented under a Letter of Credit.  Borrowers' aggregate remedies against Issuing Bank and any Letter of Credit Related Person for wrongfully honoring a presentation under any Letter of Credit or wrongfully retaining honored Drawing Documents shall in no event exceed the aggregate amount paid by Borrowers to Issuing Bank in respect of the honored presentation in connection with such Letter of Credit under Section 2.11(d), plus interest at the rate then applicable to Base Rate Loans hereunder.  Borrowers shall take action to avoid and mitigate the amount of any damages claimed against Issuing Bank or any other Letter of Credit Related Person, including by enforcing its rights against the beneficiaries of the Letters of Credit.  Any claim by Borrowers under or in connection with any Letter of Credit shall be reduced by an amount equal to the sum of (x) the amount (if any) saved by Borrowers as a result of the breach or alleged wrongful conduct complained of, and (y) the amount (if any) of the loss that would have been avoided had Borrowers taken all reasonable steps to mitigate any loss, and in case of a claim of wrongful dishonor, by specifically and timely authorizing Issuing Bank to effect a cure.
(aj)Borrowers are responsible for the final text of the Letter of Credit as issued by Issuing Bank, irrespective of any assistance Issuing Bank may provide such as drafting or recommending text or by Issuing Bank's use or refusal to use text submitted by Borrowers. Borrowers understand that the final form of any Letter of Credit may be subject to such revisions and changes as are deemed necessary or appropriate by Issuing Bank, and Borrowers hereby consent to such revisions and changes not materially different from the application executed in connection therewith. Borrowers are solely responsible for the suitability of the Letter of Credit 
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for Borrowers' purposes.  If Borrowers request Issuing Bank to issue a Letter of Credit for an affiliated or unaffiliated third party (an "Account Party"), (i) such Account Party shall have no rights against Issuing Bank; (ii) Borrowers shall be responsible for the application and obligations under this Agreement; and (iii) communications (including notices) related to the respective Letter of Credit shall be among Issuing Bank and Borrowers.  Borrowers will examine the copy of the Letter of Credit and any other documents sent by Issuing Bank in connection therewith and shall promptly notify Issuing Bank (not later than three (3) Business Days following Borrowers' receipt of documents from Issuing Bank) of any non-compliance with Borrowers' instructions and of any discrepancy in any document under any presentment or other irregularity.  Borrowers understand and agree that Issuing Bank is not required to extend the expiration date of any Letter of Credit for any reason. With respect to any Letter of Credit containing an "automatic amendment" to extend the expiration date of such Letter of Credit, Issuing Bank, in its sole and absolute discretion, may give notice of non-extension of such Letter of Credit and, if Borrowers do not at any time want the then current expiration date of such Letter of Credit to be extended, Borrowers will so notify Agent and Issuing Bank at least 30 calendar days before Issuing Bank is required to notify the beneficiary of such Letter of Credit or any advising bank of such non-extension pursuant to the terms of such Letter of Credit.
(ak)Borrowers' reimbursement and payment obligations under this Section 2.11 are absolute, unconditional and irrevocable and shall be performed strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever, including:
48.any lack of validity, enforceability or legal effect of any Letter of Credit, any Issuer Document, this Agreement, or any Loan Document, or any term or provision therein or herein;
49.payment against presentation of any draft, demand or claim for payment under any Drawing Document that does not comply in whole or in part with the terms of the applicable Letter of Credit or which proves to be fraudulent, forged or invalid in any respect or any statement therein being untrue or inaccurate in any respect, or which is signed, issued or presented by a Person or a transferee of such Person purporting to be a successor or transferee of the beneficiary of such Letter of Credit;
50.Issuing Bank or any of its branches or Affiliates being the beneficiary of any Letter of Credit;
51.Issuing Bank or any correspondent honoring a drawing against a Drawing Document up to the amount available under any Letter of Credit even if such Drawing Document claims an amount in excess of the amount available under the Letter of Credit;
52.the existence of any claim, set-off, defense or other right that any Loan Party or any of its Subsidiaries may have at any time against any beneficiary or transferee beneficiary, any assignee of proceeds, Issuing Bank or any other Person;
53.Issuing Bank or any correspondent honoring a drawing upon receipt of an electronic presentation under a Letter of Credit requiring the same, regardless of 
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whether the original Drawing Documents arrive at Issuing Bank's counters or are different from the electronic presentation;
54.any other event, circumstance or conduct whatsoever, whether or not similar to any of the foregoing that might, but for this Section 2.11(i), constitute a legal or equitable defense to or discharge of, or provide a right of set-off against, any Borrower's or any of its Subsidiaries' reimbursement and other payment obligations and liabilities, arising under, or in connection with, any Letter of Credit, whether against Issuing Bank, the beneficiary or any other Person; or
55.the fact that any Default or Event of Default shall have occurred and be continuing;
provided, that subject to Section 2.11(g) above, the foregoing shall not release Issuing Bank from such liability to Borrowers as may be finally determined in a final, non-appealable judgment of a court of competent jurisdiction against Issuing Bank following reimbursement or payment of the obligations and liabilities, including reimbursement and other payment obligations, of Borrowers to Issuing Bank arising under, or in connection with, this Section 2.11 or any Letter of Credit.
(al)Without limiting any other provision of this Agreement, Issuing Bank and each other Letter of Credit Related Person (if applicable) shall not be responsible to Borrowers for, and Issuing Bank's rights and remedies against Borrowers and the obligation of Borrowers to reimburse Issuing Bank for each drawing under each Letter of Credit shall not be impaired by:
56.honor of a presentation under any Letter of Credit that on its face substantially complies with the terms and conditions of such Letter of Credit, even if the Letter of Credit requires strict compliance by the beneficiary;
57.honor of a presentation of any Drawing Document that appears on its face to have been signed, presented or issued (A) by any purported successor or transferee of any beneficiary or other Person required to sign, present or issue such Drawing Document or (B) under a new name of the beneficiary;
58.acceptance as a draft of any written or electronic demand or request for payment under a Letter of Credit, even if nonnegotiable or not in the form of a draft or notwithstanding any requirement that such draft, demand or request bear any or adequate reference to the Letter of Credit;
59.the identity or authority of any presenter or signer of any Drawing Document or the form, accuracy, genuineness or legal effect of any Drawing Document (other than Issuing Bank's determination that such Drawing Document appears on its face substantially to comply with the terms and conditions of the Letter of Credit);
60.acting upon any instruction or request relative to a Letter of Credit or requested Letter of Credit that Issuing Bank in good faith believes to have been given by a Person authorized to give such instruction or request;
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61.any errors, omissions, interruptions or delays in transmission or delivery of any message, advice or document (regardless of how sent or transmitted) or for errors in interpretation of technical terms or in translation or any delay in giving or failing to give notice to any Borrower;
62.any acts, omissions or fraud by, or the insolvency of, any beneficiary, any nominated person or entity or any other Person or any breach of contract between any beneficiary and any Borrower or any of the parties to the underlying transaction to which the Letter of Credit relates;
63.assertion or waiver of any provision of the ISP or UCP that primarily benefits an issuer of a letter of credit, including any requirement that any Drawing Document be presented to it at a particular hour or place;
64.payment to any presenting bank (designated or permitted by the terms of the applicable Letter of Credit) claiming that it rightfully honored or is entitled to reimbursement or indemnity under Standard Letter of Credit Practice applicable to it;
65.acting or failing to act as required or permitted under Standard Letter of Credit Practice applicable to where Issuing Bank has issued, confirmed, advised or negotiated such Letter of Credit, as the case may be;
66.honor of a presentation after the expiration date of any Letter of Credit notwithstanding that a presentation was made prior to such expiration date and dishonored by Issuing Bank if subsequently Issuing Bank or any court or other finder of fact determines such presentation should have been honored;
67.dishonor of any presentation that does not strictly comply or that is fraudulent, forged or otherwise not entitled to honor; or
68.honor of a presentation that is subsequently determined by Issuing Bank to have been made in violation of international, federal, state or local restrictions on the transaction of business with certain prohibited Persons.
(am)Borrowers shall pay promptly upon demand to Agent for the account of Issuing Bank as non-refundable fees, commissions, and charges (it being acknowledged and agreed that any charging of such fees, commissions, and charges to the Loan Account pursuant to the provisions of Section 2.6(d) shall be deemed to constitute a demand for payment thereof for the purposes of this Section 2.11(k)):  (i) a fronting fee which shall be imposed by Issuing Bank equal to 0.125% per annum times the average amount of the Letter of Credit Usage during the immediately preceding month, plus (ii) any and all other customary commissions, fees and charges then in effect imposed by, and any and all documented expenses incurred by, Issuing Bank, or by any adviser, confirming institution or entity or other nominated person, relating to Letters of Credit, at the time of issuance of any Letter of Credit and upon the occurrence of any other activity with respect to any Letter of Credit (including transfers, assignments of proceeds, amendments, drawings, extensions or cancellations).  
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(an)If by reason of (x) any Change in Law, or (y) compliance by Issuing Bank or any other member of the Lender Group with any direction, request, or requirement (irrespective of whether having the force of law) of any Governmental Authority or monetary authority including, Regulation D of the Board of Governors as from time to time in effect (and any successor thereto):
69.any reserve, deposit, or similar requirement is or shall be imposed or modified in respect of any Letter of Credit issued or caused to be issued hereunder or hereby, or any Loans or obligations to make Loans hereunder or hereby, or
70.there shall be imposed on Issuing Bank or any other member of the Lender Group any other condition regarding any Letter of Credit, Loans, or obligations to make Loans hereunder,
and the result of the foregoing is to increase, directly or indirectly, the cost to Issuing Bank or any other member of the Lender Group of issuing, making, participating in, or maintaining any Letter of Credit or to reduce the amount receivable in respect thereof, then, and in any such case, Agent may, at any time within a reasonable period after the additional cost is incurred or the amount received is reduced, notify Borrowers, and Borrowers shall pay within 30 days after demand therefor, such amounts as Agent may specify to be necessary to compensate Issuing Bank or any other member of the Lender Group for such additional cost or reduced receipt, together with interest on such amount from the date of such demand until payment in full thereof at the rate then applicable to Base Rate Loans hereunder; provided, that (A) Borrowers shall not be required to provide any compensation pursuant to this Section 2.11(l) for any such amounts incurred more than 180 days prior to the date on which the demand for payment of such amounts is first made to Borrowers, and (B) if an event or circumstance giving rise to such amounts is retroactive, then the 180-day period referred to above shall be extended to include the period of retroactive effect thereof.  The determination by Agent of any amount due pursuant to this Section 2.11(l), as set forth in a certificate setting forth the calculation thereof in reasonable detail, shall, in the absence of manifest or demonstrable error, be final and conclusive and binding on all of the parties hereto.
(ao)Each standby Letter of Credit shall expire not later than the date that is 12 months after the date of the issuance of such Letter of Credit; provided, that any standby Letter of Credit may provide for the automatic extension thereof for any number of additional periods each of up to one year in duration; provided further, that with respect to any Letter of Credit which extends beyond the Maturity Date, Letter of Credit Collateralization shall be provided therefor on or before the date that is five Business Days prior to the Maturity Date.  Each commercial Letter of Credit shall expire on the earlier of (i) 120 days after the date of the issuance of such commercial Letter of Credit and (ii) five Business Days prior to the Maturity Date.
(ap)If (i) any Event of Default shall occur and be continuing, or (ii) Availability shall at any time be less than zero, then on the Business Day following the date when the Administrative Borrower receives notice from Agent or the Required Lenders (or, if the maturity of the Obligations has been accelerated, Revolving Lenders with Letter of Credit 
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Exposure representing greater than 50% of the total Letter Credit Exposure) demanding Letter of Credit Collateralization pursuant to this Section 2.11(n) upon such demand, Borrowers shall provide Letter of Credit Collateralization with respect to the then existing Letter of Credit Usage.  If Borrowers fail to provide Letter of Credit Collateralization as required by this Section 2.11(n), the Revolving Lenders may (and, upon direction of Agent, shall) advance, as Revolving Loans the amount of the cash collateral required pursuant to the Letter of Credit Collateralization provision so that the then existing Letter of Credit Usage is cash collateralized in accordance with the Letter of Credit Collateralization provision (whether or not the Revolver Commitments have terminated, an Overadvance exists or the conditions in Section 3 are satisfied).
(aq)Unless otherwise expressly agreed by Issuing Bank and Borrowers when a Letter of Credit is issued, (i) the rules of the ISP shall apply to each standby Letter of Credit, and (ii) the rules of the UCP shall apply to each commercial Letter of Credit.
(ar)Issuing Bank shall be deemed to have acted with due diligence and reasonable care if Issuing Bank's conduct is in accordance with Standard Letter of Credit Practice or in accordance with this Agreement.
(as)In the event of a direct conflict between the provisions of this Section 2.11 and any provision contained in any Issuer Document, it is the intention of the parties hereto that such provisions be read together and construed, to the fullest extent possible, to be in concert with each other.  In the event of any actual, irreconcilable conflict that cannot be resolved as aforesaid, the terms and provisions of this Section 2.11 shall control and govern.
(at)The provisions of this Section 2.11 shall survive the termination of this Agreement and the repayment in full of the Obligations with respect to any Letters of Credit that remain outstanding.
(au)At Borrowers' costs and expense, Borrowers shall execute and deliver to Issuing Bank such additional certificates, instruments and/or documents and take such additional action as may be reasonably requested by Issuing Bank to enable Issuing Bank to issue any Letter of Credit pursuant to this Agreement and related Issuer Document, to protect, exercise and/or enforce Issuing Banks' rights and interests under this Agreement or to give effect to the terms and provisions of this Agreement or any Issuer Document.  Each Borrower irrevocably appoints Issuing Bank as its attorney-in-fact and authorizes Issuing Bank, without notice to Borrowers, to execute and deliver ancillary documents and letters customary in the letter of credit business that may include but are not limited to advisements, indemnities, checks, bills of exchange and issuance documents.  The power of attorney granted by the Borrowers is limited solely to such actions related to the issuance, confirmation or amendment of any Letter of Credit and to ancillary documents or letters customary in the letter of credit business.  This appointment is coupled with an interest.
l..LIBOR Option.
(av)Interest and Interest Payment Dates.  In lieu of having interest charged at the rate based upon the Base Rate, Borrowers shall have the option, subject to Section 2.12(b) 
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below (the "LIBOR Option") to have interest on all or a portion of the Revolving Loans be charged (whether at the time when made (unless otherwise provided herein), upon conversion from a Base Rate Loan to a LIBOR Rate Loan, or upon continuation of a LIBOR Rate Loan as a LIBOR Rate Loan) at a rate of interest based upon the LIBOR Rate.  Interest on LIBOR Rate Loans shall be payable on the earliest of (i) the last day of the Interest Period applicable thereto; provided, that subject to the following clauses (ii) and (iii), in the case of any Interest Period greater than three months in duration, interest shall be payable at three month intervals after the commencement of the applicable Interest Period and on the last day of such Interest Period), (ii) the date on which all or any portion of the Obligations are accelerated pursuant to the terms hereof, or (iii) the date on which this Agreement is terminated pursuant to the terms hereof.  On the last day of each applicable Interest Period, unless Borrowers have properly exercised the LIBOR Option with respect thereto, the interest rate applicable to such LIBOR Rate Loan automatically shall convert to the rate of interest then applicable to Base Rate Loans of the same type hereunder.  At any time that an Event of Default has occurred and is continuing, Borrowers no longer shall have the option to request that Revolving Loans bear interest at a rate based upon the LIBOR Rate.
(aw)LIBOR Election.
71.Borrowers may, at any time and from time to time, so long as no Event of Default has occurred and is continuing, elect to exercise the LIBOR Option by notifying Agent prior to 12:00 p.m. at least three Business Days prior to the commencement of the proposed Interest Period (the "LIBOR Deadline").  Notice of Borrowers' election of the LIBOR Option for a permitted portion of the Revolving Loans and an Interest Period pursuant to this Section shall be made by delivery to Agent of a LIBOR Notice received by Agent before the LIBOR Deadline.  Promptly upon its receipt of each such LIBOR Notice, Agent shall provide a copy thereof to each of the affected Lenders.
72.Each LIBOR Notice shall be irrevocable and binding on Borrowers.  In connection with each LIBOR Rate Loan, each Borrower shall indemnify, defend, and hold Agent and the Lenders harmless against any loss, cost, or expense actually incurred by Agent or any Lender as a result of (A) the payment or required assignment of any principal of any LIBOR Rate Loan other than on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (B) the conversion of any LIBOR Rate Loan other than on the last day of the Interest Period applicable thereto, or (C) the failure to borrow, convert, continue or prepay any LIBOR Rate Loan on the date specified in any LIBOR Notice delivered pursuant hereto (such losses, costs, or expenses, "Funding Losses").  A certificate of Agent or a Lender delivered to Borrowers setting forth in reasonable detail any amount or amounts that Agent or such Lender is entitled to receive pursuant to this Section 2.12 shall be conclusive absent manifest error.  Borrowers shall pay such amount to Agent or the Lender, as applicable, within 30 days of the date of its receipt of such certificate.  
73.Unless Agent, in its sole discretion, agrees otherwise, Borrowers shall have not more than five LIBOR Rate Loans in effect at any given time.  Borrowers may only exercise the LIBOR Option for proposed LIBOR Rate Loans of at least $1,000,000.
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(ax)Conversion; Prepayment.  Borrowers may convert LIBOR Rate Loans to Base Rate Loans or prepay LIBOR Rate Loans at any time; provided, that in the event that LIBOR Rate Loans are converted or prepaid on any date that is not the last day of the Interest Period applicable thereto, including as a result of any prepayment through the required application by Agent of any payments or proceeds of Collateral in accordance with Section 2.4(b) or for any other reason, including early termination of the term of this Agreement or acceleration of all or any portion of the Obligations pursuant to the terms hereof, each Borrower shall indemnify, defend, and hold Agent and the Lenders and their Participants harmless against any and all Funding Losses in accordance with Section 2.12 (b)(ii).
(ay)Special Provisions Applicable to LIBOR Rate.
74.The LIBOR Rate may be adjusted by Agent with respect to any Lender on a prospective basis to take into account any additional or increased costs to such Lender of maintaining or obtaining any eurodollar deposits or increased costs (other than Taxes which shall be governed by Section 16), in each case, due to changes in applicable law occurring subsequent to the commencement of the then applicable Interest Period, including any Changes in Law and changes in the reserve requirements imposed by the Board of Governors, which additional or increased costs would increase the cost of funding or maintaining loans bearing interest at the LIBOR Rate.  In any such event, the affected Lender shall give Borrowers and Agent notice of such a determination and adjustment and Agent promptly shall transmit the notice to each other Lender and, upon its receipt of the notice from the affected Lender, Borrowers may, by notice to such affected Lender (A) require such Lender to furnish to Borrowers a statement setting forth in reasonable detail the basis for adjusting such LIBOR Rate and the method for determining the amount of such adjustment, or (B) repay the LIBOR Rate Loans of such Lender with respect to which such adjustment is made (together with any amounts due under Section 2.12(b)(ii)).
75.Subject to the provisions set forth in Section 2.12(d)(iii) below, in the event that any change in market conditions or any Change in Law shall at any time after the date hereof, in the reasonable opinion of any Lender, make it unlawful or impractical for such Lender to fund or maintain LIBOR Rate Loans or to continue such funding or maintaining, or to determine or charge interest rates at the LIBOR Rate, such Lender shall give notice of such changed circumstances to Agent and Borrowers and Agent promptly shall transmit the notice to each other Lender and (y) in the case of any LIBOR Rate Loans of such Lender that are outstanding, the date specified in such Lender's notice shall be deemed to be the last day of the Interest Period of such LIBOR Rate Loans, and interest upon the LIBOR Rate Loans of such Lender thereafter shall accrue interest at the rate then applicable to Base Rate Loans, and (z) Borrowers shall not be entitled to elect the LIBOR Option until such Lender determines that it would no longer be unlawful or impractical to do so.
76.Effect of Benchmark Transition Event.
xxiii.Benchmark Replacement.  Notwithstanding anything to the contrary herein or in any other Loan Document, upon the occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, Agent and Administrative Borrower may amend 
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this Agreement to replace the LIBOR Rate with a Benchmark Replacement. Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. on the fifth (5th) Business Day after Agent has posted such proposed amendment to all Lenders and Administrative Borrower so long as Agent has not received, by such time, written notice of objection to such amendment from Lenders comprising the Required Lenders. Any such amendment with respect to an Early Opt-in Election will become effective on the date that Lenders comprising the Required Lenders have delivered to Agent written notice that such Required Lenders accept such amendment. No replacement of the LIBOR Rate with a Benchmark Replacement pursuant to this Section 2.12(d)(iii) will occur prior to the applicable Benchmark Transition Start Date.
xxiv.Benchmark Replacement Conforming Changes.  In connection with the implementation of a Benchmark Replacement, Agent will have the right to make Benchmark Replacement Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments implementing such Benchmark Replacement Conforming Changes will become effective without any further action or consent of any other party to this Agreement.
xxv.Notices; Standards for Decisions and Determinations.  Agent will promptly notify Administrative Borrower and the Lenders of (1) any occurrence of a Benchmark Transition Event or an Early Opt-in Election, as applicable, and its related Benchmark Replacement Date and Benchmark Transition Start Date, (2) the implementation of any Benchmark Replacement, (3) the effectiveness of any Benchmark Replacement Conforming Changes, and (4) the commencement or conclusion of any Benchmark Unavailability Period. Any determination, decision or election that may be made by Agent or Lenders pursuant to this Section 2.12(d)(iii) including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action, will be conclusive and binding absent manifest error and may be made in its or their sole discretion and without consent from any other party hereto, except, in each case, as expressly required pursuant to this Section 2.12(d)(iii).
xxvi.Benchmark Unavailability Period.  Upon Administrative Borrower's receipt of notice of the commencement of a Benchmark Unavailability Period, Administrative Borrower may revoke any request for a LIBOR Borrowing of, conversion to or continuation of LIBOR Rate Loans to be made, converted or continued during any Benchmark Unavailability Period and, failing that, Administrative Borrower will be deemed to have converted any such request into a request for a Borrowing of or conversion to Base Rate Loans. During any Benchmark Unavailability Period, the component of Base Rate based upon the LIBOR Rate will not be used in any determination of the Base Rate. 
(az)No Requirement of Matched Funding.  Anything to the contrary contained herein notwithstanding, neither Agent, nor any Lender, nor any of their Participants, is required actually to acquire eurodollar deposits to fund or otherwise match fund any Obligation as to which interest accrues at the LIBOR Rate.
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m..Capital Requirements.
(ba)If, after the date hereof, Issuing Bank or any Lender determines that (i) any Change in Law regarding capital, liquidity or reserve requirements for banks or bank holding companies, or (ii) compliance by Issuing Bank or such Lender, or their respective parent bank holding companies, with any guideline, request or directive of any Governmental Authority regarding capital adequacy or liquidity requirements (whether or not having the force of law), has the effect of reducing the return on Issuing Bank's, such Lender's, or such holding companies' capital or liquidity as a consequence of Issuing Bank's or such Lender's commitments, Loans, participations or other obligations hereunder to a level below that which Issuing Bank, such Lender, or such holding companies could have achieved but for such Change in Law or compliance (taking into consideration Issuing Bank's, such Lender's, or such holding companies' then existing policies with respect to capital adequacy or liquidity requirements and assuming the full utilization of such entity's capital) by any amount deemed by Issuing Bank or such Lender to be material, then Issuing Bank or such Lender may notify Borrowers and Agent thereof.  Following receipt of such notice, Borrowers agree to pay Issuing Bank or such Lender on demand the amount of such reduction of return of capital as and when such reduction is determined, payable within 30 days after presentation by Issuing Bank or such Lender of a statement in the amount and setting forth in reasonable detail Issuing Bank's or such Lender's calculation thereof and the assumptions upon which such calculation was based (which statement shall be deemed true and correct absent manifest error).  In determining such amount, Issuing Bank or such Lender may use any reasonable averaging and attribution methods.  Failure or delay on the part of Issuing Bank or any Lender to demand compensation pursuant to this Section shall not constitute a waiver of Issuing Bank's or such Lender's right to demand such compensation; provided, that Borrowers shall not be required to compensate Issuing Bank or a Lender pursuant to this Section for any reductions in return incurred more than 180 days prior to the date that Issuing Bank or such Lender notifies Borrowers of such Change in Law giving rise to such reductions and of such Lender's intention to claim compensation therefor; provided further, that if such claim arises by reason of the Change in Law that is retroactive, then the 180-day period referred to above shall be extended to include the period of retroactive effect thereof.
(bb)If Issuing Bank or any Lender requests additional or increased costs referred to in Section 2.11(l) or Section 2.12(d)(i) or amounts under Section 2.13(a) or sends a notice under Section 2.12(d)(ii) relative to changed circumstances (such Issuing Bank or Lender, an "Affected Lender"), then, at the request of Administrative Borrower, such Affected Lender shall use reasonable efforts to promptly designate a different one of its lending offices or to assign its rights and obligations hereunder to another of its offices or branches, if (i) in the reasonable judgment of such Affected Lender, such designation or assignment would eliminate or reduce amounts payable pursuant to Section 2.11(l), Section 2.12(d)(i) or Section 2.13(a), as applicable, or would eliminate the illegality or impracticality of funding or maintaining LIBOR Rate Loans, and (ii) in the reasonable judgment of such Affected Lender, such designation or assignment would not subject it to any material unreimbursed cost or expense and would not otherwise be materially disadvantageous to it.  Borrowers agree to pay all reasonable, documented and out-of-pocket costs and expenses incurred by such Affected Lender in connection with any such designation or assignment.  If, after such reasonable efforts, such 
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Affected Lender does not so designate a different one of its lending offices or assign its rights to another of its offices or branches so as to eliminate Borrowers' obligation to pay any future amounts to such Affected Lender pursuant to Section 2.11(l), Section 2.12(d)(i) or Section 2.13(a), as applicable, or to enable Borrowers to obtain LIBOR Rate Loans, then Borrowers (without prejudice to any amounts then due to such Affected Lender under Section 2.11(l), Section 2.12(d)(i) or Section 2.13(a), as applicable) may, unless prior to the effective date of any such assignment the Affected Lender withdraws its request for such additional amounts under Section 2.11(l), Section 2.12(d)(i) or Section 2.13(a), as applicable, or indicates that it is no longer unlawful or impractical to fund or maintain LIBOR Rate Loans, may designate a different Issuing Bank or substitute a Lender or prospective Lender (other than an Ineligible Institution), in each case, reasonably acceptable to Agent to purchase the Obligations owed to such Affected Lender and such Affected Lender's commitments hereunder (a "Replacement Lender"), and if such Replacement Lender agrees to such purchase, such Affected Lender shall assign to the Replacement Lender its Obligations and commitments, and upon such purchase by the Replacement Lender, which such Replacement Lender shall be deemed to be "Issuing Bank" or a "Lender" (as the case may be) for purposes of this Agreement and such Affected Lender shall cease to be "Issuing Bank" or a "Lender" (as the case may be) for purposes of this Agreement.
(bc)Notwithstanding anything herein to the contrary, the protection of Sections 2.11(l), 2.12(d), and 2.13 shall be available to Issuing Bank and each Lender (as applicable) regardless of any possible contention of the invalidity or inapplicability of the law, rule, regulation, judicial ruling, judgment, guideline, treaty or other change or condition which shall have occurred or been imposed, so long as it shall be customary for issuing banks or lenders affected thereby to comply therewith.  Notwithstanding any other provision herein, neither Issuing Bank nor any Lender shall demand compensation pursuant to this Section 2.13 if it shall not at the time be the general policy or practice of Issuing Bank or such Lender (as the case may be) to demand such compensation in similar circumstances under comparable provisions of other credit agreements, if any.
n..Incremental Facilities
.
(bd)At any time during the period from and after the Closing Date, at the option of Borrowers (but subject to the conditions set forth in clause (b) below), the Revolver Commitments and the Maximum Revolver Amount may be increased by an amount in the aggregate for all such increases of the Revolver Commitments and the Maximum Revolver Amount not to exceed the Available Increase Amount (each such increase, an "Increase"); provided, that in no event shall the Revolver Commitments and the Maximum Revolver Amount be increased by an amount in excess of the Available Increase Amount.  Agent shall invite each Lender to increase its Revolver Commitments (it being understood that no Lender shall be obligated to increase its Revolver Commitments) in connection with a proposed Increase at the interest margin proposed by Borrowers, and if sufficient Lenders do not agree to increase their Revolver Commitments in connection with such proposed Increase, then Agent or Borrowers may invite any prospective lender (other than an Ineligible Institution) who is reasonably 
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satisfactory to Agent and Borrowers to become a Lender in connection with a proposed Increase.  Any Increase shall be in an amount of at least $5,000,000 and integral multiples of $5,000,000 in excess thereof.  In no event may the Revolver Commitments and the Maximum Revolver Amount be increased pursuant to this Section 2.14 on more than 3 occasions in the aggregate for all such Increases.  
(be)Each of the following shall be conditions precedent to any Increase of the Revolver Commitments and the Maximum Revolver Amount in connection therewith:
77.Agent or Borrowers have obtained the commitment of one or more Lenders (or other prospective lenders) reasonably satisfactory to Agent and Borrowers to provide the applicable Increase and any such Lenders (or prospective lenders), Borrowers, and Agent have signed a joinder agreement to this Agreement (an "Increase Joinder"), in form and substance reasonably satisfactory to Agent, to which such Lenders (or prospective lenders), Borrowers, and Agent are party,
78.each of the conditions precedent set forth in Section 3.2 are satisfied,
79.in connection with any Increase, if any Loan Party or any of its Subsidiaries owns or will acquire any Margin Stock, Borrowers shall deliver to Agent an updated Form U-1 (with sufficient additional originals thereof for each Lender), duly executed and delivered by the Borrowers, together with such other documentation as Agent shall reasonably request, in order to enable Agent and the Lenders to comply with any of the requirements under Regulations T, U or X of the Federal Reserve Board,
80.Borrowers have delivered to Agent updated pro forma Projections (after giving effect to the applicable Increase) for the Loan Parties and their Subsidiaries evidencing compliance on a pro forma basis with Section 7 for the twelve months (on a month-by-month basis) immediately following the proposed date of the applicable Increase (calculated as if a Covenant Testing Period was in effect during the entire twelve month period), and
81.The interest rate margins with respect to the Revolving Loans to be made pursuant to the increased Revolver Commitments shall be the same as the interest rate margin applicable to Revolving Loans hereunder immediately prior to the applicable Increase Date (as defined below).  
(bf)[Reserved].
(bg)Unless otherwise specifically provided herein, all references in this Agreement and any other Loan Document to Revolving Loans shall be deemed, unless the context otherwise requires, to include Revolving Loans made pursuant to the increased Revolver Commitments and Maximum Revolver Amount pursuant to this Section 2.14.
(bh)Each of the Lenders having a Revolver Commitment prior to the Increase Date (the "Pre-Increase Revolver Lenders") shall assign to any Lender which is acquiring a new 
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or additional Revolver Commitment on the Increase Date (the "Post-Increase Revolver Lenders"), and such Post-Increase Revolver Lenders shall purchase from each Pre-Increase Revolver Lender, at the principal amount thereof, such interests in the Revolving Loans and participation interests in Letters of Credit on such Increase Date as shall be necessary in order that, after giving effect to all such assignments and purchases, such Revolving Loans and participation interests in Letters of Credit will be held by Pre-Increase Revolver Lenders and Post-Increase Revolver Lenders ratably in accordance with their Pro Rata Share after giving effect to such increased Revolver Commitments.
(bi)The Revolving Loans, Revolver Commitments, and Maximum Revolver Amount established pursuant to this Section 2.14 shall constitute Revolving Loans, Revolver Commitments, and Maximum Revolver Amount under, and shall be entitled to all the benefits afforded by, this Agreement and the other Loan Documents, and shall, without limiting the foregoing, benefit equally and ratably from any guarantees and the security interests created by the Loan Documents.  Borrowers shall take any actions reasonably required by Agent to ensure and demonstrate that the Liens and security interests granted by the Loan Documents continue to be perfected under the Code or otherwise after giving effect to the establishment of any such new Revolver Commitments and Maximum Revolver Amount.
o..Joint and Several Liability of Borrowers.
(bj)Each Borrower is accepting joint and several liability hereunder and under the other Loan Documents in consideration of the financial accommodations to be provided by the Lender Group under this Agreement, for the mutual benefit, directly and indirectly, of each Borrower and in consideration of the undertakings of the other Borrowers to accept joint and several liability for the Obligations.
(bk)Each Borrower, jointly and severally, hereby irrevocably and unconditionally accepts, not merely as a surety but also as a co-debtor, joint and several liability with the other Borrowers, with respect to the payment and performance of all of the Obligations (including any Obligations arising under this Section 2.15), it being the intention of the parties hereto that all the Obligations shall be the joint and several obligations of each Borrower without preferences or distinction among them.  Accordingly, each Borrower hereby waives any and all suretyship defenses that would otherwise be available to such Borrower under applicable law.
(bl)If and to the extent that any Borrower shall fail to make any payment with respect to any of the Obligations as and when due, whether upon maturity, acceleration, or otherwise, or to perform any of the Obligations in accordance with the terms thereof, then in each such event the other Borrowers will make such payment with respect to, or perform, such Obligations until such time as all of the Obligations are paid in full, and without the need for demand, protest, or any other notice or formality.
(bm)The Obligations of each Borrower under the provisions of this Section 2.15 constitute the absolute and unconditional, full recourse Obligations of each Borrower enforceable against each Borrower to the full extent of its properties and assets (subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditor's 
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rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law), irrespective of the validity, regularity or enforceability of the provisions of this Agreement (other than this Section 2.15(d)) or any other circumstances whatsoever.
(bn)Without limiting the generality of the foregoing and except as otherwise expressly provided in this Agreement, each Borrower hereby waives presentments, demands for performance, protests and notices, including notices of acceptance of its joint and several liability, notice of any Revolving Loans or any Letters of Credit issued under or pursuant to this Agreement, notice of the occurrence of any Default, Event of Default, notices of nonperformance, notices of protest, notices of dishonor, notices of acceptance of this Agreement, notices of the existence, creation, or incurring of new or additional Obligations or other financial accommodations or of any demand for any payment under this Agreement, notice of any action at any time taken or omitted by Agent or Lenders under or in respect of any of the Obligations, any right to proceed against any other Borrower or any other Person, to proceed against or exhaust any security held from any other Borrower or any other Person, to protect, secure, perfect, or insure any security interest or Lien on any property subject thereto or exhaust any right to take any action against any other Borrower, any other Person, or any collateral, to pursue any other remedy in any member of the Lender Group's or any Bank Product Provider's power whatsoever, any requirement of diligence or to mitigate damages and, generally, to the extent permitted by applicable law, all demands, notices and other formalities of every kind in connection with this Agreement (except as otherwise provided in this Agreement), any right to assert against any member of the Lender Group or any Bank Product Provider, any defense (legal or equitable), set-off, counterclaim, or claim which each Borrower may now or at any time hereafter have against any other Borrower or any other party liable to any member of the Lender Group or any Bank Product Provider, any defense, set-off, counterclaim, or claim, of any kind or nature, arising directly or indirectly from the present or future lack of perfection, sufficiency, validity, or enforceability of the Obligations or any security therefor, and any right or defense arising by reason of any claim or defense based upon an election of remedies by any member of the Lender Group or any Bank Product Provider including any defense based upon an impairment or elimination of such Borrower's rights of subrogation, reimbursement, contribution, or indemnity of such Borrower against any other Borrower.  Without limiting the generality of the foregoing, each Borrower hereby assents to, and waives notice of, any extension or postponement of the time for the payment of any of the Obligations, the acceptance of any payment of any of the Obligations, the acceptance of any partial payment thereon, any waiver, consent or other action or acquiescence by Agent or Lenders at any time or times in respect of any default by any Borrower in the performance or satisfaction of any term, covenant, condition or provision of this Agreement, any and all other indulgences whatsoever by Agent or Lenders in respect of any of the Obligations, and the taking, addition, substitution or release, in whole or in part, at any time or times, of any security for any of the Obligations or the addition, substitution or release, in whole or in part, of any Borrower.  Without limiting the generality of the foregoing, each Borrower assents to any other action or delay in acting or failure to act on the part of any Agent or Lender with respect to the failure by any Borrower to comply with any of its respective Obligations, including any failure strictly or diligently to assert any right or to pursue any remedy or to comply fully with applicable laws or regulations thereunder, which might, but for 
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the provisions of this Section 2.15 afford grounds for terminating, discharging or relieving any Borrower, in whole or in part, from any of its Obligations under this Section 2.15, it being the intention of each Borrower that, so long as any of the Obligations hereunder remain unsatisfied, the Obligations of each Borrower under this Section 2.15 shall not be discharged except by performance and then only to the extent of such performance.  The Obligations of each Borrower under this Section 2.15 shall not be diminished or rendered unenforceable by any winding up, reorganization, arrangement, liquidation, reconstruction or similar proceeding with respect to any other Borrower or any Agent or Lender.  Each of the Borrowers waives, to the fullest extent permitted by law, the benefit of any statute of limitations affecting its liability hereunder or the enforcement hereof.  Any payment by any Borrower or other circumstance which operates to toll any statute of limitations as to any Borrower shall operate to toll the statute of limitations as to each of the Borrowers.  Each of the Borrowers waives any defense based on or arising out of any defense of any Borrower or any other Person, other than payment of the Obligations to the extent of such payment, based on or arising out of the disability of any Borrower or any other Person, or the validity, legality, or unenforceability of the Obligations or any part thereof from any cause, or the cessation from any cause of the liability of any Borrower other than payment of the Obligations to the extent of such payment.  Agent may, at the election of the Required Lenders, foreclose upon any Collateral held by Agent by one or more judicial or nonjudicial sales or other dispositions, whether or not every aspect of any such sale is commercially reasonable or otherwise fails to comply with applicable law or may exercise any other right or remedy Agent, any other member of the Lender Group, or any Bank Product Provider may have against any Borrower or any other Person, or any security, in each case, without affecting or impairing in any way the liability of any of the Borrowers hereunder except to the extent the Obligations have been paid.
(bo)Each Borrower represents and warrants to Agent and Lenders that such Borrower is currently informed of the financial condition of Borrowers and of all other circumstances which a diligent inquiry would reveal and which bear upon the risk of nonpayment of the Obligations.  Each Borrower further represents and warrants to Agent and Lenders that such Borrower has read and understands the terms and conditions of the Loan Documents.  Each Borrower hereby covenants that such Borrower will continue to keep informed of Borrowers' financial condition and of all other circumstances which bear upon the risk of nonpayment or nonperformance of the Obligations.
(bp)The provisions of this Section 2.15 are made for the benefit of Agent, each member of the Lender Group, each Bank Product Provider, and their respective successors and assigns, and may be enforced by it or them from time to time against any or all Borrowers as often as occasion therefor may arise and without requirement on the part of Agent, any member of the Lender Group, any Bank Product Provider, or any of their successors or assigns first to marshal any of its or their claims or to exercise any of its or their rights against any Borrower or to exhaust any remedies available to it or them against any Borrower or to resort to any other source or means of obtaining payment of any of the Obligations hereunder or to elect any other remedy.  The provisions of this Section 2.15 shall remain in effect until all of the Obligations shall have been paid in full or otherwise fully satisfied.  If at any time, any payment, or any part thereof, made in respect of any of the Obligations, is rescinded or must otherwise be restored or 
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returned by Agent or any Lender upon the insolvency, bankruptcy or reorganization of any Borrower, or otherwise, the provisions of this Section 2.15 will forthwith be reinstated in effect, as though such payment had not been made.
(bq)Each Borrower hereby agrees that it will not enforce any of its rights that arise from the existence, payment, performance or enforcement of the provisions of this Section 2.15, including rights of subrogation, reimbursement, exoneration, contribution or indemnification and any right to participate in any claim or remedy of Agent, any other member of the Lender Group, or any Bank Product Provider against any Borrower, whether or not such claim, remedy or right arises in equity or under contract, statute or common law, including the right to take or receive from any Borrower, directly or indirectly, in cash or other property or by set-off or in any other manner, payment or security solely on account of such claim, remedy or right, unless and until such time as all of the Obligations have been paid in full in cash.  Any claim which any Borrower may have against any other Borrower with respect to any payments to any Agent or any member of the Lender Group hereunder or under any of the Bank Product Agreements are hereby expressly made subordinate and junior in right of payment, without limitation as to any increases in the Obligations arising hereunder or thereunder, to the prior payment in full in cash of the Obligations and, in the event of any insolvency, bankruptcy, receivership, liquidation, reorganization or other similar proceeding under the laws of any jurisdiction relating to any Borrower, its debts or its assets, whether voluntary or involuntary, all such Obligations shall be paid in full in cash before any payment or distribution of any character, whether in cash, securities or other property, shall be made to any other Borrower therefor.  If any amount shall be paid to any Borrower in violation of the immediately preceding sentence, such amount shall be held in trust for the benefit of Agent, for the benefit of the Lender Group and the Bank Product Providers, and shall forthwith be paid to Agent to be credited and applied to the Obligations and all other amounts payable under this Agreement, whether matured or unmatured, in accordance with the terms of this Agreement, or to be held as Collateral for any Obligations or other amounts payable under this Agreement thereafter arising.  Notwithstanding anything to the contrary contained in this Agreement, no Borrower may exercise any rights of subrogation, contribution, indemnity, reimbursement or other similar rights against, and may not proceed or seek recourse against or with respect to any property or asset of, any other Borrower (the "Foreclosed Borrower"), including after payment in full of the Obligations, if all or any portion of the Obligations have been satisfied in connection with an exercise of remedies in respect of the Equity Interests of such Foreclosed Borrower whether pursuant to this Agreement or otherwise.
(br)Each of the Borrowers hereby acknowledges and affirms that it understands that to the extent the Obligations are secured by Real Property located in California, the Borrowers shall be liable for the full amount of the liability hereunder notwithstanding the foreclosure on such Real Property by trustee sale or any other reason impairing such Borrower's right to proceed against any other Loan Party.  In accordance with Section 2856 of the California Civil Code or any similar laws of any other applicable jurisdiction, each of the Borrowers hereby waives until such time as the Obligations have been paid in full:
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82.all rights of subrogation, reimbursement, indemnification, and contribution and any other rights and defenses that are or may become available to the Borrowers by reason of Sections 2787 to 2855, inclusive, 2899, and 3433 of the California Civil Code or any similar laws of any other applicable jurisdiction;
83.all rights and defenses that the Borrowers may have because the Obligations are secured by Real Property located in California, meaning, among other things, that:  (A) Agent, the other members of the Lender Group, and the Bank Product Providers may collect from the Borrowers without first foreclosing on any real or personal property collateral pledged by any Loan Party, and (B) if Agent, on behalf of the Lender Group, forecloses on any Real Property Collateral pledged by any Loan Party, (1) the amount of the Obligations may be reduced only by the price for which that collateral is sold at the foreclosure sale, even if the collateral is worth more than the sale price, and (2) the Lender Group may collect from the Loan Parties even if, by foreclosing on the Real Property Collateral, Agent or the other members of the Lender Group have destroyed or impaired any right the Borrowers may have to collect from any other Loan Party, it being understood that this is an unconditional and irrevocable waiver of any rights and defenses the Borrowers may have because the Obligations are secured by Real Property (including any rights or defenses based upon Sections 580a, 580d, or 726 of the California Code of Civil Procedure or any similar laws of any other applicable jurisdiction); and
84.all rights and defenses arising out of an election of remedies by Agent, the other members of the Lender Group, and the Bank Product Providers, even though that election of remedies, such as a nonjudicial foreclosure with respect to security for the Obligations, has destroyed the Borrowers' rights of subrogation and reimbursement against any other Loan Party by the operation of Section 580d of the California Code of Civil Procedure or any similar laws of any other applicable jurisdiction or otherwise.
3.CONDITIONS; TERM OF AGREEMENT.
a..Conditions Precedent to the Initial Extension of Credit
.  The obligation of each Lender to make the initial extensions of credit provided for hereunder is subject to the fulfillment, to the satisfaction of Agent and each Lender, or to the waiver pursuant to Section 14.1, of each of the conditions precedent set forth on Schedule 3.1 to this Agreement (the making of such initial extensions of credit by a Lender being conclusively deemed to be its satisfaction or waiver of the conditions precedent).
b..Conditions Precedent to all Extensions of Credit
.  The obligation of the Lender Group (or any member thereof) to make any Revolving Loans hereunder (or to extend any other credit hereunder) at any time shall be subject to the following conditions precedent:
(bs)the representations and warranties of each Loan Party or its Subsidiaries contained in this Agreement or in the other Loan Documents shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any 
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representations and warranties that already are qualified or modified by materiality in the text thereof) on and as of the date of such extension of credit, as though made on and as of such date (except to the extent that such representations and warranties relate solely to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) as of such earlier date); and
(bt)no Default or Event of Default shall have occurred and be continuing on the date of such extension of credit, nor shall either result from the making thereof.
c..Maturity
.  The Commitments shall continue in full force and effect for a term ending on the Maturity Date (unless terminated earlier in accordance with the terms hereof).
d..Effect of Maturity
.  On the Maturity Date, all commitments of the Lender Group to provide additional credit hereunder shall automatically be terminated and all of the Obligations (other than Hedge Obligations) immediately shall become due and payable without notice or demand and Borrowers shall be required to repay all of the Obligations (other than Hedge Obligations) in full.  No termination of the obligations of the Lender Group (other than payment in full of the Obligations and termination of the Commitments) shall relieve or discharge any Loan Party of its duties, obligations, or covenants hereunder or under any other Loan Document and Agent's Liens in the Collateral shall continue to secure the Obligations and shall remain in effect until all Obligations have been paid in full.  When all of the Obligations have been paid in full, Agent will, at Borrowers' sole expense, execute and deliver any termination statements, lien releases, discharges of security interests, and other similar discharge or release documents (and, if applicable, in recordable form) as are reasonably necessary to release, as of record, Agent's Liens and all notices of security interests and liens previously filed by Agent.
e..Early Termination by Borrowers
.  Borrowers have the option, at any time upon ten Business Days prior written notice to Agent, to repay all of the Obligations in full and terminate the Commitments.  The foregoing notwithstanding, (a) Borrowers may rescind termination notices relative to proposed payments in full of the Obligations with the proceeds of third party Indebtedness if the closing for such issuance or incurrence does not happen on or before the date of the proposed termination (in which case, a new notice shall be required to be sent in connection with any subsequent termination), and (b) Borrowers may extend the date of termination at any time with the consent of Agent (which consent shall not be unreasonably withheld or delayed).
f..Conditions Subsequent
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.  The obligation of the Lender Group (or any member thereof) to continue to make Revolving Loans (or otherwise extend credit hereunder) is subject to the fulfillment, on or before the date applicable thereto, of the conditions subsequent set forth on Schedule 3.6 to this Agreement (the failure by Borrowers to so perform or cause to be performed such conditions subsequent as and when required by the terms thereof (unless such date is extended, in writing, by Agent, which Agent may do without obtaining the consent of the other members of the Lender Group), shall constitute an Event of Default).
4.REPRESENTATIONS AND WARRANTIES.
In order to induce the Lender Group to enter into this Agreement, each Borrower makes the following representations and warranties to the Lender Group which shall be true, correct, and complete, in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof), as of the Closing Date, and shall be true, correct, and complete, in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof), as of the date of the making of each Revolving Loan (or other extension of credit) made thereafter, as though made on and as of the date of such Revolving Loan (or other extension of credit) (except to the extent that such representations and warranties relate solely to an earlier date, in which case such representations and warranties shall be true and correct in all material respects (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) as of such earlier date), and such representations and warranties shall survive the execution and delivery of this Agreement:
a..Due Organization and Qualification; Subsidiaries.
(bu)Each Loan Party and each of its Subsidiaries (i) is duly organized and existing and (to the extent the concept is applicable in such jurisdiction) in good standing under the laws of the jurisdiction of its organization, (ii) is qualified to do business in any state in which the nature of its business or the ownership or leasing of its properties makes such qualification necessary or reasonably desirable, (iii) has all requisite power and authority to own and operate its properties, and to carry on its business as now conducted and as proposed to be conducted, and (iv) has all requisite power and authority to enter into the Loan Documents to which it is a party and to carry out the transactions contemplated thereby, except, in each case under clauses (ii) and (iii) above, where the failure to do so, or so possess, individually or in the aggregate would not reasonably be expected to result in a Material Adverse Effect.
(bv)Set forth on Schedule 4.1(b) to this Agreement (as such Schedule may be updated from time to time to reflect changes resulting from transactions permitted under this Agreement) is a complete and accurate description of the authorized Equity Interests of each Loan Party, by class, and, as of the Closing Date, a description of the number of shares of each such class that are issued and outstanding.
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(bw)Set forth on Schedule 4.1(c) to this Agreement (as such Schedule may be updated from time to time to reflect changes resulting from transactions permitted under this Agreement), is a complete and accurate list of the Loan Parties' direct and indirect Subsidiaries, showing: (i) the number of shares of each class of common and preferred Equity Interests authorized for each of such Subsidiaries, and (ii) the number and the percentage of the outstanding shares of each such class owned directly or indirectly by each Loan Party. All of the outstanding Equity Interests of each such Subsidiary has been validly issued and is fully paid and non-assessable.
(bx)Except as set forth on Schedule 4.1(d) to this Agreement, there are no subscriptions, options, warrants, or calls relating to any shares of any Loan Party's or any of its Subsidiaries' Equity Interests, including any right of conversion or exchange under any outstanding security or other instrument.  No Loan Party is subject to any obligation (contingent or otherwise) to repurchase or otherwise acquire or retire any shares of its Equity Interests or any security convertible into or exchangeable for any of its Equity Interests.
b..Due Authorization; No Conflict.
(by)As to each Loan Party, the execution, delivery, and performance by such Loan Party of the Loan Documents to which it is a party have been duly authorized by all necessary action on the part of such Loan Party. 
(bz)As to each Loan Party, the execution, delivery, and performance by such Loan Party of the Loan Documents to which it is a party do not and will not (i) violate any material provision of federal, state, or local law or regulation applicable to any Loan Party or its Subsidiaries, the Governing Documents of any Loan Party or its Subsidiaries, or any order, judgment, or decree of any court or other Governmental Authority binding on any Loan Party or its Subsidiaries, (ii) conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under any material agreement of any Loan Party or its Subsidiaries where any such conflict, breach or default could individually or in the aggregate reasonably be expected to have a Material Adverse Effect, (iii) result in or require the creation or imposition of any Lien of any nature whatsoever upon any assets of any Loan Party, other than Permitted Liens, or (iv) require any approval of any holder of Equity Interests of a Loan Party or any approval or consent of any Person under any material agreement of any Loan Party, other than consents or approvals that have been obtained and that are still in force and effect and except, in the case of material agreements, for consents or approvals, the failure to obtain could not individually or in the aggregate reasonably be expected to cause a Material Adverse Effect.
c..Governmental Consents
.  The execution, delivery, and performance by each Loan Party of the Loan Documents to which such Loan Party is a party and the consummation of the transactions contemplated by the Loan Documents do not and will not require any registration with, consent, or approval of, or notice to, or other action with or by, any Governmental Authority, other than registrations, consents, approvals, notices, or other actions that have been obtained and that are still in force 
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and effect and except for filings and recordings with respect to the Collateral to be made, or otherwise delivered to Agent for filing or recordation, as of the Closing Date.
d..Binding Obligations; Perfected Liens.
(ca)Each Loan Document has been duly executed and delivered by each Loan Party that is a party thereto and is the legally valid and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with its respective terms, except as enforcement may be limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or similar laws relating to or limiting creditors' rights generally.
(cb)Agent's Liens are validly created, perfected (other than (i) in respect of motor vehicles that are subject to a certificate of title, (ii) money, (iii) letter-of-credit rights (other than supporting obligations), (iv) commercial tort claims (other than those that, by the terms of the Guaranty and Security Agreement, are required to be perfected), and (v) any Deposit Accounts and Securities Accounts not subject to a Control Agreement as permitted by Section 7(k)(iv) of the Guaranty and Security Agreement, and subject only to the filing of financing statements, the recordation of the Copyright Security Agreement, and the recordation of the Mortgages, in each case, in the appropriate filing offices), and first priority Liens, subject only to Permitted Liens that would have priority over the Agent's Liens pursuant to any applicable law or an agreement expressly permitted hereunder to have such senior priority.
e..Title to Assets; No Encumbrances
.  Each of the Loan Parties and its Subsidiaries has (a) insurable legal title to (in the case of fee interests in Real Property), (b) valid leasehold interests in (in the case of leasehold interests in real or personal property), and (c) good and marketable title to (in the case of all other personal property), all of their respective material assets reflected in their most recent financial statements delivered pursuant to Section 5.1, in each case except for (i) assets disposed of since the date of such financial statements to the extent permitted hereby and (ii) Permitted Liens.  All of such assets are free and clear of Liens except for Permitted Liens.  As of the Closing Date, the fair market value of the Real Properties located at (x) 805 S. Saturn Ave., Idaho Falls, ID 83402 and (y) 2030 Creek Dr. Rapid City, SD 57703 do not exceed $600,000 in the aggregate.  As of the Closing Date, the trademark "SUPERIOR" (0696503) is not material to, or necessary in the conduct of, the business of any Loan Party or its Subsidiaries and the fair market value of such trademark does not exceed $500,000.
f..Litigation.
(cc)There are no actions, suits, or proceedings pending or, to the knowledge of any Borrower, after due inquiry, threatened in writing against a Loan Party or any of its Subsidiaries that either individually or in the aggregate could reasonably be expected to result in liabilities of any Loan Party or any of its Subsidiaries individually or in the aggregate in excess of $5,000,000.
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(cd)Schedule 4.6(b) to this Agreement sets forth a complete and accurate description of each of the actions, suits, or proceedings with asserted liabilities in excess of, or that could reasonably be expected to result in liabilities in excess of, $1,000,000 that, as of the Closing Date, is pending or, to the knowledge of any Borrower, after due inquiry, threatened against a Loan Party or any of its Subsidiaries.
g..Compliance with Laws
.  No Loan Party nor any of its Subsidiaries (a) is in violation of any applicable laws, rules, regulations, executive orders, or codes (including Environmental Laws or the terms and conditions of any permits) that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect, or (b) is subject to or in default with respect to any final judgments, writs, injunctions, decrees, rules or regulations of any court or any federal, state, municipal or other governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.
h..No Material Adverse Effect
.  All historical financial statements relating to the Loan Parties and their Subsidiaries that have been delivered by Borrowers to Agent have been prepared in accordance with GAAP (except, in the case of unaudited financial statements, for the lack of footnotes and being subject to year-end audit adjustments) and present fairly in all material respects, the Loan Parties' and their Subsidiaries' consolidated financial condition as of the date thereof and results of operations for the period then ended.  Since June 30, 2020, no event, circumstance, or change has occurred that has or could reasonably be expected to result in a Material Adverse Effect, other than the continued impact of the Covid-19 pandemic on the Loan Parties' operations as reflected by the Projections delivered to Agent on February 26, 2021.
i..Solvency.
(ce)Each Loan Party is Solvent.
(cf)No transfer of property is being made by any Loan Party and no obligation is being incurred by any Loan Party in connection with the transactions contemplated by this Agreement or the other Loan Documents with the intent to hinder, delay, or defraud either present or future creditors of such Loan Party.
j..Employee Benefits
.  
(cg)Except as set forth on Schedule 4.10(a), no Loan Party, none of their Subsidiaries, nor any of their ERISA Affiliates (i) maintains or contributes to any Pension Plan or Multiemployer Plan or (ii) has any obligation to provide post-termination or retirement health 
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or welfare benefits other than coverage required by applicable law (e.g., unsubsidized COBRA) as of the date of this Agreement or at any time during the preceding six (6) years.
(ch)Each Loan Party and each of the ERISA Affiliates has complied in all material respects with ERISA, the IRC and all applicable laws regarding each Employee Benefit Plan.
(ci)Each Employee Benefit Plan is, and has been, complies with, and has been maintained in all material respects with ERISA, the IRC, all applicable laws and the terms of each such Employee Benefit Plan.
(cj)Each Employee Benefit Plan that is intended to qualify under Section 401(a) of the IRC has received a favorable determination letter from the Internal Revenue Service or is entitled to rely on an opinion letter provided under a volume submitted program.  To the best knowledge of each Loan Party and the ERISA Affiliates after due inquiry, nothing has occurred which would prevent, or cause the loss of, such qualification.
(ck)No liability to the PBGC (other than for the payment of current premiums which are not past due) by any Loan Party or ERISA Affiliate has been incurred or is expected by any Loan Party or ERISA Affiliate to be incurred with respect to any Pension Plan.  No property of any Loan Party is subject to any lien imposed pursuant to the IRC or ERISA with respect to any Pension Plan.   
(cl)As of the most recent valuation date for each Pension Plan, the funding target attainment percentage (as defined in IRC Section 430(d)(2)) is at least 80%, no Loan Party or ERISA Affiliate knows of any reason that such percentage could reasonably be expected to drop below 80%. Except as set forth on Schedule 4.10(f), in each case which could not reasonably be expected to result in a Material Adverse Effect, individually or in the aggregate, the present value of all accumulated benefit obligations of all underfunded Pension Plans (based on the assumptions used for financial reporting purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent financial statements reflecting such amounts, exceed the fair market value of the property of all such underfunded Pension Plans.  No Loan Party or ERISA Affiliate has incurred any liability to the PBGC except for the payment of premiums, and no premium payments are due and unpaid.  Each Loan Party and ERISA Affiliate has met all applicable requirements under the IRC and ERISA, and no application for a waiver of the minimum funding standards or an extension of any amortization period has been made with respect to any Employee Benefit Plan.
(cm)No Loan Party has any obligation to pay or accrue any nonqualified deferred compensation within the meaning of IRC Section 409A.
(cn)There are no pending or, to the knowledge of each Loan Party, threatened claims, actions or lawsuits, or action by any claimant or Governmental Authority, with respect to any Employee Benefit Plan (other than routine claims for benefits).  There has been no prohibited transaction or violation of the fiduciary responsibility rules in any material respect with respect to any Employee Benefit Plan. 
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(co)No Notification Event exists, is reasonably expected to occur, or has occurred in the past six (6) years.
(cp)No Loan Party or ERISA Affiliate has provided any security under Section 436 of the IRC.
(cq)The ESOP is an "employee stock ownership plan" within the meaning of Section 4975(e)(7) of the IRC and is qualified under Section 401(a) of the IRC.  The ESOP has been duly established in accordance with and under applicable law and the ESOT is a tax-exempt trust under Section 501(a) of the IRC.  Except as would not reasonably be expected to result in a Material Adverse Effect, the terms of the ESOT Trust Agreement and ESOP comply with, and have been operated in accordance with, all applicable laws, including the IRC and ERISA, and all ESOP Loans have been paid in full.  The ESOT is a duly established and validly existing trust, and the ESOT Trustee has all of the requisite powers and authority to execute and deliver all agreements and documents with respect to the ESOP.
(cr)Notwithstanding that the Loan Parties maintain and contribute to Employee Benefit Plans, no Loan Party or any Subsidiary thereof is an entity deemed to hold "plan assets" (within the meaning of the Plan Asset Regulations).
k..Environmental Condition
.  Except as set forth on Schedule 4.11 to this Agreement or as specifically identified in any environmental report commissioned by a Loan Party or any of its Subsidiaries to Agent (or commissioned by Agent or any Lender) in connection with any Loan, (a) to each Borrower's actual knowledge, no Loan Party's nor any of its Subsidiaries' Real Properties or any formerly owned, leased, used or operated real property, has ever been used by a Loan Party or its Subsidiaries for the disposal of, or to produce, store, handle, treat, release, or transport, any Hazardous Materials, where such disposal, production, storage, handling, treatment, release or transport was in violation, of, or non-compliance with, any applicable Environmental Law which, in each case, remains uncured, (b) to each Borrower's actual knowledge, no Loan Party's nor any of its Subsidiaries' Real Properties has ever been designated or identified in any manner pursuant to any Environmental Law as a Hazardous Materials disposal site or been the subject of a release of Hazardous Materials by any Loan Party or any of its Subsidiaries or any Person acting for any Loan Party or any of its Subsidiaries for which any Loan Party is reasonably likely to have liability under applicable Environmental Laws , (c) no Loan Party nor any of its Subsidiaries has received written notice that a Lien arising under any Environmental Law has attached to any revenues or to any Real Property owned by a Loan Party or its Subsidiaries which Lien remains in effect, and (d) except as disclosed to Agent in writing prior to the Closing Date, no Loan Party nor any of its Subsidiaries nor any of their respective facilities, Real Properties, or operations is currently subject to any Environmental Action or outstanding written order, consent decree, or settlement agreement with any Person relating to any Environmental Law or Environmental Liability which, in each case under clauses (a) through (d) above, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.
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l..Complete Disclosure
.  All factual information taken as a whole (other than forward-looking information and projections and information of a general economic nature and general information about Borrowers' industry) furnished by a Loan Party (or by Administrative Borrower on behalf of any other Loan Party) or its Subsidiaries in writing to Agent or any Lender (including all information contained in the Schedules hereto or in the other Loan Documents) for purposes of or in connection with this Agreement or the other Loan Documents, and all other such factual information taken as a whole (other than forward-looking information and projections and information of a general economic nature and general information about Borrowers' industry) hereafter furnished by any Loan Party (or by Administrative Borrower on behalf of any other Loan Party) or its Subsidiaries in writing to Agent or any Lender will be, true and accurate, in all material respects, on the date as of which such information is dated or certified and not incomplete by omitting to state any fact necessary to make such information (taken as a whole) not misleading in any material respect at such time in light of the circumstances under which such information was provided.  The Projections delivered to Agent on February 26, 2021 represent, and as of the date on which any other Projections are delivered to Agent, such additional Projections represent, Borrowers' good faith estimate, on the date such Projections are delivered, of the Loan Parties' and their Subsidiaries' future performance for the periods covered thereby based upon assumptions believed by Borrowers to be reasonable at the time of the delivery thereof to Agent (it being understood that such Projections are subject to significant uncertainties and contingencies, many of which are beyond the control of the Loan Parties and their Subsidiaries, and no assurances can be given that such Projections will be realized, and although reflecting Borrowers' good faith estimate, projections or forecasts based on methods and assumptions which Borrowers believed to be reasonable at the time such Projections were prepared, are not to be viewed as facts, and that actual results during the period or periods covered by the Projections may differ materially from projected or estimated results).  As of the Closing Date, the information included in the Beneficial Ownership Certification is true and correct in all respects.
m..Patriot Act
.  To the extent applicable, each Loan Party is in compliance, in all material respects, with the (a) Trading with the Enemy Act, as amended, and each of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order relating thereto, and (b) Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot Act of 2001, as amended) (the "Patriot Act").
n..Indebtedness
.  Set forth on Schedule 4.14 to this Agreement is a true and complete list, in all material respects, of all Indebtedness of each Loan Party and each of its Subsidiaries outstanding immediately prior to the Closing Date that is to remain outstanding immediately after giving effect to the closing hereunder on the Closing Date and such Schedule accurately sets forth, in all material respects, the aggregate principal amount of such Indebtedness as of the Closing Date.
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o..Payment of Taxes
.  All Tax returns and reports of each Loan Party and its Subsidiaries required to be filed by any of them have been timely filed, and all Taxes shown on such Tax returns to be due and payable and all other Taxes upon a Loan Party and its Subsidiaries and upon their respective assets, income, businesses and franchises that are due and payable have been paid when due and payable, other than Taxes not in excess of $2,500,000 in the aggregate.  Each Loan Party and each of its Subsidiaries have made adequate provision in accordance with GAAP for all material Taxes not yet due and payable.  No Borrower knows of any proposed Tax assessment against a Loan Party or any of its Subsidiaries that is not being actively contested by such Loan Party or such Subsidiary diligently, in good faith, and by appropriate proceedings; provided, that such reserves or other appropriate provisions, if any, as shall be required in conformity with GAAP shall have been made or provided therefor.
p..Margin Stock
.  Neither any Loan Party nor any of its Subsidiaries owns any Margin Stock or is engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying any Margin Stock.  No part of the proceeds of the Loans made to Borrowers will be used to purchase or carry any Margin Stock or to extend credit to others for the purpose of purchasing or carrying any Margin Stock or for any purpose that violates the provisions of Regulation T, U or X of the Board of Governors.  Neither any Loan Party nor any of its Subsidiaries expects to acquire any Margin Stock.
q..Governmental Regulation
.  No Loan Party nor any of its Subsidiaries is subject to regulation under the Federal Power Act or the Investment Company Act of 1940 or under any other federal or state statute or regulation which may limit its ability to incur Indebtedness or which may otherwise render all or any portion of the Obligations unenforceable.  No Loan Party nor any of its Subsidiaries is a "registered investment company" or a company "controlled" by a "registered investment company" or a "principal underwriter" of a "registered investment company" as such terms are defined in the Investment Company Act of 1940.
r..OFAC; Sanctions; Anti-Corruption Laws; Anti-Money Laundering Laws
.  No Loan Party or any of its Subsidiaries is in violation of any Sanctions.  No Loan Party nor any of its Subsidiaries nor, to the knowledge of such Loan Party, any director, officer, employee, agent or Affiliate of such Loan Party or such Subsidiary (a) is a Sanctioned Person or a Sanctioned Entity, (b) has any assets located in Sanctioned Entities, or (c) derives revenues from investments in, or transactions with Sanctioned Persons or Sanctioned Entities.  Each of the Loan Parties and its Subsidiaries has implemented and maintains in effect policies and procedures reasonably designed to ensure compliance with Sanctions, Anti-Corruption Laws and Anti-Money Laundering Laws.  Each of the Loan Parties and its Subsidiaries, and to the knowledge of each such Loan Party, each director, officer, employee, agent and Affiliate of each such Loan Party and each such Subsidiary, is in compliance with all Sanctions, Anti-Corruption 
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Laws and Anti-Money Laundering Laws.  No proceeds of any Loan made or Letter of Credit issued hereunder will be used to fund any operations in, finance any investments or activities in, or make any payments to, a Sanctioned Person or a Sanctioned Entity, or otherwise used in any manner that would result in a violation of any Sanction, Anti-Corruption Law or Anti-Money Laundering Law by any Person (including any Lender, Bank Product Provider, or other individual or entity participating in any transaction).
s..Employee and Labor Matters
.  There is (i) no unfair labor practice complaint pending or, to the knowledge of any Loan Party, threatened against any Loan Party or its Subsidiaries before any Governmental Authority and no grievance or arbitration proceeding pending or, to the knowledge of any Borrower, threatened against any Loan Party or its Subsidiaries which arises out of or under any collective bargaining agreement and that could reasonably be expected to result in a material liability, (ii) no strike, labor dispute, slowdown, stoppage or similar action or grievance pending or threatened against any Loan Party or its Subsidiaries that could reasonably be expected to result in a material liability, or (iii) to the knowledge of any Loan Party, after due inquiry, no union representation question existing with respect to the employees of any Loan Party or its Subsidiaries and no union organizing activity taking place with respect to any of the employees of any Loan Party or its Subsidiaries.  None of any Loan Party or its Subsidiaries has incurred any liability or obligation under the Worker Adjustment and Retraining Notification Act or similar state law, which remains unpaid or unsatisfied to the extent that such would, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.  The hours worked and payments made to employees of each Loan Party and its Subsidiaries have not been in violation of the Fair Labor Standards Act or any other applicable legal requirements, except to the extent such violations could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.  All material payments due from any Loan Party or its Subsidiaries on account of wages and employee health and welfare insurance and other benefits have been paid or accrued as a liability on the books of Borrowers, except where the failure to do so could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.
t..Material Contracts
.  Set forth on Schedule 4.20 (as such Schedule may be updated from time to time in accordance herewith) is a reasonably detailed description of the Material Contracts of each Loan Party and its Subsidiaries as of the Closing Date; provided, that Borrowers may amend Schedule 4.20 to add additional Material Contracts so long as such amendment occurs by written notice to Agent on the date that Parent provides the Compliance Certificate.  The Loan Parties are not in breach or in default of or under any Material Contract which could reasonably be expected to result in a Material Adverse Effect and have not received any written notice of the intention of any other Person party thereto to terminate any Material Contract prior to the end of its current term.
u..Leases
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.  Each Loan Party and its Subsidiaries enjoy peaceful and undisturbed possession under all leases material to their business and to which they are parties or under which they are operating, and, subject to Permitted Protests, all of such material leases are valid and subsisting and no Loan Party has received written notice asserting a material default by the applicable Loan Party or its Subsidiaries which remains uncured.
v..Eligible Accounts
.  As to each Account that is identified by Borrowers as an Eligible Account in a Borrowing Base Certificate submitted to Agent, such Account is (a) a bona fide existing payment obligation of the applicable Account Debtor created by the sale and delivery of Inventory or the rendition of services to such Account Debtor in the ordinary course of a Borrower's business, (b) owed to a Borrower without any known defenses, disputes, offsets, counterclaims, or rights of return or cancellation, and (c) not excluded as ineligible by virtue of one or more of the excluding criteria (other than any Agent-discretionary criteria) set forth in the definition of Eligible Accounts.
w..Eligible Inventory
.  As to each item of Inventory that is identified by Borrowers as Eligible Finished Goods Inventory, Eligible In-Transit Inventory, or Eligible Raw Materials Inventory in a Borrowing Base Certificate submitted to Agent, such Inventory is (a) of good and merchantable quality, free in all material respects from known defects, and (b) not excluded as ineligible by virtue of one or more of the excluding criteria (other than any Agent-discretionary criteria) set forth in the definition of Eligible Inventory (in the case of Eligible In-Transit Inventory, after giving effect to any exclusions therefrom specified in the definition of Eligible In-Transit Inventory).
x..[Reserved]
.
y..Location of Inventory
.  Except as set forth in Schedule 4.25, the Inventory of Borrowers and their Subsidiaries is not stored with a bailee, warehouseman, or similar party and is located only at, or in-transit between, the locations identified on Schedule 4.25 to this Agreement (as such Schedule may be updated pursuant to Section 5.14).
z..Inventory Records
.  Each Loan Party keeps correct and accurate, in all material respects, records itemizing and describing the type, quality, and quantity of its and its Subsidiaries' Inventory and the book value thereof.
aa..[Reserved]
.  
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ab..Other Documents
.  Borrowers have delivered to Agent a complete and correct copy of the Term Loan Documents, including all schedules and exhibits thereto, executed on the Closing Date.  The execution, delivery and performance of each of the Term Loan Documents has been duly authorized by all necessary action on the part of each Borrower who is a party thereto.  Each Term Loan Document is the legal, valid and binding obligation of each Borrower who is a party thereto, enforceable against each such Borrower in accordance with its terms, in each case, except (i) as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or affecting generally the enforcement of creditors' rights, and (ii) the availability of the remedy of specific performance or injunctive or other equitable relief is subject to the discretion of the court before which any proceeding therefor may be brought.
ac..Hedge Agreements
.  On each date that any Hedge Agreement is executed by any Hedge Provider, Borrower and each other Loan Party satisfy all eligibility, suitability and other requirements under the Commodity Exchange Act (7 U.S.C. § 1, et seq., as in effect from time to time) and the Commodity Futures Trading Commission regulations.
ad..Adverse Agreements, Etc.
  No Loan Party or any of its Subsidiaries is a party to any Contractual Obligation or subject to any restriction or limitation in any Governing Document or any judgment, order, regulation, ruling or other requirement of a court or other Governmental Authority, which (either individually or in the aggregate) has, or in the future could reasonably be expected (either individually or in the aggregate) to have, a Material Adverse Effect.
ae..Permits, Etc.
  Each Loan Party has, and is in compliance with, all permits, licenses, authorizations, approvals, entitlements and accreditations required for such Person lawfully to own, lease, manage or operate, or to acquire, each business and Real Property currently owned, leased, managed or operated, or to be acquired, by such Person, except to the extent the failure to have or be in compliance therewith could not reasonably be expected to have a Material Adverse Effect. No condition exists or event has occurred which, in itself or with the giving of notice or lapse of time or both, is reasonably likely to result in the suspension, revocation, impairment, forfeiture or non-renewal of any such permit, license, authorization, approval, entitlement or accreditation, and there is currently no pending or overtly threatened claim that any thereof is not in full force and effect, in each case which suspension, revocation, impairment, forfeiture, non-renewal or failure to be in full force and effect could, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
af..Insurance
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.  Each Loan Party maintains the insurance and required services and financial assurance as required by law and as required by Section 5.6.  Schedule 4.32 sets forth a list of all insurance maintained by each Loan Party on the Closing Date.
ag..Customers and Suppliers
.  There exists no actual or, to the knowledge of any Borrower, threatened termination, cancellation or limitation of, or modification to or change in, the business relationship between (a) any Loan Party, on the one hand, and any customer or any group thereof, on the other hand, whose agreements with any Loan Party are individually or in the aggregate material to the business or operations of such Loan Party, or (b) any Loan Party, on the one hand, and any supplier or any group thereof, on the other hand, whose agreements with any Loan Party are individually or in the aggregate material to the business or operations of such Loan Party, and, to the knowledge of any Borrower, there exists no present state of facts or circumstances that could give rise to or result in any such termination, cancellation, limitation, modification or change, in each case which termination, cancellation, limitation, modification or change could individually or in the aggregate reasonably be expected to have a Material Adverse Effect. 
5.AFFIRMATIVE COVENANTS.
Each Borrower covenants and agrees that, until the termination of all of the Commitments and payment in full of the Obligations:
a..Financial Statements, Reports, Certificates
.  Borrowers (a) will deliver to Agent, with copies to each Lender, each of the financial statements, reports, and other items set forth on Schedule 5.1 to this Agreement no later than the times specified therein, (b) agree that no Subsidiary of a Loan Party will have a fiscal year different from that of Parent, (c) agree to maintain a system of accounting that enables Borrowers to produce financial statements in accordance with GAAP, and (d) agree that they will, and will cause each other Loan Party to, (i) keep a reporting system that shows all additions, sales, claims, returns, and allowances with respect to their and their Subsidiaries' sales, and (ii) maintain their billing systems and practices substantially as in effect as of the Closing Date and shall only make material modifications thereto with notice to, and with the consent of, Agent (such consent not to be unreasonably withheld, conditioned or delayed).  Documents required to be delivered pursuant to this Section 5.1 may be delivered electronically and if so delivered, shall be deemed to have been delivered on the date (i) on which such documents are filed for public availability on the SEC’s Electronic Data Gathering and Retrieval system (EDGAR) or (ii) on which such documents are posted on Borrowers' behalf on an Internet or intranet website, if any, to which each Lender and Agent have access (whether a commercial, third-party website or whether made available by Agent).
b..Reporting
.  Borrowers (a) will deliver to Agent (and if so requested by Agent, with copies for each Lender) each of the reports set forth on Schedule 5.2 to this Agreement at the times specified 
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therein, and (b) agree to use commercially reasonable efforts in cooperation with Agent to facilitate and implement a system of electronic collateral reporting in order to provide electronic reporting of each of the items set forth on such Schedule.  Borrowers and Agent hereby agree that the delivery of the Borrowing Base Certificate through the Agent's electronic platform or portal, subject to Agent's authentication process, by such other electronic method as may be approved by Agent from time to time in its sole discretion, or by such other electronic input of information necessary to calculate the Borrowing Bases as may be approved by Agent from time to time in its sole discretion, shall in each case be deemed to satisfy the obligation of Borrowers to deliver such Borrowing Base Certificate, with the same legal effect as if such Borrowing Base Certificate had been manually executed by Borrowers and delivered to Agent.
c..Existence
.  Except as otherwise permitted under Section 6.3 or Section 6.4, each Loan Party will, and will cause each of its Subsidiaries to, at all times preserve and keep in full force and effect such Person's valid existence and good standing in its jurisdiction of organization and, except as could not reasonably be expected to result in a Material Adverse Effect (i) good standing with respect to all other jurisdictions in which it is qualified to do business and (ii) any rights, franchises, permits, licenses, accreditations, authorizations, or other approvals material to their businesses.
d..Maintenance of Properties and Intellectual Property
.  Each Loan Party will, and will cause each of its Subsidiaries to, maintain and preserve all of its assets that are necessary or useful in the proper conduct of its business in good working order and condition, ordinary wear, tear, casualty, and condemnation and Permitted Dispositions excepted and except where failure to do so could not reasonably be expected to result in a Material Adverse Effect.  The Loan Parties shall maintain, defend and preserve the Farmer Trademark and its value, usefulness, merchantability and marketability in a manner consistent with past practices, and shall not sell, assign, transfer, encumber or license the Farmer Trademark to any Person (other than Liens created pursuant to the Loan Documents and the Term Loan Documents) without the prior written consent of the Required Lenders.
e..Taxes
.  Each Loan Party will, and will cause each of its Subsidiaries to, pay in full before delinquency or before the expiration of any extension period all Taxes imposed, levied, or assessed against it, or any of its assets or in respect of any of its income, businesses, or franchises, other than Taxes not in excess of $2,500,000 outstanding at any time.
f..Insurance.
(cs)Each Loan Party will, and will cause each of its Subsidiaries to, at Borrowers' expense, maintain insurance respecting each of each Loan Party's and its Subsidiaries' assets wherever located, covering liabilities, losses or damages as are customarily are insured against by other Persons engaged in same or similar businesses and similarly situated and 
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located, including, without limitation, flood insurance with respect to Real Property located in a flood zone.  All such policies of insurance shall be with financially sound and reputable insurance companies acceptable to Agent (it being agreed that, as of the Closing Date, the Loan Parties' existing insurance providers as set forth in the certificates of insurance delivered to Agent on or about the Closing Date shall be deemed to be acceptable to Agent) and in such amounts as is carried generally in accordance with sound business practice by companies in similar businesses similarly situated and located and, in any event, in amount, adequacy, and scope reasonably satisfactory to Agent (it being agreed that the amount, adequacy, and scope of the policies of insurance of Borrowers in effect as of the Closing Date are acceptable to Agent).  Subject to, and in accordance with, Schedule 3.6, all property insurance policies are to be made payable to Agent for the benefit of Agent and the Lenders, as their interests may appear, in case of loss, pursuant to a standard lender's loss payable endorsement with a standard non-contributory "lender" or "secured party" clause and are to contain such other provisions as Agent may reasonably require to fully protect the Lenders' interest in the Collateral and to any payments to be made under such policies.  Subject to, and in accordance with, Schedule 3.6, all certificates of property and general liability insurance are to be delivered to Agent, with the lender's loss payable and additional insured endorsements in favor of Agent and shall provide for not less than thirty days (ten days in the case of non-payment) prior written notice to Agent of the exercise of any right of cancellation.  If any Loan Party or its Subsidiaries fails to maintain such insurance, Agent may arrange for such insurance, but at Borrowers' expense and without any responsibility on Agent's part for obtaining the insurance, the solvency of the insurance companies, the adequacy of the coverage, or the collection of claims.  Upon the occurrence and during the continuance of an Event of Default, the Agent shall have the right, in the name of the Lenders or any Loan Party, to file claims under any insurance policies, to receive, receipt and give acquittance for any payments that may be payable thereunder, and to execute any and all endorsements, receipts, releases, assignments, reassignments or other documents that may be necessary to effect the collection, compromise or settlement of any claims under any such insurance policies. The Agent agrees to promptly notify the Administrative Borrower of any claims filed by it pursuant to the immediately preceding sentence.
(ct)Borrowers shall give Agent prompt notice of any loss exceeding $2,500,000 covered by the casualty or business interruption insurance of any Loan Party or its Subsidiaries.  Upon the occurrence and during the continuance of an Event of Default, Agent shall have the sole right to file claims under any property and general liability insurance policies in respect of the Collateral, to receive, receipt and give acquittance for any payments that may be payable thereunder, and to execute any and all endorsements, receipts, releases, assignments, reassignments or other documents that may be necessary to effect the collection, compromise or settlement of any claims under any such insurance policies. 
(cu)If at any time the area in which any Real Property that is subject to a Mortgage is located is designated as laying within any "special flood hazard area" in any Flood Insurance Rate Map published by the Federal Emergency Management Agency (or any successor agency), obtain flood insurance in such total amount and on terms that are satisfactory to Agent and all Lenders from time to time, and otherwise comply with the Flood Laws or as is otherwise satisfactory to Agent and all Lenders.
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g..Inspection.
(cv)Each Loan Party will, and will cause each of its Subsidiaries to, permit Agent, any Lender, and each of their respective duly authorized representatives or agents to visit any of its Real Properties or other properties and inspect any of its assets or books and records, to examine and make copies of its books and records, and to discuss its affairs, finances, and accounts with, and to be advised as to the same by, its officers and employees (provided, that an authorized representative of a Borrower shall be allowed to be present) at such reasonable times and intervals as Agent or any Lender, as applicable, may designate and, so long as no Default or Event of Default has occurred and is continuing, with reasonable prior notice to Borrowers and during regular business hours, at Borrowers' expense, subject to the limitations set forth below in Section 5.7(c).
(cw)Each Loan Party will, and will cause each of its Subsidiaries to, permit Agent and each of its duly authorized representatives or agents to conduct field examinations, appraisals or valuations at such reasonable times and intervals as Agent may designate, at Borrowers' expense, subject to the limitations set forth below in Section 5.7(c).
(cx)So long as no Event of Default shall have occurred and be continuing during a calendar year, Borrowers shall not be obligated to reimburse Agent for more than one (1) field examination in such calendar year (increasing to two (2) field examinations if an Increased Reporting Event has occurred during such calendar year), and one (1) inventory appraisal in such calendar year (increasing to two (2) inventory appraisals if an Increased Reporting Event has occurred during such calendar year), in each case, except for field examinations and appraisals conducted in connection with a proposed Permitted Acquisition (whether or not consummated).
h..Compliance with Laws
.  Each Loan Party will, and will cause each of its Subsidiaries to, comply with the requirements of all applicable laws, rules, regulations, and orders of any Governmental Authority, including Environmental Laws, other than laws, rules, regulations, and orders the non-compliance with which, individually or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect.
i..Environmental
.  Each Loan Party will, and will cause each of its Subsidiaries to,
(cy)Keep any Real Property or other property owned by any Loan Party or its Subsidiaries free of any Environmental Liens or post bonds or other financial assurances sufficient to satisfy the obligations or liability evidenced by such Environmental Liens,
(cz)Comply, in all material respects, with Environmental Laws and promptly provide to Agent documentation of such compliance which Agent reasonably requests,
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(da)Promptly notify Agent of any release, of which any Loan Party or its Subsidiaries has actual knowledge, of a Hazardous Material in any quantity which requires reporting under Environmental Laws from or onto any Real Property or other property owned by any Loan Party or its Subsidiaries and, if required by Environmental Laws, take any Remedial Actions required to come into compliance, in all material respects, with applicable Environmental Law, and
(db)Promptly, but in any event within five Business Days of its receipt thereof, provide Agent with written notice of any of the following:  (i) notice that an Environmental Lien has been filed against any of the real or personal property of a Loan Party or its Subsidiaries, (ii) commencement of any Environmental Action or written notice that an Environmental Action will be filed against a Loan Party or its Subsidiaries, (iii) written notice of a violation, citation, or other administrative order from a Governmental Authority and (iv) any material Environmental Liabilities imposed or sought to be imposed on any Loan Party or its Subsidiaries.
j..Disclosure Updates
.  Each Loan Party will, promptly and in no event later than five Business Days after obtaining knowledge thereof, notify Agent if any written information, exhibit, or report furnished to Agent or the Lenders contained, at the time it was furnished, any untrue statement of a material fact or omitted to state any material fact necessary to make the statements contained therein not misleading in light of the circumstances in which made.  The foregoing to the contrary notwithstanding, any notification pursuant to the foregoing provision will not cure or remedy the effect of the prior untrue statement of a material fact or omission of any material fact nor shall any such notification have the effect of amending or modifying this Agreement or any of the Schedules hereto.
k..Formation of Subsidiaries
.  Each Loan Party will, at the time that any Loan Party forms any direct or indirect Subsidiary or acquires any direct or indirect Subsidiary after the Closing Date, within ten days of such event (or such later date as permitted by Agent in its sole discretion) (a) cause such new Subsidiary (i) if Administrative Borrower requests, subject to the consent of Agent, that such Subsidiary be joined as a Borrower hereunder, to provide to Agent a Joinder to this Agreement, and (ii) to provide to Agent a joinder to the Guaranty and Security Agreement, in each case, together with such other security agreements, as well as appropriate financing statements (and with respect to all property subject to a Mortgage, fixture filings), all in form and substance reasonably satisfactory to Agent (including being sufficient to grant Agent a first priority Lien (subject to Permitted Liens) in and to the assets of such newly formed or acquired Subsidiary), (b) provide, or cause the applicable Loan Party to provide, to Agent a pledge agreement (or an addendum to the Guaranty and Security Agreement) and appropriate certificates and powers or financing statements, pledging all of the direct or beneficial ownership interest in such new Subsidiary in form and substance reasonably satisfactory to Agent, (c) to the extent required under the terms of this Agreement, deliver (i) one or more Mortgages creating on the real property of such Subsidiary a perfected, first priority Lien (except to the extent of Permitted Liens that would have priority over the Agent's Liens pursuant to applicable law or an agreement 
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expressly permitted hereunder to have such senior priority) on such real property and (ii) such other real property deliverables as may be reasonably required by Agent with respect to each such real property with a fair market value exceeding $750,000, and (d) provide to Agent all other documentation, including the Governing Documents of such Subsidiary, Beneficial Ownership Certification and one or more opinions of counsel reasonably satisfactory to Agent, which, in its opinion, is appropriate with respect to the execution and delivery of the applicable documentation referred to above (including policies of title insurance, flood certification documentation or other documentation with respect to all Real Property owned in fee and subject to a Mortgage).  Any document, agreement, or instrument executed or issued pursuant to this Section 5.11 shall constitute a Loan Document.
l..Further Assurances
.  Each Loan Party will, and will cause each of the other Loan Parties to, at any time upon the reasonable request of Agent, execute or deliver to Agent any and all financing statements, fixture filings, security agreements, pledges, assignments, Mortgages, deeds of trust, opinions of counsel, and all other documents, in each case in form and substance reasonably acceptable to Agent (the "Additional Documents"), that Agent may reasonably request in form and substance reasonably satisfactory to Agent, to create, perfect, and continue perfected or to better perfect Agent's Liens in all of the assets of each of the Loan Parties (whether now owned or hereafter arising or acquired, tangible or intangible, real or personal) (other than any assets expressly excluded from the Collateral (as defined in the Guaranty and Security Agreement) pursuant to the final paragraph of Section 3 of the Guaranty and Security Agreement), to create and perfect Liens in favor of Agent in any Real Property acquired by any other Loan Party, and in order to fully consummate all of the transactions contemplated hereby and under the other Loan Documents.  Notwithstanding the foregoing, in no event shall any Loan Party be required to provide real property deliverables (including, for the avoidance of doubt, any Real Property Deliverables (as such term is defined in the Term Loan Credit Agreement)), other than Mortgages, for any real property with a fair market value less than $750,000.  To the maximum extent permitted by applicable law, if any Borrower or any other Loan Party refuses or fails to execute or deliver any reasonably requested Additional Documents which such Loan Party is required to provide pursuant to the terms and conditions of the Loan Documents within a reasonable period of time not to exceed 10 Business Days following the request to do so (or such later date as Agent may agree in writing), each Borrower and each other Loan Party hereby authorizes Agent to execute any such Additional Documents in the applicable Loan Party's name and authorizes Agent to file such executed Additional Documents in any appropriate filing office.  In furtherance of, and not in limitation of, the foregoing, each Loan Party shall take such actions as Agent may reasonably request from time to time to ensure that the Obligations are guaranteed by the Guarantors and are secured by substantially all of the assets of the Loan Parties, including all of the outstanding capital Equity Interests of each Borrower (other than Parent) and their respective Subsidiaries (in each case, other than with respect to any assets expressly excluded from the Collateral (as defined in the Guaranty and Security Agreement) pursuant to the final paragraph of Section 3 of the Guaranty and Security Agreement).  Notwithstanding anything to the contrary contained herein (including Section 5.11 hereof and this Section 5.12) or in any other Loan Document, (x) Agent shall not accept delivery of any 
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Mortgage from any Loan Party unless each of the Lenders has received 45 days prior written notice thereof and Agent has received confirmation from each Lender that such Lender has completed its flood insurance diligence, has received copies of all flood insurance documentation and has confirmed that flood insurance compliance has been completed as required by the Flood Laws or as otherwise satisfactory to such Lender and (y) Agent shall not accept delivery of any joinder to any Loan Document with respect to any Subsidiary of any Loan Party that is not a Loan Party, if such Subsidiary that qualifies as a "legal entity customer" under the Beneficial Ownership Regulation unless such Subsidiary has delivered a Beneficial Ownership Certification in relation to such Subsidiary and Agent has completed its Patriot Act searches, OFAC/PEP searches and customary individual background checks for such Subsidiary, the results of which shall be satisfactory to Agent.
m..Material Contracts
. Contemporaneously with the delivery of each Compliance Certificate pursuant to Section 5.1, Borrowers will provide Agent with copies of (a) each Material Contract entered into since the delivery of the previous Compliance Certificate, and (b) each material amendment or modification of any Material Contract entered into since the delivery of the previous Compliance Certificate.
n..Location of Inventory; Chief Executive Office
.  Each Loan Party will, and will cause each of its Subsidiaries to, keep (a) their Inventory only at the locations identified on Schedule 4.25 to this Agreement (provided that Borrowers may amend Schedule 4.25 to this Agreement so long as such amendment occurs by written notice to Agent not less than ten days prior to the date on which such Inventory is moved to such new location and so long as Agent has consented to such amendment and such new location is within the continental United States), and (b) their respective chief executive offices only at the locations identified on Schedule 7 to the Guaranty and Security Agreement.  Each Loan Party will, and will cause each of its Subsidiaries to, use their commercially reasonable efforts to obtain Collateral Access Agreements for each of the locations identified on Schedule 7 to the Guaranty and Security Agreement and Schedule 4.25 to this Agreement as holding books and records of any Loan Party, or $75,000 or more of Inventory, equipment and/or machinery, in the aggregate (each such location being herein defined as a "Required Access Agreement Location").
o..OFAC; Sanctions; Anti-Corruption Laws; Anti-Money Laundering Laws
.  Each Loan Party will, and will cause each of its Subsidiaries to, comply with all applicable Sanctions, and comply in all material respects with all Anti-Corruption Laws and Anti-Money Laundering Laws.  Each of the Loan Parties and its Subsidiaries shall implement and maintain in effect policies and procedures reasonably designed to ensure compliance by the Loan Parties and their Subsidiaries and their respective directors, officers, employees, agents and Affiliates with Sanctions, Anti-Corruption Laws and Anti-Money Laundering Laws.
p..Compliance with ERISA and the IRC 
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.   In addition to and without limiting the generality of Section 5.8, each Loan Party will, and will cause each of its Subsidiaries to, (a) comply in all material respects with applicable provisions of ERISA and the IRC with respect to all Employee Benefit Plans, including the ESOP, (b) without the prior written consent of Agent and the Required Lenders, not take any action or fail to take action the result of which could result in a Notification Event or a Loan Party or ERISA Affiliate incurring a material liability to the PBGC or to Pension Plan or a Multiemployer Plan (other than to pay contributions or premiums payable in the ordinary course), (c) allow any facts or circumstances to exist with respect to one or more Employee Benefit Plans that, in the aggregate, reasonably could be expected to result in a Material Adverse Effect, (d) not participate in any prohibited transaction that could result in other than a de minimis civil penalty excise tax, fiduciary liability or correction obligation under ERISA or the IRC, (e) operate each Employee Benefit Plan in such a manner that will not incur any material tax liability under the IRC (including Section 4980B of the IRC), and (e) furnish to Agent upon Agent's written request such additional information about any Employee Benefit Plan for which any Loan Party or ERISA Affiliate could reasonably expect to incur any material liability.  With respect to each Pension Plan, the Loan Parties and the ERISA Affiliates shall (i) satisfy in full and in a timely manner, without incurring any late payment or underpayment charge or penalty and without giving rise to any Lien, all of the contribution and funding requirements of the IRC and of ERISA, and (ii) pay, or cause to be paid, to the PBGC in a timely manner, without incurring any late payment or underpayment charge or penalty, all premiums required pursuant to ERISA. Each Loan Party will notify Agent in writing, promptly after such Loan Party obtains knowledge of the occurrence of any Notification Event.
6.NEGATIVE COVENANTS.
Each Borrower covenants and agrees that, until the termination of all of the Commitments and the payment in full of the Obligations:
a..Indebtedness
.  Each Loan Party will not, and will not permit any of its Subsidiaries to, create, incur, assume, suffer to exist, guarantee, or otherwise become or remain, directly or indirectly, liable with respect to any Indebtedness, except for Permitted Indebtedness.
b..Liens
.  Each Loan Party will not, and will not permit any of its Subsidiaries to, create, incur, assume, or suffer to exist, directly or indirectly, any Lien on or with respect to any of its assets, of any kind, whether now owned or hereafter acquired, or any income or profits therefrom, except for Permitted Liens.  Notwithstanding anything to the contrary contained in any Loan Document, without the prior written consent of the Required Lenders, (a) no intellectual property that is material to, or necessary in the conduct of, the business of any Loan Party or its Subsidiaries (including the Farmer Trademarks) shall be subject to any Lien other than Liens described in clauses (a), (l) and (r) of the definition of Permitted Lien and (b) no Real Property Collateral shall be subject to any Lien other than Liens described in clauses (a), (b), (k) and (r) of the definition of Permitted Lien.
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c..Restrictions on Fundamental Changes
.  Each Loan Party will not, and will not permit any of its Subsidiaries to,
(dc)Other than in order to consummate a Permitted Acquisition, enter into any merger, consolidation, reorganization, statutory division or recapitalization, or reclassify its Equity Interests, except for (i) any merger between Loan Parties; provided, that Parent must be the surviving entity of any such merger to which it is a party, (ii) any merger between a Loan Party and a Subsidiary of such Loan Party that is not a Loan Party so long as such Loan Party is the surviving entity of any such merger, and (iii) any merger between Subsidiaries of any Loan Party that are not Loan Parties,
(dd)liquidate, wind up, or dissolve itself (or suffer any liquidation or dissolution), except for (i) the liquidation or dissolution of non-operating Subsidiaries of any Loan Party with nominal assets and nominal liabilities, (ii) the liquidation or dissolution of a Loan Party (other than any Borrower) or any of its wholly-owned Subsidiaries so long as all of the assets (including any interest in any Equity Interests) of such liquidating or dissolving Loan Party or Subsidiary are transferred to a Loan Party that is not liquidating or dissolving, or (iii) the liquidation or dissolution of a Subsidiary of any Loan Party that is not a Loan Party (other than any such Subsidiary the Equity Interests of which (or any portion thereof) is subject to a Lien in favor of Agent) so long as all of the assets of such liquidating or dissolving Subsidiary are transferred to a Subsidiary of a Loan Party that is not liquidating or dissolving,
(de)suspend or cease operating a substantial portion of its or their business, except as permitted pursuant to clauses (a) or (b) above or in connection with a transaction permitted under Section 6.4, or
(df)change its classification/status for U.S. federal income tax purposes.
d..Disposal of Assets
.  Other than Permitted Dispositions or transactions expressly permitted by Sections 6.3 or 6.9, each Loan Party will not make any Disposition, whether in one transaction or a series of related transactions, of all or any part of its business, property or assets, whether now owned or hereafter acquired (or agree to do any of the foregoing), or permit any of its Subsidiaries to do any of the foregoing.  Notwithstanding anything to the contrary contained in any Loan Document, without the prior written consent of the Required Lenders, Parent and its Subsidiaries shall not convey, sell, lease, license, assign, transfer, or otherwise dispose of (x) any intellectual property that is material to, or necessary in the conduct of, the business of any Loan Party or its Subsidiaries (including the Farmer Trademarks) except as permitted by clause (d) of the definition of Permitted Disposition or (y) any fee owned Real Property except as permitted by clauses (g), (h), (o) and (p) of the definition of Permitted Disposition.
e..Nature of Business
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.  Each Loan Party will not, and will not permit any of its Subsidiaries to, make any material change in the nature of its or their business as described in Schedule 6.5 to this Agreement or acquire any properties or assets that are not reasonably related to the conduct of such business activities; provided, that the foregoing shall not prevent any Loan Party and its Subsidiaries from engaging in any business that is reasonably related or ancillary to its or their business.
f..Prepayments and Amendments
.  Each Loan Party will not, and will not permit any of its Subsidiaries to,
(dg)Except in connection with Refinancing Indebtedness permitted by Section 6.1,
85.optionally prepay, redeem, defease, purchase, or otherwise acquire any Indebtedness of any Loan Party or its Subsidiaries, other than (A) the Obligations in accordance with this Agreement, (B) Hedge Obligations, (C) Permitted Intercompany Advances, or (D) other Indebtedness (including, without limitation, the Term Loan Indebtedness) so long as the Payment Conditions are satisfied, or
86.make any payment on account of Indebtedness that has been contractually subordinated in right of payment to the Obligations if such payment is not permitted at such time under the subordination terms and conditions, or
(dh)Directly or indirectly, amend, modify, or change any of the terms or provisions of:
87.any agreement, instrument, document, indenture, or other writing evidencing or concerning Permitted Indebtedness other than (A) the Obligations in accordance with this Agreement, (B) Hedge Obligations, (C) Permitted Intercompany Advances, (D) the Term Loan Indebtedness to the extent not prohibited by the Intercreditor Agreement, and (E) Indebtedness permitted under clauses (c), (h), (j), (k), (v) and (w) of the definition of Permitted Indebtedness if the effect thereof, either individually or in the aggregate, could not reasonably be expected to be materially adverse to the interests of the Lenders, or
88.the Governing Documents of any Loan Party or any of its Subsidiaries if the effect thereof, either individually or in the aggregate, could reasonably be expected to be materially adverse to the interests of the Lenders.
g..Restricted Payments
.  Each Loan Party will not, and will not permit any of its Subsidiaries to, make any Restricted Payment; provided, that so long as it is permitted by law,
(di)so long as no Default or Event of Default shall have occurred and be continuing or would result therefrom, Parent may make distributions to former employees, officers, or directors of Parent (or any spouses, ex-spouses, or estates of any of the foregoing) on 
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account of redemptions of Equity Interests of Parent held by such Persons (including any stock subscription or shareholder agreement); provided, that the aggregate amount of such redemptions made by Parent during the term of this Agreement plus the amount of Indebtedness outstanding under clause (l) of the definition of Permitted Indebtedness, does not exceed $1,000,000 in any calendar year,
(dj)so long as no Default or Event of Default shall have occurred and be continuing or would result therefrom, Parent may make distributions to former employees, officers, or directors of Parent (or any spouses, ex-spouses, or estates of any of the foregoing), solely in the form of forgiveness of Indebtedness of such Persons owing to Parent on account of repurchases of the Equity Interests of Parent held by such Persons; provided, that such Indebtedness was incurred by such Persons solely to acquire Equity Interests of Parent,
(dk)Restricted Payments made to a Loan Party, or 
(dl)other Restricted Payments so long as the Payment Conditions are satisfied.
h..Accounting Methods
.  Each Loan Party will not, and will not permit any of its Subsidiaries to, modify or change its fiscal year or its method of accounting (other than as may be required to conform to GAAP).
i..Investments
.  Each Loan Party will not, and will not permit any of its Subsidiaries to, directly or indirectly, make or acquire any Investment or incur any liabilities (including contingent obligations) for or in connection with any Investment except for Permitted Investments.  Notwithstanding anything to the contrary contained in any Loan Document, without the prior written consent of the Required Lenders, no Investment consisting of (x) any intellectual property that is material to, or necessary in the conduct of, the business of any Loan Party or its Subsidiaries (including the Farmer Trademarks) or (y) any fee owned Real Property shall be made.
j..Transactions with Affiliates
.  Each Loan Party will not, and will not permit any of its Subsidiaries to, directly or indirectly, enter into or permit to exist any transaction with any Affiliate of any Loan Party or any of its Subsidiaries except for:
(dm)transactions (other than the payment of management, consulting, monitoring, or advisory fees) between such Loan Party or its Subsidiaries, on the one hand, and any Affiliate of such Loan Party or its Subsidiaries, on the other hand, so long as such transactions are no less favorable, taken as a whole, to such Loan Party or its Subsidiaries, as applicable, than would be obtained in an arm's length transaction with a non-Affiliate,
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(dn)any indemnity provided for the benefit of directors (or comparable managers) of a Loan Party or one of its Subsidiaries so long as it has been approved by such Loan Party's or such Subsidiary's board of directors (or comparable governing body) in accordance with applicable law,
(do)the payment of reasonable compensation, severance, or employee benefit arrangements to employees, officers, and outside directors of a Loan Party or one of its Subsidiaries in the ordinary course of business and consistent with industry practice so long as it has been approved by such Loan Party's or such Subsidiary's board of directors (or comparable governing body) in accordance with applicable law,
(dp)(i) transactions solely among the Loan Parties, and (ii) transactions solely among Subsidiaries of Loan Parties that are not Loan Parties,
(dq)transactions permitted by Section 6.3, Section 6.7, or Section 6.9,
(dr)agreements for the non-exclusive licensing of intellectual property, or distribution of products, in each case, among the Loan Parties and their Subsidiaries for the purpose of the counterparty thereof operating its business, and agreements for the assignment of intellectual property from any Loan Party or any of its Subsidiaries to any Loan Party.
k..Use of Proceeds
.  Each Loan Party will not, and will not permit any of its Subsidiaries to, use the proceeds of any Loan made hereunder for any purpose other than (a) on the Closing Date, (i) to repay, in full, the outstanding principal, accrued interest, and accrued fees and expenses owing under or in connection with the Existing Credit Facility, and (ii) to pay the fees, costs, and expenses incurred in connection with this Agreement, the other Loan Documents, and the transactions contemplated hereby and thereby, in each case, as set forth in the Flow of Funds Agreement, and (b) thereafter, consistent with the terms and conditions hereof, for their lawful and permitted purposes; provided that (x) no part of the proceeds of the Loans will be used to purchase or carry any such Margin Stock or to extend credit to others for the purpose of purchasing or carrying any such Margin Stock or for any purpose that violates the provisions of Regulation T, U or X of the Board of Governors, (y) no part of the proceeds of any Loan or Letter of Credit will be used, directly or, to the knowledge of any Loan Party after due care and inquiry, indirectly, to make any payments to a Sanctioned Entity or a Sanctioned Person, to fund any investments, loans or contributions in, or otherwise make such proceeds available to, a Sanctioned Entity or a Sanctioned Person, to fund any operations, activities or business of a Sanctioned Entity or a Sanctioned Person, or in any other manner that would result in a violation of Sanctions by any Person, and (z) that no part of the proceeds of any Loan or Letter of Credit will be used, directly or, to the knowledge of any Loan Party after due care and inquiry, indirectly, in furtherance of an offer, payment, promise to pay, or authorization of the payment or giving of money, or anything else of value, to any Person in violation of any Sanctions, Anti-Corruption Laws or Anti-Money Laundering Laws.
l..Limitation on Issuance of Equity Interests
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.  Except for the issuance or sale of Qualified Equity Interests by Parent, each Loan Party will not, and will not permit any of its Subsidiaries to, issue or sell any of its Equity Interests.
m..Inventory with Bailees
.  Each Borrower will not, and will not permit any of its Subsidiaries to, store its Inventory at any time with a bailee, warehouseman, or similar party except as set forth on Schedule 4.25 (as such Schedule may be amended in accordance with Section 5.14).
n..Employee Benefits
.  Each Borrower will not, and will not permit any of its Subsidiaries to:
(ds)terminate, or permit any ERISA Affiliate to terminate, any Pension Plan in a manner, or take any other action with respect to any Plan, which could reasonably be expected to result in any material liability of any Loan Party or ERISA Affiliate to the PBGC;
(dt)fail to make, or permit any ERISA Affiliate to fail to make, full payment when due of all amounts which, under the provisions of any Employee Benefit Plan (including a Multiemployer Plan), agreement relating thereto or applicable Law, any Loan Party or ERISA Affiliate is required to pay if such failure could reasonably be expected to have a Material Adverse Effect;
(du)permit to exist, or allow any ERISA Affiliate to permit to exist, any violation of the Pension Funding Rules with respect to any Pension Plan or Multiemployer Plan which exceeds $1,000,000 individually or in the aggregate; 
(dv)acquire, or permit any ERISA Affiliate to acquire, an interest in any Person that causes such Person to become an ERISA Affiliate with respect to a Loan Party or with respect to any ERISA Affiliate if such Person sponsors, maintains, or contributes to, or at any time in the six-year period preceding such acquisition has sponsored, maintained, or contributed to, (i) any Pension or (ii) any Multiemployer Plan; 
(dw)contribute to or assume an obligation to contribute to, or permit any ERISA Affiliate to contribute to or assume an obligation to contribute to, any Multiemployer Plan not set forth on Schedule 4.10(a);
(dx)fail to comply with all applicable laws (except where such failure, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect), including ERISA and the IRC with respect to any Employee Benefit Plan, including the ESOP or permit any Employee Benefit Plan, including the ESOP, that is intended to be qualified under Section 401(a) of the IRC to not be so qualified; 
(dy)permit to exist any prohibited transaction with respect to an Employee Benefit Plan or permit to exist any event, act, or omission with respect to an Employee Benefit that could reasonably be expected to give rise to an excise tax, lien, fine, penalty, or damage that could reasonably be expected to have a Material Adverse Effect; or
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(dz)amend, or permit any ERISA Affiliate to amend, a Pension Plan resulting in a material increase in current liability such that a Loan Party or ERISA Affiliate is required to provide security to such Pension Plan under the IRC.
o..Limitations on Dividends and Other Payment Restrictions Affecting Subsidiaries
.  The Loan Parties will not, and will not permit any of their Subsidiaries to create or otherwise cause, incur, assume, suffer or permit to exist or become effective any consensual encumbrance or restriction of any kind on the ability of any Subsidiary of any Loan Party (i) to pay dividends or to make any other distribution on any shares of Equity Interests of such Subsidiary owned by any Loan Party or any of its Subsidiaries, (ii) to pay or prepay or to subordinate any Indebtedness owed to any Loan Party or any of its Subsidiaries, (iii) to make loans or advances to any Loan Party or any of its Subsidiaries or (iv) to transfer any of its property or assets to any Loan Party or any of its Subsidiaries, or permit any of its Subsidiaries to do any of the foregoing; provided, however, that nothing in any of clauses (i) through (iv) of this Section 6.15 shall prohibit or restrict compliance with:
(ea)this Agreement, the Term Loan Documents and the other Loan Documents;
(eb)any agreement in effect on the date of this Agreement and described on Schedule 6.15 or any extension, replacement or continuation of any such agreement; provided, that, any such encumbrance or restriction contained in such extended, replaced or continued agreement is no less favorable to Agent and the Lenders than the encumbrance or restriction under or pursuant to the agreement so extended, replaced or continued or under any documents relating to joint ventures of any Loan Party or any Subsidiary to the extent that such joint ventures are not prohibited hereunder;
(ec)any applicable law, rule or regulation (including, without limitation, applicable currency control laws and applicable state corporate statutes restricting the payment of dividends in certain circumstances);
(ed)in the case of clause (iv) above, (1) customary restrictions on the subletting, assignment or transfer of any specified property or asset set forth in a lease, license, asset sale agreement or similar contract for the conveyance of such property or asset and (2) any instrument or other document evidencing a Permitted Lien (or the Indebtedness secured thereby) from restricting on customary terms the transfer of any property or assets subject thereto;
(ee)customary restrictions on dispositions of real property interests in reciprocal easement agreements;
(ef)customary restrictions in agreements for the sale of assets on the transfer or encumbrance of such assets during an interim period prior to the closing of the sale of such assets; or
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(eg)customary restrictions in contracts that prohibit the assignment of such contract.
p..Limitations on Negative Pledges
.  The Loan Parties will not, and will not permit any of their Subsidiaries to enter into, incur or permit to exist, or permit any Subsidiary to enter into, incur or permit to exist, directly or indirectly, any agreement, instrument, deed, lease or other arrangement that prohibits, restricts or imposes any condition upon the ability of any Loan Party or any Subsidiary of any Loan Party to create, incur or permit to exist any Lien upon any of its property or revenues, whether now owned or hereafter acquired, or that requires the grant of any security for an obligation if security is granted for another obligation, except the following: (a) this Agreement, the Term Loan Documents and the other Loan Documents, (b) restrictions or conditions imposed by any agreement relating to secured Indebtedness permitted by Section 6.1 of this Agreement if such restrictions or conditions apply only to the property or assets securing such Indebtedness, (c) any customary restrictions and conditions contained in agreements relating to the sale or other disposition of assets or of a Subsidiary pending such sale or other disposition; provided that such restrictions and conditions apply only to the assets or Subsidiary to be sold or disposed of and such sale or disposition is permitted hereunder, and (d) customary provisions in leases restricting the assignment or sublet thereof.
q..Investment Company Act
.  No Loan Party shall engage in any business, enter into any transaction, use any securities or take any other action or permit any of its Subsidiaries to do any of the foregoing, that would cause it or any of its Subsidiaries to become subject to the registration requirements of the Investment Company Act of 1940, as amended, by virtue of being an "investment company" or a company "controlled" by an "investment company" not entitled to an exemption within the meaning of such Act.
7.FINANCIAL COVENANT.
Each of Parent and each other Borrower covenants and agrees that, until the termination of all of the Commitments and the payment in full of the Obligations, Parent and the other Borrowers will maintain a Fixed Charge Coverage Ratio, calculated for each 12 month period ending on the first day of any Covenant Testing Period and the last day of each fiscal month occurring until the end of any Covenant Testing Period (including the last day thereof), in each case of at least 1.00 to 1.00. 
8.EVENTS OF DEFAULT.
Any one or more of the following events shall constitute an event of default (each, an "Event of Default") under this Agreement:
a..Payments
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.  If Borrowers fail to pay when due and payable, or when declared due and payable, (a) all or any portion of the Obligations consisting of interest, fees, or charges due the Lender Group, reimbursement of Lender Group Expenses, or other amounts (other than any portion thereof constituting principal) constituting Obligations (including any portion thereof that accrues after the commencement of an Insolvency Proceeding, regardless of whether allowed or allowable in whole or in part as a claim in any such Insolvency Proceeding), and such failure continues for a period of three Business Days, (b) all or any portion of the principal of the Loans, or (c) any amount payable to Issuing Bank in reimbursement of any drawing under a Letter of Credit;
b..Covenants
.  If any Loan Party or any of its Subsidiaries:
(eh)fails to perform or observe any covenant or other agreement contained in any of (i) Sections 3.6, 5.1, 5.2, 5.3 (solely if any Borrower is not in good standing in its jurisdiction of organization), 5.5, 5.6, 5.7 (solely if any Borrower refuses to allow Agent or its representatives or agents to visit any Borrower's properties, inspect its assets or books or records, examine and make copies of its books and records, or discuss Borrowers' affairs, finances, and accounts with officers and employees of any Borrower), 5.10 or 5.15 of this Agreement, (ii) Section 6 of this Agreement, (iii) Section 7 of this Agreement, or (iv) Sections 7(c), 7(g) (other than Section 7(g)(v)), 7(h), 7(i), or any of 7(k) through 7(n) of the Guaranty and Security Agreement; 
(ei)fails to perform or observe any covenant or other agreement contained in any of Sections 5.3 (other than if any Borrower is not in good standing in its jurisdiction of organization), 5.4, 5.11, 5.12 and 5.14 of this Agreement or Section 7(g)(v) of the Guaranty and Security Agreement and such failure continues for a period of fifteen days after the earlier of (i) the date on which such failure shall first become known to any officer of any Borrower, or (ii) the date on which written notice thereof is given to Borrowers by Agent; or
(ej)fails to perform or observe any covenant or other agreement contained in this Agreement, or in any of the other Loan Documents, in each case, other than any such covenant or agreement that is the subject of another provision of this Section 8 (in which event such other provision of this Section 8 shall govern), and such failure continues for a period of thirty days after the earlier of (i) the date on which such failure shall first become known to any officer of any Borrower, or (ii) the date on which written notice thereof is given to Borrowers by Agent;
c..Judgments
.  If one or more judgments, orders, or awards for the payment of money involving an aggregate amount of $10,000,000, or more (except to the extent fully covered (other than to the extent of customary deductibles) by insurance pursuant to which the insurer has not denied coverage) is entered or filed against a Loan Party or any of its Subsidiaries, or with respect to any of their respective assets, and either (a) there is a period of thirty consecutive days at any time after the entry of any such judgment, order, or award during which (i) the same is not discharged, 
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satisfied, vacated, or bonded pending appeal, or (ii) a stay of enforcement thereof is not in effect, or (b) enforcement proceedings are commenced upon such judgment, order, or award; 
d..Voluntary Bankruptcy, etc
.  If an Insolvency Proceeding is commenced by a Loan Party or any of its Subsidiaries;
e..Involuntary Bankruptcy, etc
.  If an Insolvency Proceeding is commenced against a Loan Party or any of its Subsidiaries and any of the following events occur: (a) such Loan Party or such Subsidiary consents to the institution of such Insolvency Proceeding against it, (b) the petition commencing the Insolvency Proceeding is not timely controverted, (c) the petition commencing the Insolvency Proceeding is not dismissed within sixty calendar days of the date of the filing thereof, (d) an interim trustee is appointed to take possession of all or any substantial portion of the properties or assets of, or to operate all or any substantial portion of the business of, such Loan Party or its Subsidiary, or (e) an order for relief shall have been issued or entered therein;
f..Default Under Other Agreements
.  If there is (a) an "Event of Default" (as such term is defined in the Term Loan Credit Agreement) under any of the Term Loan Documents, or a valid enforcement notice is delivered on behalf of the holders of the Term Loans pursuant to the terms of the Intercreditor Agreement, or (b) a default in one or more agreements to which a Loan Party or any of its Subsidiaries is a party with one or more third Persons relative to a Loan Party's or any of its Subsidiaries' Indebtedness involving an aggregate amount of $10,000,000 or more, and such default (i) occurs at the final maturity of the obligations thereunder, or (ii) results in a right by such third Person, irrespective of whether exercised, to accelerate the maturity of such Loan Party's or its Subsidiary's obligations thereunder, or (c) a default in or an involuntary early termination of one or more Hedge Agreements to which a Loan Party or any of its Subsidiaries is a party; 
g..Representations, etc
.  If any warranty, representation, certificate, statement, or Record made herein or in any other Loan Document or delivered in writing to Agent or any Lender in connection with this Agreement or any other Loan Document proves to be untrue in any material respect (except that such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by materiality in the text thereof) as of the date of issuance or making or deemed making thereof; 
h..Guaranty
.  If the obligation of any Guarantor under the guaranty contained in the Guaranty and Security Agreement is limited or terminated by operation of law or by such Guarantor (other than in accordance with the terms of this Agreement) or if any Guarantor repudiates or revokes or purports to repudiate or revoke any such guaranty;
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i..Security Documents
.  Except as permitted by the terms of this Agreement or any other Loan Document, if the Guaranty and Security Agreement or any other Loan Document that purports to create a Lien, shall, for any reason (other than solely as the result of an action or failure to act on the part of Agent based upon receipt of timely and accurate information from the Loan Parties), fail or cease to create a valid and perfected and first priority Lien on the Collateral covered thereby (except to the extent of Permitted Liens that would have priority over the Agent's Liens pursuant to applicable law or an agreement expressly permitted hereunder to have such senior priority);
j..Loan Documents
.  The validity or enforceability of any Loan Document shall at any time for any reason  (other than solely as the result of an action or failure to act on the part of Agent based upon receipt of timely and accurate information from the Loan Parties) be declared to be null and void, or a proceeding shall be commenced by a Loan Party or its Subsidiaries, or by any Governmental Authority having jurisdiction over a Loan Party or its Subsidiaries, seeking to establish the invalidity or unenforceability thereof, or a Loan Party or its Subsidiaries shall deny that such Loan Party or its Subsidiaries has any liability or obligation purported to be created under any Loan Document;
k..Change of Control
.  A Change of Control shall occur;
l..ERISA and Employee Benefits
.  The occurrence of a Notification Event, which could reasonably be expected to result in liability in excess of $10,000,000, either individually or in the aggregate, or any Loan Party or ERISA Affiliate completely or partially withdraws from one or more Multiemployer Plans and incurs Withdrawal Liability in excess of $5,000,000 in the aggregate, or fails to make any Withdrawal Liability payment when due; or the ESOP fails to qualify as an "employee stock ownership plan" within the meaning of Section 4975(e)(7) of the IRC that is qualified under Section 401(a) of the IRC;
m..Proceedings
.  The indictment of any Loan Party under any criminal statute, or commencement of criminal or civil proceedings against any Loan Party thereof pursuant to which statute or proceedings the penalties or remedies sought include forfeiture to any Governmental Authority of any material portion of the Collateral; or
n..Subordinated Indebtedness. (i) There shall occur and be continuing any "Event of Default" (or any comparable term) under and as defined in the documents evidencing or governing any Subordinated Indebtedness, (ii) any of the Obligations for any reason shall cease to be "Senior Loan Obligations" (or any comparable term) under and as defined in the documents 
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evidencing or governing any Subordinated Indebtedness, (iii) any Indebtedness other than the Obligations and the Term Loan Debt shall constitute "Senior Loan Obligations" (or any comparable term) under and as defined in the documents evidencing or governing any Subordinated Indebtedness, (iv) any holder of Subordinated Indebtedness shall fail to perform or comply with any of the subordination provisions of the documents evidencing or governing such Subordinated Indebtedness, or (v) the subordination provisions of the documents evidencing or governing any Subordinated Indebtedness shall, in whole or in part, terminate, cease to be effective or cease to be legally valid, binding and enforceable against any holder of the applicable Subordinated Indebtedness. 
9.RIGHTS AND REMEDIES.
a..Rights and Remedies
.  Upon the occurrence and during the continuation of an Event of Default, Agent may, and, at the instruction of the Required Lenders, shall, in addition to any other rights or remedies provided for hereunder or under any other Loan Document or by applicable law, do any one or more of the following:
(ek)by written notice to Borrowers, (i) declare the principal of, and any and all accrued and unpaid interest and fees in respect of, the Loans and all other Obligations (other than the Bank Product Obligations), whether evidenced by this Agreement or by any of the other Loan Documents to be immediately due and payable, whereupon the same shall become and be immediately due and payable and Borrowers shall be obligated to repay all of such Obligations in full, without presentment, demand, protest, or further notice or other requirements of any kind, all of which are hereby expressly waived by each Borrower, and (ii) direct Borrowers to provide (and Borrowers agree that upon receipt of such notice Borrowers will provide) Letter of Credit Collateralization to Agent to be held as security for Borrowers' reimbursement obligations for drawings that may subsequently occur under issued and outstanding Letters of Credit;
(el)by written notice to Borrowers, declare the Commitments terminated, whereupon the Commitments shall immediately be terminated together with (i) any obligation of any Revolving Lender to make Revolving Loans, (ii) the obligation of the Swing Lender to make Swing Loans, and (iii) the obligation of Issuing Bank to issue Letters of Credit; and
(em)exercise all other rights and remedies available to Agent or the Lenders under the Loan Documents, under applicable law, or in equity.
The foregoing to the contrary notwithstanding, upon the occurrence of any Event of Default described in Section 8.4 or Section 8.5, in addition to the remedies set forth above, without any notice to Borrowers or any other Person or any act by the Lender Group, the Commitments shall automatically terminate and the Obligations (other than the Bank Product Obligations), inclusive of the principal of, and any and all accrued and unpaid interest and fees in respect of, the Loans and all other Obligations (other than the Bank Product Obligations), whether evidenced by this Agreement or by any of the other Loan Documents, shall automatically become and be immediately due and payable and Borrowers shall automatically be obligated to repay all of such 
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Obligations in full (including Borrowers being obligated to provide (and Borrowers agree that they will provide) (1) Letter of Credit Collateralization to Agent to be held as security for Borrowers' reimbursement obligations in respect of drawings that may subsequently occur under issued and outstanding Letters of Credit and (2) Bank Product Collateralization to be held as security for Borrowers' or their Subsidiaries' obligations in respect of outstanding Bank Products), without presentment, demand, protest, or notice or other requirements of any kind, all of which are expressly waived by Borrowers.
b..Remedies Cumulative
.  The rights and remedies of the Lender Group under this Agreement, the other Loan Documents, and all other agreements shall be cumulative.  The Lender Group shall have all other rights and remedies not inconsistent herewith as provided under the Code, by law, or in equity.  No exercise by the Lender Group of one right or remedy shall be deemed an election, and no waiver by the Lender Group of any Default or Event of Default shall be deemed a continuing waiver.  No delay by the Lender Group shall constitute a waiver, election, or acquiescence by it.
10.WAIVERS; INDEMNIFICATION.
a..Demand; Protest; etc
.  Each Borrower waives demand, protest, notice of protest, notice of default or dishonor, notice of payment and nonpayment, nonpayment at maturity, release, compromise, settlement, extension, or renewal of documents, instruments, chattel paper, and guarantees at any time held by the Lender Group on which any Borrower may in any way be liable.
b..The Lender Group's Liability for Collateral
.  Each Borrower hereby agrees that:  (a) so long as Agent complies with its obligations, if any, under the Code, the Lender Group shall not in any way or manner be liable or responsible for:  (i) the safekeeping of the Collateral, (ii) any loss or damage thereto occurring or arising in any manner or fashion from any cause, (iii) any diminution in the value thereof, or (iv) any act or default of any carrier, warehouseman, bailee, forwarding agency, or other Person, and (b) all risk of loss, damage, or destruction of the Collateral shall be borne by the Loan Parties, except for any thereof resulting directly from the gross negligence or willful misconduct of Agent, as determined by a court of competent jurisdiction as a final and non-appealable judgment.
c..Indemnification
.  Each Borrower shall pay, indemnify, defend, and hold the Agent-Related Persons, the Lender-Related Persons, the Issuing Bank, and each Participant (each, an "Indemnified Person") harmless (to the fullest extent permitted by law) from and against any and all claims, demands, suits, actions, investigations, proceedings, liabilities, fines, costs, penalties, and damages (but not any special, indirect, consequential or punitive damages), and all reasonable, documented and out-of-pocket fees and disbursements of attorneys (limited to one primary outside counsel to the Indemnified Persons taken as a whole and, if reasonably necessary, one local and specialty 
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counsel in each relevant jurisdiction and specialty area to all Indemnified Persons, taken as a whole (and, in the event of any actual or potential conflict of interests, one additional primary outside counsel for each group of similarly-situated Indemnified Persons, and, if reasonably necessary, of one local and specialty counsel in each relevant jurisdiction and specialty area for each group of similarly-situated Indemnified Persons, taken as a whole)), experts, or consultants and all other reasonable, documented and out-of-pocket costs and expenses actually incurred in connection therewith or in connection with the enforcement of this indemnification (as and when they are incurred and irrespective of whether suit is brought), at any time asserted against, imposed upon, or incurred by any of them (a) in connection with or as a result of or related to the execution and delivery (provided, that Borrowers shall not be liable for costs and expenses (including attorneys' fees) of any Lender (other than Wells Fargo) incurred in advising, structuring, drafting, reviewing, administering or syndicating the Loan Documents), enforcement, performance, or administration (including any restructuring or workout with respect hereto) of this Agreement, any of the other Loan Documents, or the transactions contemplated hereby or thereby or the monitoring of Parent's and its Subsidiaries' compliance with the terms of the Loan Documents (provided, that the indemnification in this clause (a) shall not extend to (i) disputes solely between or among the Indemnified Persons (other than any claims against an Indemnitee in its capacity as Agent) that do not involve any acts or omissions of any Loan Party, or (ii) any claims for Taxes, which shall be governed by Section 16, other than Taxes which relate to primarily non-Tax claims), (b) with respect to any actual or prospective investigation, litigation, or proceeding related to this Agreement, any other Loan Document, the making of any Loans or issuance of any Letters of Credit hereunder, or the use of the proceeds of the Loans or the Letters of Credit provided hereunder (irrespective of whether any Indemnified Person is a party thereto), or any act, omission, event, or circumstance in any manner related thereto, and (c) in connection with or arising out of any presence or release of Hazardous Materials at, on, under, to or from any assets or properties owned, leased or operated in the course of its business by any Loan Party or any of its Subsidiaries or any Environmental Actions, Environmental Liabilities or Remedial Actions related in any way to any such assets, Real Properties or other properties of any Loan Party or any of its Subsidiaries (each and all of the foregoing, the "Indemnified Liabilities").  Notwithstanding the foregoing and the last sentence of this Section 10.3, no Borrower shall have any obligation to any Indemnified Person under this Section 10.3 with respect to any Indemnified Liability that are determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnified Person.  This provision shall survive the termination of this Agreement and the repayment in full of the Obligations, but with respect to any Real Property, shall not run to the benefit of any third-party purchaser of such Real Property following foreclosure or acceptance of a deed-in-lieu of foreclosure unless such third-party purchaser is controlled by, controlling or under common control with any of the Lender Group.  If any Indemnified Person makes any payment to any other Indemnified Person with respect to an Indemnified Liability as to which Borrowers were required to indemnify the Indemnified Person receiving such payment, the Indemnified Person making such payment is entitled to be indemnified and reimbursed by Borrowers with respect thereto.  WITHOUT LIMITATION, THE FOREGOING INDEMNITY SHALL APPLY TO EACH INDEMNIFIED PERSON WITH RESPECT TO INDEMNIFIED LIABILITIES WHICH IN WHOLE OR IN PART 
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ARE CAUSED BY OR ARISE OUT OF ANY NEGLIGENT ACT OR OMISSION OF SUCH INDEMNIFIED PERSON OR OF ANY OTHER PERSON.
11.NOTICES.
Unless otherwise provided in this Agreement, all notices or demands relating to this Agreement or any other Loan Document shall be in writing and (except for financial statements and other informational documents which may be sent by first-class mail, postage prepaid) shall be personally delivered or sent by registered or certified mail (postage prepaid, return receipt requested), overnight courier, electronic mail (at such email addresses as a party may designate in accordance herewith), or telefacsimile.  In the case of notices or demands to any Loan Party or Agent, as the case may be, they shall be sent to the respective address set forth below:
						
	If to any Loan Party:	c/o FARMER BROS. CO.
1912 Farmer Brothers Drive
Northlake, Texas 76262
Attn: Legal Department
E-mail.  LegalDepartment@farmerbros.com

	with copies to:	MUNSCH HARDT KOFP & HARR, PC
500 N. Akard Street, Suite 3800
Dallas, Texas  75201
Attn:  Walter Buchanan, Esq.
E-mail:  wbuchanan@munsch.com

	If to Agent:	WELLS FARGO BANK, NATIONAL ASSOCIATION
100 West Washington, 15th Floor
Phoenix, Arizona  85003
Attn: Loan Portfolio Manager
E-mail:  michael.l.gerard@wellsfargo.com

	with copies to:	GOLDBERG KOHN LTD.
55 East Monroe Street, Suite 3300
Chicago, Illinois  60603
Attn:  Jessica DeBruin, Esq.
E-mail:  jessica.debruin@goldbergkohn.com

		

Any party hereto may change the address at which they are to receive notices hereunder, by notice in writing in the foregoing manner given to the other party.  All notices or demands sent in accordance with this Section 11, shall be deemed received on the earlier of the date of actual receipt or three Business Days after the deposit thereof in the mail; provided, that (a) notices sent by overnight courier service shall be deemed to have been given when received, (b) notices by facsimile shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next Business Day for the recipient) and (c) notices by electronic mail 
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shall be deemed received upon the sender's receipt of an acknowledgment from the intended recipient (such as by the "return receipt requested" function, as available, return email or other written acknowledgment).
12.CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER; JUDICIAL REFERENCE PROVISION.
(en)THE VALIDITY OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (UNLESS EXPRESSLY PROVIDED TO THE CONTRARY IN ANOTHER LOAN DOCUMENT IN RESPECT OF SUCH OTHER LOAN DOCUMENT), THE CONSTRUCTION, INTERPRETATION, AND ENFORCEMENT HEREOF AND THEREOF, THE RIGHTS OF THE PARTIES HERETO AND THERETO WITH RESPECT TO ALL MATTERS ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO, AND ANY CLAIMS, CONTROVERSIES OR DISPUTES ARISING HEREUNDER OR THEREUNDER OR RELATED HERETO OR THERETO SHALL BE DETERMINED UNDER, GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK .
(eo)THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE TRIED AND LITIGATED ONLY IN THE STATE AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK, STATE OF NEW YORK; PROVIDED, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE BROUGHT, AT AGENT'S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE AGENT ELECTS TO BRING SUCH ACTION OR WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY BE FOUND.  EACH BORROWER AND EACH MEMBER OF THE LENDER GROUP WAIVE, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION 12(b).
(ep)TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH BORROWER AND EACH MEMBER OF THE LENDER GROUP HEREBY WAIVE THEIR RESPECTIVE RIGHTS, IF ANY, TO A JURY TRIAL OF ANY CLAIM, CONTROVERSY, DISPUTE OR CAUSE OF ACTION DIRECTLY OR INDIRECTLY BASED UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS (EACH A "CLAIM").  EACH BORROWER AND EACH MEMBER OF THE LENDER GROUP REPRESENT THAT EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING 
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CONSULTATION WITH LEGAL COUNSEL.  IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.
(eq)EACH BORROWER HEREBY IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK AND THE STATE OF NEW YORK, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO ANY LOAN DOCUMENTS, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT.  EACH OF THE PARTIES HERETO AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.  NOTHING IN THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT AGENT MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST ANY LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.
(er)NO CLAIM MAY BE MADE BY ANY LOAN PARTY OR ANY MEMBER OF THE LENDER GROUP AGAINST EACH OTHER, OR ANY OF THEIR RESPECTIVE AFFILIATE, DIRECTOR, OFFICER, EMPLOYEE, COUNSEL, REPRESENTATIVE, AGENT, OR ATTORNEY-IN-FACT FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY DAMAGES OR LOSSES IN RESPECT OF ANY CLAIM FOR BREACH OF CONTRACT OR ANY OTHER THEORY OF LIABILITY ARISING OUT OF OR RELATED TO THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY ACT, OMISSION, OR EVENT OCCURRING IN CONNECTION THEREWITH, AND SUCH PERSON HEREBY WAIVES, RELEASES, AND AGREES NOT TO SUE UPON ANY CLAIM FOR SUCH DAMAGES, WHETHER OR NOT ACCRUED AND WHETHER OR NOT KNOWN OR SUSPECTED TO EXIST IN ITS FAVOR.
13.ASSIGNMENTS AND PARTICIPATIONS; SUCCESSORS.
a..Assignments and Participations.
(es)    Subject to the conditions set forth in clause (a)(ii) below, any Lender may assign and delegate all or any portion of its rights and duties under the Loan Documents (including the Obligations owed to it and its Commitments) to one or more assignees (each, an "Assignee"), with the prior written consent (such consent not be unreasonably withheld or delayed) of:
xxvii.Borrowers; provided, that no consent of Borrowers shall be required (1) if a Default or Event of Default has occurred and is continuing, or (2) in connection with an assignment to a Person that is a Lender or an Affiliate (other than an Ineligible 
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Institution) of a Lender; provided further, that Borrowers shall be deemed to have consented to a proposed assignment unless they object thereto by written notice to Agent within five Business Days after having received notice thereof; and
xxviii.Agent, Swing Lender, and Issuing Bank.
89.Assignments shall be subject to the following additional conditions:
xxix.no assignment may be made to an Ineligible Institution,
xxx.no assignment may be made to a Loan Party or an Affiliate of a Loan Party,
xxxi.the amount of the Commitments and the other rights and obligations of the assigning Lender hereunder and under the other Loan Documents subject to each such assignment (determined as of the date the Assignment and Acceptance with respect to such assignment is delivered to Agent) shall be in a minimum amount (unless waived by Agent) of $5,000,000 (except such minimum amount shall not apply to (I) an assignment or delegation by any Lender to any other Lender, an Affiliate of any Lender, or a Related Fund of such Lender, or (II) a group of new Lenders, each of which is an Affiliate of each other or a Related Fund of such new Lender to the extent that the aggregate amount to be assigned to all such new Lenders is at least $5,000,000),
xxxii.each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Agreement,
xxxiii.the parties to each assignment shall execute and deliver to Agent an Assignment and Acceptance; provided, that Borrowers and Agent may continue to deal solely and directly with the assigning Lender in connection with the interest so assigned to an Assignee until written notice of such assignment, together with payment instructions, addresses, and related information with respect to the Assignee, have been given to Borrowers and Agent by such Lender and the Assignee,
xxxiv.unless waived by Agent, the assigning Lender or Assignee has paid to Agent, for Agent's separate account, a processing fee in the amount of $3,500, and
xxxv.the assignee, if it is not a Lender, shall deliver to Agent an Administrative Questionnaire in a form approved by Agent (the "Administrative Questionnaire").
(et)From and after the date that Agent receives the executed Assignment and Acceptance and, if applicable, payment of the required processing fee, (i) the Assignee thereunder shall be a party hereto and, to the extent that rights and obligations hereunder have been assigned to it pursuant to such Assignment and Acceptance, shall be a "Lender" and shall have the rights and obligations of a Lender under the Loan Documents, and (ii) the assigning Lender shall, to the extent that rights and obligations hereunder and under the other Loan 
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Documents have been assigned by it pursuant to such Assignment and Acceptance, relinquish its rights (except with respect to Section 10.3) and be released from any future obligations under this Agreement (and in the case of an Assignment and Acceptance covering all or the remaining portion of an assigning Lender's rights and obligations under this Agreement and the other Loan Documents, such Lender shall cease to be a party hereto and thereto); provided, that nothing contained herein shall release any assigning Lender from obligations that survive the termination of this Agreement, including such assigning Lender's obligations under Section 15 and Section 17.9(a).
(eu)By executing and delivering an Assignment and Acceptance, the assigning Lender thereunder and the Assignee thereunder confirm to and agree with each other and the other parties hereto as follows:  (i) other than as provided in such Assignment and Acceptance, such assigning Lender makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with this Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or any other Loan Document furnished pursuant hereto, (ii) such assigning Lender makes no representation or warranty and assumes no responsibility with respect to the financial condition of any Loan Party or the performance or observance by any Loan Party of any of its obligations under this Agreement or any other Loan Document furnished pursuant hereto, (iii) such Assignee confirms that it has received a copy of this Agreement, together with such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into such Assignment and Acceptance, (iv) such Assignee will, independently and without reliance upon Agent, such assigning Lender or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement, (v) such Assignee appoints and authorizes Agent to take such actions and to exercise such powers under this Agreement and the other Loan Documents as are delegated to Agent, by the terms hereof and thereof, together with such powers as are reasonably incidental thereto, and (vi) such Assignee confirms it is not an Ineligible Institution and agrees that it will perform all of the obligations which by the terms of this Agreement are required to be performed by it as a Lender.
(ev)Immediately upon Agent's receipt of the required processing fee, if applicable, and delivery of notice to the assigning Lender pursuant to Section 13.1(b), this Agreement shall be deemed to be amended to the extent, but only to the extent, necessary to reflect the addition of the Assignee and the resulting adjustment of the Commitments arising therefrom.  The Commitment allocated to each Assignee shall reduce such Commitments of the assigning Lender pro tanto.
(ew)Any Lender may at any time sell to one or more commercial banks, financial institutions, or other Persons (a "Participant") participating interests in all or any portion of its Obligations, its Commitment, and the other rights and interests of that Lender (the "Originating Lender") hereunder and under the other Loan Documents; provided, that (i) the Originating Lender shall remain a "Lender" for all purposes of this Agreement and the other Loan Documents and the Participant receiving the participating interest in the Obligations, the Commitments, and the other rights and interests of the Originating Lender hereunder shall not 
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constitute a "Lender" hereunder or under the other Loan Documents and the Originating Lender's obligations under this Agreement shall remain unchanged, (ii) the Originating Lender shall remain solely responsible for the performance of such obligations, (iii) Borrowers, Agent, and the Lenders shall continue to deal solely and directly with the Originating Lender in connection with the Originating Lender's rights and obligations under this Agreement and the other Loan Documents, (iv) no Lender shall transfer or grant any participating interest under which the Participant has the right to approve any amendment to, or any consent or waiver with respect to, this Agreement or any other Loan Document, except to the extent such amendment to, or consent or waiver with respect to this Agreement or of any other Loan Document would (A) extend the final maturity date of the Obligations hereunder in which such Participant is participating, (B) reduce the interest rate applicable to the Obligations hereunder in which such Participant is participating, (C) release all or substantially all of the Collateral or guaranties (except to the extent expressly provided herein or in any of the Loan Documents) supporting the Obligations hereunder in which such Participant is participating, (D) postpone the payment of, or reduce the amount of, the interest or fees payable to such Participant through such Lender (other than a waiver of default interest), or (E) decrease the amount or postpone the due dates of scheduled principal repayments or prepayments or premiums payable to such Participant through such Lender, (v) no participation shall be sold to an Ineligible Institution, (vi) no participation shall be sold to a Loan Party or an Affiliate of a Loan Party, and (vii) all amounts payable by Borrowers hereunder shall be determined as if such Lender had not sold such participation, other than as set forth in Section 16 with respect to Taxes, and except that, if amounts outstanding under this Agreement are due and unpaid, or shall have been declared or shall have become due and payable upon the occurrence and during the continuance of an Event of Default, each Participant shall be deemed to have the right of set off in respect of its participating interest in amounts owing under this Agreement to the same extent as if the amount of its participating interest were owing directly to it as a Lender under this Agreement.  The rights of any Participant only shall be derivative through the Originating Lender with whom such Participant participates and no Participant shall have any rights under this Agreement or the other Loan Documents or any direct rights as to the other Lenders, Agent, Borrowers, the Collateral, or otherwise in respect of the Obligations.  No Participant shall have the right to participate directly in the making of decisions by the Lenders among themselves.
(ex)In connection with any such assignment or participation or proposed assignment or participation or any grant of a security interest in, or pledge of, its rights under and interest in this Agreement, a Lender may, subject to the provisions of Section 17.9, disclose all documents and information which it now or hereafter may have relating to any Loan Party and its Subsidiaries and their respective businesses.
(ey)Any other provision in this Agreement notwithstanding, any Lender may at any time create a security interest in, or pledge, all or any portion of its rights under and interest in this Agreement to secure obligations of such Lender, including any pledge in favor of any Federal Reserve Bank in accordance with Regulation A of the Federal Reserve Bank or U.S. Treasury Regulation 31 CFR §203.24, and such Federal Reserve Bank may enforce such pledge or security interest in any manner permitted under applicable law; provided, that no such pledge 
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shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.
(ez)Agent (as a non-fiduciary agent on behalf of Borrowers) shall maintain, or cause to be maintained, a register (the "Register") on which it enters the name and address of each Lender as the registered owner of each Loan (and the principal amount thereof and stated interest thereon) held by such Lender (each, a "Registered Loan").  The Register is intended to cause each Loan and other obligation hereunder to be in registered form within the meaning of Section 5f.103-1(c) of the United States Treasury Regulations and Proposed Treasury Regulations Section 1.163-5(b) (or any amended or successor version) and within the meaning of Sections 163(f), 871(h)(2) and 881(c)(2) of the Code. Other than in connection with an assignment by a Lender of all or any portion of its portion of any Loan to an Affiliate of such Lender or a Related Fund of such Lender (i) a Registered Loan (and the registered note, if any, evidencing the same) may be assigned or sold in whole or in part only by registration of such assignment or sale on the Register (and each registered note shall expressly so provide) and (ii) any assignment or sale of all or part of such Registered Loan (and the registered note, if any, evidencing the same) may be effected only by registration of such assignment or sale on the Register, together with the surrender of the registered note, if any, evidencing the same duly endorsed by (or accompanied by a written instrument of assignment or sale duly executed by) the holder of such registered note, whereupon, at the request of the designated assignee(s) or transferee(s), one or more new registered notes in the same aggregate principal amount shall be issued to the designated assignee(s) or transferee(s).  Prior to the registration of assignment or sale of any Registered Loan (and the registered note, if any evidencing the same), Borrowers shall treat the Person in whose name such Registered Loan (and the registered note, if any, evidencing the same) is registered as the owner thereof for the purpose of receiving all payments thereon and for all other purposes, notwithstanding notice to the contrary.  In the case of any assignment by a Lender of all or any portion of its Loans to an Affiliate of such Lender or a Related Fund of such Lender, and which assignment is not recorded in the Register, the assigning Lender, on behalf of Borrowers, shall maintain a register comparable to the Register.
(fa)In the event that a Lender sells participations in the Registered Loan, such Lender, as a non-fiduciary agent on behalf of Borrowers, shall maintain (or cause to be maintained) a register on which it enters the name of all participants in the Registered Loans held by it (and the principal amount (and stated interest thereon) of the portion of such Registered Loans that is subject to such participations) (the "Participant Register").  The Participant Register is intended to cause each Loan and other obligation hereunder to be in registered form within the meaning of Section 5f.103-1(c) of the United States Treasury Regulations and Proposed Treasury Regulations Section 1.163-5(b) (or any amended or successor version) and within the meaning of Sections 163(f), 871(h)(2) and 881(c)(2) of the Code. A Registered Loan (and the Registered Note, if any, evidencing the same) may be participated in whole or in part only by registration of such participation on the Participant Register (and each registered note shall expressly so provide).  Any participation of such Registered Loan (and the registered note, if any, evidencing the same) may be effected only by the registration of such participation on the Participant Register.  No Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's 
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interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under the IRC, including under Section 5f.103-1(c) of the United States Treasury Regulations or its successor.  The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.  For the avoidance of doubt, the Agent (in its capacity as Agent) shall have no responsibility for maintaining a Participant Register.
(fb)Agent shall make a copy of the Register (and each Lender shall make a copy of its Participant Register to the extent it has one) available for review by Borrowers from time to time as Borrowers may reasonably request.
b..Successors
.  This Agreement shall bind and inure to the benefit of the respective successors and assigns of each of the parties; provided, that no Borrower may assign this Agreement or any rights or duties hereunder without the Lenders' prior written consent and any prohibited assignment shall be absolutely void ab initio.  No consent to assignment by the Lenders shall release any Borrower from its Obligations.  A Lender may assign this Agreement and the other Loan Documents and its rights and duties hereunder and thereunder pursuant to Section 13.1 and, except as expressly required pursuant to Section 13.1, no consent or approval by any Borrower is required in connection with any such assignment.
14.AMENDMENTS; WAIVERS.
a..Amendments and Waivers.
(fc)No amendment, waiver or other modification of any provision of this Agreement or any other Loan Document (other than the Fee Letter), and no consent with respect to any departure by any Borrower therefrom, shall be effective unless the same shall be in writing and signed by the Required Lenders (or by Agent at the written request of the Required Lenders) and the Loan Parties that are party thereto and then any such waiver or consent shall be effective, but only in the specific instance and for the specific purpose for which given; provided, that no such waiver, amendment, or consent shall, unless in writing and signed by all of the Lenders directly affected thereby and all of the Loan Parties that are party thereto, do any of the following:
90.increase the amount of or extend the expiration date of any Commitment of any Lender or amend, modify, or eliminate the penultimate sentence of Section 2.4(c),
91.postpone or delay any date fixed by this Agreement or any other Loan Document for any payment of principal, interest, fees, or other amounts due hereunder or under any other Loan Document,
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92.reduce the principal of, or the rate of interest on, any loan or other extension of credit hereunder, or reduce any fees or other amounts payable hereunder or under any other Loan Document (except in connection with the waiver of applicability of Section 2.6(c) (which waiver shall be effective with the written consent of the Required Lenders),
93.amend, modify, or eliminate this Section or any provision of this Agreement providing for consent or other action by all Lenders,
94.amend, modify, or eliminate Section 3.1,
95.amend, modify, or eliminate Section 15.11,
96.other than as permitted by Section 15.11, release or contractually subordinate Agent's Lien in and to any of the Collateral,
97.amend, modify, or eliminate the definitions of "Required Lenders", "Supermajority Lenders" or "Pro Rata Share",
98.other than in connection with a merger, liquidation, dissolution or sale of such Person expressly permitted by the terms hereof or the other Loan Documents, release any Borrower or any Guarantor from any obligation for the payment of money or consent to the assignment or transfer by any Borrower or any Guarantor of any of its rights or duties under this Agreement or the other Loan Documents,
99.amend, modify, or eliminate any of the provisions of Section 2.4(b)(i), (ii) or (iii),
100.at any time that any Real Property is included in the Collateral, add, increase, renew or extend any Loan, Letter of Credit or Commitment hereunder until the completion of flood due diligence, documentation and coverage as required by the Flood Laws or as otherwise satisfactory to all Lenders, or
101.amend, modify, or eliminate any of the provisions of Section 13.1 with respect to assignments to, or participations with, Persons who are Loan Parties or Affiliates of a Loan Party, 
(fd)No amendment, waiver, modification, or consent shall amend, modify, waive, or eliminate,
102.the definition of, or any of the terms or provisions of, the Fee Letter, without the written consent of Agent and Borrowers (and shall not require the written consent of any of the Lenders),
103.any provision of Section 15 pertaining to Agent, or any other rights or duties of Agent under this Agreement or the other Loan Documents, without the written consent of Agent, Borrowers, and the Required Lenders;
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(fe)No amendment, waiver, modification, elimination, or consent shall amend, without written consent of Agent, Borrowers and the Supermajority Lenders, modify, or eliminate the definition of Borrowing Base or any of the defined terms (including the definitions of Eligible Accounts, Eligible Finished Goods Inventory, Eligible In-Transit Inventory, Eligible Raw Material Inventory and Eligible Inventory) that are used in such definition to the extent that any such change results in more credit being made available to Borrowers based upon the Borrowing Base, but not otherwise, or the definition of Maximum Revolver Amount;
(ff)No amendment, waiver, modification, elimination, or consent shall amend, modify, or waive any provision of this Agreement or the other Loan Documents pertaining to Issuing Bank, or any other rights or duties of Issuing Bank under this Agreement or the other Loan Documents, without the written consent of Issuing Bank, Agent, Borrowers, and the Required Lenders;
(fg)No amendment, waiver, modification, elimination, or consent shall amend, modify, or waive any provision of this Agreement or the other Loan Documents pertaining to Swing Lender, or any other rights or duties of Swing Lender under this Agreement or the other Loan Documents, without the written consent of Swing Lender, Agent, Borrowers, and the Required Lenders; and
(fh)Anything in this Section 14.1 to the contrary notwithstanding, (i) any amendment, modification, elimination, waiver, consent, termination, or release of, or with respect to, any provision of this Agreement or any other Loan Document that relates only to the relationship of the Lender Group among themselves, and that does not affect the rights or obligations of any Loan Party, shall not require consent by or the agreement of any Loan Party, (ii) any amendment, waiver, modification, elimination, or consent of or with respect to any provision of this Agreement or any other Loan Document may be entered into without the consent of, or over the objection of, any Defaulting Lender other than any of the matters governed by Section 14.1(a)(i) through (iii) that affect such Lender, and (iii) any amendment contemplated by Section 2.12(d)(iii) of this Agreement in connection with a Benchmark Transition Event or an Early Opt-in Election shall be effective as contemplated by such Section 2.12(d)(iii) hereof.
(fi)Anything in this Section 14.1 to the contrary notwithstanding, upon five Business Days prior written notice to each Lender thereof, any Mortgage may be amended, waived or otherwise modified (but not released or terminated) with the consent of Agent and the applicable Loan Party without the need to obtain the written consent of any Lender or any other Person if such amendment, modification, supplement or waiver is delivered in order (A) to comply with local applicable Law (including foreign law or regulatory requirements), (B) to cure any ambiguity, inconsistency, omission, mistake or defect, or (C) to cause such Mortgage to be consistent with this Agreement and the other Loan Documents; any amendment, waiver or modification pursuant to this paragraph shall become effective without any further action or consent of any other party to any Loan Document if the same is not objected to in writing by the Required Lenders within five Business Days following receipt of notice thereof. 
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b..Replacement of Certain Lenders.
(fj)If (i) any action to be taken by the Lender Group or Agent hereunder requires the consent, authorization, or agreement of all Lenders or all Lenders affected thereby and if such action has received the consent, authorization, or agreement of the Required Lenders but not of all Lenders or all Lenders directly affected thereby, or (ii) any Lender makes a claim for compensation under Section 16, then Borrowers or Agent, upon at least five Business Days prior irrevocable notice, may permanently replace any Lender that failed to give its consent, authorization, or agreement (a "Non-Consenting Lender") or any Lender that made a claim for compensation (a "Tax Lender") with one or more Replacement Lenders, and the Non-Consenting Lender or Tax Lender, as applicable, shall have no right to refuse to be replaced hereunder (provided that, with respect to the replacement of a Tax Lender, the replacement of the Tax Lender with the Replacement Lender shall reduce amounts payable under Section 16).  Such notice to replace the Non-Consenting Lender or Tax Lender, as applicable, shall specify an effective date for such replacement, which date shall not be later than 15 Business Days after the date such notice is given.
(fk)Prior to the effective date of such replacement, the Non-Consenting Lender or Tax Lender, as applicable, and each Replacement Lender shall execute and deliver an Assignment and Acceptance, subject only to the Non-Consenting Lender or Tax Lender, as applicable, being repaid in full its share of the outstanding Obligations (without any premium or penalty of any kind whatsoever (including, without limitation, any set forth in the Fee Letter), but including (i) all interest, fees and other amounts that may be due and payable in respect thereof, (ii) an assumption of its Pro Rata Share of participations in the Letters of Credit, and (iii) Funding Losses).  If the Non-Consenting Lender or Tax Lender, as applicable, shall refuse or fail to execute and deliver any such Assignment and Acceptance prior to the effective date of such replacement, Agent may, but shall not be required to, execute and deliver such Assignment and Acceptance in the name or and on behalf of the Non-Consenting Lender or Tax Lender, as applicable, and irrespective of whether Agent executes and delivers such Assignment and Acceptance, the Non-Consenting Lender or Tax Lender, as applicable, shall be deemed to have executed and delivered such Assignment and Acceptance.  The replacement of any Non-Consenting Lender or Tax Lender, as applicable, shall be made in accordance with the terms of Section 13.1.  Until such time as one or more Replacement Lenders shall have acquired all of the Obligations, the Commitments, and the other rights and obligations of the Non-Consenting Lender or Tax Lender, as applicable, hereunder and under the other Loan Documents, the Non-Consenting Lender or Tax Lender, as applicable, shall remain obligated to make the Non-Consenting Lender's or Tax Lender's, as applicable, Pro Rata Share of Revolving Loans and to purchase a participation in each Letter of Credit, in an amount equal to its Pro Rata Share of participations in such Letters of Credit.
c..No Waivers; Cumulative Remedies
.  No failure by Agent or any Lender to exercise any right, remedy, or option under this Agreement or any other Loan Document, or delay by Agent or any Lender in exercising the same, will operate as a waiver thereof.  No waiver by Agent or any Lender will be effective 
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unless it is in writing, and then only to the extent specifically stated.  No waiver by Agent or any Lender on any occasion shall affect or diminish Agent's and each Lender's rights thereafter to require strict performance by Borrowers of any provision of this Agreement.  Agent's and each Lender's rights under this Agreement and the other Loan Documents will be cumulative and not exclusive of any other right or remedy that Agent or any Lender may have.
15.AGENT; THE LENDER GROUP.
a..Appointment and Authorization of Agent
.  Each Lender hereby designates and appoints Wells Fargo as its agent under this Agreement and the other Loan Documents and each Lender hereby irrevocably authorizes (and by entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to designate, appoint, and authorize) Agent to execute and deliver each of the other Loan Documents on its behalf and to take such other action on its behalf under the provisions of this Agreement and each other Loan Document and to exercise such powers and perform such duties as are expressly delegated to Agent by the terms of this Agreement or any other Loan Document, together with such powers as are reasonably incidental thereto.  Agent agrees to act as agent for and on behalf of the Lenders (and the Bank Product Providers) on the conditions contained in this Section 15.  Any provision to the contrary contained elsewhere in this Agreement or in any other Loan Document notwithstanding, Agent shall not have any duties or responsibilities, except those expressly set forth herein or in the other Loan Documents, nor shall Agent have or be deemed to have any fiduciary relationship with any Lender (or Bank Product Provider), and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against Agent.  Without limiting the generality of the foregoing, the use of the term "agent" in this Agreement or the other Loan Documents with reference to Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law.  Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only a representative relationship between independent contracting parties.  Each Lender hereby further authorizes (and by entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to authorize) Agent to act as the secured party under each of the Loan Documents that create a Lien on any item of Collateral.  Except as expressly otherwise provided in this Agreement, Agent shall have and may use its sole discretion with respect to exercising or refraining from exercising any discretionary rights or taking or refraining from taking any actions that Agent expressly is entitled to take or assert under or pursuant to this Agreement and the other Loan Documents.  Without limiting the generality of the foregoing, or of any other provision of the Loan Documents that provides rights or powers to Agent, Lenders agree that Agent shall have the right to exercise the following powers as long as this Agreement remains in effect:  (a) maintain, in accordance with its customary business practices, ledgers and records reflecting the status of the Obligations, the Collateral, payments and proceeds of Collateral, and related matters, (b) execute or file any and all financing or similar statements or notices, amendments, renewals, supplements, documents, instruments, proofs of claim, notices and other written agreements with respect to the Loan Documents, or to take any other action with respect to any Collateral or Loan Documents which may be necessary to perfect, and maintain perfected, 
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the security interests and Liens upon Collateral pursuant to the Loan Documents, (c) make Revolving Loans, for itself or on behalf of Lenders, as provided in the Loan Documents, (d) exclusively receive, apply, and distribute payments and proceeds of the Collateral as provided in the Loan Documents, (e) open and maintain such bank accounts and cash management arrangements as Agent deems necessary and appropriate in accordance with the Loan Documents for the foregoing purposes, (f) perform, exercise, and enforce any and all other rights and remedies of the Lender Group with respect to any Loan Party or its Subsidiaries, the Obligations, the Collateral, or otherwise related to any of same as provided in the Loan Documents, and (g) incur and pay such Lender Group Expenses as Agent may deem necessary or appropriate for the performance and fulfillment of its functions and powers pursuant to the Loan Documents.
b..Delegation of Duties
.  Agent may execute any of its duties under this Agreement or any other Loan Document by or through agents, employees or attorneys in fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties.  Agent shall not be responsible for the negligence or misconduct of any agent or attorney in fact that it selects as long as such selection was made without gross negligence or willful misconduct.
c..Liability of Agent
.  None of the Agent-Related Persons shall (a) be liable for any action taken or omitted to be taken by any of them under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby (except for its own gross negligence or willful misconduct, as determined by a court of competent jurisdiction as a final and non-appealable judgment), or (b) be responsible in any manner to any of the Lenders (or Bank Product Providers) for any recital, statement, representation or warranty made by any Loan Party or any of its Subsidiaries or Affiliates, or any officer or director thereof, contained in this Agreement or in any other Loan Document, or in any certificate, report, statement or other document referred to or provided for in, or received by Agent under or in connection with, this Agreement or any other Loan Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document, or for any failure of any Loan Party or its Subsidiaries or any other party to any Loan Document to perform its obligations hereunder or thereunder.  No Agent-Related Person shall be under any obligation to any Lenders (or Bank Product Providers) to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the books and records or properties of any Loan Party or its Subsidiaries.  No Agent-Related Person shall have any liability to any Lender, and Loan Party or any of their respective Affiliates if any request for a Loan, Letter of Credit or other extension of credit was not authorized by the applicable Borrower.  Agent shall not be required to take any action that, in its opinion or in the opinion of its counsel, may expose it to liability or that is contrary to any Loan Document or applicable law or regulation.
d..Reliance by Agent
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.  Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice, consent, certificate, affidavit, letter, telegram, telefacsimile or other electronic method of transmission, telex or telephone message, statement or other document or conversation believed by it to be genuine and correct and to have been signed, sent, or made by the proper Person or Persons, and upon advice and statements of legal counsel (including counsel to Borrowers or counsel to any Lender), independent accountants and other experts selected by Agent.  Agent shall be fully justified in failing or refusing to take any action under this Agreement or any other Loan Document unless Agent shall first receive such advice or concurrence of the Lenders as it deems appropriate and until such instructions are received, Agent shall act, or refrain from acting, as it deems advisable.  If Agent so requests, it shall first be indemnified to its reasonable satisfaction by the Lenders (and, if it so elects, the Bank Product Providers) against any and all liability and expense that may be incurred by it by reason of taking or continuing to take any such action.  Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance with a request or consent of the Required Lenders and such request and any action taken or failure to act pursuant thereto shall be binding upon all of the Lenders (and Bank Product Providers).
e..Notice of Default or Event of Default
.  Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default, except with respect to defaults in the payment of principal, interest, fees, and expenses required to be paid to Agent for the account of the Lenders and, except with respect to Events of Default of which Agent has actual knowledge, unless Agent shall have received written notice from a Lender or Borrowers referring to this Agreement, describing such Default or Event of Default, and stating that such notice is a "notice of default."  Agent promptly will notify the Lenders of its receipt of any such notice or of any Event of Default of which Agent has actual knowledge.  If any Lender obtains actual knowledge of any Event of Default, such Lender promptly shall notify the other Lenders and Agent of such Event of Default.  Each Lender shall be solely responsible for giving any notices to its Participants, if any.  Subject to Section 15.4, Agent shall take such action with respect to such Default or Event of Default as may be requested by the Required Lenders in accordance with Section 9; provided, that unless and until Agent has received any such request, Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable.
f..Credit Decision
.  Each Lender (and Bank Product Provider) acknowledges that none of the Agent-Related Persons has made any representation or warranty to it, and that no act by Agent hereinafter taken, including any review of the affairs of any Loan Party and its Subsidiaries or Affiliates, shall be deemed to constitute any representation or warranty by any Agent-Related Person to any Lender (or Bank Product Provider).  Each Lender represents (and by entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to represent) to Agent that it has, independently and without reliance upon any Agent-Related Person and based on such due diligence, documents and information as it has deemed appropriate, made its own appraisal 
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of and investigation into the business, prospects, operations, property, financial and other condition and creditworthiness of each Borrower or any other Person party to a Loan Document, and all applicable bank regulatory laws relating to the transactions contemplated hereby, and made its own decision to enter into this Agreement and to extend credit to Borrowers.  Each Lender also represents (and by entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to represent) that it will, independently and without reliance upon any Agent-Related Person and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make such investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition and creditworthiness of each Borrower or any other Person party to a Loan Document.  Except for notices, reports, and other documents expressly herein required to be furnished to the Lenders by Agent, Agent shall not have any duty or responsibility to provide any Lender (or Bank Product Provider) with any credit or other information concerning the business, prospects, operations, property, financial and other condition or creditworthiness of any Borrower or any other Person party to a Loan Document that may come into the possession of any of the Agent-Related Persons.  Each Lender acknowledges (and by entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to acknowledge) that Agent does not have any duty or responsibility, either initially or on a continuing basis (except to the extent, if any, that is expressly specified herein) to provide such Lender (or Bank Product Provider) with any credit or other information with respect to any Borrower, its Affiliates or any of their respective business, legal, financial or other affairs, and irrespective of whether such information came into Agent's or its Affiliates' or representatives' possession before or after the date on which such Lender became a party to this Agreement (or such Bank Product Provider entered into a Bank Product Agreement).
g..Costs and Expenses; Indemnification
.  Agent may incur and pay Lender Group Expenses to the extent Agent reasonably deems necessary or appropriate for the performance and fulfillment of its functions, powers, and obligations pursuant to the Loan Documents, including court costs, attorneys' fees and expenses, fees and expenses of financial accountants, advisors, consultants, and appraisers, costs of collection by outside collection agencies, auctioneer fees and expenses, and costs of security guards or insurance premiums paid to maintain the Collateral, whether or not Borrowers are obligated to reimburse Agent or Lenders for such expenses pursuant to this Agreement or otherwise.  Agent is authorized and directed to deduct and retain sufficient amounts from payments or proceeds of the Collateral received by Agent to reimburse Agent for such out-of-pocket costs and expenses prior to the distribution of any amounts to Lenders (or Bank Product Providers).  In the event Agent is not reimbursed for such costs and expenses by the Loan Parties and their Subsidiaries, each Lender hereby agrees that it is and shall be obligated to pay to Agent such Lender's ratable share thereof.  Whether or not the transactions contemplated hereby are consummated, each of the Lenders, on a ratable basis, shall indemnify and defend the Agent-Related Persons (to the extent not reimbursed by or on behalf of Borrowers and without limiting the obligation of Borrowers to do so) from and against any and all Indemnified Liabilities; provided, that no Lender shall be liable for the payment to any Agent-Related Person of any 
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portion of such Indemnified Liabilities resulting solely from such Person's gross negligence or willful misconduct, as determined by a court of competent jurisdiction as a final and non-appealable judgment, nor shall any Lender be liable for the obligations of any Defaulting Lender in failing to make a Revolving Loan or other extension of credit hereunder.  Without limitation of the foregoing, each Lender shall reimburse Agent upon demand for such Lender's ratable share of any costs or out of pocket expenses (including attorneys, accountants, advisors, and consultants fees and expenses) incurred by Agent in connection with the preparation, execution, delivery, administration, modification, amendment, or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement or any other Loan Document to the extent that Agent is not reimbursed for such expenses by or on behalf of Borrowers.  The undertaking in this Section shall survive the payment of all Obligations hereunder and the resignation or replacement of Agent.
h..Agent in Individual Capacity
.  Wells Fargo and its Affiliates may make loans to, issue letters of credit for the account of, accept deposits from, provide Bank Products to, acquire Equity Interests in, and generally engage in any kind of banking, trust, financial advisory, underwriting, or other business with any Loan Party and its Subsidiaries and Affiliates and any other Person party to any Loan Document as though Wells Fargo were not Agent hereunder, and, in each case, without notice to or consent of the other members of the Lender Group.  The other members of the Lender Group acknowledge (and by entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to acknowledge) that, pursuant to such activities, Wells Fargo or its Affiliates may receive information regarding a Loan Party or its Affiliates or any other Person party to any Loan Documents that is subject to confidentiality obligations in favor of such Loan Party or such other Person and that prohibit the disclosure of such information to the Lenders (or Bank Product Providers), and the Lenders acknowledge (and by entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to acknowledge) that, in such circumstances (and in the absence of a waiver of such confidentiality obligations, which waiver Agent will use its reasonable best efforts to obtain), Agent shall not be under any obligation to provide such information to them.  The terms "Lender" and "Lenders" include Wells Fargo in its individual capacity.
i..Successor Agent
.  Agent may resign as Agent upon 30 days (ten days if an Event of Default has occurred and is continuing) prior written notice to the Lenders (unless such notice is waived by the Required Lenders) and Borrowers (unless such notice is waived by Borrowers or an Event of Default has occurred and is continuing) and without any notice to the Bank Product Providers.  If Agent resigns under this Agreement, the Required Lenders shall be entitled, with (so long as no Event of Default has occurred and is continuing) the consent of Borrowers (such consent not to be unreasonably withheld, delayed, or conditioned), to appoint a successor Agent for the Lenders (and the Bank Product Providers).  If, at the time that Agent's resignation is effective, it is acting as Issuing Bank or the Swing Lender, such resignation shall also operate to effectuate its 
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resignation as Issuing Bank or the Swing Lender, as applicable, and it shall automatically be relieved of any further obligation to issue Letters of Credit, or to make Swing Loans.  If no successor Agent is appointed prior to the effective date of the resignation of Agent, Agent may appoint, after consulting with the Lenders and Borrowers, a successor Agent (but in any event shall not be an Ineligible Institution so long as no Event of Default has occurred and is continuing).  If Agent has materially breached or failed to perform any material provision of this Agreement or of applicable law, as determined by a court of competent jurisdiction as a final and non-appealable judgment, the Required Lenders may agree in writing to remove and replace Agent with a successor Agent from among the Lenders with (so long as no Event of Default has occurred and is continuing) the consent of Borrowers (such consent not to be unreasonably withheld, delayed, or conditioned).  In any such event, upon the acceptance of its appointment as successor Agent hereunder, such successor Agent shall succeed to all the rights, powers, and duties of the retiring Agent and the term "Agent" shall mean such successor Agent and the retiring Agent's appointment, powers, and duties as Agent shall be terminated.  After any retiring Agent's resignation hereunder as Agent, the provisions of this Section 15 shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under this Agreement.  If no successor Agent has accepted appointment as Agent by the date which is 30 days following a retiring Agent's notice of resignation, the retiring Agent's resignation shall nevertheless thereupon become effective and the Lenders shall perform all of the duties of Agent hereunder until such time, if any, as the Lenders appoint a successor Agent as provided for above.
j..Lender in Individual Capacity
.  Any Lender and its respective Affiliates may make loans to, issue letters of credit for the account of, accept deposits from, provide Bank Products to, acquire Equity Interests in and generally engage in any kind of banking, trust, financial advisory, underwriting, or other business with any Loan Party and its Subsidiaries and Affiliates and any other Person party to any Loan Documents as though such Lender were not a Lender hereunder without notice to or consent of the other members of the Lender Group (or the Bank Product Providers).  The other members of the Lender Group acknowledge (and by entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to acknowledge) that, pursuant to such activities, such Lender and its respective Affiliates may receive information regarding a Loan Party or its Affiliates or any other Person party to any Loan Documents that is subject to confidentiality obligations in favor of such Loan Party or such other Person and that prohibit the disclosure of such information to the Lenders, and the Lenders acknowledge (and by entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to acknowledge) that, in such circumstances (and in the absence of a waiver of such confidentiality obligations, which waiver such Lender will use its reasonable best efforts to obtain), such Lender shall not be under any obligation to provide such information to them.
k..Collateral Matters.
(fl)The Lenders hereby irrevocably authorize (and by entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to authorize) Agent to release any Lien on any Collateral (i) upon the termination of the Commitments and payment and 
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satisfaction in full by the Loan Parties and their Subsidiaries of all of the Obligations, (ii) constituting property being sold or disposed of if a release is required or desirable in connection therewith and if Borrowers certify to Agent that the sale or disposition is permitted under Section 6.4 (and Agent may rely conclusively on any such certificate, without further inquiry), (iii) constituting property in which no Loan Party or any of its Subsidiaries owned any interest at the time Agent's Lien was granted nor at any time thereafter, (iv) constituting property leased or licensed to a Loan Party or its Subsidiaries under a lease or license that has expired or is terminated in a transaction permitted under this Agreement, or (v) in connection with a credit bid or purchase authorized under this Section 15.11.  The Loan Parties and the Lenders hereby irrevocably authorize (and by entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to authorize) Agent, based upon the instruction of the Required Lenders (and subject to applicable laws and regulations in the relevant jurisdiction), to (a) consent to the sale of, credit bid, or purchase (either directly or indirectly through one or more entities) all or any portion of the Collateral at any sale thereof conducted under the provisions of the Bankruptcy Code, including Section 363 of the Bankruptcy Code, (b) credit bid or purchase (either directly or indirectly through one or more entities) all or any portion of the Collateral at any sale or other disposition thereof conducted under the provisions of the Code, including pursuant to Sections 9-610 or 9-620 of the Code, or (c) credit bid or purchase (either directly or indirectly through one or more entities) all or any portion of the Collateral at any other sale or foreclosure conducted or consented to by Agent in accordance with applicable law in any judicial action or proceeding or by the exercise of any legal or equitable remedy.  In connection with any such credit bid or purchase, (i) the Obligations owed to the Lenders and the Bank Product Providers shall be entitled to be, and shall be, credit bid on a ratable basis (with Obligations with respect to contingent or unliquidated claims being estimated for such purpose if the fixing or liquidation thereof would not impair or unduly delay the ability of Agent to credit bid or purchase at such sale or other disposition of the Collateral and, if such contingent or unliquidated claims cannot be estimated without impairing or unduly delaying the ability of Agent to credit bid at such sale or other disposition, then such claims shall be disregarded, not credit bid, and not entitled to any interest in the Collateral that is the subject of such credit bid or purchase) and the Lenders and the Bank Product Providers whose Obligations are credit bid shall be entitled to receive interests (ratably based upon the proportion of their Obligations credit bid in relation to the aggregate amount of Obligations so credit bid) in the Collateral that is the subject of such credit bid or purchase (or in the Equity Interests of the any entities that are used to consummate such credit bid or purchase), and (ii) Agent, based upon the instruction of the Required Lenders, may accept non-cash consideration, including debt and equity securities issued by any entities used to consummate such credit bid or purchase and in connection therewith Agent may reduce the Obligations owed to the Lenders and the Bank Product Providers (ratably based upon the proportion of their Obligations credit bid in relation to the aggregate amount of Obligations so credit bid) based upon the value of such non-cash consideration; provided, that Bank Product Obligations not entitled to the application set forth in Section 2.4(b)(iii)(J) shall not be entitled to be, and shall not be, credit bid, or used in the calculation of the ratable interest of the Lenders and Bank Product Providers in the Obligations which are credit bid.  Except as provided above, Agent will not execute and deliver a release of any Lien on any Collateral without the prior written authorization of (y) if the release is of all or substantially all of the Collateral, all of the Lenders (without requiring the authorization of the Bank Product Providers), or (z) otherwise, the 
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Required Lenders (without requiring the authorization of the Bank Product Providers).  Upon request by Agent or Borrowers at any time, the Lenders will (and if so requested, the Bank Product Providers will) confirm in writing Agent's authority to release any such Liens on particular types or items of Collateral pursuant to this Section 15.11; provided, that (1) anything to the contrary contained in any of the Loan Documents notwithstanding, Agent shall not be required to execute any document or take any action necessary to evidence such release on terms that, in Agent's opinion, could expose Agent to liability or create any obligation or entail any consequence other than the release of such Lien without recourse, representation, or warranty, and (2) such release shall not in any manner discharge, affect, or impair the Obligations or any Liens (other than those expressly released) upon (or obligations of Borrowers in respect of) any and all interests retained by any Borrower, including, the proceeds of any sale, all of which shall continue to constitute part of the Collateral.  Each Lender further hereby irrevocably authorizes (and by entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to irrevocably authorize) Agent, at its option and in its sole discretion, to subordinate (by contract or otherwise) any Lien granted to or held by Agent on any property under any Loan Document (a) to the holder of any Permitted Lien on such property if such Permitted Lien secures purchase money Indebtedness (including Capitalized Lease Obligations) which constitute Permitted Indebtedness and (b) to the extent Agent has the authority under this Section 15.11 to release its Lien on such property.  Notwithstanding the provisions of this Section 15.11, the Agent shall be authorized, without the consent of any Lender and without the requirement that an asset sale consisting of the sale, transfer or other disposition having occurred, to release any security interest in any building, structure or improvement located in an area determined by the Federal Emergency Management Agency to have special flood hazards.
(fm)Agent shall have no obligation whatsoever to any of the Lenders (or the Bank Product Providers) (i) to verify or assure that the Collateral exists or is owned by a Loan Party or any of its Subsidiaries or is cared for, protected, or insured or has been encumbered, (ii) to verify or assure that Agent's Liens have been properly or sufficiently or lawfully created, perfected, protected, or enforced or are entitled to any particular priority, (iii) to verify or assure that any particular items of Collateral meet the eligibility criteria applicable in respect thereof, (iv) to impose, maintain, increase, reduce, implement, or eliminate any particular reserve hereunder or to determine whether the amount of any reserve is appropriate or not, or (v) to exercise at all or in any particular manner or under any duty of care, disclosure or fidelity, or to continue exercising, any of the rights, authorities and powers granted or available to Agent pursuant to any of the Loan Documents, it being understood and agreed that in respect of the Collateral, or any act, omission, or event related thereto, subject to the terms and conditions contained herein, Agent may act in any manner it may deem appropriate, in its sole discretion given Agent's own interest in the Collateral in its capacity as one of the Lenders and that Agent shall have no other duty or liability whatsoever to any Lender (or Bank Product Provider) as to any of the foregoing, except as otherwise expressly provided herein.
l..Restrictions on Actions by Lenders; Sharing of Payments.
(fn)Each of the Lenders agrees that it shall not, without the express written consent of Agent, and that it shall, to the extent it is lawfully entitled to do so, upon the written 
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request of Agent, set off against the Obligations, any amounts owing by such Lender to any Loan Party or its Subsidiaries or any deposit accounts of any Loan Party or its Subsidiaries now or hereafter maintained with such Lender.  Each of the Lenders further agrees that it shall not, unless specifically requested to do so in writing by Agent, take or cause to be taken any action, including, the commencement of any legal or equitable proceedings to enforce any Loan Document against any Borrower or any Guarantor or to foreclose any Lien on, or otherwise enforce any security interest in, any of the Collateral.
(fo)If, at any time or times any Lender shall receive (i) by payment, foreclosure, setoff, or otherwise, any proceeds of Collateral or any payments with respect to the Obligations, except for any such proceeds or payments received by such Lender from Agent pursuant to the terms of this Agreement, or (ii) payments from Agent in excess of such Lender's Pro Rata Share of all such distributions by Agent, such Lender promptly shall (A) turn the same over to Agent, in kind, and with such endorsements as may be required to negotiate the same to Agent, or in immediately available funds, as applicable, for the account of all of the Lenders and for application to the Obligations in accordance with the applicable provisions of this Agreement, or (B) purchase, without recourse or warranty, an undivided interest and participation in the Obligations owed to the other Lenders so that such excess payment received shall be applied ratably as among the Lenders in accordance with their Pro Rata Shares; provided, that to the extent that such excess payment received by the purchasing party is thereafter recovered from it, those purchases of participations shall be rescinded in whole or in part, as applicable, and the applicable portion of the purchase price paid therefor shall be returned to such purchasing party, but without interest except to the extent that such purchasing party is required to pay interest in connection with the recovery of the excess payment.
m..Agency for Perfection
.  Agent hereby appoints each other Lender (and each Bank Product Provider) as its agent (and each Lender hereby accepts (and by entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to accept) such appointment) for the purpose of perfecting Agent's Liens in assets which, in accordance with Article 8 or Article 9, as applicable, of the Code can be perfected by possession or control.  Should any Lender obtain possession or control of any such Collateral, such Lender shall notify Agent thereof, and, promptly upon Agent's request therefor shall deliver possession or control of such Collateral to Agent or in accordance with Agent's instructions.
n..Payments by Agent to the Lenders
.  All payments to be made by Agent to the Lenders (or Bank Product Providers) shall be made by bank wire transfer of immediately available funds pursuant to such wire transfer instructions as each party may designate for itself by written notice to Agent.  Concurrently with each such payment, Agent shall identify whether such payment (or any portion thereof) represents principal, premium, fees, or interest of the Obligations.
o..Concerning the Collateral and Related Loan Documents
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.  Each member of the Lender Group authorizes and directs Agent to enter into this Agreement and the other Loan Documents.  Each member of the Lender Group agrees (and by entering into a Bank Product Agreement, each Bank Product Provider shall be deemed to agree) that any action taken by Agent in accordance with the terms of this Agreement or the other Loan Documents relating to the Collateral and the exercise by Agent of its powers set forth therein or herein, together with such other powers that are reasonably incidental thereto, shall be binding upon all of the Lenders (and such Bank Product Provider).
p..Field Examination Reports; Confidentiality; Disclaimers by Lenders; Other Reports and Information
.  By becoming a party to this Agreement, each Lender:
(fp)is deemed to have requested that Agent furnish such Lender, promptly after it becomes available, a copy of each field examination report respecting any Loan Party or its Subsidiaries (each, a "Report") prepared by or at the request of Agent, and Agent shall so furnish each Lender with such Reports,
(fq)expressly agrees and acknowledges that Agent does not (i) make any representation or warranty as to the accuracy of any Report, and (ii) shall not be liable for any information contained in any Report,
(fr)expressly agrees and acknowledges that the Reports are not comprehensive audits or examinations, that Agent or other party performing any field examination will inspect only specific information regarding the Loan Parties and their Subsidiaries and will rely significantly upon Borrowers' and their Subsidiaries' books and records, as well as on representations of Borrowers' personnel,
(fs)agrees to keep all Reports and other material, non-public information regarding the Loan Parties and their Subsidiaries and their operations, assets, and existing and contemplated business plans in a confidential manner in accordance with Section 17.9, and
(ft)without limiting the generality of any other indemnification provision contained in this Agreement, agrees:  (i) to hold Agent and any other Lender preparing a Report harmless from any action the indemnifying Lender may take or fail to take or any conclusion the indemnifying Lender may reach or draw from any Report in connection with any loans or other credit accommodations that the indemnifying Lender has made or may make to Borrowers, or the indemnifying Lender's participation in, or the indemnifying Lender's purchase of, a loan or loans of Borrowers, and (ii) to pay and protect, and indemnify, defend and hold Agent, and any such other Lender preparing a Report harmless from and against, the claims, actions, proceedings, damages, costs, expenses, and other amounts (including, attorneys' fees and costs) incurred by Agent and any such other Lender preparing a Report as the direct or indirect result of any third parties who might obtain all or part of any Report through the indemnifying Lender.
In addition to the foregoing, (x) any Lender may from time to time request of Agent in writing that Agent provide to such Lender a copy of any report or document provided by any Loan Party 
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or its Subsidiaries to Agent that has not been contemporaneously provided by such Loan Party or such Subsidiary to such Lender, and, upon receipt of such request, Agent promptly shall provide a copy of same to such Lender, (y) to the extent that Agent is entitled, under any provision of the Loan Documents, to request additional reports or information from any Loan Party or its Subsidiaries, any Lender may, from time to time, reasonably request Agent to exercise such right as specified in such Lender's notice to Agent, whereupon Agent promptly shall request of Borrowers the additional reports or information reasonably specified by such Lender, and, upon receipt thereof from such Loan Party or such Subsidiary, Agent promptly shall provide a copy of same to such Lender, and (z) any time that Agent renders to Borrowers a statement regarding the Loan Account, Agent shall send a copy of such statement to each Lender.
q..Several Obligations; No Liability
r...  Notwithstanding that certain of the Loan Documents now or hereafter may have been or will be executed only by or in favor of Agent in its capacity as such, and not by or in favor of the Lenders, any and all obligations on the part of Agent (if any) to make any credit available hereunder shall constitute the several (and not joint) obligations of the respective Lenders on a ratable basis, according to their respective Commitments, to make an amount of such credit not to exceed, in principal amount, at any one time outstanding, the amount of their respective Commitments.  Nothing contained herein shall confer upon any Lender any interest in, or subject any Lender to any liability for, or in respect of, the business, assets, profits, losses, or liabilities of any other Lender.  Each Lender shall be solely responsible for notifying its Participants of any matters relating to the Loan Documents to the extent any such notice may be required, and no Lender shall have any obligation, duty, or liability to any Participant of any other Lender.  Except as provided in Section 15.7, no member of the Lender Group shall have any liability for the acts of any other member of the Lender Group.  No Lender shall be responsible to any Borrower or any other Person for any failure by any other Lender (or Bank Product Provider) to fulfill its obligations to make credit available hereunder, nor to advance for such Lender (or Bank Product Provider) or on its behalf, nor to take any other action on behalf of such Lender (or Bank Product Provider) hereunder or in connection with the financing contemplated herein.
a..Intercreditor Agreement and Subordination Agreement
b...  Each Lender hereby irrevocably appoints, designates and authorizes the Agent to enter into the Intercreditor Agreement and any subordination agreement governing Subordinated Indebtedness on its behalf and to take such action on its behalf under the provisions thereof.  Each Lender further agrees to be bound by the terms, conditions and provisions of the Intercreditor Agreement and any such subordination agreement and agrees that it shall not take any action that is prohibited by or inconsistent with the terms of the Intercreditor Agreement or any such subordination agreement.  Each Lender hereby agrees that no further consent or approval on the part of any Lender is or will be required in connection with the performance by Agent of the terms, conditions and provisions contained in the Intercreditor Agreement and any such subordination agreement.
a..Erroneous Distribution
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b...  If all or any part of any payment or other distribution by or on behalf of Agent to any Loan Party, Lender or other Person (excluding the proceeds of the Loans made by the Lenders to the Borrowers in accordance with the terms hereof) is determined by Agent in its sole discretion to have been made in error as determined by Agent (any such payment or other distribution, an "Erroneous Distribution"), then the relevant Loan Party, Lender or other Person shall forthwith on written demand (accompanied by a reasonably detailed calculation of such Erroneous Distribution) repay to Agent the amount of such Erroneous Distribution received by such Person (provided, that, without limiting any other rights or remedies (whether at law or in equity), the Agent may not make any such demand under this Section 15.19 from any Lender with respect to any such Erroneous Distribution unless such demand is made within 30 days of the date of receipt of such Erroneous Distribution by the applicable Lender). Any determination by Agent, in its sole discretion, that all or a portion of any payment or other distribution to a Loan Party, Lender or other Person was an Erroneous Distribution shall be conclusive absent manifest error. Each Loan Party, Lender and other potential recipient of an Erroneous Distribution hereunder waives any claim of discharge for value and any other claim of entitlement to, or in respect of, any Erroneous Distribution. The parties hereto agree that an Erroneous Distribution shall not pay, prepay, repay, discharge or otherwise satisfy any Obligations owed by the Borrowers or any other Loan Party, except, in each case, to the extent such Erroneous Distribution is, and solely with respect to the amount of such Erroneous Distribution that is, comprised of funds received by the Agent from a Borrower or any other Loan Party for the purpose of making such Erroneous Distribution. If, notwithstanding the foregoing, the making of an Erroneous Distribution is deemed, as a matter of law or otherwise, to pay, prepay, repay, discharge or otherwise satisfy any portion of the Obligations, such portion shall be deemed reinstated upon the sending of a notice of demand by Agent pursuant to Section 15.19 above.
16.WITHHOLDING TAXES.
a..Payments
.  All payments made by any Loan Party under any Loan Document will be made free and clear of, and without deduction or withholding for, any Taxes, except as otherwise required by applicable law, and in the event any deduction or withholding of Taxes is required, the applicable Loan Party shall make the requisite withholding, promptly pay over to the applicable Governmental Authority the withheld tax, and furnish to Agent as promptly as possible after the date the payment of any such Tax is due pursuant to applicable law, certified copies of tax receipts evidencing such payment by the Loan Parties.  Furthermore, if any such Tax is an Indemnified Taxes or an Indemnified Tax is so levied or imposed, the Loan Parties agree to pay the full amount of such Indemnified Taxes and such additional amounts as may be necessary so that every payment of all amounts due under this Agreement, any note, or Loan Document, including any amount paid pursuant to this Section 16.1 after withholding or deduction for or on account of any Indemnified Taxes, will not be less than the amount provided for herein.  The Loan Parties will promptly pay any Other Taxes or reimburse Agent for such Other Taxes upon Agent's demand.  The Loan Parties shall jointly and severally indemnify each Indemnified Person (as defined in Section 10.3) (collectively a "Tax Indemnitee") for the full amount of 
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Indemnified Taxes arising in connection with this Agreement or any other Loan Document or breach thereof by any Loan Party (including any Indemnified Taxes imposed or asserted on, or attributable to, amounts payable under this Section 16) imposed on, or paid by, such Tax Indemnitee and all reasonable costs and expenses related thereto (including reasonable, documented and out-of-pocket fees and disbursements of attorneys and other tax professionals), as and when they are incurred and irrespective of whether suit is brought, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority (other than Indemnified Taxes and additional amounts that a court of competent jurisdiction finally determines to have resulted from the gross negligence or willful misconduct of such Tax Indemnitee, as determined by a court of competent jurisdiction as a final and nonappealable judgment).  The obligations of the Loan Parties under this Section 16 shall survive the termination of this Agreement, the resignation and replacement of the Agent, and the repayment of the Obligations.
b..Exemptions.
(fu)If a Lender or Participant is entitled to claim an exemption or reduction from United States withholding tax, such Lender or Participant agrees with and in favor of Agent, to deliver to Agent (or, in the case of a Participant, to the Lender granting the participation only) and the Administrative Borrower on behalf of all Borrowers one of the following before receiving its first payment under this Agreement and as such other times as reasonably requested by Administrative Borrower or Agent:
104.if such Lender or Participant is entitled to claim an exemption from United States withholding tax pursuant to the portfolio interest exception, (A) a statement of the Lender or Participant, in a form reasonably acceptable to Administrative Borrower and Agent, signed under penalty of perjury, that it is not a (I) a "bank" as described in Section 881(c)(3)(A) of the IRC, (II) a 10% shareholder of any Borrower (within the meaning of Section 871(h)(3)(B) of the IRC), or (III) a controlled foreign corporation related to Borrowers within the meaning of Section 864(d)(4) of the IRC, and (B) a properly completed and executed IRS Form W-8BEN, Form W-8BEN-E or Form W-8IMY (with proper attachments as applicable);
105.if such Lender or Participant is entitled to claim an exemption from, or a reduction of, withholding tax under a United States tax treaty, a properly completed and executed copy of IRS Form W-8BEN or Form W-8BEN-E, as applicable;
106.if such Lender or Participant is entitled to claim that interest paid under this Agreement is exempt from United States withholding tax because it is effectively connected with a United States trade or business of such Lender, a properly completed and executed copy of IRS Form W-8ECI;
107.if such Lender or Participant is entitled to claim that interest paid under this Agreement is exempt from United States withholding tax because such Lender or Participant serves as an intermediary, a properly completed and executed copy of IRS Form W-8IMY (including a withholding statement and copies of the tax certification documentation 
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for its beneficial owner(s) of the income paid to the intermediary, if required based on its status provided on the Form W-8IMY); or
108.a properly completed and executed copy of any other form or forms, including IRS Form W-9, as may be required under the IRC or other laws of the United States as a condition to exemption from, or reduction of, United States withholding or backup withholding tax.
(fv)Each Lender or Participant shall provide new forms upon the expiration or obsolescence of any previously delivered forms and to promptly notify Agent and Administrative Borrower (or, in the case of a Participant, to the Lender granting the participation only) of any change in circumstances which would modify or render invalid any claimed exemption or reduction.
(fw)If a Lender or Participant claims an exemption from withholding tax in a jurisdiction other than the United States, such Lender or such Participant agrees with and in favor of Agent and Borrowers, to deliver to Agent and Administrative Borrower (or, in the case of a Participant, to the Lender granting the participation only) any such form or forms, as may be required under the laws of such jurisdiction as a condition to exemption from, or reduction of, foreign withholding or backup withholding tax before receiving its first payment under this Agreement, but only if such Lender or such Participant is legally able to deliver such forms, or the providing of or delivery of such forms in the Lender's reasonable judgment would not subject such Lender to any material unreimbursed cost or expense or materially prejudice the legal or commercial position of such Lender (or its Affiliates); provided, further, that nothing in this Section 16.2(c) shall require a Lender or Participant to disclose any information that it deems to be confidential (including its tax returns).  Each Lender and each Participant shall provide new forms upon the expiration or obsolescence of any previously delivered forms and promptly notify Agent and Administrative Borrower (or, in the case of a Participant, to the Lender granting the participation only) of any change in circumstances which would modify or render invalid any claimed exemption or reduction.
(fx)If a Lender or Participant claims exemption from, or reduction of, withholding tax and such Lender or Participant sells, assigns, grants a participation in, or otherwise transfers all or part of the Obligations of Borrowers to such Lender or Participant, such Lender or Participant agrees to notify Agent and Administrative Borrower (or, in the case of a sale of a participation interest, to the Lender granting the participation only) of the percentage amount in which it is no longer the beneficial owner of Obligations of Borrowers to such Lender or Participant.  To the extent of such percentage amount, Agent and Administrative Borrower will treat such Lender's or such Participant's documentation provided pursuant to Section 16.2(a) or 16.2(c) as no longer valid.  With respect to such percentage amount, such Participant or Assignee may provide new documentation, pursuant to Section 16.2(a) or 16.2(c), if applicable.  Borrowers agree that each Participant shall be entitled to the benefits of this Section 16 with respect to its participation in any portion of the Commitments and the Obligations so long as such Participant complies with the obligations set forth in this Section 16 with respect thereto.
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(fy)If a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding tax imposed by FATCA if such Lender were to fail to comply with the applicable due diligence and reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the IRC, as applicable), such Lender shall deliver to Agent (or, in the case of a Participant, to the Lender granting the participation only) at the time or times prescribed by law and at such time or times reasonably requested by Agent (or, in the case of a Participant, the Lender granting the participation) such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the IRC) and such additional documentation reasonably requested by Agent (or, in the case of a Participant, the Lender granting the participation) as may be necessary for Agent or Borrowers to comply with their obligations under FATCA and to determine that such Lender has complied with such Lender's obligations under FATCA or to determine the amount to deduct and withhold from such payment.  Solely for purposes of this clause (e), "FATCA" shall include any amendments made to FATCA after the date of this Agreement.
c..Reductions.
(fz)If a Lender or a Participant is subject to an applicable withholding tax, Agent (or, in the case of a Participant, the Lender granting the participation) may withhold from any payment to such Lender or such Participant an amount equivalent to the applicable withholding tax.  If the forms or other documentation required by Section 16.2(a) or 16.2(c) are not delivered to Agent (or, in the case of a Participant, to the Lender granting the participation), then Agent (or, in the case of a Participant, to the Lender granting the participation) may withhold from any payment to such Lender or such Participant not providing such forms or other documentation an amount equivalent to the applicable withholding tax.
(ga)If the IRS or any other Governmental Authority of the United States or other jurisdiction asserts a claim that Agent (or, in the case of a Participant, to the Lender granting the participation) did not properly withhold tax from amounts paid to or for the account of any Lender or any Participant due to a failure on the part of the Lender or any Participant (because the appropriate form was not delivered, was not properly executed, or because such Lender failed to notify Agent (or such Participant failed to notify the Lender granting the participation) of a change in circumstances which rendered the exemption from, or reduction of, withholding tax ineffective, or for any other reason) such Lender shall indemnify and hold Agent harmless (or, in the case of a Participant, such Participant shall indemnify and hold the Lender granting the participation harmless) for all amounts paid, directly or indirectly, by Agent (or, in the case of a Participant, to the Lender granting the participation), as tax or otherwise, including penalties and interest, and including any taxes imposed by any jurisdiction on the amounts payable to Agent (or, in the case of a Participant, to the Lender granting the participation only) under this Section 16, together with all costs and expenses (including attorneys' fees and expenses).  The obligation of the Lenders and the Participants under this subsection shall survive the payment of all Obligations and the resignation or replacement of Agent.
d..Refunds
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.  If Agent or a Lender determines, in its sole discretion exercised in good faith, that it has received a refund of any Indemnified Taxes to which the Loan Parties have paid additional amounts pursuant to this Section 16, so long as no Default or Event of Default has occurred and is continuing, it shall pay over such refund to the Administrative Borrower on behalf of the Loan Parties (but only to the extent of payments made, or additional amounts paid, by the Loan Parties under this Section 16 with respect to Indemnified Taxes giving rise to such a refund), net of all documented out-of-pocket expenses of Agent or such Lender and without interest (other than any interest paid by the applicable Governmental Authority with respect to such a refund); provided, that the Loan Parties, upon the request of Agent or such Lender, agrees to repay the amount paid over to the Loan Parties (plus any penalties, interest or other charges, imposed by the applicable Governmental Authority, other than such penalties, interest or other charges imposed as a result of the willful misconduct or gross negligence of Agent or Lender hereunder as finally determined by a court of competent jurisdiction) to Agent or such Lender in the event Agent or such Lender is required to repay such refund to such Governmental Authority.  Notwithstanding anything in this Agreement to the contrary, this Section 16 shall not be construed to require Agent or any Lender to make available its tax returns (or any other information which it deems confidential) to Loan Parties or any other Person or require Agent or any Lender to pay any amount to an indemnifying party pursuant to Section 16.4, the payment of which would place Agent or such Lender (or their Affiliates) in a less favorable net after-Tax position than such Person would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid.
17.GENERAL PROVISIONS.
a..Effectiveness
.  This Agreement shall be binding and deemed effective when executed by each Borrower, Agent, and each Lender whose signature is provided for on the signature pages hereof.
b..Section Headings
.  Headings and numbers have been set forth herein for convenience only.  Unless the contrary is compelled by the context, everything contained in each Section applies equally to this entire Agreement.
c..Interpretation
.  Neither this Agreement nor any uncertainty or ambiguity herein shall be construed against the Lender Group or any Borrower, whether under any rule of construction or otherwise.  On the contrary, this Agreement has been reviewed by all parties and shall be construed and interpreted according to the ordinary meaning of the words used so as to accomplish fairly the purposes and intentions of all parties hereto.
d..Severability of Provisions
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.  Each provision of this Agreement shall be severable from every other provision of this Agreement for the purpose of determining the legal enforceability of any specific provision.
e..Bank Product Providers
.  Each Bank Product Provider in its capacity as such shall be deemed a third party beneficiary hereof and of the provisions of the other Loan Documents for purposes of any reference in a Loan Document to the parties for whom Agent is acting.  Agent hereby agrees to act as agent for such Bank Product Providers and, by virtue of entering into a Bank Product Agreement, the applicable Bank Product Provider shall be automatically deemed to have appointed Agent as its agent and to have accepted the benefits of the Loan Documents.  It is understood and agreed that the rights and benefits of each Bank Product Provider under the Loan Documents consist exclusively of such Bank Product Provider's being a beneficiary of the Liens and security interests (and, if applicable, guarantees) granted to Agent and the right to share in payments and collections out of the Collateral as more fully set forth herein. In addition, each Bank Product Provider, by virtue of entering into a Bank Product Agreement, shall be automatically deemed to have agreed that Agent shall have the right, but shall have no obligation, to establish, maintain, relax, or release reserves in respect of the Bank Product Obligations and that if reserves are established there is no obligation on the part of Agent to determine or insure whether the amount of any such reserve is appropriate or not.  In connection with any such distribution of payments or proceeds of Collateral, Agent shall be entitled to assume no amounts are due or owing to any Bank Product Provider unless such Bank Product Provider has provided a written certification (setting forth a reasonably detailed calculation) to Agent as to the amounts that are due and owing to it and such written certification is received by Agent a reasonable period of time prior to the making of such distribution.  Agent shall have no obligation to calculate the amount due and payable with respect to any Bank Products, but may rely upon the written certification of the amount due and payable from the applicable Bank Product Provider.  In the absence of an updated certification, Agent shall be entitled to assume that the amount due and payable to the applicable Bank Product Provider is the amount last certified to Agent by such Bank Product Provider as being due and payable (less any distributions made to such Bank Product Provider on account thereof).  Borrowers may obtain Bank Products from any Bank Product Provider, although Borrowers are not required to do so.  Each Borrower acknowledges and agrees that no Bank Product Provider has committed to provide any Bank Products and that the providing of Bank Products by any Bank Product Provider is in the sole and absolute discretion of such Bank Product Provider.  Notwithstanding anything to the contrary in this Agreement or any other Loan Document, no provider or holder of any Bank Product shall have any voting or approval rights hereunder (or be deemed a Lender) solely by virtue of its status as the provider or holder of such agreements or products or the Obligations owing thereunder, nor shall the consent of any such provider or holder be required (other than in their capacities as Lenders, to the extent applicable) for any matter hereunder or under any of the other Loan Documents, including as to any matter relating to the Collateral or the release of Collateral or Guarantors.
f..Debtor-Creditor Relationship
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.  The relationship between the Lenders and Agent, on the one hand, and the Loan Parties, on the other hand, is solely that of creditor and debtor.  No member of the Lender Group has (or shall be deemed to have) any fiduciary relationship or duty to any Loan Party arising out of or in connection with the Loan Documents or the transactions contemplated thereby, and there is no agency or joint venture relationship between the members of the Lender Group, on the one hand, and the Loan Parties, on the other hand, by virtue of any Loan Document or any transaction contemplated therein.
g..Counterparts; Electronic Execution
.  This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same Agreement.  Delivery of an executed counterpart of this Agreement by telefacsimile or other electronic method of transmission shall be equally as effective as delivery of an original executed counterpart of this Agreement.  Any party delivering an executed counterpart of this Agreement by telefacsimile or other electronic method of transmission also shall deliver an original executed counterpart of this Agreement but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Agreement.  The foregoing shall apply to each other Loan Document mutatis mutandis.
h..Revival and Reinstatement of Obligations; Certain Waivers
.  If any member of the Lender Group or any Bank Product Provider repays, refunds, restores, or returns in whole or in part, any payment or property (including any proceeds of Collateral) previously paid or transferred to such member of the Lender Group or such Bank Product Provider in full or partial satisfaction of any Obligation or on account of any other obligation of any Loan Party under any Loan Document or any Bank Product Agreement, because the payment, transfer, or the incurrence of the obligation so satisfied is asserted or declared to be void, voidable, or otherwise recoverable under any law relating to creditors' rights, including provisions of the Bankruptcy Code relating to fraudulent transfers, preferences, or other voidable or recoverable obligations or transfers (each, a "Voidable Transfer"), or because such member of the Lender Group or Bank Product Provider elects to do so on the reasonable advice of its counsel in connection with a claim that the payment, transfer, or incurrence is or may be a Voidable Transfer, then, as to any such Voidable Transfer, or the amount thereof that such member of the Lender Group or Bank Product Provider elects to repay, restore, or return (including pursuant to a settlement of any claim in respect thereof), and as to all reasonable costs, expenses, and attorneys' fees of such member of the Lender Group or Bank Product Provider related thereto, (i) the liability of the Loan Parties with respect to the amount or property paid, refunded, restored, or returned will automatically and immediately be revived, reinstated, and restored and will exist, and (ii) Agent's Liens securing such liability shall be effective, revived, and remain in full force and effect, in each case, as fully as if such Voidable Transfer had never been made.  If, prior to any of the foregoing, (A) Agent's Liens shall have been released or terminated, or (B) any provision of this Agreement shall have been terminated or cancelled, Agent's Liens, or such provision of this Agreement, shall be reinstated in full force and effect and 
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such prior release, termination, cancellation or surrender shall not diminish, release, discharge, impair or otherwise affect the obligation of any Loan Party in respect of such liability or any Collateral securing such liability. This provision shall survive the termination of this Agreement and the repayment in full of the Obligations.
i..Confidentiality.
(gb)Agent and Lenders each individually (and not jointly or jointly and severally) agree that material, non-public information regarding the Loan Parties and their Subsidiaries, their operations, assets, and existing and contemplated business plans ("Confidential Information") shall be treated by Agent and the Lenders in a confidential manner, and shall not be disclosed by Agent and the Lenders to Persons who are not parties to this Agreement, except:  (i) to attorneys for and other advisors, accountants, auditors, and consultants to any member of the Lender Group and to employees, directors and officers of any member of the Lender Group (the Persons in this clause (i), "Lender Group Representatives") on a "need to know" basis in connection with this Agreement and the transactions contemplated hereby and on a confidential basis, (ii) to Subsidiaries and Affiliates of any member of the Lender Group (including the Bank Product Providers); provided, that any such Subsidiary or Affiliate shall have agreed to receive such information hereunder subject to the terms of this Section 17.9, (iii) as may be required by regulatory authorities so long as such authorities are informed of the confidential nature of such information, (iv) as may be required by statute, decision, or judicial or administrative order, rule, or regulation; provided, that (x) prior to any disclosure under this clause (iv), the disclosing party agrees to provide Borrowers with prior notice thereof, to the extent that it is practicable to do so and to the extent that the disclosing party is permitted to provide such prior notice to Borrowers pursuant to the terms of the applicable statute, decision, or judicial or administrative order, rule, or regulation and (y) any disclosure under this clause (iv) shall be limited to the portion of the Confidential Information as may be required by such statute, decision, or judicial or administrative order, rule, or regulation, (v) as may be agreed to in advance in writing by Borrowers, (vi) as requested or required by any Governmental Authority pursuant to any subpoena or other legal process; provided, that (x) prior to any disclosure under this clause (vi) the disclosing party agrees to provide Borrowers with prior written notice thereof, to the extent that it is practicable to do so and to the extent that the disclosing party is permitted to provide such prior written notice to Borrowers pursuant to the terms of the subpoena or other legal process and (y) any disclosure under this clause (vi) shall be limited to the portion of the Confidential Information as may be required by such Governmental Authority pursuant to such subpoena or other legal process, (vii) as to any such information that is or becomes generally available to the public (other than as a result of prohibited disclosure by Agent or the Lenders or the Lender Group Representatives), (viii) in connection with any assignment, participation or pledge of any Lender's interest under this Agreement; provided, that prior to receipt of Confidential Information any such assignee, participant, or pledgee shall have agreed in writing to receive such Confidential Information either subject to the terms of this Section 17.9 or pursuant to confidentiality requirements substantially similar to those contained in this Section 17.9 (and such Person may disclose such Confidential Information to Persons employed or engaged by them as described in clause (i) above), (ix) in connection with any litigation or other adversary proceeding involving parties hereto which such litigation or adversary proceeding 
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involves claims related to the rights or duties of such parties under this Agreement or the other Loan Documents; provided, that prior to any disclosure to any Person (other than any Loan Party, Agent, any Lender, any of their respective Affiliates, or their respective counsel) under this clause (ix) with respect to litigation involving any Person (other than any Borrower, Agent, any Lender, any of their respective Affiliates, or their respective counsel), the disclosing party agrees to provide Borrowers with prior written notice thereof, and (x) in connection with, and to the extent reasonably necessary for, the exercise of any secured creditor remedy under this Agreement or under any other Loan Document.
(gc)Anything in this Agreement to the contrary notwithstanding, Agent may disclose information concerning the terms and conditions of this Agreement and the other Loan Documents to loan syndication and pricing reporting services or in its marketing or promotional materials, with such information to consist of deal terms and other information customarily found in such publications or marketing or promotional materials and may otherwise use the name, logos, and other insignia of any Borrower or the other Loan Parties and the Commitments provided hereunder in any "tombstone" or other advertisements, on its website or in other marketing materials of the Agent.
(gd)Each Loan Party agrees that Agent may make materials or information provided by or on behalf of Borrowers hereunder (collectively, "Borrower Materials") available to the Lenders by posting the Communications on IntraLinks, SyndTrak or a substantially similar secure electronic transmission system (the "Platform").  The Platform is provided "as is" and "as available."  Agent does not warrant the accuracy or completeness of the Borrower Materials, or the adequacy of the Platform and expressly disclaim liability for errors or omissions in the communications.  No warranty of any kind, express, implied or statutory, including any warranty of merchantability, fitness for a particular purpose, non-infringement of third party rights or freedom from viruses or other code defects, is made by Agent in connection with the Borrower Materials or the Platform.  In no event shall Agent or any of the Agent-Related Persons have any liability to the Loan Parties, any Lender or any other Person for damages of any kind, including direct or indirect, special, incidental or consequential damages, losses or expenses (whether in tort, contract or otherwise) arising out of any Loan Party's or Agent's transmission of communications through the Internet, except to the extent the liability of such Person is found in a final non-appealable judgment by a court of competent jurisdiction to have resulted from such Person's gross negligence or willful misconduct.  Each Loan Party further agrees that certain of the Lenders may be "public-side" Lenders (i.e., Lenders that do not wish to receive material non-public information with respect to the Loan Parties or their securities) (each, a "Public Lender").  The Loan Parties shall be deemed to have authorized Agent and its Affiliates and the Lenders to treat Borrower Materials marked "PUBLIC" or otherwise at any time filed with the SEC as not containing any material non-public information with respect to the Loan Parties or their securities for purposes of United States federal and state securities laws.  All Borrower Materials marked "PUBLIC" are permitted to be made available through a portion of the Platform designated as "Public Investor" (or another similar term).  Agent and its Affiliates and the Lenders shall be entitled to treat any Borrower Materials that are not marked "PUBLIC" or that are not at any time filed with the SEC as being suitable only for posting on a portion of the Platform not marked as "Public Investor" (or such other similar term).
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j..Survival
.  All representations and warranties made by the Loan Parties in the Loan Documents and in the certificates or other instruments delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of the Loan Documents and the making of any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such other party or on its behalf and notwithstanding that Agent, Issuing Bank, or any Lender may have had notice or knowledge of any Default or Event of Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of, or any accrued interest on, any Loan or any fee or any other amount payable under this Agreement is outstanding or unpaid or any Letter of Credit is outstanding and so long as the Commitments have not expired or been terminated.
k..Patriot Act; Due Diligence
.  Each Lender that is subject to the requirements of the Patriot Act hereby notifies the Loan Parties that pursuant to the requirements of the Patriot Act, it is required to obtain, verify and record information that identifies each Loan Party, which information includes the name and address of each Loan Party and other information that will allow such Lender to identify each Loan Party in accordance with the Patriot Act.  In addition, Agent and each Lender shall have the right to periodically conduct due diligence on all Loan Parties, their senior management and key principals and legal and beneficial owners.  Each Loan Party agrees to cooperate in respect of the conduct of such due diligence and further agrees that the reasonable costs and charges for any such due diligence by Agent shall constitute Lender Group Expenses hereunder and be for the account of Borrowers.
l..Integration
.  This Agreement, together with the other Loan Documents, reflects the entire understanding of the parties with respect to the transactions contemplated hereby and shall not be contradicted or qualified by any other agreement, oral or written, before the date hereof.  The foregoing to the contrary notwithstanding, all Bank Product Agreements, if any, are independent agreements governed by the written provisions of such Bank Product Agreements, which will remain in full force and effect, unaffected by any repayment, prepayments, acceleration, reduction, increase, or change in the terms of any credit extended hereunder, except as otherwise expressly provided in such Bank Product Agreement.
m..Parent as Agent for Borrowers
.  Each Borrower hereby irrevocably appoints Parent as the borrowing agent and attorney-in-fact for all Borrowers (the "Administrative Borrower") which appointment shall remain in full force and effect unless and until Agent shall have received prior written notice signed by each Borrower that such appointment has been revoked and that another Borrower has been appointed Administrative Borrower.  Each Borrower hereby irrevocably appoints and authorizes the Administrative Borrower (a) to provide Agent with all notices with respect to Revolving Loans 
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and Letters of Credit obtained for the benefit of any Borrower and all other notices and instructions under this Agreement and the other Loan Documents (and any notice or instruction provided by Administrative Borrower shall be deemed to be given by Borrowers hereunder and shall bind each Borrower), (b) to receive notices and instructions from members of the Lender Group (and any notice or instruction provided by any member of the Lender Group to the Administrative Borrower in accordance with the terms hereof shall be deemed to have been given to each Borrower), and (c) to take such action as the Administrative Borrower deems appropriate on its behalf to obtain Revolving Loans and Letters of Credit and to exercise such other powers as are reasonably incidental thereto to carry out the purposes of this Agreement.  It is understood that the handling of the Loan Account and Collateral in a combined fashion, as more fully set forth herein, is done solely as an accommodation to Borrowers in order to utilize the collective borrowing powers of Borrowers in the most efficient and economical manner and at their request, and that Lender Group shall not incur liability to any Borrower as a result hereof.  Each Borrower expects to derive benefit, directly or indirectly, from the handling of the Loan Account and the Collateral in a combined fashion since the successful operation of each Borrower is dependent on the continued successful performance of the integrated group.  To induce the Lender Group to do so, and in consideration thereof, each Borrower hereby jointly and severally agrees to indemnify each member of the Lender Group and hold each member of the Lender Group harmless against any and all liability, expense, loss or claim of damage or injury, made against the Lender Group by any Borrower or by any third party whosoever, arising from or incurred by reason of (i) the handling of the Loan Account and Collateral of Borrowers as herein provided, or (ii) the Lender Group's relying on any instructions of the Administrative Borrower, except that Borrowers will have no liability to the relevant Agent-Related Person or Lender-Related Person under this Section 17.13 with respect to any liability that has been finally determined by a court of competent jurisdiction to have resulted solely from the gross negligence or willful misconduct of such Agent-Related Person or Lender-Related Person, as the case may be.
n..Acknowledgement and Consent to Bail-In of EEA Financial Institutions
.  Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:
(ge)the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and
(gf)the effects of any Bail-in Action on any such liability, including, if applicable:
109.a reduction in full or in part or cancellation of any such liability;
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110.a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or
111.the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of any EEA Resolution Authority.
o..Acknowledgement Regarding Any Supported QFCs
.  To the extent that the Loan Documents provide support, through a guarantee or otherwise, for Hedge Agreements or any other agreement or instrument that is a QFC (such support, "QFC Credit Support" and each such QFC a "Supported QFC"), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the "U.S. Special Resolution Regimes") in respect of such Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States).  In the event a Covered Entity that is party to a Supported QFC (each, a "Covered Party") becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit Support.
[Signature pages to follow.]

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered as of the date first above written.
						
	PARENT AND BORROWER:	FARMER BROS. CO., a Delaware corporation

By:    
Name:    
Title:    

						
	ADDITIONAL BORROWERS:	BOYD ASSETS CO., a Delaware corporation

By:    
Name:    
Title:    

						
		FBC FINANCE COMPANY, a California corporation 

By:    
Name:    
Title:    

						
		COFFEE BEAN HOLDING CO., INC., a Delaware corporation 

By:    
Name:    
Title:    

						
		COFFEE BEAN INTERNATIONAL, INC., an Oregon corporation 

By:    
Name:    
Title:    

[signature page to credit agreement]

						
		CHINA MIST BRANDS, INC., a Delaware corporation 

By:    
Name:    
Title:    

[signature page to credit agreement]

						
		WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as Agent and as a Lender

By:    
Name:    
    Its Authorized Signatory

[signature page to credit agreement]

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