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Exhibit 10.30  

 
 

BOND PLEDGE AGREEMENT  
    

BOND PLEDGE AGREEMENT EXECUTED AS OF THIS            DAY OF MAY, 2005  

	
 	
 	

 
	
 BY AND BETWEEN:	
 	
SR TELECOM INC. (the "Grantor"), a legal person and a corporation duly incorporated under the Canada Business
Corporations Act having its registered office and a place of business at 8150 Trans-Canada Highway, City of Montreal (Saint-Laurent), Province of Quebec, H4S 1M5, herein acting and represented by David L. Adams, its
Senior Vice President, Finance, Chief Financial Officer and Secretary, duly authorized for all purposes hereof pursuant to a Resolution of its Board of Directors enacted on May 10, 2005, a certified extract of which is annexed hereto as Annex
"A" hereto;
	
 AND:	
 	
THE PERSONS NAMED ON THE EXECUTION PAGES HEREOF AS "LENDERS" as well as (i) any other Person who/which may hereafter become a Lender in
accordance with the provisions of the Credit Agreement, and (ii) any present or future Affiliates of any of the foregoing Persons (collectively the "Pledgees");
	
 AND:	
 	
COMPAGNIE TRUST BNY CANADA / BNY TRUST COMPANY OF CANADA, a trust company duly subsisting under the Trust and Loan Companies Act,
Canada, in its capacity as Collateral Agent, mandatary, agent and custodian of and for the Pledgees (the "Agent"), having a place of business at 4 King Street West, Suite 1101, City of
Toronto, Province of Ontario, M5H 1B6, herein acting and represented by Gerald F. Kandestin, its power of attorney, mandatary and representative duly authorized for all purposes hereof pursuant to a "Power of Attorney" executed at Toronto,
Province of Ontario on May 4, 2005 by Christopher Sutherland, its president, and Marcia Redway, one of its assistant vice-presidents, duly authorized by (i) its duly enacted By-Laws 2.6 through
2.8, (ii) a "Signing Authority Resolution" duly enacted by its Board of Directors in accordance with such By-Laws, (iii) an "Authorization" issued by
Christopher Sutherland, its president, in accordance with such By-laws and such "Signing Authority Resolution", certified extracts of all of which are annexed hereto as Annex "B" hereto.

        WHEREAS the Grantor has entered into (i) a "Credit Agreement"
bearing formal date May 12, 2005 with the Lenders and Compagnie Trust BNY Canada / BNY Trust Company of Canada (as Administrative Agent and Collateral Agent), as may be amended,
restated, supplemented and/or replaced, from time to time (the "Credit Agreement"), and (ii) a
"Deed of Hypothec to Secure Bonds" bearing formal date May 12, 2005 with Compagnie Trust BNY Canada / BNY Trust Company of Canada in its capacity as Trustee and  Fondé de Pouvoir for the
Lenders, for any present or future Affiliates of the Lenders and for the Bondholders and in its other capacities
thereunder (the "Trustee"), as may be amended, restated, supplemented and/or replaced, from time to time
(the "Deed of Hypothec"). Whenever used herein, all of the defined words and terms in both the Credit Agreement and the Deed of Hypothec shall
have the same meanings as therein set forth; 

        WHEREAS the Grantor has issued and delivered to the Agent a Bond dated May 12, 2005 in the principal amount of One Hundred Million
Dollars $100,000,000.00, bearing interest at Twenty-Five Percent (25%) per annum payable upon demand to and in favour of the Agent and
certified by the Trustee, all in accordance with the provisions of the Deed of Hypothec (the"Bond"); 

        WHEREAS the Bond has been issued and delivered to the Agent by the Grantor and shall be held by the Agent as Collateral Agent (under the
provisions of the Credit Agreement), mandatary, agent and custodian for and on behalf of and for the benefit of the Pledgees; and 

        WHEREAS the Grantor wishes to pledge and hypothecate the Bond to and in favour of the Pledgees as continuing and collateral security for
the payment, performance and fulfillment by the Grantor of all of the Obligations in accordance with the terms, conditions and provisions hereof; 

 

NOW THEREFORE THE PARTIES HERETO AND HEREBY AGREE AS FOLLOWS:  

	1.
	PREAMBLE

	1.1
	The
preamble hereto shall form part hereof as if set forth at length herein.

	2.
	PLEDGE AND HYPOTHECATION

	2.1
	As
general, continuing and collateral security for the payment, performance and fulfillment by the Grantor of all of the Obligations, the Grantor hereby pledges and hypothecates the
Bond to and in favour of the Pledgees for and in the sum of One Hundred Million Dollars $100,000,000.00 plus interest thereon the at the rate of Twenty-Five Percent (25%)  per annum;

	2.2
	As
general, continuing and collateral security for the performance by the Grantor of the Obligations not otherwise secured by the hypothecs created under Clause 2.1 hereof,
including, without limitation, interest on all over due interest as well as the costs and expenses incurred by the Trustee, the Agent and/or the Pledgees in order to preserve their security and/or
realize upon the hypothecs created under the terms hereof and all other costs and expenses relating to the Obligations, the Grantor hereby further hypothecates and pledges the Bond to and in favour of
the Pledgees for and in an additional sum equal to Twenty Percent (20%) of the principal amount of the hypothecation and pledge set forth in Clause 2.1 hereof, together with interest thereon at
the rate of Twenty-Five Percent (25%) per annum.

	3.
	DELIVERY AND HOLDING OF BOND

	3.1
	Concurrently
with the execution hereof, the Grantor has delivered the Bond to the Agent, to be held by the Agent in its capacity as Collateral Agent (under the provisions of the
Credit Agreement), mandatary, agent and custodian for and on behalf of and for the benefit of the Pledgees, such that the Bond shall be deemed, for all purposes, to be in the Agent's possession for
and on behalf of and for the benefit of the Pledgees, as the hypothecary creditors/pledgees of the Bond;

	3.2
	The
Grantor hereby acknowledges, consents and agrees that the Pledgees may hold the Bond through the Agent at such place as is determined, from time to time, by the Agent in its
discretion;

	3.3
	The
Grantor acknowledges that any of the Pledgees and/or the Agent may purchase, acquire and be the holder(s) of the Bond, notwithstanding the provisions of such of
section 32 of an Act to Respecting the Special Powers of Legal Persons, Quebec (RSQ, c.P-16);

	3.4
	In
holding and continuing to hold the Bond and exercising any rights as Bondholder, the Agent shall, at all times, be subject to the duties and obligations and benefit from the
indemnities and rights as Collateral Agent as provided for under the Credit Agreement.

	4.
	COLLECTION OF AMOUNTS UNDER THE BONDS

	4.1
	Notwithstanding
the amount and tenor of the Bond, the Agent shall be entitled to claim under and enforce the Bond (for and on behalf of and for the benefit of the Pledgees)
only to the extent of the Obligations secured hereby and all other obligations and amounts secured under Clauses 2.1 and 2.2 hereof;

	4.2
	The
Grantor expressly acknowledges and agrees that the Agent is and shall be entitled to receive the claims represented by the Bond (for and on behalf of and for the benefit of
the Pledgees) up to the amount of the Obligations secured hereby and all other obligations and amounts secured under Clauses 2.1 and 2.2 hereof;

	4.3
	Notwithstanding
the provisions of article 1572 and the second paragraph of article 2753 of the Civil Code as well
as any other legal rule concerning imputation of payments, the Agent may apply the amounts received or deposited pursuant to the provisions of such articles in accordance with the terms, conditions
and provisions of the Credit Agreement and the Deed of Hypothec.

	5.
	EVENT OF DEFAULT, ETC.

	5.1
	The
Grantor shall be in default hereunder as and when a Default or an Event of Default occurs under the Credit Agreement; 

2

 
	5.2
	In
the event that the Grantor is in default hereunder, the Agent shall, subject to the terms, conditions and the provisions of the Credit Agreement, be entitled to enforce the Bond
and cause the Trustee to enforce the Hypothec, the Separate Hypothec and all other security interests and rights under the Deed of Hypothec and to exercise all available rights, remedies and recourses
under the Credit Agreement, the Deed of Hypothec, the present agreement and/or under law;

	5.3
	For
so long as any part of the Obligations secured hereby remain outstanding, the Agent shall have the right to vote at any meeting or upon any matter which a holder of the Bond has
the right to vote for or at and shall also be authorized to appoint any other person to exercise such right of vote;

	5.4
	Notwithstanding
the fact that the Bond is payable upon demand, the Agent agrees that it will not demand payment of the Bond until such time as a Default or an Event of Default has
occurred under the Credit Agreement. In such event, the Agent may demand payment of the Bond and collect the money owed to the Agent thereunder or sell the Bond and/or exercise any other right, remedy
or recourse which, under any applicable law, is available to the Agent and/or the Pledgees.

	6.
	PRECEDENCE

	6.1
	In
the event that any provisions of this agreement contradict or are otherwise incapable of being construed in conjunction with the provisions of the Credit Agreement, the following
will apply:

	a)
	The
provisions of the Credit Agreement shall take precedence over those contained in this agreement; and

	b)
	If
any act of the Grantor is expressly permitted under the Credit Agreement but is prohibited under this agreement, any such act shall be permitted under the Credit Agreement and shall
be deemed to be permitted hereunder; the whole unless as a result thereof, the security created hereby or any of the hypothecary remedies of the Agent and/or the Pledgees hereunder would be in any way
diminished or invalidated, in which case the provisions of this agreement will govern.

 

	7.
	MISCELLANEOUS

	7.1
	The
present agreement and the hypothecations and pledges created hereby are and shall be in addition to and not in substitution of any other hypothecs, security interests or rights
presently or in the future held by any of the Pledgees, the Agent, the Collateral Agent or the Trustee for the fulfillment of the Obligations and shall not operate as any novation of any obligations
of the Grantor towards the Pledgees, the Agent, the Collateral Agent or the Trustee under the Credit Agreement or the Deed of Hypothec;

	7.2
	Any
notice required to be given hereunder shall be given in the manner provided for under the Credit Agreement;

	7.3
	If
any provision of this agreement is prohibited or unenforceable in any jurisdiction, such provision shall, as to such jurisdiction, be ineffective to the extent of such prohibition
or unenforceability, without invalidating the remaining provisions hereof in that jurisdiction or affecting the validity or enforceability of such provision in any other jurisdiction;

	7.4
	The
present agreement and the interpretation and enforcement hereof shall be governed by and in accordance with the laws of the Province of Quebec. The Grantor hereby irrevocably
submits to the non-exclusive jurisdiction of the Courts of the Province of Quebec with respect to any matter arising hereunder or in relation hereto;

	7.5
	The
present agreement may be referred to as bearing formal date of May 9, 2005, notwithstanding the actual date of its execution;

	7.6
	These
presents may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same document;

	7.7
	The
clause headings of this agreement are for convenience of reference only and shall not affect in any manner any of the terms and conditions hereof or the construction or
interpretation of this agreement; 

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	7.8
	The
parties hereby confirm their express wish that this agreement and all related documents be drawn up in English, but without prejudice to any such documents which may from time to
time be drawn up in French only, or in both English and French; 

Les parties confirment leur volonté expresse que la présente entente et tous les documents connexes soient rédigés
en anglais, mais sans préjudice cependant à tous tels documents qui pourront à l'occasion être rédigés en
français seulement, ou à la fois en anglais et en français.

IN WITNESS WHEREOF, THE PARTIES HAVE EXECUTED THE PRESENT BOND PLEDGE AGREEMENT ON THE DATE HEREIN FIRST MENTIONNED.

	 	 	 	GRANTOR:
	

 	
 	

 	
SR TELECOM INC.
	

 	
 	

Per:	

/s/  DAVID L. ADAMS      
 Name: David L. Adams

Title: Senior Vice President, Finance, Chief Financial Officer and Secretary
	
 	
 	

 	
LENDERS (acting on their own behalfs and on behalf of any of their present or future Affiliates):
	
 	
 	

 	
B IV CAPITAL PARTNERS, L.P.

By: GP Capital IV, LLC, its General Partner

By: DDJ Capital Management, LLC, Manager
	

 	
 	

Per:	

/s/  DAVID J. BREAZZANO      
 Name: David J. Breazzano

Title:
	
 	
 	

 	
GMAM INVESTMENT FUNDS TRUST II

By: DDJ Capital Management, LLC, on behalf of GMAM Investment Funds Trust II, in its capacity as investment manager
	

 	
 	

Per:	

/s/  DAVID J. BREAZZANO      
 Name: David J. Breazzano

Title:

4

 

	
 	
 	

 	
DDJ CANADIAN HIGH YIELD FUND

By: DDJ Capital Management, LLC, its attorney-in-fact
	

 	
 	

Per:	

/s/  DAVID J. BREAZZANO      
 Name: David J. Breazzano

Title:
	
 	
 	

 	
DDJ OCTOBER FUND ONSHORE FEEDER, LIMITED PARTNERSHIP

By: October G.P., LLC, its general partner

By: DDJ Capital Management, LLC, its Manager
	

 	
 	

Per:	

/s/  DAVID J. BREAZZANO      
 Name: David J. Breazzano

Title:
	
 	
 	

 	
OCTOBER OS INVESTMENT SUB 2005, LTD.

By: DDJ Capital Management, LLC, in its capacity as Investment Manager
	

 	
 	

Per:	

/s/  DAVID J. BREAZZANO      
 Name: David J. Breazzano

Title:
	
 	
 	

 	
GUARDIAN CAPITAL L.P., on behalf of certain funds and/or accounts that it manages and/or advises
	

 	
 	

Per:	

/s/  STEVE KEARNS      
 Name: Steve Kearns

Title:
	

 	
 	

Per:	

 
	 	 	 	
 Name:

Title:

5

 

	
 	
 	

 	
GREYWOLF CAPITAL MANAGEMENT LP, on behalf of certain funds and/or accounts that it manages and/or advises
	

 	
 	

Per:	

/s/  WILLIAM TROY      
 Name: William Troy

Title:
	

 	
 	

Per:	

 
	 	 	 	
 Name:

Title:
	
 	
 	

 	
CATALYST FUND GENERAL PARTNER I INC, as the General Partner of Catalyst Fund Limited Partnership I
	

 	
 	

Per:	

/s/  GABRIEL DE ALBA      
 Name: Gabriel de Alba

Title:
	

 	
 	

Per:	

 
	 	 	 	
 Name:

Title:
	
 	
 	

 	
POLAR SECURITIES INC., on behalf of North Pole Capital Master Fund
	

 	
 	

Per:	

/s/  HERMAN GILL      
 Name: Herman Gill

Title:
	

 	
 	

Per:	

 
	 	 	 	
 Name:

Title:

6

 

	
 	
 	

 	
AGENT:
	
 	
 	

 	
COMPAGNIE TRUST BNY CANADA / BNY TRUST COMPANY OF CANADA
	

 	
 	

Per:	

/s/  GERALD F. KANDESTIN      
 Name: Gerald F. Kandestin

Title: Power of Attorney, mandatary and representative

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Exhibit 10.31  

 
 

DEED OF HYPOTHEC TO SECURE BONDS  
    

ON THIS TWELFTH DAY OF MAY TWO THOUSAND AND FIVE.  

BEFORE Mtre Robert Alain, the undersigned Notary for the Province of Quebec, practicing in the City and District of Montreal. 

APPEARED:  

SR TELECOM INC. (the "Grantor"), a legal person and a corporation duly incorporated under
the Canada Business Corporations Act having its registered office and a place of business at 8150 Trans-Canada Highway, City of Montreal
(Saint-Laurent), Province of Quebec, H4S 1M5, herein acting and represented by David L. Adams, its Senior Vice-President, Finance, Chief Financial Officer and Secretary, duly
authorized for all purposes hereof pursuant to a Resolution of its Board of Directors enacted on May 10, 2005, a certified extract of which remains annexed hereto as Annex "A" hereto after
having been signed for identification by said representative with and in the presence of the undersigned Notary. 

AND:  

COMPAGNIE TRUST BNY CANADA / BNY TRUST COMPANY OF CANADA, a trust company duly subsisting under the Trust and Loan Companies
Act, Canada, (i) in its capacity as Fondé de Pouvoir of the
Lenders, of any present or future Affiliates of such Lenders, of any present or future holders of the PIK Notes and of the Bondholders, (ii) its
capacity as trustee hereunder, and (iii) in its other capacities hereunder (the "Trustee"),
having a place of business at 4 King Street West, Suite 1101, City of Toronto, Province of Ontario, M5H 1B6, herein acting and represented by Gerald F. Kandestin, its power of
attorney, mandatary and representative duly authorized for all purposes hereof pursuant to a "Power of Attorney" executed at Toronto, Province of Ontario on May 4, 2005 by Christopher
Sutherland, its President, and Marcia Redway, one of its Assistant Vice-President, duly authorized by (A) its duly enacted
By-Laws 2.6 through 2.8, (B) a "Signing Authority Resolution" duly enacted by its Board of Directors in accordance with such
By-Laws, (C) an "Authorization" issued by Christopher Sutherland, its President, in accordance with such By-laws and such
"Signing Authority Resolution", certified extracts all of which remain annexed hereto as Annex "B" hereto after having been signed for identification by said representative with and in the presence of
the undersigned notary, a notice of which address has been registered in the Register of Personal and Movable Real Rights of the Province of Quebec
under number 025340 and the Land Register for the Registration Division of Montreal under number 6098231. 

WHEREAS the Grantor is authorized by law to issue, sell, hypothecate/pledge bonds and/or otherwise give them as security; 

WHEREAS the Grantor is desirous of issuing bonds and securing the payment thereof by granting hypothecs in favour of the Trustee in the manner
contemplated herein; 

WHEREAS Article 2692 of the Civil Code of Quebec permits the Grantor, as a legal person, to grant
hypothecs securing payment of titles of indebtedness or bonds in favour of a Fondé de Pouvoir.

WHEREAS the Trustee has been appointed the Fondé de Pouvoir of the Lenders, of any
present and future Affiliates of such Lenders and of the Bondholders pursuant to the terms, conditions and provisions of the Credit Agreement. 

WHEREFORE, THE PARTIES HAVE AGREED WITH EACH OTHER AND HAVE DECLARED UNTO THE UNDERSIGNED NOTARY AS FOLLOWS:

1.             PREAMBLE  

1.1           The
preamble forms part hereof as if recited at length herein. 

1

 

2.             DEFINITIONS  

2.1           Unless
otherwise defined herein or unless there is something in the subject or the context hereof inconsistent therewith, each capitalized term used in this Deed has the meaning
ascribed thereto in the Credit Agreement; 

2.2           Unless
the context otherwise requires, the following expressions will have the respective meanings hereinafter set forth: 

                2.2.1        "Administrator" has the meaning ascribed to it in Clause 9.2 hereof; 

                2.2.2        "Bond(s)" means any bond(s) issued or which may be issued hereunder; 

                2.2.3        "Bondholder(s)" and "holder(s)" and
"holder(s) of Bond(s)" means any Person named as holder(s) of any issued and outstanding Bond(s) hereunder; 

                2.2.4        "Bondholder Indebtedness" means the payment of the Bond(s) in principal and interest (including interest on all
amounts in default) and premiums, if any, on the Bond(s), payment of the PIK Notes (and/or payments in connection therewith), as well as payment of all the sums, if any, from time to time owing under
this Deed to the Bondholder(s) or the Trustee; 

                2.2.5        "Charged Property" has the meaning ascribed to it in Clause 4.1 hereof and includes, for greater certainty, all
of the property and rights described in Clauses 4.1.1 (including all paragraphs thereof), 4.1.2, 23.1 (including all paragraphs thereof) and 23.2 (including all paragraphs thereof) hereof; 

                2.2.6        "Civil Code" means the Civil
Code of the Province of Quebec; 

                2.2.7        "Claims" means, collectively, all "Accounts" (as defined in the Credit Agreement), all accounts receivable,
book accounts, book debts, debts, claims, monies, rentals, revenues, incomes, loans receivable, demands, rebates, refunds, amounts owing by or claimable from the crown, state or government or any
departments, agents or agencies thereof and choses in action which now are or which may at any time hereafter be due or owing to or owned by the Grantor or in which the Grantor now or hereafter has
any other interest and all security interests, hypothecs, assignments, guarantees, bills of exchange, notes, chattel paper, negotiable instruments, contracts, invoices, books of account, letters of
credit and other documents and rights now held or owned or which may be hereafter held or owned by the Grantor or any third party on behalf of the Grantor in respect of any of the foregoing and all
rights of an unpaid vendor, including rights to merchandise returned, repossessed or recovered; 

                2.2.8        "Costs" means: 

                (a)           all
costs and expenses (including, without limitation, all costs and expenses referred to in Clause 4.3 hereof and/or in the Credit Agreement) which may
hereafter be incurred, in any manner and under any circumstances, by and/or on behalf of the Trustee in and/or relating to (A) the enforcement of the Hypothec, (B) the sale and/or
disposal of any of the Charged Property forming the object of the Hypothec, and/or (C) dealing with the Charged Property forming the object of the Hypothec; 

                (b)           any
and all fees, disbursements and applicable sales taxes incurred by any professionals (including, without limitation, any attorneys, receivers, trustees, monitors
and/or consultants) which may hereafter be engaged by and/or on behalf of the Trustee or for which the Trustee may hereafter become obliged for and/or pertaining to (A) the enforcement of the
Hypothec, (B) the sale and/or disposal of any of the Charged Property forming the object of the Hypothec, and/or (C) dealing with the Charged Property forming the object of the Hypothec;
and, 

                (c)           any
and all other costs and expenses, of any nature or form whatsoever, which may hereafter be incurred by and/or on behalf of the Trustee or for which the Trustee may
hereafter become obliged, under any circumstances whatsoever, for and/or pertaining to (A) the enforcement of the Hypothec, (B) the sale and/or disposal of any of the Charged Property
forming the object of the Hypothec, and/or (C) dealing with the Charged Property forming the object of the Hypothec, 

to
the extent that same are not secured by the Hypothec; 

2

 

                2.2.9        "Credit Agreement" means the "Credit Agreement" bearing formal date May 12, 2005, to be entered into between
the Grantor, the COMPAGNIE TRUST BNY CANADA / BNY TRUST COMPANY OF CANADA (as Administrative Agent and Collateral Agent) and the Lenders, as the as the same may be amended, supplemented,
revised, replaced or restated from time to time; 

                2.2.10      "Deed" means the present "Deed of Hypothec to Secure Bonds" as well as all future amendments and supplements hereto
and renewals and replacements hereof; 

                2.2.11      "Documents of Title" means, collectively, all "Chattel Paper" (as defined in the Credit Agreement), all
documents of title, whether negotiable or non-negotiable including, without limitation, all warehouse receipts and bills of lading in which the Grantor now or hereafter has an interest; 

                2.2.12      "Equipment" means, collectively, all "Equipment" (as defined in the Credit Agreement), all machinery,
equipment, furniture, fixtures, materials, supplies, appliances, dyes, molds, tanks, vehicles, furnaces, boilers, motors, engines, accessories and tools now owned or hereafter acquired by the Grantor,
whether or not the same be affixed to any immovable property or used upon or in connection therewith, together with all present and future improvements, appurtenances and accessories thereto; 

                2.2.13      "Event of Default" means each of the events and/or circumstances referred to in Clause 8.1 hereof; 

                2.2.14      "Fondé de Pouvoir" means a person holding the power of
attorney of creditors and acting as the "fondé de pouvoir" of creditors, in favour of which person hypothecs securing payment of bonds or
other titles of indebtedness may be granted, all as envisaged by article 2692 of the Civil Code; 

                2.2.15      "Hypothec" means collectively the hypothecation and the additional hypothecation of the Charged Property by the
Grantor in favour of the Trustee for the benefit of and as Fondé de Pouvoir of the Bondholders, created pursuant to Clauses 4.1
and 4.2 hereof; 

                2.2.16      "Hypothec Amount" means the sum of ONE HUNDRED MILLION DOLLARS ($100,000,000.00); 

                2.2.17      "Insurance" means, collectively, all insurance policies relating directly or indirectly to any of the Charged
Property or any part thereof and all rights and claims under all policies of insurance of whatever nature including, without limitation, under insurance against loss or damage; 

                2.2.18      "Intangible Property" means, collectively, all "Intellectual Property" (as defined in the Credit Agreement),
all incorporeal property now owned or hereafter acquired by the Grantor or its interest therein including, without limitation, the Scheduled Intangible Property, and all patents and patents pending,
registered and unregistered trade marks, trade or brand names, service marks, copyrights, industrial designs, formulae, processes, trade secrets, goodwill, contractual rights, licences and permits; 

                2.2.19      "Interest Rate" means twenty-five percent (25%) per
annum; 

                2.2.20      "Inventory" means, collectively, all "Inventory" (as defined in the Credit Agreement), all goods, wares,
merchandise, property in stock and inventory now owned and hereafter acquired by the Grantor including, without limitation, all raw materials, goods in process, finished goods, goods in transit and
all packaging and shipping materials and all materials and merchandise procured for the manufacture or production thereof and all goods, wares and merchandise held for sale, lease or resale or
furnished or to be furnished under contracts for service or used or consumed in the business of the Grantor; 

                2.2.21      "Monies" means, collectively, all monies, cash, foreign currencies and credits in which the Grantor now or hereafter
has an interest; 

                2.2.22      "Proceeds" means, collectively, all "Proceeds" (as defined in the Credit Agreement), all property in any form
derived directly or indirectly from any dealings with any of the Charged Property including: 

                (a)           identifiable
or traceable personal or movable property that is derived directly or indirectly from any dealing with the Charged Property or proceeds of the Charged
Property and in which the Grantor acquires an interest; 

3

 

                (b)           any
insurance or other payment that represents indemnity or compensation for loss of or damage to the Charged Property or proceeds of the Charged Property or a right
to such a payment; and 

                (c)           any
payment made in total or partial discharge or redemption of chattel paper, a security, an instrument, an intangible or incorporeal property; 

                2.2.23      "Records" means, collectively, all computer programs, firmware and software and all computer and other records and
data, whether in hard copy or otherwise, pertaining to any of the Charged Property and the equipment containing same and owned by the Grantor; 

                2.2.24      "Scheduled Intangible Property" means any property described in Clause 23.1 hereof under the heading
"Scheduled Intangible Property"; 

                2.2.25      "Scheduled Securities" means any Securities described in Clause 23.2 hereof under the heading "Scheduled
Securities"; 

                2.2.26      "Securities" means, collectively, all "Stock" (as defined in the Credit Agreement), all shares, stocks,
warrants, bonds, debentures, debenture stock, and other securities, now or hereafter owned and/or held by the Grantor, in which the Grantor now or hereafter has an interest including, without
limitation, the Scheduled Securities; 

                2.2.27      "Security" means the Hypothec, security interest and rights created in the Trustee's favour hereunder for the benefit
of and as Fondé de Pouvoir of the Bondholders, excluding, however, the Separate Hypothec; 

                2.2.28      "Subsidiaries" means each of the following Persons, namely: 

                (a)           SR (BV) Holdings Limited (British Virgin Islands); 

                (b)           CTR Holdings Limited (British Virgin Islands); 

                (c)           Servicios Rurals de Telecomunicaciones S.A.    (Chile); 

                (d)           Comunicacion y Telefonia Rural S.A.    (Chile); 

                (e)           Pacific Maple (Delaware, USA); 

                (f)            Mistral (Chile); 

                (g)           SRT Telecommunications Ltd.    (Florida, USA); 

                (h)           SR Telecom International Inc.    (Canada); 

                (i)            Pacifican Telecom International Inc.    (Canada); 

                (j)            SRT do Brasil Ltd.    (Brasil); 

                (k)           Telecommunicaciones Montreal, S.A. de C.V.    (Mexico); 

                (l)            SR Telecom USA, Inc.    (Delaware, USA); 

                (m)          Netro SARL (France); 

                (n)           Netro GmbH (Germany); 

                (o)           A.A.S. Inc.    (Delaware, USA); 

                (p)           SR International Inc.    (Barbados); 

                (q)           SR Telecom Technology Inc.    (Barbados); 

                (r)           SR Telecom SAS (France); 

                (s)           SRC South Africa Pty Ltd.    (South Africa); 

                (t)            TDMA Services Co. Ltd.    (Thailand); 

                (u)           SR Telecom Philippines Inc.    (Philippines); 

4

 

                (v)           SR Telecom Clark Inc.    (Philippines); and, 

                (w)          SR Telecom Pty Ltd.    (Australia); and, 

                2.2.29      "Separate Hypothec" means the further and separate hypothecation of the Charged Property by the Grantor in favour of
the Trustee for the benefit of and as Fondé de Pouvoir of the Bondholders created pursuant to Clause 4.4 hereof. 

3.             ISSUANCE OF BONDS  

3.1           The
Bond(s) authorized to be issued under and secured by this Deed are limited to an aggregate principal amount of ONE HUNDRED MILLION DOLLARS ($100,000,000) in lawful money
of Canada; 

3.2           The
Bond(s) shall be substantially of the tenor and in the form set forth in Section 24 of this Deed with such omissions, insertions and variations as are provided in
or permitted by this Deed; 

3.3           The
Bond(s) shall be issued as fully registered Bond(s) without coupons and shall be signed by any one officer or director of the Grantor, shall be dated the date of
their respective issuance, shall be payable on demand and shall bear interest, as well after as before maturity and both before and after default, from their respective dates at the rate of
twenty-five per-cent (25%) per annum, with interest on all overdue interest at the same rate from the due date to the date of payment. The principal of the Bond(s) and
interest thereon shall be payable in lawful money of Canada at par at the place indicated on the Bond(s), or at any other place subsequently indicated to the Grantor and the Trustee pursuant to
the written instructions of the Bondholders; 

3.4           All
the Bond(s) shall from time to time after the execution of this Deed be issued by the Grantor in such denominations as the Grantor and the Trustee may approve, shall be
certified and dated by or on behalf of the Trustee and shall be delivered by the Trustee to or to the order of the Grantor from time to time upon receipt by the Trustee of any order in writing signed
by any one officer or director of the Grantor. No Bond(s) shall be issued, or if issued, shall be obligatory or entitle the holder to the benefit of the Hypothec,
Separate Hypothec, security interests and rights created hereunder until it has been certified by or on behalf of the Trustee, and such certification by the Trustee upon any such Bond(s) shall
be conclusive evidence that the Bond(s) so certified have been duly issued hereunder and that the holder thereof is entitled to the benefit of the Hypothec, Separate Hypothec, security
interests and rights created hereunder. The certificate of the Trustee signed on the Bond(s) issued hereunder shall not be construed as a representation or warranty by the Trustee as to the
validity or security of this Deed or of said Bond(s), and the Trustee shall in no respect be liable or answerable for the use made of said Bond(s) or any of them or the proceeds thereof.
Whenever any Bond(s) are outstanding hereunder, the Grantor shall not be entitled to issue and the Trustee shall not be entitled to certify any additional Bond(s) hereunder, except
pursuant to written instructions from the Lenders in accordance with the provisions of the Credit Agreement; 

3.5           The
Bond(s) may be hypothecated, pledged, charged and/or assigned, from time to time, by the Grantor to and in favour of each of the Lenders, any present or future Affiliates
of such Lenders and/or the Collateral Agent as security for the payment and/of the performance of the Obligations. The Bond(s) may be issued in such amounts to such Lenders, any present or
future Affiliates of such Lenders and/or either COMPAGNIE TRUST BNY CANADA / BNY TRUST COMPANY OF CANADA (as Collateral Agent, mandatary, agent and custodian of and for such Lenders and
Affiliates) or any other Person (as Collateral Agent, mandatary, agent and custodian of and for such Lenders and Affiliates) for such consideration and on such terms as the Grantor may
determine and all Bond(s) issued hereunder shall rank pari passu and be secured equally and rateably hereby. Any Bond(s) so
pledged, hypothecated or charged as provided hereinabove shall not be deemed to be redeemed by reason of the Grantor having ceased to be so indebted or otherwise obligated while the
Bond(s) remain so hypothecated or charged. If any outstanding Bond(s) is returned to the Grantor or the Trustee by the holder thereof, such Bond(s) shall be deemed not to be
outstanding and the Grantor shall be entitled to re-issue Bond(s) aggregating not more than the principal amount of the Bond(s) so returned; 

3.6           All
Bond(s) shall benefit rateably and parri passu from the Hypothec, the Separate Hypothec, the security interests and rights
created hereunder; 

5

 

3.7           The
Trustee shall be entitled to, subject to any requirements it may prescribe, certify and deliver a new certificate representing any outstanding Bond(s) which has been
mutilated, lost or destroyed, in exchange for and in place of and upon cancellation of such mutilated Bond(s) or in lieu of and in substitution for such lost or destroyed Bond(s). The
Trustee shall be entitled to correct any clerical error appearing in this Deed or any outstanding Bond(s); 

3.8           Any
Bond(s) may be issued to and held by each of the Lenders, any Affiliates of such Lenders and/or either COMPANY TRUST BNY CANADA / BNY TRUST COMPANY OF CANADA
(as Collateral Agent, mandatary, agent and custodian of and for such Lenders and Affiliates) or any other Person (as Collateral Agent, mandatary, agent and custodian of and for such
Lenders or Affiliates). 

4.             HYPOTHEC, ADDITIONAL HYPOTHEC AND SEPARATE HYPOTHEC  

4.1           As
continuing and collateral security for the payment to the Bondholder(s) and the Trustee of the Bondholder Indebtedness and the fulfilment of all other obligations of the
Grantor hereunder, the Grantor hereby hypothecates to and in favour of the Trustee, for the benefit of and as Fondé de Pouvoir of the
Bondholder(s), for and in the Hypothec Amount with interest thereon at the Interest Rate (both before and after maturity, demand, default and judgment) all of  (i) the following property now or
hereafter owned by the Grantor, (ii) all rights, titles and interest
now or hereafter held by the Grantor in all of the following property to the extent of such rights, titles and interest, and (iii) all present and
future renewals, accretions, replacements and substitutions of and to the following property as well as everything now or hereafter united to the following property by accession (collectively the
"Charged Property"), namely: 

                4.1.1        the
universality of all of the Grantor's present and future moveable property, corporeal and incorporeal, of whatever nature and wherever situated (whether in the
possession of the Grantor, in the possession of any other Person, in transit or otherwise) including, without limitation: 

                (a)           As
a universality, the Claims; 

                (b)           As
a universality, the Documents of Title; 

                (c)           As
a universality, the Proceeds; 

                (d)           As
a universality, the Records; 

                (e)           As
a universality, the Monies; 

                (f)            As
a universality, the Securities; 

                (g)           As
a universality, the Insurance; 

                (h)           As
a universality, the Intangible Property; 

                (i)            As
a universality, the Inventory; 

                (j)            As
a universality, the Equipment; and 

                (k)           As
a universality, all other corporeal and incorporeal moveable property, assets, rights and undertakings of any nature and kind, now owned or hereafter acquired by
the Grantor; and 

                4.1.2        the
following immovable property, namely: 

Lot
numbers 1 164 151, 1 164 163 and 1 164 199 of the Cadastre du Quebec, Registration Division of Montreal, with
building(s) thereon situated bearing civic numbers 8150-8212 Trans-Canada Highway and 1415-1475 Montée de Liesse in the City of
Montreal (St-Laurent). 

4.2           To
further secure the payment of the Bondholder Indebtedness and the performance and the observance of the Grantor's obligations hereunder, the Grantor hereby further hypothecates
the Charged Property to and in favour of the Trustee, for the benefit of and as Fondé de Pouvoir of the Bondholder(s) for and in a
further amount equal to twenty percent (20%) of the Hypothec Amount; 

6

   
4.3           In addition to its obligation to pay and/or reimburse the Trustee all costs and expenses referred to herein and referred to in the Credit Agreement, the Grantor hereby agrees and
undertakes to pay and/or reimburse to the Trustee the full amount of Costs upon the Trustee's simple demand therefore; 

4.4           As
continuing and collateral security for all of the Costs and the obligation of the Grantor to pay and/or reimburse the Trustee all of the Costs, the Grantor hereby further
hypothecates all of the Charged Property to and in the favour of the Trustee, for the benefit of and as Fondé de Pouvoir of the
Bondholder(s) for and in a further amount equal to twenty percent (20%) of the Hypothec Amount (the "Separate Hypothec"). The Separate
Hypothec shall subsist and operate completely separately from and independently of the hypothec and the additional hypothec set forth in Clauses 4.1 and 4.2 hereof; 

4.5           Should
any of the Securities consist of any shares, bonds, debentures, warrants or any other securities or instruments entitling the Grantor to exercise any voting rights, redemption
rights, conversion rights or any other rights or privileges whatsoever, the Trustee shall at all times, following occurrence and continuation of an Event of Default, be entitled (but not
obliged) to become the registered or named holder or beneficiary thereof as well as to fully exercise all of such rights or privileges on behalf of the Grantor and in such manner and at such times as
the Trustee deems appropriate. The Trustee becoming the registered or named holder or beneficiary of any Securities or the Trustee's exercise of any of such rights or privileges shall neither
necessitate nor constitute the exercise by the Trustee of any of its rights hereunder. The Trustee shall not, in any manner whatsoever, be responsible or liable to the Grantor or any other
person(s) resulting from either the failure by the Trustee to exercise any of the foregoing rights or privileges or the manner or timing of the Trustee's exercise of any of the foregoing rights
or privileges; 

5.             COLLECTION OF CLAIMS  

5.1           Notwithstanding
the hypothecation of the Claims created hereby in favour of the Trustee (as well as all publications, registrations and/or significations perfecting same), the
Trustee, subject to the provisions hereof, hereby authorizes the Grantor to collect all Claims as they fall due. Upon the earlier of (i) the occurrence
of an Event of Default and as long as same may exist, or (ii) the Collateral Agent and/or the Lenders becoming entitled to collect Claims under the
provisions of the Credit Agreement, the Trustee may withdraw authority of the Grantor to collect Claims. In the event of such withdrawal of authority, the Trustee alone, to the exclusion of the
Grantor, shall be entitled to collect Claims and any such Claims so collected by the Trustee shall be dealt with in accordance with the provisions of the Loan Documents. In such event, the
Claims shall be paid by the debtors thereof to the Trustee, being the sole person entitled to receive same and grant discharge thereof and all amounts collected or received by the Grantor in respect
of the Claims will be deemed to have been collected or received by the Grantor as mandatary of and in trust for the Trustee and will be remitted immediately to the Trustee in identical form as
received, duly endorsed in blank, or deposited into such bank accounts as are acceptable from time to time to the Trustee and shall be dealt with in accordance with the provisions of the Loan
Documents; 

5.2           In
the event that the Trustee withdraws the Grantor's authority to collect Claims as provided for in Clause 5.1 hereof: 

                5.2.1        The
Trustee shall be entitled to give good and sufficient discharge for all Claims collected by it, but the Trustee shall not be liable for any loss or damage
resulting from non-collection thereof, any irregularity in the payment thereof or any failure to inform the Grantor of such non-collection or irregularity; 

                5.2.2        The
Trustee shall hold any proceeds received by the Trustee, in a separate account to be applied and dealt with by the Trustee in accordance with the provisions of
the Loan Documents; 

5.3           Neither
the receipt nor the application of any Claims by the Trustee shall reduce, novate or otherwise affect the hypothecs, security and rights hereby created in favour of the
Trustee, all of which shall remain in full force and effect for the full amount thereof unless reduced or discharged in writing by the Trustee; 

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5.4           In
the event that the Trustee withdraws the Grantor's authority to collect Claims as provided for in Clause 5.1 hereof, the following shall prevail, at all times subject to
the provisions of the Credit Agreement, namely: 

                5.4.1        the
Trustee will be the only party authorized and entitled to collect, dispose of and deal with the Claims; 

                5.4.2        the
Trustee will have the right to collect, dispose of and deal with the Claims as it may deem expedient including, without limiting the generality of the foregoing,
to demand, sue for, enforce, recover and receive payment of the Claims and to compound, compromise, grant extensions, take and give up securities, accept compositions and grant releases and discharges
with respect thereto, the whole without notice to the Grantor and without any liability for any loss resulting therefrom; 

                5.4.3        actions
to enforce rights with respect to the Claims may be instituted by the Trustee, at its discretion, in its own name, in the name of the Grantor, or in the name
of the Trustee and the Grantor jointly; 

                5.4.4        the
Trustee will not be obliged to inform the Grantor of any irregularity in the payment of any of the Claims; and, 

                5.4.5        Any
such Claims shall be dealt with in accordance with the provision of the Loan Documents; 

6.             INSURANCE  

6.1           As
additional security for the payment of the Bondholder Indebtedness and performance of the Grantor's other obligations hereunder, the Grantor shall insure and keep insured all of
the Charged Property to the extent and as set forth in the Credit Agreement; 

7.             COVENANTS, REPRESENTATIONS AND WARRANTIES  

7.1           The
Grantor covenants, represents and warrants as follows: 

                7.1.1        The
Grantor will pay to the Trustee the Bondholder Indebtedness without the necessity of demand as and when they become due and payable or on demand, if payable on a
demand basis, at the office of the Trustee or at such other place as may from time to time be designated in writing by the Trustee; 

                7.1.2        The
Grantor will maintain the Charged Property in such state and condition as required under the Credit Agreement; 

                7.1.3        The
Grantor will perform, observe and comply with all obligations, terms, conditions and covenants provided under the Credit Agreement or relating to any other
financing arrangement or agreement entered into with the Lenders; 

8.             EVENTS OF DEFAULT  

8.1           Each
of the following events constitutes an "Event of Default" hereunder: 

                8.1.1        The
failure by the Grantor to fully pay, satisfy or fulfill any of the Bondholder Indebtedness on demand; 

                8.1.2        The
occurrence of any "Default" or "Event of Default", as such terms are defined in the Credit Agreement; or 

                8.1.3        The
failure by the Grantor to comply with any of the provisions of this Deed within fifteen (15) days after notice to the Grantor specifying the nature of such
failure; 

9.             REMEDIES IN CASE OF DEFAULT  

9.1           Upon
the occurrence of any Event of Default (and without prejudice to the demand nature of any of the Bondholder Indebtedness which is payable on demand), the Trustee, by
notice to the Grantor, may declare all of the Bondholder Indebtedness (including all accrued and unpaid interest and fees hereunder) to be immediately due and payable whereupon all such Bondholder
Indebtedness shall immediately become and be 

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due
and payable and the Hypothec, Separate Hypothec, security interests and rights granted hereunder in favour of the Trustee shall immediately become enforceable without further demand or other
notice of any kind (other than as may be strictly required by law) and the Trustee shall be entitled to exercise all hypothecary rights, other rights, remedies and recourses available under law. In
addition to the foregoing: 

                9.1.1        The
Trustee may immediately take proceedings for the recovery of all or any portion of the Bondholder Indebtedness; and 

                9.1.2        Upon
demand by the Trustee, the Grantor will surrender and abandon the Charged Property, or the part thereof specified by the Trustee, to the Trustee or such person
as may be designated by the Trustee, or will consent in writing to turn such property over to the Trustee or such person as may be designated by the Trustee at the time and place specified by the
Trustee; 

9.2           In
the event that the Trustee obtains the surrender of the whole or any portion of the Charged Property and until such time as such Charged Property is restored to the Grantor or, as
regards any portion thereof, the Trustee has concluded a recourse by way of taking in payment, sale by the creditor, sale under judicial authority or otherwise, or in the event that the Trustee
collect any Claims, then, notwithstanding any provision of law to the contrary which may apply as a result of the Trustee having acquired or being deemed to have acquired simple, full or any other
administration of the whole or any portion of the Charged Property: 

                9.2.1        The
Trustee will be entitled to generally delegate the whole or any part of the administration of any Charged Property (including without limitation, the exercise of
all discretionary powers) to such person(s) as the Trustee may designate or re-designate in the Trustee's sole discretion (any such person being herein referred to as an
"Administrator"); 

                9.2.2        The
Trustee and any Administrator will be entitled to reimbursement of all reasonable costs and expenses (including, without limitation, all reasonable costs,
expenses and fees incurred by any attorneys or other persons engaged by the Trustee or the Administrator acting reasonably in order to assist in such administration, or any matter pertaining thereto),
as well as all reasonable fees of the Trustee and the Administrator incurred in such administration, all of which may be charged by the Trustee against any fruits, revenues or proceeds of alienation
of the whole or any portion of the Charged Property; 

                9.2.3        The
Trustee or the Administrator shall be entitled, under any circumstances and in such manner as the Trustee or the Administrator deems, in their respective
discretion, appropriate, to alienate such Charged Property by onerous title; 

                9.2.4        The
Trustee will be entitled to acquire the whole or any portion of any Charged Property alienated by onerous title in the course of any administration thereof; 

                9.2.5        In
the event that the Trustee or the Administrator acquire full administration of any Charged Property, neither the Trustee nor the Administrator will be under any
obligation whatsoever to make such Charged Property productive, increase such Charged Property or the value thereof or appropriate such Charged Property to any purpose other than payment of the
Bondholder Indebtedness; 

                9.2.6        The
Trustee and the Administrator will be entitled to use for their own benefits any information which either of them may obtain by reason of their administration of
the whole or any portion of the Charged Property provided such information is not used in a manner which causes a prejudice or damage to the Grantor; 

                9.2.7        The
Trustee and the Administrator will be entitled, whether or not for value, to renounce to any right affecting, benefiting, pertaining to and/or forming part of any
Charged Property administered by either of them; 

                9.2.8        Neither
the Trustee nor the Administrator will be obliged, in any manner whatsoever, to prepare any inventory of any Charged Property, insure any Charged Property or
give any security for any Charged Property or their administration thereof. Should the Trustee or the Administrator, in their discretion, insure the whole or any portion of any Charged Property, the
reasonable costs and expenses of any insurance shall form part of the costs and expenses referred to in paragraph (b) hereof; 

9

 

                9.2.9        The
Trustee and the Administrator may change the destination of the whole or any portion of any Charged Property under their administration and will not be bound to
continue the use or operation of any Charged Property under their administration which produces fruits or revenues unless required by law to do so; and/or 

                9.2.10      Notwithstanding
any provisions of law to the contrary, the Trustee and the Administrator will only be obliged to render an account to the Grantor upon the written
request of the Grantor and once the Trustee or Administrator have determined, to their satisfaction, the details of such account; 

9.3           In
the event that the Trustee exercises its right to become the absolute owner of the Charged Property or any part thereof, the Grantor, concurrently with surrender or at any time
thereafter at the request of the Trustee, will sign a voluntary Deed providing for the Trustee (or any Person directed in writing by the Trustee) to take in payment the Charged Property or any
part thereof. In the event that the Grantor requires the Trustee to sell any such Charged Property, the Grantor acknowledges that the Trustee will not be required to abandon its recourse of taking in
payment unless, before the expiration of the delay to surrender, the Trustee: (i) shall have been furnished with security guaranteeing that the Charged Property in question will be sold at a
sufficiently high price for the Trustee to be paid the amounts secured hereunder in full; (ii) shall have been reimbursed the costs which it has incurred; and (iii) shall have been
advanced all amounts necessary for the sale of the Charged Property in question; 

All
expenditures and improvements made by any holder of the Charged Property and all payments made on account of the Bondholder Indebtedness and the accessories thereof will belong to the Trustee
without return or compensation. The Trustee will not be obliged to compensate or indemnify the Grantor or any other person for any cause whatsoever; 

9.4           In
the event that the Trustee exercises its right to sell the whole or any portion of the Charged Property by judicial authority or pursuant to a sale by the creditors, the following
will apply: 

                9.4.1        Such
Charged Property may be sold subject to and upon such terms and conditions (including, without limitation, terms extending credit) by way of one (1) or
more sales by private agreement, call for tenders or public auction or combinations thereof as the Trustee or the Administrator see fit and the Trustee or the Administrator may, at any time, change or
substitute any method of sale for any other method of sale of such Charged Property; and 

                9.4.2        Notwithstanding
any provision of law to the contrary, in any call for tenders, the Trustee or Administrator will not be obliged to accept the highest offer or any
offer and, in the event that no offer is accepted, may proceed to sell such Charged Property by any other method; 

10.           REMEDIES CUMULATIVE  

10.1         The
different recourses of the Trustee hereunder are cumulative and not alternative. The rights and remedies of the Trustee hereunder are in addition to every other right and remedy
now or hereafter existing in favour of the Trustee, whether by law or otherwise; 

11.           WAIVERS  

11.1         No
delay or failure on the part of the Trustee in exercising any right or remedy hereunder shall affect such right or remedy, nor shall any single or partial exercise hereof preclude
any further exercise thereof or the exercise of any other right or remedy. Any waiver by the Trustee of any of its rights or remedies hereunder will be valid only if express and in writing. No waiver
shall be deemed to be or constitute a waiver of any other rights or remedies of the Trustee. In no event will the Trustee's acceptance, after the Bondholder Indebtedness may have become due and
payable, of any partial payment, be deemed to alter or affect the Trustee's rights with respect to any subsequent payment or default thereon. Moreover, should the Trustee grant or tolerate any
extension or delay for payment or performance of any obligations of the Grantor, such extension, delay, indulgence or tolerance will not be deemed an acquiescence by the Trustee in such default or
waiver of any of the Trustee's rights and remedies hereunder or in respect of any future default; 

10

 

11.2         To
the extent necessary or useful, the parties hereto expressly waive the application of section 32 of the Act Respecting the Special Powers of Legal
Persons (RSQ, c.P.16) and of articles 1310 and 2147 of the Civil Code; 

12.           NATURE OF INDEBTEDNESS AND SECURITY  

12.1         Nothing
contained in this Deed will be deemed to derogate from or alter the demand nature of any of the Bondholder Indebtedness; 

12.2         The
security hereby granted secures and will continue to secure the Bondholder Indebtedness on a continuing and fluctuating basis and is and will be valid notwithstanding that the
whole or any portion of the prestations in consideration of which the Grantor has undertaken its obligations towards the Trustee have not yet been received and notwithstanding that the whole or any
portion of the Bondholder Indebtedness may not yet exist. With respect to any future obligation secured hereby, the Grantor shall be deemed to have obligated itself again as contemplated by
article 2797 of the Civil Code; 

12.3         The
security hereby granted will remain in full force and effect for the full Hypothec Amount and amounts of the additional hypothec and the Separate Hypothec until such time as an
express written discharge is executed by the Trustee and delivered to the Grantor. The hypothecs, security and rights hereby created in favour of the Trustee will not be extinguished, reduced, novated
or otherwise affected by any payments made to or amounts received by the Trustee, directly or indirectly, from the Grantor or any other party or as a result of any insurance indemnities arising from
loss or damage to any of the Charged Property or by reason of the collection of any Claims; 

13.           NATURE OF OBLIGATIONS  

13.1         Every
obligation of the Grantor hereunder is and will remain indivisible and the performance thereof in its entirety may be claimed from any and each of the successors of the
Grantor; 

14.           OTHER SECURITY  

14.1         The
security created hereunder is in addition to and not in substitution for nor deemed to be substituted by any other security now or hereafter held by or for the benefit of the
Trustee, the Collateral Agent and/or any of the Lenders shall not be diminished or novated or otherwise affected by any other security or any promissory note or other evidence of indebtedness which
the Trustee or any party for the benefit of the
Trustee may have or obtain from the Grantor or any other person, nor shall any other security or note or evidence of indebtedness be diminished or novated or otherwise affected hereby; 

15.           POWERS AND DUTIES OF THE TRUSTEE  

15.1         The
Trustee is the holder of the Hypothec, Separate Hypothec, security interests and rights created hereunder as the beneficiary of all rights hereby conferred to the Trustee as the  Fondé de Pouvoir
of and for or on behalf of the Bondholders. The Trustee may do any act or execute and deliver any document necessary to
the exercise of its duties hereunder; 

15.2         The
Trustee shall have the right to proceed in its name as trustee hereunder in the enforcement of the security hereby constituted by any remedy available at law. The Trustee may
exercise all of its rights hereunder without possession of the Bonds and without having to produce same in support of any judicial proceeding or trial in connection therewith; 

15.3         Any
Person who becomes a Bondholder will benefit from the designation of the Trustee as Fondé de Pouvoir for and on
behalf of all Bondholders and hereby irrevocably authorizes the Trustee to exercise its duties hereunder; 

15.4         The
Trustee may from time to time delegate to any Person, including a Bondholder, the exercise of any of its rights, remedies and recourses or the performance of any of its
obligations under this Deed, in which case the Trustee may provide to such Person any information in its possession with respect to the Grantor or the Charged Property. The Trustee shall not in any
way be responsible for any misconduct or default of any such Person; 

11

 

15.5         This
Deed shall be binding upon the Grantor towards the Trustee and any successor or assign thereof as may be permitted hereunder or under the Credit Agreement; 

15.6         No
Person dealing with the Trustee or its mandataries shall be required to determine whether the hypothecs created hereunder have become enforceable or whether the powers which the
Trustee is purporting to exercise have become exercisable; 

15.7         The
Trustee may proceed in its name to the realization of the Hypothec, Separate Hypothec, security interests and rights created hereunder in any manner permitted by law. The
Trustee's obligation to do any act or exercise any right, recourse or remedies is conditional upon the Bondholders providing, upon written request of the Trustee, all monies required therefor and
security which is deemed reasonable by the Trustee to indemnify it for all costs, expenses, loans, advances and fees to be incurred in connection therewith and any liability which may result
therefrom; 

15.8         The
duties of the Trustee are limited to those which are expressly contained in this Deed and, unless otherwise stipulated, the Trustee shall not be required to do any act or
exercise any discretion other than as required pursuant to written instructions from the Bondholders. The Trustee shall not however be required to exercise its duties where contrary to law or this
Deed; 

15.9         The
Trustee may at any time resign office upon written notice to the Grantor and the Bondholders, in which case the Bondholders shall appoint a successor by a written instrument of
the Bondholders to such effect in accordance with the provisions of the Credit Agreement. Such resignation is effective thirty (30) days after the date of the foregoing notice, except if the
successor has been designated before such time, in which case the resignation is effective immediately upon such successor being appointed. Upon such appointment, the successor shall replace the
Trustee as trustee and as Fondé de Pouvoir of and for the benefit of the Bondholders and all of the terms of this Deed relating to the
Trustee shall thereafter be applicable to its successor; 

16.           NOTICE  

16.1         Any
notice, request or other communication hereunder to any party hereto in connection with this Deed shall be in writing and given in accordance with the provisions of the Credit
Agreement, provided that any notice to the Trustee shall be given at the following coordinates: 

	 	 	COMPAGNIE TRUST BNY CANADA / BNY TRUST COMPANY OF CANADA

4 King Street West

Suite 1101

Toronto, Ontario M5H 1B6
	
 	
 	

Attention: George Bragg, Vice-President
	
 	
 	

Telecopier: (416) 360-1711

        If
the Trustee is unable to locate the Grantor at the address provided in the Credit Agreement, then any such notice or demand may be served upon the Grantor at the Office of the Clerk
of the Superior Court, District of Montreal at which office in such event the Grantor elects domicile for the purpose of this Deed; 

17.           GOVERNING LAW & JURISDICTION  

17.1         This
Deed and all Bonds hereunder shall be governed by and interpreted in accordance with the laws of the Province of Quebec. The Grantor expressly submits and consents to the
non-exclusive jurisdiction of the Superior Court, District of Montreal, with respect to any controversy arising out of or relating to this Deed or any supplement hereto or to any
transaction in connection therewith. To the extent, however, that the laws of any other jurisdiction in which the Charged Property is situated govern the validity, perfection or enforcement of the
security constituted hereunder, the local laws of such jurisdiction shall govern those issues; 

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   18.   INTERPRETATION  

	18.1
	Any
word herein contained in the singular number will include the plural; any word importing any gender will include the masculine, feminine and neuter genders; any word importing a
person will include a corporation, a partnership and any other entity and vice versa. The headings of this Deed are for convenience of reference only and shall not affect in any manner any of the
terms and conditions hereof or the construction or interpretation of this Deed; 

19.   OTHER DOCUMENTS  

	19.1
	The
Grantor undertakes to perform all acts and enter into all documentation which may be useful or necessary or required by the Trustee, the Collateral Agent and/or the Lenders for
purposes of giving full force and effect to the provisions hereof or to perfect the rights of the Trustee, Collateral Agent and/or the Lenders hereunder including, without limitation, the right to
recover and collect the Claims and to exercise its hypothecary remedies with respect thereto; 

20.   SEVERABILITY  

	20.1
	This
Deed shall not be considered as an indivisible whole and every provision of this Deed is and shall be independent of the other and in the event that any part of this Deed is
declared invalid, illegal or unenforceable, then the remaining terms, clauses and provisions of this Deed shall not be affected by such declaration and all of the remaining clauses of this Deed shall
remain valid, binding and enforceable; 

21.   PRECEDENCE  

	21.1
	In
the event that any provisions of this Deed contradict or are otherwise incapable of being construed in conjunction with the provisions of the Credit Agreement, the following will
apply:

	21.1.1
	the
provisions of the Credit Agreement shall take precedence over those contained in this Deed; and

	21.1.2
	if
any act of the Grantor is expressly permitted under the Credit Agreement but is prohibited under this Deed, any such act shall be permitted under the Credit Agreement and shall
be deemed to be permitted under this Deed; the whole unless as a result thereof the security created hereby or any of the hypothecary remedies of the Trustee hereunder would be in any way diminished
or invalidated, in which case the provisions of this Deed will govern;

	21.2
	Nothing
contained in this Deed shall be construed as providing for payment of the Obligations other than in accordance with the terms, conditions and provisions of the Credit
Agreement; 

22.   FORMAL DATE  

	22.1
	This
Deed may be referred to as bearing formal date May 12, 2005 notwithstanding the actual date of its execution; 

23.   ADDITIONAL DESCRIPTIONS OF PROPERTY  

	23.1
	Scheduled
Intangible Property:

	(a)
	The
following Patents:

	A.
	METHOD AND SYSTEM FOR PROTOCOLS FOR PROVIDING VOICE, DATA AND MULTIMEDIA SERVICES IN A WIRELESS LOCAL LOOP
SYSTEM, REGISTERED AS FOLLOWS: 

	COUNTRY

	 	SERIAL

NUMBER
	 	PATENT

NUMBER

	United States	 	09/085,264	 	6,115,370
	United States	 	09/451,936	 	6,512,751

13

 

	B.
	METHOD AND SYSTEM FOR AN AIR INTERFACE FOR PROVIDING VOICE, DATA AND MULTIMEDIA SERVICES IN A WIRELESS LOCAL LOOP
SYSTEM, REGISTERED AS FOLLOWS:

	COUNTRY

	 	SERIAL

NUMBER
	 	PATENT

NUMBER

	United States	 	09/451,935	 	6,434,129
	United States	 	09/479,663	 	6,351,456

	C.
	SYSTEM FOR A BASE STATION FOR PROVIDING VOICE, DATA, AND MULTIMEDIA SERVICES IN A WIRELESS LOCAL LOOP SYSTEM,
REGISTERED AS FOLLOWS:

	COUNTRY

	 	SERIAL

NUMBER
	 	PATENT

NUMBER

	Taiwan	 	88121360	 	150823

	D.
	METHOD AND SYSTEM FOR A MICRO-CHANNEL BANK FOR PROVIDING VOICE, DATA AND MULTIMEDIA SERVICES IN A WIRELESS LOCAL LOOP
SYSTEM, REGISTERED AS FOLLOWS:

	COUNTRY

	 	SERIAL

NUMBER
	 	PATENT

NUMBER

	United States	 	09/085,262	 	6,131,012
	United States	 	09/520,156	 	6,668,174

	E.
	RELIABLE ATM MICROWAVE LINK AND NETWORK, REGISTERED AS FOLLOWS:

	COUNTRY

	 	SERIAL

NUMBER
	 	PATENT

NUMBER
	 	STATUS

	United States	 	08/388,110	 	US 5,648,969	 	Issued
	Canada	 	2,212,799	 	2,212,799	 	Issued
	Europe	 	96908457.3	 	 	 	Pending
	Israel	 	117,118	 	117,118	 	Issued
	Korea	 	705742/1997	 	405576	 	Issued

	F.
	BURST-ERROR RESISTANT ATM MICROWAVE LINK AND NETWORK, REGISTERED AS FOLLOWS:

	COUNTRY

	 	SERIAL

NUMBER
	 	PATENT

NUMBER

	United States	 	08/538,327	 	5,710,756
	Canada	 	2,206,677	 	2,206,677
	Europe	 	96933905.0	 	795212

	G.
	WIRELESS ATM METROPOLITAN AREA NETWORK, REGISTERED AS FOLLOWS:

	COUNTRY

	 	SERIAL

NUMBER
	 	PATENT

NUMBER
	 	STATUS

	United States	 	08/708,593	 	5,936,949	 	Issued
	Canada	 	2,264,808	 	2,264,808	 	Issued
	China	 	97198854.4	 	ZL97198854.4	 	Issued
	Europe	 	97939607.4	 	 	 	Pending
	Israel	 	128810	 	128810	 	Issued
	Japan	 	1997/512743 and 1997/277129	 	 	 	Pending

14

 

	H.
	WIRELESS ATM NETWORK WITH HIGH QUALITY OF SERVICES SCHEDULING, REGISTERED AS FOLLOWS:

	COUNTRY

	 	SERIAL

NUMBER
	 	PATENT

NUMBER
	 	STATUS

	United States	 	08/956,256	 	6,157,614	 	Issued
	Europe	 	98955015.7	 	 	 	Published
	Hong Kong	 	01101400.1	 	 	 	Published
	United States	 	09/638,525	 	6,760,305	 	Issued
	United States	 	09/637,822	 	6,654,377	 	Issued
	United States	 	09/637,136	 	6,658,007	 	Issued
	United States	 	09/637,734	 	6,407,992	 	Issued

	I.
	HIGHLY INTEGRATED PLANAR STACKED MILLIMETER WAVE TRANSCEIVER, REGISTERED AS FOLLOWS:

	COUNTRY

	 	SERIAL

NUMBER
	 	PATENT

NUMBER
	 	STATUS

	United States	 	09/908,451	 	 	 	Published US2003/0027530
	Australia	 	2002300124	 	 	 	Pending
	Canada	 	2,393,890	 	 	 	Pending
	Japan	 	2002/208196	 	 	 	Published

	J.
	DIRECTIONAL INDICATOR FOR ANTENNAS, REGISTERED AS FOLLOWS:

	Country 
	 	Serial Number
	 	Patent Number
	 	Status

	United States	 	10/612,758	 	 	 	Published

US2005/0003873

15

  

                K.            METHOD OF SUPPORTING VOICE-BAND MODEM-TO-MODEM CALLS IN A
WIRELESS COMMUNICATION SYSTEM, REGISTERED AS FOLLOWS:

	Country 
	 	Serial Number
	 	Patent Number
	 	Status

	United States	 	10/620,912	 	 	 	Published

US2005/0014532

(b)           The
following Trademarks, registered as follows: 

	TRADEMARK 
	 	Country
	 	APPLICATION
	 	REGISTRATION

	 
	 	 
	 	No.
	 	Date
	 	No.
	 	Date

	METROFLEX	 	Mexico	 	514,851	 	Nov. 1, 2001	 	753,566	 	June 28, 2002
	

	SRT & DESIGN	 	Mexico	 	—	 	Jan. 15, 1991	 	395,305	 	—
	

	SR TELECOM & DESIGN	 	Mexico	 	546,803	 	May 13, 2002	 	754,903	 	July 22, 2002
	

	SR TELECOM & DESIGN	 	Mexico	 	—	 	May 13, 2002	 	798,821	 	—
	

	TRT DESIGN	 	BRAZIL	 	09.20 - 35 - 55	 	April 25, 1976	 	6317626	 	April 25, 1976
	

	T R T	 	BRAZIL	 	09.20 - 35 - 55	 	April 25, 1976	 	6317618	 	April 25, 1976
	

	IRT 1500 DESIGN	 	BRAZIL	 	09.35 - 80	 	August 26, 1986	 	511995518	 	August 26, 1986
	

	IRT 1500 DESIGN	 	BRAZIL	 	38.10	 	May 21, 1985	 	811995500	 	August 26, 1986
	

	IRT 1500 & DESIGN	 	BRAZIL	 	38.10	 	May 21, 1985	 	811995488	 	August 26, 1986
	

	IRT 1500 & DESIGN	 	FRANCE	 	9 - 38	 	Dec.14, 1984	 	1292562	 	Dec. 14, 1984
	

	IRT 1500 & DESIGN	 	FRANCE	 	9 - 38	 	Nov. 23, 1984	 	1290545	 	Nov. 23, 1984
	

	SWING	 	FRANCE	 	9	 	Oct. 25, 1994	 	94 541 898	 	Oct. 25, 1994
	

	TRT	 	FRANCE	 	9	 	May 6, 1987	 	1 409 210	 	May 6, 1987
	

	TRT DESIGN	 	FRANCE	 	9	 	Jan.15, 1985	 	1 295 892	 	Jan. 15, 1985
	

	TRT DESIGN	 	CANADA	 	—	 	Feb. 1, 1979	 	253,410	 	Dec. 5, 1980
	

	TRT DESIGN	 	DENMARK	 	9	 	February 1, 1960	 	VR 1960 01136	 	May 14, 1960
	

	SWING	 	DENMARK	 	9	 	October 27, 1994	 	VR 04.436 1997	 	October 24, 1997
	

	IRT 1500 & DESIGN	 	ARGENTINA	 	38	 	March 5, 1886	 	1,196,943	 	March 5, 1986
	

	TRT DESIGN	 	ARGENTINA	 	6	 	February 15, 1989	 	1 338 962	 	March 28, 1989
	

	TRT DESIGN	 	ARGENTINA	 	7	 	February 15, 1989	 	1 338 963	 	March 28, 1989
	

	TRT DESIGN	 	ARGENTINA	 	9	 	February 15, 1989	 	1 338 964	 	March 28, 1989
	

	TRT DESIGN	 	ARGENTINA	 	11	 	February 15, 1989	 	1 338 965	 	March 28, 1989
	

	TRT DESIGN	 	ARGENTINA	 	12	 	February 15, 1989	 	1 338 966	 	March 28, 1989
	

	TRT DESIGN	 	ARGENTINA	 	17	 	February 15, 1989	 	1 338 967	 	March 28, 1989
	

	IRT 1500	 	ARGENTINA	 	38	 	 	 	1 618 708	 	October 16, 1996
	

	IRT 1500	 	ARGENTINA	 	38	 	 	 	1 618 707	 	October 16, 1996
	

	TRT	 	ARGENTINA	 	6	 	 	 	1 741 143	 	June 23, 1999
	

	TRT	 	ARGENTINA	 	7	 	 	 	1 741 144	 	June 23, 1999
	

	TRT	 	ARGENTINA	 	9	 	 	 	1 741 145	 	June 23, 1999
	

	TRT	 	ARGENTINA	 	11	 	 	 	1 741 146	 	June 23, 1999
	

	TRT	 	ARGENTINA	 	12	 	 	 	1 741 147	 	June 23, 1999
	

	 	 	 	 	 	 	 	 	 	 	 

16

 

	TRT	 	ARGENTINA	 	17	 	 	 	1 741 148	 	June 23, 1999
	

	TRT DESIGN	 	VENEZUELA	 	21	 	March 29, 1960	 	40270-F	 	Sept. 5, 1961
	

	TRT DESIGN	 	UNITED KINGDOM	 	9	 	June 25, 1974	 	1,031,520	 	June 25, 1974
	

	IRT 1500 & DESIGN	 	UNITED KINGDOM	 	9	 	Dec. 14, 1984	 	1,239,604	 	Dec. 14, 1984
	

	SWING	 	UNITED KINGDOM	 	9	 	January 20, 1995	 	2,008,331	 	January 20, 1995
	

	TRT DESIGN	 	UKRAINE	 	9	 	June 18, 1993	 	4923	 	May 16, 1994
	

	TRT DESIGN	 	SWEDEN	 	9	 	June 2, 1966	 	118,463	 	Dec. 30, 1966
	

	IRT 1500 & DESIGN	 	SWEDEN	 	9 - 38	 	April 16, 1985	 	204579	 	February 20, 1987
	

	TRT DESIGN	 	SPAIN	 	64	 	Jan. 24, 1966	 	492,410	 	Nov. 24, 1967
	

	TRT DESIGN	 	SPAIN	 	63	 	Nov. 24, 1967	 	492,409	 	Nov. 24, 1967
	

	TRT DESIGN	 	SAUDI ARABIA	 	9	 	Nov. 21, 1978	 	81/75	 	March 10, 1981
	

	TRT DESIGN	 	RUSSIAN FEDERATION	 	9	 	May 11, 1976	 	57432	 	May 11, 1976
	

	TRT DESIGN	 	POLAND	 	9	 	May 21, 1966	 	46015	 	Nov. 14, 1966
	

	TRT DESIGN	 	PHILIPPINES	 	9	 	March 5, 1991	 	59084	 	August 11, 1994
	

	TRT	 	MADAGASCAR	 	9 - 11 - 17	 	June 23, 1972	 	11978	 	23 juin 1972
	

	TRT DESIGN	 	NORWAY	 	9	 	June 13, 1966	 	71613	 	March 31, 1967
	

	TRT DESIGN	 	NEW ZEALAND	 	9	 	May 4, 1976	 	B115505	 	July 12, 1978
	

	TRT DESIGN	 	MALAYSIA	 	9	 	Nov. 22, 1984	 	84/05474	 	Nov. 22, 1984
	

	TRT DESIGN	 	LEBANON	 	9	 	July 30, 1977	 	34126	 	July 30, 1977
	

	TRT DESIGN	 	IRELAND	 	9	 	Dec. 27, 1962	 	66702	 	Dec. 26, 1962
	

	TRT DESIGN	 	IRAN	 	9	 	April 23, 1960	 	20474	 	April 23, 1960
	

	TRT DESIGN	 	INDIA	 	9	 	Dec. 6, 1978	 	343461B	 	Dec. 6, 1978
	

	TRT DESIGN	 	GREECE	 	9	 	August 2, 1966	 	35981	 	2 août 1966
	

	IRT 1500 & DESIGN	 	CHINA	 	9	 	—	 	260731	 	August 30, 1986
	

	IRT 1500 & DESIGN	 	THAILAND	 	9	 	August 19, 1985	 	TM38567	 	August 19, 1985
	

	IRT 1500 & DESIGN	 	THAILAND	 	9	 	August 19, 1985	 	TM38566	 	August 19, 1985
	

	IRT 1500 & DESIGN	 	TURKEY	 	9	 	June 4, 1985	 	87062	 	June 4, 1985
	

	IRT 1500 & DESIGN	 	TURKEY	 	9	 	May 6, 1985	 	85906	 	May 6, 1985
	

	IRT 1500 & DESIGN	 	KOREA	 	39	 	May 9, 1985	 	126,124	 	May 30, 1986
	

	IRT 1500 & DESIGN	 	KOREA	 	106	 	May 9, 1985	 	6,079	 	March 21, 1986
	

	IRT 1500 & DESIGN	 	AUSTRALIA	 	9	 	May 2, 1985	 	426,261	 	May 2, 1985
	

	IRT 1500 & DESIGN	 	AUSTRALIA	 	37	 	May 2, 1985	 	426,260	 	May 2, 1985
	

	IRT 1500 & DESIGN	 	AUSTRALIA	 	37	 	May 2, 1985	 	426,259	 	May 2, 1985
	

	IRT 1500 & DESIGN	 	AUSTRALIA	 	9	 	May 2, 1985	 	426,258	 	May 2, 1985
	

	TRT DESIGN	 	AUSTRALIA	 	9	 	May 4, 1976	 	296,526	 	May 4, 1976
	

	IRT 1500 & DESIGN	 	INTERNATIONAL REGISTER	 	9 - 38	 	May 10, 1985	 	492,873	 	May 10, 1985
	

	SWING	 	INTERNATIONAL REGISTER	 	9	 	—	 	633327	 	March 20, 1995
	

	T.R.T.	 	BULGARIA	 	9	 	May 4, 1976	 	10663	 	May 4, 1976
	

	TRT DESIGN	 	CHILE	 	9	 	Feb. 12, 1996	 	462,152	 	June 5, 1996
	 	 	 	 	 	 	 	 	 	 	 

17

 

	

	TRT DESIGN	 	ESTONIA	 	9	 	Nov. 2, 1993	 	11418	 	June 6, 1994
	

	TRT DESIGN	 	FINLAND	 	9	 	May 31, 1966	 	50142	 	May 5, 1967

23.2       Scheduled
Securities: 

             23.2.1     All
of the issued and outstanding shares or other Securities (of all classes and categories) held and/or owned by the Grantor in the capital stocks of each of
the Subsidiaries. 

24.           FORM OF BONDS  

"C
A N A D A 

	PROVINCE OF QUEBEC	 	Bond No.                

 
 

BOND    
    

SR TELECOM INC. (the "Debtor"), a legal person and a corporation duly incorporated under
the Canada Business Corporations Act, having its registered office at 8150 Trans-Canada Highway, in the City of Montreal (Saint-Laurent),
Province of Quebec, for value received, promises to pay on demand to at the Trustee's office located in Toronto, Province of Ontario, the principal sum
of                        in lawful money of Canada,
together with interest thereon from the date of this Bond, in like money, at the rate of twenty-five percent (25%) per annum, with interest on all overdue interest at the same rate from
the date such interest is due until the date of payment thereof. 

        This
Bond is issued under and secured by a "Deed of Hypothec to Secure Bonds" bearing formal date of May 12, 2005
(the "Deed") executed by the Debtor in favour of COMPAGNIE TRUST BNY CANADA / BNY TRUST COMPANY OF CANADA
(the "Trustee"), as trustee and therein defined Fondé de Pouvoir for the
Bondholders, and is governed by and its holder is bound by the provisions thereof. 

        This
Bond shall not become obligatory until it has been certified by the Trustee and may be transferred by its holder in accordance with the terms of the Deed. 

        IN WITNESS WHEREOF, the Debtor has caused this Bond to be signed by its representative and to be dated the            day of
            ,            . 

	 	 	SR TELECOM INC.
	

 	
 	

Per:	

 
 

TRUSTEE'S CERTIFICATE  

        This
Bond has been issued under the Deed and is the holder hereof. 

DATED:

	 	 	COMPAGNIE TRUST BNY CANADA /

BNY TRUST COMPANY OF CANADA, Trustee
	

 	
 	

Per:	

18

   25.   LANGUAGE  

25.1 The parties hereby confirm their express wish that this Deed and all related documents be drawn up in English, but without prejudice
to any such documents which may from time to time be drawn up in French only, or in both English and French; 

Les
parties confirment leur volonté expresse que le présent acte et tous les documents connexes soient rédigés en anglais, mais sans
préjudice cependant à tous tels documents qui pourront à l'occasion être rédigés en français
seulement, ou à la fois en anglais et en français. 

WHEREOF ACTE:  

DONE AND PASSED at the City of Montreal, Province of Quebec on the day, month and year hereinabove first mentioned and of record under the number
            of the original Minutes of the undersigned Notary. 

AND AFTER DUE READING HEREOF, the parties have signed with and in the presence of the undersigned Notary. 

	 	 	SR TELECOM INC.
	

 	
 	

Per:	

/s/  David L. Adams      
 David L. Adams,

Senior Vice-President, Finance, Chief Financial Officer and Secretary

	

 	
 	
COMPAGNIE TRUST BNY CANADA / BNY TRUST COMPANY OF CANADA
	

 	
 	

Per:	

/s/  Gerald F. Kandestin      
 Gerald F. Kandestin,

Power of Attorney, mandatary and representative
	

 	
 	

 	

/s/  Robert Alain      
Robert Alain,

Notary

19

QuickLinks

DEED OF HYPOTHEC TO SECURE BONDS

BOND

TRUSTEE'S CERTIFICATE

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