Document:

Exhibit
      10.2

     

    

     

    EXECUTION
      COPY

     

    

     

    

     

    

     

    

     

    REGISTRATION
      RIGHTS AGREEMENT

     

    BY
      AND BETWEEN

     

    MISCOR
      GROUP, LTD.,

     

    TONTINE
      CAPITAL PARTNERS, L.P.

     

    AND

     

    TONTINE
      CAPITAL OVERSEAS MASTER FUND, L.P.

     

    JANUARY
      18, 2007

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    TABLE
      OF CONTENTS

     

    
      	 	 	
              Page

            
	 	 	 
	
              ARTICLE
                1

            	
              Definitions

            	
              1

            
	 	 	 
	
              ARTICLE
                2

            	
              Registration
                Rights

            	
              3

            
	 	
              2.1

            	
              Current
                Public Information

            	
              3

            
	 	
              2.2

            	
              Registration.

            	
              4

            
	 	
              2.3

            	
              Demand
                Registration

            	
              4

            
	 	
              2.4

            	
              Piggyback
                Registration.

            	
              7

            
	 	
              2.5

            	
              Underwriting;
                Holdback Agreements.

            	
              8

            
	 	
              2.6

            	
              Registration
                Procedures

            	
              9

            
	 	
              2.7

            	
              Conditions
                Precedent to Company’s Obligations Pursuant to this
                Agreement

            	
              11

            
	 	
              2.8

            	
              Fees
                and Expenses

            	
              11

            
	 	
              2.9

            	
              Indemnification.

            	
              11

            
	 	
              2.10

            	
              Participation
                in Registrations.

            	
              14

            
	 	
              2.11

            	
              Compliance

            	
              15

            
	 	 	 
	
              ARTICLE
                3

            	
              Transfers
                of Certain Rights

            	
              15

            
	 	
              3.1

            	
              Transfer

            	
              15

            
	 	
              3.2

            	
              Transferees

            	
              15

            
	 	
              3.3

            	
              Subsequent
                Transferees

            	
              15

            
	 	 	 
	
              ARTICLE
                4

            	
              Miscellaneous

            	
              15

            
	 	
              4.1

            	
              Recapitalizations,
                Exchanges, etc

            	
              15

            
	 	
              4.2

            	
              No
                Inconsistent Agreements

            	
              15

            
	 	
              4.3

            	
              Amendments
                and Waivers

            	
              15

            
	 	
              4.4

            	
              Severability

            	
              16

            
	 	
              4.5

            	
              Counterparts

            	
              16

            
	 	
              4.6

            	
              Notices

            	
              16

            
	 	
              4.7

            	
              Governing
                Law

            	
              17

            
	 	
              4.8

            	
              Forum;
                Service of Process

            	
              17

            
	 	
              4.9

            	
              Captions

            	
              17

            
	 	
              4.10

            	
              No
                Prejudice

            	
              17

            
	 	
              4.11

            	
              Words
                in Singular and Plural Form

            	
              17

            
	 	
              4.12

            	
              Remedy
                for Breach

            	
              17

            
	 	
              4.13

            	
              Successors
                and Assigns, Third Party Beneficiaries

            	
              17

            
	 	
              4.14

            	
              Entire
                Agreement

            	
              18

            
	 	
              4.15

            	
              Attorneys’
                Fees

            	
              18

            
	 	
              4.16

            	
              Termination
                of Rights

            	
              18

            

    

    

     

    

     

    
      
        i

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    

    REGISTRATION
      RIGHTS AGREEMENT

     

    This
      REGISTRATION RIGHTS AGREEMENT, dated as of January 18, 2007, is entered into
      by
      and between MISCOR GROUP, LTD., an Indiana corporation (the “Company”),
      TONTINE CAPITAL PARTNERS, L.P., a Delaware limited partnership (“TCP”
or
      a
“Purchaser”)
      and
      TONTINE CAPITAL OVERSEAS MASTER FUND, L.P., a Cayman Islands limited partnership
      (a“Purchaser”
      and
      together with TCP, the“Purchasers”).
      

     

    RECITALS:

     

    A. The
      Company desires to issue and sell 62,500,000 shares of its Common Stock to
      the
      Purchasers as set forth in the Securities Purchase Agreement dated as of January
      18, 2007, entered into by and between the Company and the Purchasers (the
“Securities
      Purchase Agreement”);

     

    B. It
      is a
      condition precedent to the consummation of the transactions contemplated by
      the
      Securities Purchase Agreement that the Company provide for the rights set forth
      in this Agreement; and

     

    C. Certain
      terms used in this Agreement are defined in Article
      1
      hereof.

     

    AGREEMENT

     

    NOW,
      THEREFORE, in consideration of the foregoing premises and the mutual covenants
      and agreements hereinafter contained, and for other good and valuable
      consideration, the receipt and sufficiency of which are hereby acknowledged,
      intending to be legally bound, the parties hereto hereby agree as
      follows:

     

     

    ARTICLE
      1

    Definitions

     

    “Affiliate”
means
      any Person that directly or indirectly controls, or is under control with,
      or is
      controlled by such Person. As used in this definition, “control” (including with
      its correlative meanings, “controlled by” and “under common control with”) shall
      mean the possession, directly or indirectly, of the power to direct or cause
      the
      direction of the management or policies of a Person (whether through ownership
      of securities or partnership or other ownership interests, by contract or
      otherwise).

     

    “Business
      Day”
means
      any day excluding Saturday, Sunday or any other day which is a legal holiday
      under the laws of the State of Indiana or is a day on which banking institutions
      therein located are authorized or required by law or other governmental action
      to close.

     

    “Closing
      Date”
has
      the
      meaning ascribed to such term in the Securities Purchase Agreement.

     

    “Common
      Stock”
means
      the common stock, no par value per share, of the Company.

     

    “Company”
has
      the
      meaning set forth in the preamble.

     

    “Demand
      Notice”
has
      the
      meaning set forth in Section 2.3.

     

    “Designated
      Holders”
means
      the Purchasers and any qualifying transferees of the Purchasers under
Section 3.1
      hereof
      who hold Registrable Securities.

     

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    “Effectiveness
      Date”
means
      (a) with respect to the initial Registration Statement required to be filed
      under Section 2.2(a),
      the
      earlier of: (i) the first anniversary of the Closing Date, and (ii) the fifth
      trading day following the date on which the Company is notified by the SEC
      that
      the initial Registration Statement will not be reviewed or is no longer subject
      to further review and comments, and (b) with respect to any additional
      Registration Statements that may be required pursuant to Section 2.2(b),
      the
      earlier of (i) the 120th
      day
      following (x) if such Registration Statement is required because the SEC shall
      have notified the Company in writing that certain Registrable Securities were
      not eligible for inclusion on a previously filed Registration Statement, the
      date or time on which the SEC shall indicate as being the first date or time
      that such Registrable Securities may then be included in a Registration
      Statement, or (y) if such Registration Statement is required for a reason other
      than as described in (x) above, the date on which the Company first knows,
      or
      reasonably should have known, that such additional Registration Statement(s)
      is
      required, and (ii) the fifth trading day following the date on which the Company
      is notified by the SEC that such additional Registration Statement will not
      be
      reviewed or is no longer subject to further review and comment.

     

    “Effectiveness
      Period”
has
      the
      meaning set forth in Section 2.2(a).

     

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

     

    “Filing
      Date”
means
      (a) with respect to the initial Registration Statement required to be filed
      under Section 2.2(a),
      the
      date which is six months following the Closing Date, and (b) with respect to
      any
      additional Registration Statements that may be required pursuant to Section 2.2(b),
      the
      45th
      day
      following (x) if such Registration Statement is required because the SEC shall
      have notified the Company in writing that certain Registrable Securities were
      not eligible for inclusion on a previously filed Registration Statement, the
      date or time on which the SEC shall indicate as being the first date or time
      that such Registrable Securities may then be included in a Registration
      Statement, or (y) if such Registration Statement is required for a reason other
      than as described in (x) above, the date on which the Company first knows,
      or
      reasonably should have known, that such additional Registration Statement(s)
      is
      required.

     

    “Indemnified
      Party”
has
      the
      meaning set forth in Section 2.9.

     

    “Losses”
has
      the
      meaning set forth in Section 
      2.9.

     

    “Majority
      Holders”
means
      those Designated Holders holding a majority of the Registrable
      Securities.

     

    “Person”
means
      any individual, company, partnership, firm, joint venture, association,
      joint-stock company, trust, unincorporated organization, governmental body
      or
      other entity.

     

    “Piggyback
      Registration” has
      the
      meaning set forth in Section 2.4.

     

    “Purchasers”
has
      the
      meaning set forth in the preamble.

     

    “Purchase
      Price”
      has the
      meaning ascribed to such term in the Securities Purchase Agreement.

     

    “Registrable
      Securities”
means,
      subject to the immediately following sentences, (i) shares of Common Stock
      acquired by the Purchasers from the Company pursuant to the Securities Purchase
      Agreement or, so long as this Agreement is still in effect, any other shares
      of
      Common Stock acquired by the Purchasers after the Closing Date, and (ii) any
      shares of Common Stock issued or issuable, directly or indirectly, with respect
      to the securities referred to in clause (i) by way of stock dividend or stock
      split or

     

    

    
      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

    

    

    in
      connection with a combination of shares, recapitalization, merger, consolidation
      or other reorganization. In addition, any particular shares of Common Stock
      constituting Registrable Securities will cease to be Registrable Securities
      when
      they (x) have been effectively registered under the Securities Act and disposed
      of in accordance with a Registration Statement covering them, (y) have been
      sold
      to the public pursuant to Rule 144 (or by similar provision under the Securities
      Act), or (z) are eligible for resale under Rule 144(k) (or by similar provision
      under the Securities Act) without any limitation on the amount of securities
      that may be sold under paragraph (e) thereof.

     

    “Registration
      Statement”
means
      a
      registration statement on Form S-3 (or, if the Company is not eligible to use
      Form S-3, such other appropriate registration form of the SEC pursuant to which
      the Company is eligible to register the resale of Registrable Securities) filed
      by the Company under the Securities Act which covers any of the Registrable
      Securities pursuant to the provisions of this Agreement, including the
      prospectus, amendments and supplements to such registration statement, including
      post-effective amendments, all exhibits and all material incorporated by
      reference in such registration statement, which shall permit the Purchasers
      to
      offer and sell, on a delayed or continuous basis pursuant to Rule 415 under
      the
      Securities Act, the Registrable Securities.

     

    “register,”
      “registered”
and
      “registration”
each
      shall refer to a registration effected by preparing and filing a registration
      statement or statements or similar documents in compliance with the Securities
      Act and the declaration or ordering of effectiveness of such registration
      statement(s) or documents by the SEC.

     

    “Representatives”
has
      the
      meaning set forth in Section 2.9.

     

    “Rule
      144”
      means
      Rule 144 promulgated by the SEC pursuant to the Securities Act, as such Rule
      may
      be amended from time to time, or any similar rule or regulation hereafter
      adopted by the SEC having substantially the same effect as such
      Rule.

     

    “Rule
      415”
      means
      Rule 415 promulgated by the SEC pursuant to the Securities Act, as such Rule
      may
      be amended from time to time, or any similar rule or regulation hereafter
      adopted by the SEC having substantially the same effect as such
      Rule.

     

    “SEC”
means
      the United States Securities and Exchange Commission or any other federal agency
      at the time administering the Securities Act.

     

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

     

    “Securities
      Purchase Agreement”
has
      the
      meaning set forth in the recitals.

     

     

    ARTICLE
      2

    Registration
      Rights

     

    2.1 Current
      Public Information.
      The
      Company covenants that it will use its best efforts to file all reports required
      to be filed by it under the Exchange Act and the rules and regulations adopted
      by the SEC thereunder, and will use its reasonable best efforts to take such
      further action as the Designated Holders may reasonably request, all to the
      extent required to enable the Designated Holders to sell Registrable Securities
      pursuant to Rule 144 or Rule 144A adopted by the SEC under the Securities Act
      or
      any similar rule or regulation hereafter adopted by the SEC. The Company shall,
      upon the request of a Designated Holder, deliver to such Designated Holder
      a
      written statement as to whether it has complied with such requirements during
      the twelve month period immediately preceding the date of such
      request.

     

    

    
      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

    

    

    2.2 Registration.

     

    (a) On
      or
      prior to each Filing Date, the Company shall prepare and file with the SEC
      a
      Registration Statement covering the resale of all Registrable Securities not
      already covered by an existing and effective Registration Statement for an
      offering to be made on a continuous basis pursuant to Rule 415. The Registration
      Statement shall provide for the resale from time to time, and pursuant to any
      method or combination of methods legally available by the Designated Holders
      of
      any and all Registrable Securities. The Company shall use its reasonable best
      efforts to cause the Registration Statement to be declared effective under
      the
      Securities Act as soon as possible but, in any event, no later than its
      Effectiveness Date, and shall use its reasonable best efforts to keep the
      Registration Statement continuously effective, supplemented and amended to
      the
      extent necessary to ensure that is available for the resale of all Registrable
      Securities by the Designated Holders and that it conforms in all material
      respects to the requirements of the Securities Act during the entire period
      beginning on the Effectiveness Date and ending on the date on which all
      Registrable Securities have ceased to be Registrable Securities. (the
“Effectiveness
      Period”). 

     

    (b) If
      for
      any reason the SEC does not permit all of the Registrable Securities to be
      included in a Registration Statement filed pursuant to Section 2.2(a)
      or for
      any other reason all Registrable Securities then outstanding are not then
      included in such an effective Registration Statement, then the Company shall
      prepare and file as soon as reasonably possible after the date on which the
      SEC
      shall indicate as being the first date or time that such filing may be made,
      but
      in any event by the Filing Date therefore, an additional Registration Statement
      covering the resale of all Registrable Securities not already covered by an
      existing and effective Registration Statement for an offering to be made on
      a
      continuous basis pursuant to Rule 415. Each such Registration Statement shall
      provide for the resale from time to time, and pursuant to any method or
      combination of methods legally available by the Designated Holders of any and
      all Registrable Securities. The Company shall use its reasonable best efforts
      to
      cause each such Registration Statement to be declared effective under the
      Securities Act as soon as possible but, in any event, no later than its
      Effectiveness Date, and shall use its reasonable best efforts to keep such
      Registration Statement continuously effective under the Securities Act during
      the entire Effectiveness Period.

     

    (c) The
      Company may, at any time it is eligible to do so, file a post-effective
      amendment on Form S-3 to any Registration Statement on Form S-1 for the resale
      of any then existing Registrable Securities or in any such other manner as
      is
      preferred or permitted by the SEC to convert such Registration Statement to
      a
      Form S-3 Registration Statement. Upon the effectiveness of such Form S-3
      Registration Statement, all references to a Registration Statement in this
      Agreement shall then automatically be deemed to be a reference to the Form
      S-3
      Registration Statement. 

     

    2.3 Demand
      Registration.
      In
      addition to the registration obligations of the Company set forth in
Section 2.2
      herein,
      the following provisions shall apply:

     

    (a) Subject
      to Section 2.3(i),
      upon
      the written request of the Majority Holders, requesting that the Company effect
      the registration under the Securities Act of all or part of such Designated
      Holders’ Registrable Securities and specifying the intended method of
      disposition thereof (the “Demand
      Notice”),
      the
      Company will promptly give written notice of such requested registration to
      all
      Designated Holders, and thereupon the Company will use its reasonable best
      efforts to file with the SEC as soon as reasonably practicable following the
      Demand Notice (but in no event later than the date that is 90 days after the
      Demand Notice) a Registration Statement. The Company shall use its reasonable
      best efforts to cause such Registration Statement to be declared effective
      by
      the SEC within 90 days after the initial filing of the Registration
      Statement. The
      Company shall include in such Registration Statement:

     

    

    
      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

    

    

    (i) the
      Registrable Securities which the Company has been so requested to be registered
      by such Designated Holders for disposition in accordance with the intended
      method of disposition stated in such request; 

     

    (ii) all
      other
      Registrable Securities the holders of which shall have made a written request
      to
      the Company for registration thereof within 30 days after the giving of such
      written notice by the Company (which request shall specify the intended method
      of disposition of such Registrable Securities); and

     

    (iii) all
      shares of Common Stock which the Company or Persons entitled to exercise
“piggy-back” registration rights pursuant to contractual commitments of the
      Company may elect to register in connection with the offering of Registrable
      Securities pursuant to this Section 2.3;

     

    all
      to
      the extent requisite to permit the disposition (in accordance with the intended
      methods thereof as aforesaid) of the Registrable Securities and the additional
      shares of Common Stock, if any, so to be registered; provided, that, the
      provisions of this Section 2.3
      shall
      not require the Company to effect more than two registrations of Registrable
      Securities.

     

    (b) Notwithstanding
      anything to the contrary contained in this Agreement, the Company shall not
      be
      required to effect a registration pursuant to this Section 2.3
      within
      180 days following the effective date of a registration statement filed by
      the
      Company in accordance with Sections 2.2,
      2.3
      or
2.4
      for the
      account of another Designated Holder of Registrable Securities if the Designated
      Holders were afforded the opportunity to include the Registrable Securities
      in
      such registration. 

     

    (c) The
      registrations under this Section 2.3
      shall be
      on an appropriate Registration Statement that permits the disposition of such
      Registrable Securities in accordance with the intended methods of distribution
      specified by the Majority Holders in their request for registration. The Company
      agrees to include in any such Registration Statement all information which
      Designated Holders of Registrable Securities being registered shall reasonably
      request to effect the registration.

     

    (d) A
      registration requested pursuant to this Section 2.3
      shall
      not be deemed to have been effected (i) unless a Registration Statement with
      respect thereto has become effective; provided, that a Registration Statement
      which does not become effective after the Company has filed a Registration
      Statement with respect thereto solely by reason of the refusal to proceed of
      the
      Majority Holders (other than a refusal to proceed based upon the advice of
      counsel relating to a matter with respect to the Company) or because of a breach
      of this Agreement by any Designated Holder shall be deemed to have been effected
      by the Company at the request of the Majority Holders unless the Designated
      Holders electing to have Registrable Securities registered pursuant to such
      Registration Statement shall have elected to pay all fees and expenses otherwise
      payable by the Company in connection with such registration pursuant to
Section 2.8,
      (ii)
      if, after it has become effective, such registration is withdrawn by the Company
      (other than at the request of the Majority Holders) or interfered with by any
      stop order, injunction or other order or requirement of the SEC or other
      governmental agency or court for any reason prior to the expiration of a 180
      day
      period following such Registration Statement’s effectiveness, or (iii) if the
      conditions to closing specified in any purchase agreement or underwriting
      agreement entered into in connection with such registration are not satisfied,
      other than due solely to some act or omission by the Designated Holders electing
      to have Registrable Securities registered pursuant to such Registration
      Statement.

     

    (e) Intentionally
      Omitted.

     

    

    
      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

    

    

    (f) If
      a
      requested registration pursuant to this Section 2.3
      involves
      an underwritten offering, and the managing underwriter shall advise the Company
      in writing (with a copy to each Designated Holder of Registrable Securities
      requesting registration) that, in its opinion, the number of securities
      requested to be included in such registration (including securities of the
      Company which are not Registrable Securities) exceeds the number which can
      be
      sold in such offering within a price range reasonably acceptable to the Company
      and to the holders of a majority (by number of shares) of the Registrable
      Securities requested to be included in such Registration Statement, the Company
      will include in such registration, to the extent of the number which the Company
      is so advised can be sold in such offering, (i) first, the Registrable
      Securities which have been requested to be included in such registration by
      the
      Designated Holders pursuant to this Agreement (pro rata based on the amount
      of
      Registrable Securities sought to be registered by such Persons), (ii) second,
      provided that no securities sought to be included by the Designated Holders
      have
      been excluded from such registration, the securities of other Persons entitled
      to exercise “piggy-back” registration rights pursuant to contractual commitments
      of the Company (pro rata based on the amount of securities sought to be
      registered by such Persons) and (iii) third, securities the Company proposes
      to
      register.

     

    (g) The
      Company shall use its reasonable best efforts to keep any Registration Statement
      filed pursuant to this Section 2.3
      continuously effective (i) for a period of two years after the Registration
      Statement first becomes effective, plus the number of days during which such
      Registration Statement was not effective or usable pursuant to Sections 2.6(e)
      or
2.6(i);
      or (ii)
      if such Registration Statement related to an underwritten offering, for such
      period as in the opinion of counsel for the underwriters a prospectus is
      required by law to be delivered in connection with sales of Registrable
      Securities by an underwriter or dealer. In the event the Company shall give
      any
      notice pursuant to Sections 2.6(e)
      or
(i),
      the
      additional time period mentioned in Section 2.3(f)(i)
      during
      which the Registration Statement is to remain effective shall be extended by
      the
      number of days during the period from and including the date of the giving
      of
      such notice pursuant to Sections 2.6(e)
      or
(i)
      to and
      including the date when each seller of a Registrable Security covered by the
      Registration Statement shall have received the copies of the supplemented or
      amended prospectus contemplated by Sections 2.6(e)
      or
(i).

     

    (h) The
      Company shall have the right at any time, to suspend the filing of a
      Registration Statement under this Section 2.3
      or
      require that the Designated Holders of Registrable Securities suspend further
      open market offers and sales of Registrable Securities pursuant to a
      Registration Statement filed hereunder for a period not to exceed an aggregate
      of 30 days in any six month period or an aggregate of 60 days in any
      twelve-month period for valid business reasons (not including avoidance of
      their
      obligations hereunder) (i) to avoid premature public disclosure of a pending
      corporate transaction, including pending acquisitions or divestitures of assets,
      mergers and combinations and similar events; (ii) upon the occurrence of any
      of
      the events specified in Section 2.6(e),
      until
      the time that the Designated Holders receive copies of a supplement or amendment
      to the prospectus included in the applicable Registration Statement as
      contemplated in Section 2.6(e);
      and
      (iii) upon the occurrence of any of the events specified in Section 2.6(i),
      until
      the time the Company notifies the Designated Holders in writing that such
      suspension is no longer effective.

     

    (i) The
      right
      of Designated Holders to register Registrable Securities pursuant to this
Section 2.3
      is only
      exercisable if, prior to the expiration of the Effectiveness Period, the Company
      becomes ineligible to register the Registrable Securities on the Registration
      Statement contemplated by Section 2.2
      or such
      Registration Statement otherwise becomes unusable (other than due solely to
      some
      act or omission by the Designated Holders electing to have Registrable
      Securities registered pursuant to such Registration Statement) or ineffective
      and the Company is not able to correct the misstatements, have the applicable
      stop order rescinded or otherwise restore the effectiveness of the Registration
      Statement as contemplated by this Agreement.

     

    

    
      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

    

    

    2.4 Piggyback
      Registration. 

     

    (a) Whenever
      the Company proposes to register any of its securities under the Securities
      Act
      (other than pursuant to a registration pursuant to Section 2.2
      or
Section 2.3
      or a
      registration on Form S-4 or S-8 or any successor or similar forms) and the
      registration form to be used may be used for the registration of Registrable
      Securities, whether or not for sale for its own account, the Company will give
      prompt written notice (but in no event less than 30 days before the anticipated
      filing date) to all Designated Holders (other than Designated Holders all of
      whose Registrable Securities are then covered by an effective Registration
      Statement), and such notice shall describe the proposed registration and
      distribution and offer to all such Designated Holders the opportunity to
      register the number of Registrable Securities as each such Designated Holder
      may
      request. The Company will include in such registration statement all Registrable
      Securities with respect to which the Company has received written requests
      for
      inclusion therein within 15 days after the Designated Holders’ receipt of the
      Company’s notice (a “Piggyback
      Registration”).

     

    (b) The
      Company shall use its reasonable best efforts to cause the managing underwriter
      or underwriters of a proposed underwritten offering involving a Piggyback
      Registration to permit the Registrable Securities requested to be included
      in a
      Piggyback Registration to be included on the same terms and conditions as any
      similar securities of the Company or any other security holder included therein
      and to permit the sale or other disposition of such Registrable Securities
      in
      accordance with the intended method of distribution thereof.

     

    (c) Any
      Designated Holder shall have the right to withdraw its request for inclusion
      of
      its Registrable Securities in any Registration Statement pursuant to this
Section 2.4
      by
      giving written notice to the Company of its request to withdraw; provided,
      that
      in the event of such withdrawal (other than pursuant to Section 2.4(e)
      hereof,
      the Company shall not be required to reimburse such Designated Holder for the
      fees and expenses referred to in Section 2.8
      hereof
      incurred by such Designated Holder prior to such withdrawal, unless such
      withdrawal was due to a material adverse change to the Company. The Company
      may
      withdraw a Piggyback Registration at any time prior to the time it becomes
      effective.

     

    (d) If
      (i) a
      Piggyback Registration involves an underwritten offering of the securities
      being
      registered, whether or not for sale for the account of the Company, to be
      distributed (on a firm commitment basis) by or through one or more underwriters
      of recognized standing under underwriting terms appropriate for such a
      transaction, and (ii) the managing underwriter of such underwritten offering
      shall inform the Company and Designated Holders requesting such registration
      by
      letter of its belief that the distribution of all or a specified number of
      such
      Registrable Securities concurrently with the securities being distributed by
      such underwriters would interfere with the successful marketing of the
      securities being distributed by such underwriters (such writing to state the
      basis of such belief and the approximate number of such Registrable Securities
      which may be distributed without such effect), then the Company will be required
      to include in such registration only the amount of securities which it is so
      advised should be included in such registration. In such event: (x) in cases
      initially involving the registration for sale of securities for the Company’s
      own account, securities shall be registered in such offering in the following
      order of priority: (i) first, the securities which the Company proposes to
      register, and (ii) second, Registrable Securities and securities which have
      been
      requested to be included in such registration by Persons entitled to exercise
      “piggy-back” registration rights pursuant to contractual commitments of the
      Company (pro rata based on the amount of securities sought to be registered
      by
      Designated Holders and such other Persons); and (y) in cases not initially
      involving the registration for sale of securities for the Company’s own account,
      securities shall be registered in such offering in the following order of
      priority: (i) first, the securities of any Person whose exercise of a “demand”
registration right pursuant to a contractual commitment of the Company is the
      basis for the registration, (ii) second, Registrable Securities and
      securities which have been requested to be included in such registration by
      Persons entitled

     

    

    
      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

    

    

    to
      exercise “piggy-back” registration rights pursuant to contractual commitments of
      the Company (pro rata based on the amount of securities sought to be registered
      by Designated Holders and such other Persons), and (iii) third, the securities
      which the Company proposes to register.

     

    (e) If,
      as a
      result of the proration provisions of this Section 2.4,
      any
      Designated Holders shall not be entitled to include all Registrable Securities
      in a Piggyback Registration that such Designated Holders has requested to be
      included, such holder may elect to withdraw his request to include Registrable
      Securities in such registration.

     

    (f) The
      right
      of the Designated Holders to register Registrable Securities pursuant to this
      Section 2.4
      is only
      exercisable with respect to Registrable Securities not then covered by an
      effective Registration Statement.

     

    2.5 Underwriting;
      Holdback Agreements. 

     

    (a) In
      the
      event that one or more Designated Holders elect to dispose of Registrable
      Securities under a Registration Statement pursuant to an underwritten offering
      or a requested registration pursuant to Section 2.3
      involves
      an underwritten offering, the managing underwriter or underwriters shall be
      selected by the holders of a majority (by number of shares) of the Registrable
      Securities to be sold in the underwritten offering or requested to be included
      in such Registration Statement and shall be reasonably acceptable to the
      Company. In connection with any such underwritten offering, the Company shall
      take all such reasonable actions as are required by the managing underwriters
      in
      order to expedite and facilitate the registration and disposition of the
      Registrable Securities, including the Company causing appropriate officers
      of
      the company or its Affiliates to participate in a “road show” or similar
      marketing effort being conducted by such managing underwriters with respect
      to
      such underwritten offering.

     

    (b) All
      Designated Holders proposing to distribute their Registrable Securities through
      an underwritten offering shall enter into an underwriting agreement in customary
      form with the managing underwriters selected for such underwritten
      offering.

     

    (c) To
      the
      extent not inconsistent with applicable law, in connection with a public
      offering of securities of the Company, upon the request of the Company or,
      in
      the case of an underwritten public offering of the Company’s securities, the
      managing underwriters, each Designated Holder who beneficially owns (as defined
      in Rule 13d-3 adopted by the SEC under the Exchange Act) at least 5% of the
      outstanding capital stock of the Company will not effect any sale or
      distribution (other than those included in the registration statement being
      filed with respect to such public offering) of, or any short sale of, or any
      grant of option to purchase, or any hedging or similar transaction with respect
      to, any securities of the Company, or any securities, options or rights
      convertible into or exchangeable or exercisable for such securities during
      the
      14 days prior to and the 90-day period beginning on the effective date of such
      public offering, unless the Company, or in the case of an underwritten public
      offering, the managing underwriters otherwise agree to a shorter period of
      time.
      At the request of the Company or the managing underwriters, each such Designated
      Holder shall execute a customary “lock-up” agreement consistent with the
      provisions of this Section 2.5;
      provided, however, that no Designated Holder shall be required to enter into
      any
      such “lock up” agreement unless and until all of the Company’s executive
      officers and directors execute substantially similar “lock up” agreements and
      the Company uses commercially reasonable efforts to cause each holder of more
      than 5% of its outstanding capital stock to execute substantially similar “lock
      up” agreements. Neither the Company nor the underwriter shall terminate,
      materially amend or waive the enforcement of any material provision under a
      “lock up” agreement unless each “lock up” agreement with a Designated Holder is
      also amended or waived in a similar manner or terminated, as the case may be.
      The Company may impose stop-transfer instructions to enforce the restrictions
      imposed by this Section 2.5.

     

    

    
      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

    

    

    2.6 Registration
      Procedures.
      The
      Company will use its reasonable best efforts to effect the registration of
      Registrable Securities pursuant to this Agreement in accordance with the
      intended methods of disposition thereof, and pursuant thereto the Company will
      as expeditiously as possible:

     

    (a) before
      filing the Registration Statement, the Company will furnish to any counsel
      selected by the holders of a majority of the Registrable Securities a copy
      of
      such Registration Statement, and will provided such counsel with all written
      correspondence with the SEC regarding the Registration Statement;

     

    (b) prepare
      and file with the SEC such amendments and supplements to such Registration
      Statement and the prospectus used in connection therewith as may be necessary
      to
      keep such Registration Statement effective for the periods provided for in
      Section 2.2
      and
Section 2.3,
      or the
      periods contemplated by the Company or the Persons requesting any Registration
      Statement filed pursuant to Section 2.4;

     

    (c) furnish
      to each Designated Holder selling such Registrable Securities such number of
      copies of such Registration Statement, each amendment and supplement thereto,
      the prospectus included in the Registration Statement (including each
      preliminary prospectus) and such other documents as such seller may reasonably
      request in order to facilitate the disposition of the Registrable Securities
      owned by such Designated Holder;

     

    (d) use
      its
      reasonable best efforts to register or qualify such Registrable Securities
      under
      such other state securities or blue sky laws as the selling Designated Holders
      selling such Registrable Securities reasonably requests and do any and all
      other
      acts and things which may be reasonably necessary or reasonably advisable to
      enable such Designated Holder to consummate the disposition in such
      jurisdictions of the Registrable Securities owned by such Designated Holder
      and
      to keep each such registration or qualification (or exemption therefrom)
      effective during the period which the Registration Statement is required to
      be
      kept effective (provided, that the Company will not be required to (i) qualify
      generally to do business in any jurisdiction where it would not otherwise be
      required to qualify but for this subparagraph, (ii) subject itself to taxation
      in any such jurisdiction or (iii) consent to general service of process in
      any
      such jurisdiction);

     

    (e) notify
      each Designated Holder selling such Registrable Securities, at any time when
      a
      prospectus relating thereto is required to be delivered under the Securities
      Act, of the happening of any event as a result of which the prospectus included
      in the Registration Statement contains an untrue statement of a material fact
      or
      omits any fact necessary to make the statements therein not misleading in the
      light of the circumstances under which they were made, and, at the request
      of
      any such Designated Holder, the Company will as soon as possible prepare and
      furnish to such Designated a reasonable number of copies of a supplement or
      amendment to such prospectus so that, as thereafter delivered to the purchasers
      of such Registrable Securities, such prospectus will not contain an untrue
      statement of a material fact or omit to state any fact necessary to make the
      statements therein not misleading in the light of the circumstances under which
      they were made;

     

    (f) cause
      all
      such Registrable Securities to be listed or quoted on each securities exchange
      or quotation service on which similar securities issued by the Company are
      then
      listed or quoted and, if not so listed, to be approved for trading on any
      automated quotation system of a national securities association on which similar
      securities of the Company are quoted;

     

    (g) provide
      a
      transfer agent and registrar for all such Registrable Securities not later
      than
      the effective date of such Registration Statement;

     

    

    
      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

    

    

    (h) enter
      into such customary agreements (including underwriting agreements containing
      customary representations and warranties) and take all other customary and
      appropriate actions as the holders of a majority of the Registrable Securities
      being sold or the managing underwriters, if any, reasonably request in order
      to
      expedite or facilitate the disposition of such Registrable
      Securities;

     

    (i) notify
      each Designated Holder of any stop order issued or threatened by the
      SEC;

     

    (j) otherwise
      comply with all applicable rules and regulations of the SEC, and make available
      to its security holders, as soon as reasonably practicable, an earnings
      statement covering the period of at least twelve months beginning with the
      first
      day of the Company’s first full calendar quarter after the effective date of the
      Registration Statement, which earnings statement shall satisfy the provisions
      of
      Section 11(a) of the Securities Act and Rule 158 thereunder;

     

    (k) in
      the
      event of the issuance of any stop order suspending the effectiveness of a
      Registration Statement, or of any order suspending or preventing the use of
      any
      related prospectus or suspending the qualification of any securities included
      in
      such Registration Statement for sale in any jurisdiction, the Company will
      use
      its reasonable best efforts to promptly obtain the withdrawal of such
      order;

     

    (l) with
      respect to an underwritten offering pursuant to any Registration Statement
      filed
      under Section 2.2
      or
Section 2.3,
      obtain
      one or more comfort letters, dated the effective date of the Registration
      Statement and, if required by the managing underwriters, dated the date of
      the
      closing under the underwriting agreement, signed by the Company’s independent
      public accountants in customary form and covering such matter of the type
      customarily covered by comfort letters in similar transactions;

     

    (m) with
      respect to an underwritten offering pursuant to any Registration Statement
      filed
      under Section 2.2
      or
Section 2.3,
      obtain
      a legal opinion of the Company’s outside counsel, dated the effective date of
      such Registration Statement and, if required by the managing underwriters,
      dated
      the date of the closing under the underwriting agreement, with respect to the
      Registration Statement, each amendment and supplement thereto, the prospectus
      included therein (including the preliminary prospectus) and such other documents
      relating thereto in customary form and covering such matters of the type
      customarily covered by legal opinions in similar transactions;

     

    (n) subject
      to execution and delivery of mutually satisfactory confidentiality agreements,
      make available at reasonable times for inspection by each Designated Holder
      selling such Registrable Securities, any managing underwriter participating
      in
      any disposition of such Registrable Securities pursuant to the Registration
      Statement, and any attorney, accountant or other agent retained by such
      Designated Holder or any such managing underwriter, during normal business
      hours
      of the Company at the Company’s corporate office in South Bend, Indiana and
      without unreasonable disruption of the Company’s business or unreasonable
      expense to Company and solely for the purpose of due diligence with respect
      to
      the Registration Statement, legally disclosable, financial and other records
      and
      pertinent corporate documents of the Company and its subsidiaries reasonable
      requested by such Persons, and cause the Company’s employees to, and request its
      independent accountants to, supply all similar information reasonably requested
      by any such Person, as shall be reasonably necessary to enable them to exercise
      their due diligence responsibility;

     

    (o) cooperate
      with each seller of Registrable Securities and each underwriter participating
      in
      the disposition of such Registrable Securities and their respective counsel
      in
      connection with any filings required to be made with the OTC Bulletin Board
      or
      the National Association of Securities Dealers; and

     

    

    
      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

    

    

    (p) take
      all
      other steps reasonably necessary to effect the registration of the. Registrable
      Securities contemplated hereby.

     

    2.7 Conditions
      Precedent to Company’s Obligations Pursuant to this Agreement.
      It
      shall be a condition precedent to the obligations of the Company to take any
      action pursuant to this Article 2 with respect to the Registrable
      Securities of any Designated Holder that such Designated Holder shall timely
      furnish to the Company such information regarding itself, the Registrable
      Securities held by it and the intended method of distribution of such securities
      as shall reasonably be required to effect the registration of such Designated
      Holder’s Registrable Securities.

     

    2.8 Fees
      and Expenses.
      All
      expenses incident to the Company’s performance of or compliance with this
      Agreement including, without limitation, all registration and filing fees
      payable by the Company, fees and expenses of compliance by the Company with
      securities or blue sky laws, printing expenses of the Company, messenger and
      delivery expenses of the Company, and fees and disbursements of counsel for
      the
      Company and all independent certified public accountants of the Company, and
      other Persons retained by the Company will be borne by the Company, and the
      Company will pay its internal expenses (including, without limitation, all
      salaries and expenses of the Company’s employees performing legal or accounting
      duties), the expense of any annual audit or quarterly review, the expense of
      any
      liability insurance of the Company and the expenses and fees for listing or
      approval for trading of the securities to be registered on each securities
      exchange on which similar securities issued by the Company are then listed
      or on
      any automated quotation system of a national securities association on which
      similar securities of the Company are quoted. In connection with any
      Registration Statement filed hereunder, the Company will pay the reasonable
      fees
      and expenses of a single counsel retained by the Designated Holders of a
      majority (by number of shares) of the Registrable Securities requested to be
      included in such Registration Statement. The Company shall have no obligation
      to
      pay any underwriting discounts or commissions attributable to the sale of
      Registrable Securities and any of the expenses incurred by any Designated Holder
      which are not payable by the Company, such costs to be borne by such Designated
      Holder or Holders, including, without limitation, underwriting fees, discounts
      and expenses, if any, applicable to any Designated Holder’s Registrable
      Securities; fees and disbursements of counsel or other professionals that any
      Designated Holder may choose to retain in connection with a Registration
      Statement filed pursuant to this Agreement (except as otherwise provided
      herein); selling commissions or stock transfer taxes applicable to the
      Registrable Securities registered on behalf of any Designated Holder; any other
      expenses incurred by or on behalf of such Designated Holder in connection with
      the offer and sale of such Designated Holder’s Registrable Securities other than
      expenses which the Company is expressly obligated to pay pursuant to this
      Agreement.

     

    2.9 Indemnification. 

     

    (a) The
      Company agrees to indemnify and hold harmless, to the fullest extent permitted
      by law, each Designated Holder and its general or limited partners, officers,
      directors, members, managers, employees, advisors, representatives, agents
      and
      Affiliates (collectively, the “Representatives”),
      and
      each underwriter, if any, and any Person who controls such underwriter (within
      the meaning of Section 15 of the Securities Act), from and against any loss,
      claim, damage, liability, reasonable attorney’s fees, cost or expense and costs
      and expenses of investigating and defending any such claim (collectively, the
      “Losses”),
      joint
      or several, and any action in respect thereof to which such Designated Holder
      or
      its Representatives may become subject under the Securities Act or otherwise,
      insofar as such Losses (or actions or proceedings, whether commenced or
      threatened, in respect thereto) arise out of or are based upon (i) any breach
      by
      the Company of any of its representations, warranties or covenants contained
      in
      this Agreement, (ii) any untrue or alleged untrue statement of a material fact
      contained in any Registration Statement, prospectus or preliminary or summary
      prospectus or any amendment or supplement thereto or (iii) any omission or
      alleged omission to state therein a material fact

     

    

    
      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

    

    

    required
      to be stated therein or necessary to make the statements therein not misleading,
      and the Company shall reimburse each such Designated Holder and its
      Representatives for any reasonable legal or any other expenses incurred by
      them
      in connection with investigating or defending or preparing to defend against
      any
      such Loss, action or proceeding; provided, however, that the Company shall
      not
      be liable to any such Designated Holder or other indemnitee in any such case
      to
      the extent that any such Loss (or action or proceeding, whether commenced or
      threatened, in respect thereof) arises out of or is based upon (x) an untrue
      statement or alleged untrue statement or omission or alleged omission, made
      in
      such Registration Statement, any such prospectus or preliminary or summary
      prospectus or any amendment or supplement thereto, in reliance upon, and in
      conformity with, written information prepared and furnished to the Company
      by
      any Designated Holder or its Representatives expressly for use therein and,
      with
      respect to any untrue statement or omission or alleged untrue statement or
      omission made in any preliminary prospectus relating to the Registration
      Statement, to the extent that a prospectus relating to the Registrable
      Securities was required to be delivered by such Designated Holder under the
      Securities Act in connection with such purchase, there was not sent or given
      to
      such Person, at or prior to the written confirmation of the sale of such
      Registrable Securities to such Person, a copy of the final prospectus that
      corrects such untrue statement or alleged untrue statement or omission or
      alleged omission if the Company had previously furnished copies thereof to
      such
      Designated Holder or (y) use of a Registration Statement or the related
      prospectus during a period when a stop order has been issued in respect of
      such
      Registration Statement or any proceedings for that purpose have been initiated
      or use of a prospectus when use of such prospectus has been suspended pursuant
      to Sections 2.6(e)
      or (i);
      provided that in each case, that such Holder received prior written notice
      of
      such stop order, initiation of proceedings or suspension from the Company.
      In no
      event, however, shall the Company be liable for indirect, incidental or
      consequential or special damages of any kind. 

     

    (b) In
      connection with the filing of the Registration Statement by the Company pursuant
      to this Agreement, the Designated Holders will furnish to the Company in writing
      such information as the Company reasonably requests for use in connection with
      such Registration Statement and the related prospectus and, to the fullest
      extent permitted by law, each such Designated Holder will indemnify and hold
      harmless the Company and its Representatives, and each underwriter, if any,
      and
      any Person who controls such underwriter (within the meaning of Section 15
      of
      the Securities Act), from and against any Losses, severally but not jointly,
      and
      any action in respect thereof to which the Company and its Representatives
      may
      become subject under the Securities Act or otherwise, insofar as such Losses
      (or
      actions or proceedings, whether commenced or threatened, in respect thereof)
      arise out of or are based upon (i) the purchase or sale of Registrable
      Securities during a suspension as set forth in Section 2.6(e)
      or
Section 2.6(i)
      in each
      case after receipt of written notice of such suspension, (ii) any untrue or
      alleged untrue statement of a material fact contained in the Registration
      Statement, prospectus or preliminary or summary prospectus or any amendment
      or
      supplement thereto, or (iii) any omission or alleged omission of a material
      fact
      required to be stated therein or necessary to make the statements therein not
      misleading, but, with respect to clauses (ii) and (iii) above, only to the
      extent that such untrue statement or omission is made in such Registration
      Statement, any such prospectus or preliminary or summary prospectus or any
      amendment or supplement thereto, in reliance upon and in conformity with written
      information prepared and furnished to the Company by such Designated Holder
      expressly for use therein or by failure of such Designated Holder to deliver
      a
      copy of the Registration Statement or prospectus or any amendments or
      supplements thereto, and such Designated Holder will reimburse the Company
      and
      each Representative for any reasonable legal or any other expenses incurred
      by
      them in connection with investigating or defending or preparing to defend
      against any such Loss, action or proceeding; provided, however, that such
      Designated Holder shall not be liable in any such case to the extent that prior
      to the filing of any such Registration Statement or prospectus or amendment
      or
      supplement thereto, such Designated Holder has furnished in writing to the
      Company information expressly for use in such Registration Statement or
      prospectus or any amendment or supplement thereto which corrected or made not
      misleading information previously furnished to the Company. The obligation
      of
      each Designated Holder to indemnify the

     

    

    
      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

    

    

    Company
      and its Representatives shall be limited to the net proceeds received by such
      Designated Holder from the sale of Registrable Securities under such
      Registration Statement. In no event, however, shall any Designated Holder be
      liable for indirect, incidental or consequential or special damages of any
      kind.

     

    (c) Promptly
      after receipt by any Person in respect of which indemnity may be sought pursuant
      to Section 2.9(a)
      or
2.9(b)
      (an
“Indemnified
      Party”)
      of
      notice of any claim or the commencement of any action, the Indemnified Party
      shall, if a claim in respect thereof is to be made against the Person against
      whom such indemnity may be sought (an “Indemnifying
      Party”),
      promptly notify the Indemnifying Party in writing of the claim or the
      commencement of such action; provided, that the failure to notify the
      Indemnifying Party shall not relieve the Indemnifying Party from any liability
      which it may have to an Indemnified Party under Section 2.9(a)
      or
2.9(b)
      except
      to the extent of any actual prejudice resulting therefrom. If any such claim
      or
      action shall be brought against an Indemnified Party, and it shall notify the
      Indemnifying Party thereof, the Indemnifying Party shall be entitled to
      participate therein, and, to the extent that it wishes, jointly with any other
      similarly notified Indemnifying Party, to assume the defense thereof with
      counsel reasonably satisfactory to the Indemnified Party. After notice from
      the
      Indemnifying Party to the Indemnified Party of its election to assume the
      defense of such claim or action, the Indemnifying Party shall not be liable
      to
      the Indemnified Party for any legal or other expenses subsequently incurred
      by
      the Indemnified Party in connection with the defense thereof other than
      reasonable costs of investigation; provided, that the Indemnified Party shall
      have the right to employ separate counsel to represent the Indemnified Party
      and
      its Representatives who may be subject to liability arising out of any claim
      in
      respect of which indemnity may be sought by the Indemnified Party against the
      Indemnifying Party, but the fees and expenses of such counsel shall be for
      the
      account of such Indemnified Party unless (i) the Indemnifying Party and the
      Indemnified Party shall have mutually agreed to the retention of such counsel
      or
      (ii) in the written opinion of counsel to such Indemnified Party, representation
      of both parties by the same counsel would be inappropriate due to actual or
      potential conflicts of interest between them, it being understood, however,
      that
      the Indemnifying Party shall not, in connection with any one such claim or
      action or separate but substantially similar or related claims or actions in
      the
      same jurisdiction arising out of the same general allegations or circumstances,
      be liable for the fees and expenses of more than one separate firm of attorneys
      (together with appropriate local counsel) at any time for all Indemnified
      Parties. No Indemnifying Party shall, without the prior written consent of
      the
      Indemnified Party, effect any settlement of any claim or pending or threatened
      proceeding in respect of which the Indemnified Party is or could have been
      a
      party and indemnity could have been sought hereunder by such Indemnified Party,
      unless such settlement includes an unconditional release of such Indemnified
      Party from all liability arising out of such claim or proceeding other than
      the
      payment of monetary damages by the Indemnifying Party on behalf of the
      Indemnified Party. Whether or not the defense of any claim or action is assumed
      by the Indemnifying Party, such Indemnifying Party will not be subject to any
      liability for any settlement made without its written consent, which consent
      will not be unreasonably withheld.

     

    (d) If
      the
      indemnification provided for in this Section 2.9
      is
      unavailable to the Indemnified Parties in respect of any Losses referred to
      herein notwithstanding that this Section 2.9
      by its
      terms provides for indemnification in such case, then each Indemnifying Party,
      in lieu of indemnifying such Indemnified Party, shall contribute to the amount
      paid or payable by such Indemnified Party as a result of such Losses in such
      proportion as is appropriate to reflect the relative benefits received by the
      Company on the one hand and the Designated Holders on the other from the
      offering of the Registrable Securities, or if such allocation is not permitted
      by applicable law, in such proportion as is appropriate to reflect not only
      the
      relative benefits but also the relative fault of the Company on the one hand
      and
      the Designated Holders on the other in connection with the statements or
      omissions which resulted in such Losses, as well as any other relevant equitable
      considerations. The relative fault of the Company on the one hand and of each
      Designated Holder on the other shall be determined by reference to, among other
      things, whether any action taken, including any untrue or alleged untrue
      statement of a material fact, or 

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    the
      omission or alleged omission to state a material fact relates to information
      supplied by such party, and the parties’ relative intent, knowledge, access to
      information and opportunity to correct or prevent such statement or
      omission. 

     

    The
      Company and the Designated Holders agree that it would not be just and equitable
      if contribution pursuant to this Section 2.9(d)
      were
      determined by pro rata allocation or by any other method of allocation which
      does not take account of the equitable considerations referred to in the
      immediately preceding paragraph. The amount paid or payable by an Indemnified
      Party as a result of the Losses referred to in the immediately preceding
      paragraph shall be deemed to include, subject to the limitations set forth
      above, any reasonable legal or other expenses reasonably incurred by such
      Indemnified Party in connection with investigating or defending any such action
      or claim. Notwithstanding the provisions of this Section 2.9,
      no
      Designated Holder shall be required to contribute any amount in excess of the
      amount by which the total price at which the Registrable Securities of such
      Designated Holder were offered to the public exceeds the amount of any Losses
      which such Designated Holder has otherwise paid by reason of such untrue or
      alleged untrue statement or omission or alleged omission. No Person guilty
      of
      fraudulent misrepresentation (within the meaning of Section 11(f) of the
      Securities Act) shall be entitled to contribution from any Person who was not
      guilty of such fraudulent misrepresentation. Each Designated Holder’s
      obligations to contribute pursuant to this Section 2.9
      is
      several in the proportion that the proceeds of the offering received by such
      Designated Holder bears to the total proceeds of the offering received by all
      the Designated Holders. The indemnification provided by this Section 2.9
      shall be
      a continuing right to indemnification with respect to sales of Registrable
      Securities and shall survive the registration and sale of any Registrable
      Securities by any Designated Holder and the expiration or termination of this
      Agreement. The indemnity and contribution agreements contained herein are in
      addition to any liability that any Indemnifying Party might have to any
      Indemnified Party.

     

    (e) Notwithstanding
      the foregoing, to the extent the provisions on indemnification and contribution
      contained in the underwriting agreement entered into in connection with an
      underwritten public offering are in conflict with the foregoing provisions,
      the
      provisions in the underwriting agreement shall control for parties to that
      agreement.

     

    2.10 Participation
      in Registrations. 

     

    (a) No
      Person
      may participate in any registration hereunder which is underwritten unless
      such
      Person (i) agrees to sell such Person’s securities on the basis provided in any
      underwriting arrangements approved by the Person or Persons entitled hereunder
      to approve such arrangements and (ii) completes and executes all questionnaires,
      powers of attorney, indemnities, underwriting agreements and other documents
      reasonably required under the terms of such underwriting arrangements and this
      Agreement.

     

    (b) Each
      Person that is participating in any registration under this Agreement agrees
      that, upon receipt of any notice from the Company of the happening of any event
      of the kind described in Section 2.6(e)
      or
Section 2.6(i)
      above,
      such Person will forthwith discontinue the disposition of its Registrable
      Securities pursuant to the Registration Statement and all use of the
      Registration Statement or any prospectus or related document until such Person’s
      receipt of the copies of a supplemented or amended prospectus as contemplated
      by
      such Section 2.6(e)
      or
Section 2.6(i)
      and, if
      so directed by the Company, will deliver to the Company (at the Company’s
      expense) all copies, other than permanent file copies, then in such Designated
      Holder’s possession of such documents at the time of receipt of such notice.
      Furthermore, each Designated Holder agrees that if such Designated Holder uses
      a
      prospectus in connection with the offering and sale of any of the Registrable
      Securities, the Designated Holder will use only the latest version of such
      prospectus provided by Company.

     

    

    
      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

    

    

    2.11 Compliance.
      With
      respect to any registration under this Agreement, each Designated Holder shall
      comply in all material respects with all applicable securities and other laws,
      rules and regulations, including but not limited to all rules and regulations
      of
      the SEC, the National Association of Securities Dealers and any securities
      exchange or quotation service on which the Company’s securities are listed or
      quoted.

     

     

    ARTICLE
      3

    Transfers
      of Certain Rights

     

    3.1 Transfer.
      The
      rights granted to the Purchasers under this Agreement may be transferred,
      subject to the provisions of Sections 3.2
      and
3.3;
      provided that nothing contained herein shall be deemed to permit an assignment,
      transfer or disposition of the Registrable Securities in violation of the terms
      and conditions of the Securities Purchase Agreement or applicable
      law.

     

    3.2 Transferees.
      Any
      transferee to whom rights under this Agreement are transferred shall, before
      and
      as a condition to such transfer, deliver to the Company a written instrument
      (i)
      stating the name and address of the transferor and the transferee and the number
      of Registrable Securities with respect to which the rights are intended to
      be
      transferred, and (ii) by which such transferee agrees to be bound by the
      obligations imposed upon the Purchasers under this Agreement to the same extent
      as if such transferee were a Purchaser hereunder.

     

    3.3 Subsequent
      Transferees.
      A
      transferee to whom rights are transferred pursuant to this Section 3
      may not
      again transfer such rights to any other Person, other than as provided in
Sections 3.1
      or
3.2
      above.

     

     

    ARTICLE
      4

    Miscellaneous

     

    4.1 Recapitalizations,
      Exchanges, etc.
      The
      provisions of this Agreement shall apply to the full extent set forth herein
      with respect to (i) the Registrable Securities, (ii) any and all shares of
      Common Stock into which the Registrable Securities are converted, exchanged
      or
      substituted in any recapitalization or other capital reorganization by the
      Company and (iii) any and all equity securities of the Company or any successor
      or assign of the Company (whether by merger, consolidation, sale of assets
      or
      otherwise) which may be issued in respect of, in conversion of, in exchange
      for
      or in substitution of, the Registrable Securities and shall be appropriately
      adjusted for any stock dividends, splits, reverse splits, combinations,
      recapitalizations and the like occurring after the date hereof. The Company
      shall cause any successor or assign (whether by merger, consolidation, sale
      of
      assets or otherwise) to enter into a new registration rights agreement with
      the
      Designated Holders on terms substantially the same as this Agreement as a
      condition of any such transaction.

     

    4.2 No
      Inconsistent Agreements.
      The
      Company has not and shall not enter into any agreement with respect to its
      securities that is inconsistent with the rights granted to the Purchasers in
      this Agreement. The parties acknowledge and agree that the Company may grant
      registration rights hereafter, which shall be pari passu with the registration
      rights of the Purchasers, and shall not be deemed to conflict with this
      covenant.

     

    4.3 Amendments
      and Waivers.
      The
      provisions of this Agreement may be amended and the Company may take action
      herein prohibited, or omit to perform any act herein required to be performed
      by
      it, if, but only if, the Company has obtained the written consent of Designated
      Holders of at least a majority of the Registrable Securities then in
      existence.

     

    

    
      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

    

    

    4.4 Severability.
      Whenever possible, each provision of this Agreement shall be interpreted in
      such
      manner as to be effective and valid under applicable law, but if any provision
      of this Agreement shall be held to be prohibited by or invalid under applicable
      law, such provision shall be ineffective only to the extent of such prohibition
      or invalidity, without invalidating the remainder of such provision or the
      remaining provisions of this Agreement.

     

    4.5 Counterparts.
      This
      Agreement may be executed in one or more counterparts each of which shall be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument.

     

    4.6 Notices.
      Any
      notices required or permitted to be given under the terms of this Agreement
      shall be sent by certified or registered mail (return receipt requested) or
      delivered personally or by courier (including a recognized overnight delivery
      service) or by facsimile and shall be effective five days after being placed
      in
      the mail, if mailed by regular United States mail, or upon receipt, if delivered
      personally or by courier (including a recognized overnight delivery service)
      or
      by facsimile, in each case addressed to a party. The addresses for such
      communications shall be:

     

    
      	 	
              If
                to the Company:

            	 
	 	 	
              MISCOR
                Group, Ltd.

            
	 	 	
              1125
                South Walnut Street

            
	 	 	
              South
                Bend, Indiana 46619

            
	 	 	
              Attention:

            	
              John
                A. Martel 

            
	 	 	 	
              James
                M. Lewis, Esq.

            
	 	 	
              Telephone:
                (574) 234-8131

            
	 	 	
              Facsimile:
                (574) 232-7648

            
	 	 	 	 
	 	
              With
                copy to:

            	 
	 	 	
              Barnes
                & Thornburg LLP

            	 
	 	 	
              600
                1st
                Source Center

            	 
	 	 	
              100
                North Michigan Avenue

            	 
	 	 	
              South
                Bend, Indiana 46601

            	 
	 	 	
              Attention:
                Richard L. Mintz, Esq.

            	 
	 	 	
              Telephone:
                (574) 237-1166

            	 
	 	 	
              Facsimile:
                (574) 237-1125

            	 
	 	 	 	 
	 	
              If
                to the Buyer:

            	 
	 	 	
              Tontine
                Capital Partners, L.P.

            	 
	 	 	
              55
                Railroad Avenue, 1st Floor

            	 
	 	 	
              Greenwich,
                Connecticut 06830

            	 
	 	 	
              Attention:
                Mr. Jeffrey L. Gendell

            	 
	 	 	
              Telephone:
                (203) 769-2000

            	 
	 	 	
              Facsimile:
                (203) 769-2010

            	 

    

    

    
      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

    

    

    

     

    
      	 	
              With
                copy to:

               

            	 
	 	 	
              Barack
                Ferrazzano Kirschbaum Perlman & Nagelberg LLP

            	 
	 	 	 	 
	 	 	
              Until
                June 30, 2007 to:

            	 
	 	 	
              333
                W. Wacker Drive, Suite 2700

            	 
	 	 	
              Chicago,
                Illinois 60606

            	 
	 	 	 	 
	 	 	
              After
                June 30, 2007:

            	 
	 	 	
              200
                West Madison Street, Suite 3900

            	 
	 	 	
              Chicago,
                Illinois 60606

            	 
	 	 	 	 
	 	 	
              Attention:
                John E. Freechack, Esq.

            
	 	 	
              Telephone:

            	
              (312)
                984-3100

            
	 	 	
              Facsimile:
                

            	
              (312)
                984-3150

            

    

    

    Each
      party shall provide notice to the other party of any change in
      address.

     

    4.7 Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Indiana, without regard to the conflicts of laws rules or
      provisions.

     

    4.8 Forum;
      Service of Process.
      Any
      legal suit, action or proceeding brought by the Company, Purchasers, any other
      Designated Holders, any Person entitled to indemnification or contribution
      hereunder, or any of their respective Affiliates arising out of or based upon
      this Agreement shall be instituted exclusively in any federal or state court
      in
      the State of Indiana, and each such Person irrevocably waives any objection
      which it may now or hereafter have to the laying of venue or any such
      proceeding, and irrevocably submits to the jurisdiction of such courts in any
      such suit, action or proceeding.

     

    4.9 Captions.
      The
      captions, headings and arrangements used in this Agreement are for convenience
      only and do not in any way limit or amplify the terms and provisions
      hereof.

     

    4.10 No
      Prejudice.
      The
      terms of this Agreement shall not be construed in favor of or against any party
      on account of its participation in the preparation hereof.

     

    4.11 Words
      in Singular and Plural Form.
      Words
      used in the singular form in this Agreement shall be deemed to import the
      plural, and vice versa, as the sense may require.

     

    4.12 Remedy
      for Breach.
      The
      Company hereby acknowledges that in the event of any breach or threatened breach
      by the Company of any of the provisions of this Agreement, the Designated
      Holders would have no adequate remedy at law and could suffer substantial and
      irreparable damage. Accordingly, the Company hereby agrees that, in such event,
      the Designated Holders shall be entitled, and notwithstanding any election
      by
      any Designated Holder to claim damages, to obtain a temporary and/or permanent
      injunction to restrain any such breach or threatened breach or to obtain
      specific performance of any such provisions, all without prejudice to any and
      all other remedies which any Designated Holders may have at law or in
      equity.

     

    4.13 Successors
      and Assigns, Third Party Beneficiaries.
      This
      Agreement and all of the provisions hereof shall be binding upon and inure
      to
      the benefit of the parties hereto, each assignee of the Designated Holders
      pursuant to Article
      3
      and
      their respective successors and assigns and executors, 

     

    

    
      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

    

     

    administrators and heirs. Designated Holders are intended
      third party beneficiaries of this Agreement and this Agreement may be enforced
      by such Designated Holders.

    

    4.14 Entire
      Agreement.
      This
      Agreement sets forth the entire agreement and understanding between the parties
      as to the subject matter hereof and merges and supersedes all prior discussions,
      agreements and understandings of any and every nature among them. 

     

    4.15 Attorneys’
      Fees.
      In the
      event of any action or suit based upon or arising out of any actual or alleged
      breach by any party of any representation, warranty, covenant or agreement
      in
      this Agreement, the prevailing party shall be entitled to recover its reasonable
      attorneys’ fees and expenses of such action or suit from the other party in
      addition to any other relief ordered by any court.

     

    4.16 Termination
      of Rights.
      All
      rights under this Agreement will terminate as to a Designated Holder when that
      Designated Holders no longer holds any Registrable Securities.

     

    

     

    [Signature
      Page Follows]

     

    

     

    

     

    

    
      
        
          
            

             

          

          
          

        

        
          18

          
            

          

        

        
          
          

          
          

        

      

    

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Registration Rights
      Agreement to be duly executed as of the date and year first written
      above.

     

    
      	 	
              COMPANY:

               

            
	 	
              MISCOR
                GROUP, LTD. 

            
	 	 	 
	 	
              By:
                

            	
            	 
	 	
              Title:
                

            	
            	 
	 	
               

               

              PURCHASER:

               

            
	 	
              TONTINE
                CAPITAL PARTNERS, L.P.

               

            
	 	
              By:

            	
              Tontine
                Capital Management, LLC, its general partner

            
	 	 	 
	 	
               By:

            	 	
            
	 	 	
              Jeffrey
                L. Gendell, as managing member

            
	 	
               

               

              TONTINE
                CAPITAL OVERSEAS MASTER FUND, L.P.

            
	 	 	 
	 	
              By:

            	
              Tontine
                Capital Overseas GP, LLC, its general partner

            
	 	 	 
	 	
              By:

            	 	
            
	 	 	
              
                Jeffrey
                  L. Gendell, as managing
                  memberexv4w1

 

Exhibit 4.1

PROVINCE OF MANITOBA

U.S.$500,000,000

4.90% Global Debentures Series FH due December 6, 2016

 

FISCAL AGENCY AGREEMENT

 

December 6, 2006

 

 

PROVINCE OF MANITOBA

          FISCAL AGENCY AGREEMENT, dated as of December 6, 2006, among the Province of Manitoba (the
“Province”), Citibank, N.A. (the “Fiscal Agent”), a national banking association organized under
the laws of the United States of America, as registrar, fiscal agent, transfer agent and principal
paying agent, and Citibank, N.A., London Branch, as additional paying agent and transfer agent.

          1. Underwriting Agreement. The Province has entered into an Underwriting Agreement,
dated November 29, 2006 (the “Underwriting Agreement”), with CIBC World Markets Corp., Merrill
Lynch, Pierce, Fenner & Smith Incorporated and National Bank Financial Inc., as Representatives of
the several Underwriters listed on Schedule II thereto, providing for the issue and sale by the
Province of U.S.$500,000,000 aggregate principal amount of 4.90% Global Debentures Series FH due
December 6, 2016 (the “Debentures”).

          2. Appointment of Fiscal Agent; Paying Agents; Additional Transfer Agent. (a) The
Province hereby appoints the Fiscal Agent, at present having an office at 388 Greenwich Street,
14th Floor, New York, New York 10013, as registrar, fiscal agent, transfer agent and principal
paying agent of the Province for the Debentures, upon the terms and conditions set forth herein and
the Fiscal Agent accepts such appointments. Any successors to the Fiscal Agent as registrar,
fiscal agent, transfer agent and principal paying agent are hereinafter referred to, in such
capacities, as the “Fiscal Agent”.

          (b) The Province may from time to time appoint one or more additional agents (hereinafter
referred to as a “Paying Agent” or the “Paying Agents”) for the payment (subject to the applicable
laws and regulations) of the principal of and interest and Additional Amounts (as defined in the
terms and conditions of the Debentures), if any, on the Debentures at such place or places as the
Province may determine pursuant to a paying agency agreement (a “Paying Agency Agreement”). The
Province may at any time terminate the appointment of any Paying Agent; provided, however, that as
long as the Debentures are listed on the London Stock Exchange and the rules of the London Stock
Exchange or the Financial Services Authority require, the Province will maintain a paying agent in
London. The Province will also ensure that it maintains a paying agent in a Member State of the
European Union that is not obliged to withhold or deduct tax pursuant to European Council Directive
2003/48/EC or any law implementing or complying with, or introduced in order to conform to, such
Directive. The Province will keep the Fiscal Agent informed as to the name, address and telephone
and facsimile numbers of each Paying Agent appointed by it and will notify the Fiscal Agent of the
resignation or termination of the appointment of any Paying Agent. The Province hereby appoints
Citibank, N.A., London Branch, at present having an office at 21st Floor, Citigroup Centre, Canada
Square, Canary Wharf, London E14 5LB, as the paying agent in London of the Province for the
Debentures, upon the terms and conditions set forth herein. Citibank, N.A., London Branch, accepts
such appointment and, along with its successors as such paying agent in London, is hereinafter
referred to,

 

 

in such capacity, as a “Paying Agent”. The Province shall arrange with each Paying Agent for
the payment, as provided herein, of the principal of and interest and Additional Amounts, if any,
on the Debentures on terms approved by the Province (further references herein to principal and
interest shall be deemed to also refer to any Additional Amounts).

          (c) The Province may from time to time appoint one or more additional agents for the
processing of applications for registration of transfer or exchange of fully registered Debentures
in definitive form (hereinafter referred to as an “Additional Transfer Agent” or “Additional
Transfer Agents” and, together with the Fiscal Agent, in its capacity as transfer agent of the
Province, the “Transfer Agents” or, individually, a “Transfer Agent”). The Province may at any
time terminate the appointment of any Additional Transfer Agent; provided, however, that as long as
the Debentures are listed on the London Stock Exchange, and the rules of such exchange or the
Financial Services Authority so require, the Province will maintain an Additional Transfer Agent in
London. The Province will keep the Fiscal Agent informed as to the name, address and telephone and
facsimile numbers of each Additional Transfer Agent appointed by it and will notify the Fiscal
Agent of the resignation or termination of the appointment of any Additional Transfer Agent. The
Province hereby appoints Citibank, N.A., London Branch as the transfer agent in London of the
Province for the Debentures, upon the terms and conditions set forth herein. Citibank, N.A.,
London Branch accepts such appointment and, along with its successors as such transfer agent in
London, is hereinafter referred to, in such capacity, as a “Transfer Agent” or “Additional Transfer
Agent”.

          3. Form. (a) The Debentures shall initially be issued in the form of a fully
registered global certificate without coupons (such registered global certificate and any
registered global certificate issued upon any transfer or exchange thereof or in replacement
therefor is hereinafter referred to as the “Global Bond”). The Global Bond shall be registered in
the name of Cede & Co., as nominee of DTC, and be held by DTC or its custodian. As long as DTC or
its respective nominee is the registered holder of the Global Bond, it will be considered the sole
owner and registered holder of the Debentures for all purposes hereunder and under the Global Bond.
None of the Province, the Fiscal Agent or any Paying Agent will have any responsibility or
liability for any aspect of the records relating to or payments made by DTC on account of
beneficial interests in the Global Bond. Except as provided in Section 6 hereof, owners of
beneficial interests in the Global Bond will not be entitled to have Debentures registered in their
names, will not receive or be entitled to receive Debentures in definitive registered form and will
not be considered owners or registered holders thereof under this Agreement. The Global Bond will
be substantially in the form attached hereto as Exhibit 1.

          (b) All Debentures (including the Global Bond) shall be executed on behalf of the Province by
the signature of the Minister of Finance or of another duly authorized official of the Department
of Finance, and shall be sealed with the manual or facsimile seal of the Minister of Finance. In
the event that any official of the Province who shall have signed or whose facsimile signature
shall appear upon any of the

-2-

 

Debentures shall cease to hold such office before the Debentures so signed shall actually have
been countersigned, registered or delivered, such Debentures nevertheless may be countersigned,
registered and delivered with the same force and effect as though such person who signed such
Debentures had not ceased to be such official of the Province.

          4. Countersignature. The Fiscal Agent shall, upon receipt of Debentures duly executed
and sealed on behalf of the Province together with a written order or orders to countersign and
deliver Debentures in a stated principal amount, (i) countersign and register not more than the
said aggregate principal amount of Debentures and deliver them in accordance with the written order
or orders of the Province and (ii) thereafter countersign, register and deliver Debentures in
accordance with the provisions of Sections 5, 6 and 8 of this Agreement. The total amount of the
Debentures to be issued and outstanding at any time, whether in the form of the Global Bond or
Debentures in definitive registered form, issued in exchange for the Global Bond, shall not exceed
U.S.$500,000,000 in aggregate principal amount, plus the aggregate principal amount of any
additional Debentures issued by the Province pursuant to any supplement hereto in accordance with
Section 15 of this Agreement. The Province hereby appoints any officer of the Fiscal Agent as an
authorized signing officer for the purpose of countersigning the Debentures and the Fiscal Agent
accepts such appointment on behalf of its officers.

          5. Registration, Transfers and Exchanges. (a) The Fiscal Agent, as agent of the
Province for the purpose of registration, shall at all times keep at its principal office in The
City of New York a register or registers (hereinafter the “Register” or “Registers”) for the
registration and registration of transfers and exchanges of Debentures, in which shall be entered
the names and addresses of the registered holders of Debentures and the principal amount of and
other particulars of the Debentures held by them. Subject to Section 6 hereof, upon surrender for
registration of transfer of any Debenture at said office, the Fiscal Agent shall countersign,
register and deliver, in the name of the transferee or transferees, a new Debenture or Debentures
for a like aggregate principal amount. Subject to Section 6 hereof, upon surrender of any
Debenture at said office for exchange, the Fiscal Agent shall countersign, register and deliver, in
exchange for such Debenture, a new Debenture or new Debentures of the appropriate authorized
denomination(s) and for a like aggregate principal amount in accordance with the provisions of the
Debentures. The Province and the Fiscal Agent shall not be required to make any exchange of
Debentures if as a result thereof, the Province would incur adverse tax or other similar
consequences under the laws or regulations of any jurisdiction in effect at the time of the
exchange.

          (b) All new Debentures countersigned and delivered by the Fiscal Agent upon registration of
transfer or in exchange for Debentures of other denominations shall be so dated the date of such
countersignature.

          (c) All Debentures presented or surrendered for registration of transfer, exchange or payment
shall be accompanied by a written instrument or instruments of transfer in form satisfactory to the
Fiscal Agent, which form shall be in

-3-

 

accordance with prevailing transfer regulations and practices and duly executed by the
registered holder or its duly authorized attorney.

          (d) The Fiscal Agent and each Additional Transfer Agent shall not impose any service charge on
the registered holder on any such registration of transfer or exchange of Debentures in the normal
course of business; provided, however, the Province may require of the party requesting such
transfer or exchange, as a condition precedent to the exercise of any right of transfer or exchange
contained in this Agreement or in the Debentures, the payment of a sum sufficient to cover any
stamp or other tax or other governmental charge payable in connection therewith.

          (e) The Province, the Fiscal Agent and any Paying Agent or Transfer Agent may treat the person
in whose name any Debenture is registered as the absolute owner of such Debenture for the purpose
of receiving payment of principal of and interest on such Debenture, and all other purposes
whatsoever, whether or not such Debenture be overdue, and none of the Province, the Fiscal Agent or
any Paying Agent or Transfer Agent shall be affected by any notice to the contrary and any such
payment shall be a good and sufficient discharge to the Province, the Fiscal Agent and any Paying
Agent or Transfer Agent for the amount so paid.

          (f) The Fiscal Agent shall not be required to register any transfer or exchange of Debentures
(and any Additional Transfer Agent shall not be required to accept presentment of fully registered
Debentures in definitive form for registration of transfer or exchange by the Fiscal Agent) during
the period from the Regular Record Date (as defined in the Debentures) to the Interest Payment Date
(as defined in the Debentures). For the purposes of any interest payment made in accordance with
Section 7(a), (b) or (c) hereof, such payment shall be made to those persons in whose names
Debentures are registered on such Regular Record Date.

          (g) Each Additional Transfer Agent, as agent of the Province for such purpose, shall maintain
an office in its jurisdiction at which fully registered Debentures in definitive form may be
presented for registration of transfer or exchange by the Fiscal Agent in accordance with this
Agreement. Each Additional Transfer Agent shall promptly forward to the Fiscal Agent all such
Debentures received by it, together with the written instrument or instruments of transfer referred
to above.

          6. Special Provisions Relating to the Global Bond. (a) Unless the Global Bond is
presented by an authorized representative of DTC to the Province, the Fiscal Agent or their
respective agents for registration of transfer, exchange or payment, and any replacement Global
Bond issued is registered in the name of a nominee of DTC as requested by such authorized
representative and any payment is made to such nominee of DTC, any transfer, pledge or other use of
the Global Bond for value or otherwise shall be wrongful since the registered holder thereof has an
interest therein.

          (b) Except as provided in this subparagraph, Debentures will not be issued in definitive
registered form. If at any time DTC notifies the Province that it is

-4-

 

unwilling or unable to continue as depositary for the Global Bond or if at any time DTC ceases
to be a clearing agency registered under the Securities Exchange Act of 1934, or other applicable
U.S. securities legislation, or otherwise ceases to be eligible to be a depositary, the Province
shall appoint a successor depositary with respect to the Global Bond. If a successor depositary
for the Global Bond is not appointed by the Province as soon as reasonably practicable after the
Province receives such notice or becomes aware of such ineligibility, the Province shall execute
and seal Debentures in definitive registered form, and the Fiscal Agent, upon receipt thereof,
shall countersign and deliver such Debentures in definitive registered form without coupons, in
denominations of U.S.$1,000 and integral multiples thereof, in an aggregate principal amount equal
to the aggregate principal amount of the Global Bond as of the exchange date.

          The Province may at any time and in its sole discretion determine not to have any of the
Debentures held in the form of the Global Bond. In such event, the Province shall execute and seal
Debentures in definitive registered form, and the Fiscal Agent, upon receipt thereof, shall
countersign and deliver such Debentures in definitive registered form without coupons, in
denominations of U.S.$1,000 and integral multiples thereof, in an aggregate principal amount equal
to the aggregate principal amount of the Global Bond as of the exchange date.

          Upon the exchange of the Global Bond for Debentures in definitive registered form, the Fiscal
Agent shall cancel the Global Bond and shall reduce the holdings of Cede & Co. on the Register to
nil. Debentures in definitive registered form issued in exchange for the Global Bond pursuant to
this section shall be registered in such names as DTC, pursuant to instructions from its direct or
indirect participants or otherwise, shall instruct the Fiscal Agent or the Province. The Fiscal
Agent shall deliver such Debentures in definitive registered form to or as directed by the persons
in whose names such definitive registered Debentures are so registered and, to the extent
reasonably practicable in the circumstances, shall direct all payments to be made in respect of
such Debentures in definitive registered form to the registered holders thereof on or after such
exchange regardless of whether such exchange occurred after the record date for such payment.

          All Debentures in definitive registered form issued upon the exchange of the Global Bond
shall be valid obligations of the Province, evidencing the same debt, entitled to the same benefits
and subject to the same terms and conditions (except insofar as they relate specifically to the
Global Bond) as the Global Bond surrendered upon such exchange.

          7. Payment. (a) The Province will pay to the Fiscal Agent no later than 12:00 noon,
New York City time, in same-day funds, in such coin or currency of United States as at the time of
payment is legal tender for payment of public and private debts, to an account to be specified by
the Fiscal Agent, on the day on which the same shall become due (or, the next succeeding Business
Day if such due date falls upon a day which is not a Business Day as defined below), all amounts to
be paid on the Debentures for principal and interest on that date as required by the terms of the
Debentures. The

-5-

 

Province hereby authorizes and directs the Fiscal Agent, from the funds so paid to it, to make
payment of the principal and interest in respect of the Debentures in accordance with their terms
and the provisions set forth below. For the purposes of this Section 7, “Business Day” shall mean
a day that is not a Saturday or a Sunday and on which, in The City of New York, banking
institutions are not generally authorized or obligated by law, regulation or executive order to be
closed. The obligation of the Fiscal Agent to make payments of principal and interest to holders
of the Debentures through DTC, by check or otherwise, is in all cases subject to the prior receipt
by the Fiscal Agent from the Province of the funds required to make such payments.

          (b) Payment of principal of and interest on the Global Bond shall be made in U.S. dollars to
the Fiscal Agent. The Fiscal Agent shall pay such amounts payable to Cede & Co., as nominee of DTC,
in same-day funds.

          (c) Payment of principal in respect of Debentures in definitive registered form issued
pursuant to Section 6(b) hereof shall be made in U.S. dollars against surrender at the office of
the Fiscal Agent in The City of New York, or at the office of any Paying Agent appointed by the
Province for such purpose pursuant to this Agreement and any Paying Agent Agreement. Payment of
interest due prior to or on the Maturity Date will be made by forwarding by post or otherwise
delivering a check payable in U.S. dollars to the registered address of registered holders of
Debentures, or, at the option of the Province, otherwise transferring funds to the registered
holders of the Debentures. Such check shall be dated the due date for payment and made payable to
the order of the registered holder or, in the case of joint registered holders, to the order of all
such joint holders (failing instructions from them to the contrary) and shall be sent to the
address of the one of such joint holders whose name stands first in the register as one of such
joint holders. Subject to Section 7(a), the Fiscal Agent shall mail or otherwise deliver such
checks to the names and addresses of registered holders of Debentures sufficiently in advance of
the relevant due date for payment that receipt of such checks by registered holders on or before
the due date is reasonably assured.

          (d) All monies paid to the Fiscal Agent under Section 7(a) of this Agreement shall be held by
it in a separate account from the moment when such money is received until the time of actual
payment, in trust for the registered holders of Debentures to be applied by the Fiscal Agent to
payments due on the Debentures at the time and in the manner provided for in this Agreement and the
Debentures, provided that if the Fiscal Agent shall fail to duly make any such payment due on the
Debentures and, as a result of such failure, the Province otherwise duly makes such payments to the
registered holders of Debentures, the Fiscal Agent shall thereupon hold such monies paid to it
under Section 7(a) in trust for the Province. Any money deposited with the Fiscal Agent for the
payment of the principal or interest in respect of any Debenture remaining unclaimed for two years
after such principal or interest shall have become due and payable shall be repaid to the Province
without interest, and the registered holder of a Debenture may thereafter look only to the Province
for any payment to which such holder may be entitled.

-6-

 

          (e) All monies paid to any Paying Agent for the payment of principal of or interest on any
Debentures shall be held by it in a separate account from the moment when such money is received
until the time of actual payment, in trust for the registered holders of such Debentures, and shall
be applied as set forth herein and in the Debentures.

          8. Mutilated, Destroyed, Stolen or Lost Debenture Certificates. (a) If any Debenture
certificate is mutilated, defaced, destroyed, stolen or lost, application for replacement shall be
made to the Fiscal Agent who shall promptly transmit such application to the Province. Such
application shall be accompanied by the mutilated or defaced certificate or proof, satisfactory to
the Province in its discretion, of the destruction, theft or loss of the certificate; and upon
receipt by the Province of an indemnity satisfactory to it, the Province shall execute a new
certificate of like tenor, and upon written instructions from the Province, the Fiscal Agent shall
thereupon cancel the mutilated or defaced certificate and adjust the Register to reflect the
cancellation, destruction, theft or loss of a certificate, as the case may be, and countersign,
register and deliver such new certificate in exchange for the mutilated or defaced certificate or
in substitution for the destroyed, stolen or lost certificate. Such replacement certificate shall
be dated the date of the countersignature. All expenses associated with procuring any indemnity
and with the preparation, countersignature and delivery of a replacement certificate will be borne
by the registered holder of the mutilated, defaced, destroyed, stolen or lost Debenture
certificate.

          (b) Whenever any Debenture, alleged to have been lost, stolen or destroyed for which a
replacement Debenture has been issued, is presented to the Fiscal Agent or any Paying Agent for
payment on the Maturity Date or for registration of transfer or exchange, the Fiscal Agent or the
Paying Agent, as the case may be, shall promptly notify the Province in respect thereof and shall
deal with such Debenture only in accordance with the Province’s instructions.

          9. Maturity, Redemption and Purchases. (a) Unless previously repurchased by the
Province, as provided below, the principal amount of the Debentures is due and payable on December
6, 2016 (the “Maturity Date”).

          (b) The Province may, at any time, purchase Debentures in the open market, or by tender or by
private contract at any price, in accordance with applicable law and may cause the Fiscal Agent to
cancel any Debentures so purchased.

          10. Cancellation and Destruction. All Debentures which are paid on the Maturity Date,
purchased by the Province and surrendered to the Fiscal Agent for cancellation or surrendered for
registration of transfer or exchange for other certificates or for replacement, shall be canceled
by the Fiscal Agent who shall register such cancellation. The Fiscal Agent shall, as soon as
practicable after the date of cancellation of Debentures under this section or Section 8(a) or the
date that the register is adjusted to reflect the destruction, theft or loss of a certificate
pursuant to Section 8(a) hereof, furnish the Province with a certificate or certificates stating
the serial numbers, dollar value and

-7-

 

total number of Debentures that have been canceled. The Fiscal Agent shall dispose of all
canceled Debentures in accordance with the practices adopted by the Fiscal Agent or, upon the
instructions of the Province, shall return such Debentures to the Province, and shall furnish the
Province, on a timely basis, certificates of disposal stating the serial numbers, dollar value and
total number of all Debentures disposed thereunder.

          11. (a) Limit on Liability. In acting under this Agreement, the Fiscal Agent, any
Paying Agent and any Transfer Agent are acting solely as agents of the Province and do not assume
any obligation or relationship of agency or trust for or with any of the registered holders of the
Debentures, except that all funds held by the Fiscal Agent or any Paying Agent for payment of
principal or interest shall be held in trust for the registered holders of Debentures as provided
in this Agreement.

          (b) Rights and Liabilities of Fiscal Agent, Paying Agent and Transfer Agent. The
Fiscal Agent, each Paying Agent and each Transfer Agent shall incur no liability for, or in respect
of, any action taken, omitted to be taken or suffered by it in reliance upon any Debenture,
certificate, affidavit, instruction, notice, request, direction, order, statement or other paper,
document or communications reasonably believed by it to be genuine. Any order, certificate,
affidavit, instruction, notice, request, direction, statement or other communication from the
Province made or given by it and sent, delivered or directed to the Fiscal Agent under, pursuant
to, or as permitted by, any provision of this Agreement shall be sufficient for purposes of this
Agreement if such communication is in writing and signed by any authorized officer of the Province
or its attorney duly authorized in writing.

          (c) Right of Agent to Own Debentures. The Fiscal Agent, each Paying Agent and each
Transfer Agent, and their respective officers, directors and employees, may become the holder of,
or acquire any interest in, any Debentures, with the same rights that it or they would have if it
were not the Fiscal Agent, a Paying Agent or a Transfer Agent hereunder, or they were not such
officers, directors or employees, and may engage or be interested in any financial or other
transaction with the Province and may act on, or as depositary, trustee or agent for, any committee
or body of registered holders of Debentures or other obligations of the Province as freely as if
it were not the Fiscal Agent, a Paying Agent or a Transfer Agent hereunder or they were not such
officers, directors or employees.

          (d) Authorized Signatories. Except as otherwise specifically provided herein or in
the Debentures, any order, certificate, notice, request, direction or other communication from the
Province, made or given under any provision of this Agreement, shall be sufficient if signed by an
authorized signatory of the Province (an “Authorized Signatory”). From time to time the Province
will furnish the Fiscal Agent with a certificate as to the incumbency and specimen signatures of
persons who are then Authorized Signatories. Until the Fiscal Agent receives a subsequent
certificate from the Province, the Fiscal Agent shall be entitled to rely on the last such
certificate delivered to them for purposes of determining the Authorized Signatories.

-8-

 

          (e) No Duties in Event of Default by Province. The Fiscal Agent shall not have any
duty or responsibility in case of any default by the Province in the performance of its obligations
(including, without limiting the generality of the foregoing, any duty or responsibility to
accelerate all or any of the Debentures or to initiate or to attempt to initiate any proceedings at
law or otherwise or to make any demand for the payment thereof upon the Province or any other
person). If at any time any Fiscal Agent or any Paying Agent or Transfer Agent is served with any
judicial or administrative order, judgment, decree, writ or other form of judicial or
administrative process which in any way affects it in respect of its rights, duties or obligations
hereunder, such Fiscal Agent or Paying Agent or Transfer Agent is authorized to comply therewith in
any manner as it or its legal counsel of its own choosing deems appropriate; and if such Fiscal
Agent or Paying Agent or Transfer Agent complies with any such judicial or administrative order,
judgment, decree, writ or other form of judicial or administrative process, such Fiscal Agent or
Paying Agent or Transfer Agent shall not be liable to any of the parties hereto or to any other
person or entity even though such order, judgment, decree, writ or process may be subsequently
modified or vacated or otherwise determined to have been without legal force or effect.

          12. Expenses and Indemnity. (a) In connection with the Fiscal Agent’s appointment
and duties as Fiscal Agent, the Province will pay the Fiscal Agent from time to time compensation
in an amount separately agreed upon by the Province and the Fiscal Agent. The Province will
indemnify and hold harmless the Fiscal Agent, its directors, officers, agents and employees against
all claims, actions, demands, damages, costs (including reasonable fees of counsel), losses or
liability which may be incurred by the Fiscal Agent by reason of, or in connection with, the Fiscal
Agent’s appointment and duties hereunder, including the costs and expenses of defending itself
against any claim or liability, except as such result from any negligent act or commission, bad
faith or wilful misconduct of the Fiscal Agent or its directors, officers, employees or agents. In
addition, the Province shall, pursuant to arrangements separately agreed upon by the Province and
the Fiscal Agent, pay to the Fiscal Agent, upon presentation of substantiating documentation
satisfactory to the Province, amounts sufficient to reimburse the Fiscal Agent for expenses,
disbursements and advances made or reasonably incurred by it in connection with its services
(including the reasonable fees, expenses and disbursements of its agents and counsel). The
obligation of the Province under this paragraph shall survive payment of the Debentures and
resignation or removal of the Fiscal Agent.

          (b) The Fiscal Agent agrees to indemnify and hold harmless the Province against all claims,
actions, demands, damages, costs, losses and liabilities arising out of or relating to any
negligent act or omission, bad faith or wilful misconduct of the Fiscal Agent or its directors,
officers, employees or agents.

          (c) Each indemnified party shall give prompt notice to each indemnifying party of any action
commenced against it in respect of which indemnity may be sought under this Agreement but failure
to so notify any indemnifying party shall not relieve it from any liability which it may have
otherwise than on account of this

-9-

 

indemnity. An indemnifying party may participate at its own expense in the defense of such
action. If it so elects within a reasonable time after receipt of such notice, an indemnifying
party may assume the defense of such action with legal advisors chosen by it and approved by the
indemnified party defendant in such action, unless such indemnified party reasonably objects to
such assumption on the ground that there may be legal defenses available to it which are different
from or in addition to those available to such indemnified party, but an indemnifying party may not
settle any action commenced against an indemnified party without the written consent of the
indemnified party. In order to be entitled to an indemnity with respect to a claim hereunder, an
indemnified party will not, without the prior written consent of the indemnifying party (which
consent shall not be unreasonably withheld), settle or compromise or consent to the entry of any
judgment with respect to such pending or threatened claim, action, suit or proceeding in respect of
which indemnification or contribution may be sought hereunder (whether or not the indemnifying
party is an actual or potential party to such claim or action). If an indemnifying party assumes
the defense of any such action, the indemnified party shall not be liable for any fees or expenses
of the legal advisors of the indemnified party incurred thereafter in connection with such action.
Unless otherwise agreed, in no event shall the indemnifying party be liable for the fees and
expenses of more than one legal advisor for the indemnified party in connection with any one action
or separate but similar or related actions arising out of the same general allegations or
circumstances.

          13. (a) Successor Fiscal Agent. The Province agrees that there shall at all times be
a Fiscal Agent hereunder and that the Fiscal Agent shall be a bank or trust company, organized and
doing business under the laws of the State of New York or the federal laws of the United States
applicable therein, in good standing and having a place of business in The City of New York, and
authorized under such laws to exercise corporate trust powers; provided, however, that the Province
may choose to act at any time as its own registrar, fiscal agent, transfer agent or principal
paying agent upon reasonable notice to the Fiscal Agent.

          The Fiscal Agent shall not transfer or assign this Agreement or any interest or obligation
herein without the Province’s prior written consent. Any corporation into which the Fiscal Agent
hereunder may be amalgamated, merged or converted, or any corporation with which the Fiscal Agent
may be consolidated, or any corporation resulting from any merger, conversion or consolidation, to
which the Fiscal Agent shall sell or otherwise transfer all or substantially all of the corporate
trust business of the Fiscal Agent, provided that it shall be qualified as aforesaid, shall be the
successor Fiscal Agent under this Agreement without the execution or filing of any paper or any
further act on the part of any of the parties hereto, but subject to prior notice to and the prior
written approval of the Province.

          (b) Resignation. The Fiscal Agent may at any time resign by giving written notice to
the Province of its resignation, specifying the date on which its resignation shall become
effective (which shall not be less than 60 days after the date on which such notice is given unless
the Province shall agree to a shorter period); provided that no such notice shall expire less than
30 days before or 30 days after the due date for

-10-

 

any payment of principal or interest in respect of the Debentures. The Province may remove
the Fiscal Agent at any time by giving 30 days written notice to the Fiscal Agent, specifying the
date on which such removal shall become effective. Such resignation or removal shall only take
effect upon the appointment by the Province of a successor Fiscal Agent and upon the acceptance of
such appointment by such successor Fiscal Agent. Any Paying Agent may resign or may be removed at
any time upon like notice, and the Province in any such case may appoint in substitution therefor a
new Paying Agent or Paying Agents. If no successor Fiscal Agent is appointed within the time
specified for resignation or removal, then the Fiscal Agent may petition a court of competent
jurisdiction for the appointment of a replacement.

          (c) Bankruptcy or Insolvency of Fiscal Agent. The appointment of the Fiscal Agent
hereunder shall forthwith terminate, whether or not notice of such termination shall have been
given, if at any time the Fiscal Agent becomes incapable of performing its duties hereunder, or is
adjudged bankrupt or insolvent, or files a voluntary petition in bankruptcy or makes an assignment
for the benefit of its creditors or consents to the appointment of a liquidator or receiver of all
or any substantial part of its property or admits in writing its inability to pay or meet its debts
as they mature or suspends payment thereof, or if a resolution is passed or an order made for the
winding up or dissolution of the Fiscal Agent, or if a liquidator or receiver of the Fiscal Agent
or of all or any substantial part of its property is appointed, or if any order of any court is
entered approving any petition filed by or against it under the provisions of any applicable
bankruptcy or insolvency law, or if any public officer takes charge or control of the Fiscal Agent
or its property or affairs for the purposes of rehabilitation, conservation or liquidation.

          (d) Appointment of Successor. Prior to the effective date of any such resignation or
removal of the Fiscal Agent, or if the Fiscal Agent shall become unable to act as such or shall
cease to be qualified as aforesaid, the Province shall appoint a successor Fiscal Agent, qualified
as aforesaid. Upon the appointment of a successor Fiscal Agent and its acceptance of such
appointment, the retiring Fiscal Agent shall, at the direction of the Province and upon payment of
its compensation and expenses then unpaid, deliver and pay over to its successor any and all
securities, money and any other properties then in its possession as Fiscal Agent and shall
thereupon cease to act hereunder.

          (e) Payment of Certain Fiscal Agent’s Fees Upon Termination. If the Fiscal Agent
resigns pursuant to Section 13(b) of this Agreement or ceases to act as the Province’s fiscal agent
in respect of the Debentures pursuant to Section 13(c) of this Agreement, the Fiscal Agent shall
only be entitled to annual fees otherwise payable to it under this Agreement on a pro rata basis
for that period since the most recent anniversary of this Agreement during which the Fiscal Agent
has acted as fiscal agent hereunder. In the event that the Fiscal Agent ceases to act as the
Province’s fiscal agent in respect of the Debentures for any other reason, the Fiscal Agent shall
be entitled to receive the full amount of the annual fees payable to it in respect of the
Debentures pursuant to Section 12 of this Agreement.

-11-

 

          14. Meetings of Holders of Debentures. (a) The Fiscal Agent shall convene a meeting
of the registered holders of the Debentures for any lawful purpose affecting their interests upon
receipt of a written request of the Province or a written request signed in one or more
counterparts by the registered holders of not less than 10% of the principal amount of the
Debentures then outstanding and upon being indemnified to its reasonable satisfaction by the
Province or the registered holders of Debentures signing such request, as the case may be, against
the costs which may be incurred in connection with the calling and holding of such meeting. If the
Fiscal Agent fails to give notice convening such meeting within 30 days after receipt of such
request and indemnity, the Province or such registered holders of Debentures, as the case may be,
may convene such meeting. Every such meeting shall be held in The City of New York, or such other
place as may be approved or determined by the Province and acceptable to the Fiscal Agent.

          (b) At least 21 days’ notice of any meeting shall be given to the registered holders of the
Debentures in the manner provided pursuant to the terms and conditions of the Debentures and a copy
thereof shall be sent by post to the Fiscal Agent unless the meeting has been called by the Fiscal
Agent, and to the Province. Such notice shall state the time, place and purpose of the meeting and
the general nature of the business to be transacted thereat, and shall include a statement to the
effect that, prior to 48 hours before the time fixed for the meeting, those persons recorded in the
Register shall be entitled to obtain voting certificates for the Debentures registered in their
respective names and appointing proxies (subject to such procedures and requirements as the
Province and the Fiscal Agent may prescribe), but it shall not be necessary for any such notice to
set out the terms of any resolution to be proposed at such meeting or any other provisions.

          (c) A registered holder of Debentures may appoint any person by instrument in writing as the
holder’s proxy in respect of a meeting of the registered holders of Debentures or any adjournment
of such meeting, and such proxy shall have all rights of the registered holder of Debentures in
respect of such meeting. All written notices to DTC of meetings shall contain a requirement that
the registered holders of Debentures must notify clearing system participants and, if known,
beneficial owners of Debentures of the meeting in accordance with procedures established from time
to time by such clearing systems. The registered holders of Debentures shall seek voting
instructions on the matters to be raised at such meeting from the clearing system participants or,
if known, from the beneficial owners of Debentures.

          (d) Some person, who need not be a registered holder of Debentures, nominated in writing by
the Province shall be chairman of the meeting and if no person is so nominated or if the person so
nominated is not present within 15 minutes from the time fixed for the holding of the meeting, the
registered holders of the Debentures present in person or by proxy shall choose some person present
to be chairman, and, failing such choice, the Province may appoint a chairman.

-12-

 

          (e) At a meeting of registered holders of Debentures, a quorum shall consist of one or more
registered holders of Debentures present in person or by proxy who represent at least a majority in
principal amount of the Debentures at the time outstanding. If a quorum of the registered holders
of Debentures shall not be present within one-half hour after the time fixed for holding any
meeting, the meeting, if convened by or at the request of registered holders of Debentures, shall
be dissolved, but if otherwise convened the meeting shall stand adjourned without notice to the
same day in the next week (unless such day is not a business day in the place where the meeting is
to take place, in which case it shall stand adjourned until the next such business day following
thereafter) at the same time and place unless the chairman appoints some other place in The City of
New York, or some other day or time of which not less than seven (7) days’ notice shall be given in
the manner provided above. At the adjourned meeting one or more registered holders of Debentures
present in person or by proxy shall constitute a quorum and may transact the business for which the
meeting was originally convened notwithstanding that they may not represent at least a majority in
principal amount of the Debentures then outstanding.

          (f) The chairman of any meeting at which a quorum of the registered holders of Debentures is
present may, with the consent of the registered holder(s) or a majority of principal amount of the
Debentures represented thereat, adjourn any such meeting, and no notice of such adjournment need be
given except such notice, if any, as the meeting may prescribe.

          (g) Every motion or question submitted to a meeting shall be decided by Extraordinary
Resolution (as defined below) and in the first place by the votes given on a show of hands. At any
such meeting, unless a poll is duly demanded as herein provided, a declaration by the chairman that
a resolution has been carried or carried unanimously or by a particular majority or lost or not
carried by a particular majority shall be conclusive of the fact. On any question submitted to a
meeting when ordered by the chairman or demanded by a show of hands by one or more registered
holders of Debentures acting in person or by proxy and holding at least 2% in principal amount of
the Debentures then outstanding, a poll shall be taken in such manner as the chairman shall direct.

          (h) On a poll, each registered holder of Debentures present in person or represented by a
proxy duly appointed by an instrument in writing shall be entitled to one vote in respect of each
U.S. $1,000 principal amount of Debentures of which the person shall then be the registered holder.
A proxy need not be a registered holder of Debentures. In the case of Debentures held jointly,
any one of the joint registered holders present in person or by proxy may vote in the absence of
the other or others; but in case more than one of them be present or by proxy, only one of them may
vote in respect of each U.S. $1,000 principal amount of Debentures of which they are joint
registered holders.

          (i) The Province and the Fiscal Agent, by their authorized representatives, officers and
directors, and the financial and legal advisors of the Province

-13-

 

and the Fiscal Agent, may attend any meeting of the registered holders of Debentures, but
shall have no vote as such.

          (j) Except as set forth in Section 18 hereof, the registered holders of the Debentures may
consent by Extraordinary Resolution (as defined below) to any modification or amendment proposed by
the Province to this Agreement and the Debentures. An Extraordinary Resolution duly passed at any
such meeting shall be binding on all registered holders of Debentures, whether present or not;
provided, however, that no such modification or amendment to this Agreement or to the terms and
conditions of the Debentures shall, without the consent of the registered holder of each such
Debenture affected thereby: (a) change the Maturity Date of any Debenture or change any Interest
Payment Date; (b) reduce the principal amount of any such Debenture or change the Interest Rate;
(c) change the currency of payment of any such Debenture; (d) impair the right to institute suit
for the enforcement of any such payment on or with respect to such Debenture; or (e) reduce the
percentage of the principal amount of Debentures necessary for the taking of any action, including
modification or amendment of this Agreement or the terms and conditions of the Debentures, or
reduce the quorum required at any meeting of registered holders of Debentures.

          The term “Extraordinary Resolution” is defined as a resolution passed at a meeting of
registered holders of Debentures held in accordance with the provisions of this Agreement and the
Debentures by the affirmative vote of the registered holders of not less than 66 2/3% of the
principal amount of Debentures represented at the meeting in person or by proxy and voting on the
resolution or as an instrument in writing signed by the registered holders of not less than 66 2/3%
in principal amount of the outstanding Debentures.

          (k) Minutes of all resolutions and proceedings at every meeting of registered holders of
Debentures held in accordance with the provisions of this Agreement shall be made and entered in
books to be from time to time provided for that purpose by the Fiscal Agent at the expense of the
Province and any such minutes, if signed by the chairman of the meeting at which such resolutions
were passed or proceedings taken, or by the chairman of the next succeeding meeting of the
registered holders of Debentures, shall be prima facie evidence of the matters therein stated and,
until the contrary is proved, every such meeting, in respect of the proceedings of which minutes
shall have been made, shall be deemed to have been duly held and convened, and all resolutions
passed and proceedings taken thereat to have been duly passed and taken.

          (l) Every Extraordinary Resolution passed in accordance with the provisions of this Agreement
at a meeting of registered holders of Debentures shall be binding upon all the registered holders
of Debentures, whether present at or absent from such meeting, and every instrument in writing
signed by registered holders of Debentures in accordance with paragraph (j) of this Section 14
shall be binding upon all the registered holders of Debentures (whether or not a signatory).
Subject to the provisions for its indemnity herein contained, the Fiscal Agent shall be bound to
give effect accordingly to every such Extraordinary Resolution.

-14-

 

         (m) The Province may from time to time make and from time to time vary such regulations as it
shall from time to time deem fit:

	 	(i)	 	for the deposit of instruments appointing proxies at such
place as the Fiscal Agent, the Province or the registered holders of
Debentures convening a meeting, as the case may be, may in the notice
convening such meeting direct; and
	 
	 	(ii)	 	for the deposit of instruments appointing proxies at some
approved place or places other than the place at which the meeting is to be
held and enabling particulars of such instruments appointing proxies to be
mailed, cabled or sent by any other means of recorded communications before
the meeting to Province or to the Fiscal Agent at the place where the same is
to be held and for the voting of proxies so deposited as though the
instruments themselves were produced at the meeting.

          Any regulations so made shall be binding and effective and votes given in accordance therewith
shall be valid and shall be counted. Save as such regulations may provide, the only persons who
shall be entitled to vote at a meeting of registered holders of Debentures shall be the registered
holders thereof or their duly appointed proxies.

          15. Further Issues. The Province may from time to time, without notice to or the
consent of the registered holders of Debentures, create and issue further Debentures ranking pari
passu with the Debentures in all respects (or in all respects except for the payment of interest
accruing prior to the issue date of such further Debentures or except for the first payment of
interest following the issue date of such further Debentures) and so that such further Debentures
shall be consolidated and form a single series with the Debentures and shall have the same terms as
to status, redemption or otherwise as the Debentures. Any further Debentures shall be issued with
the benefit of an agreement supplemental to this Agreement.

          16. Reports. The Fiscal Agent shall furnish to the Province such reports as may be
reasonably required by the Province relative to the Fiscal Agent’s performance under this
Agreement. The Province may, whenever it deems it necessary and upon reasonable notice to the
Fiscal Agent, inspect books and records maintained by the Fiscal Agent pursuant to this Agreement.

          17. Forwarding of Notice. If the Fiscal Agent shall receive any notice or demand
addressed to the Province pursuant to the provisions of the Debentures, the Fiscal Agent shall
promptly forward such notice or demand to the Province.

          18. Amendments. This Agreement and the Debentures may be amended or supplemented by
the parties hereto, without notice to or the consent of the registered holder of any Debenture, for
the purpose of curing any ambiguity, or of curing, correcting or supplementing any defective
provision contained herein or in the Debentures, or effecting the issue of further Debentures as
described under Section 15 of

-15-

 

this Agreement, or in any other manner which the Province may deem necessary or desirable and
which, in the reasonable opinion of the Province shall not adversely affect the interests of the
beneficial owners of the Debentures as set forth in a certificate of the Minister of Finance or the
Deputy Minister of Finance, the Assistant Deputy Minister of Finance — Treasury Division or
Director of Capital Finance delivered to the Fiscal Agent.

          19. Notices. (a) Any communications from the Province to the Fiscal Agent with
respect to this Agreement shall be in English and addressed to Citibank, N.A., 388 Greenwich
Street, 14th Floor, New York, New York 10013, Attn: Agency & Trust; Facsimile: (212) 657-4009, any
communications from the Province to Citibank, N.A., London Branch shall be addressed to Citibank,
N.A., London Branch, 21st Floor, Citigroup Centre, Canada Square, Canary Wharf, London E14 5LB, and
any communications from the Fiscal Agent to the Province with respect to this Agreement shall be
addressed to the Department of Finance — Treasury Division, Room 9, Legislative Building, 450
Broadway, Winnipeg, Manitoba R3C 0V8 (or such other address as shall be specified in writing by the
Fiscal Agent, Citibank, N.A., London Branch or by the Province, as the case may be) and shall be
delivered in person or sent by first class prepaid post or by facsimile transmission subject, in
the case of facsimile transmission, to confirmation by telephone to the foregoing addresses. Such
notice shall take effect when received.

          (b) All notices to the registered holders of Debentures will be published in English in the
Financial Times in London, England (if and for so long as the debentures are admitted to the
Official List of the UK Listing Authority and to trading on the regulated market of the London
Stock Exchange and the rules of the London Stock Exchange or the Financial Services Authority so
require) and The Wall Street Journal in New York, U.S.A. If at any time publication in any such
newspaper is not practicable, notices will be valid if published in an English language newspaper
with general circulation in the respective market regions as the Province, consistent with the
rules of the London Stock Exchange and the Financial Services Authority and with the approval of
the Fiscal Agent, shall determine. Any such notice shall be deemed to have been given on the date
of such publication or, if published more than once or on different dates, on the first date on
which publication is made. Written notice will also be given to DTC, provided at the time of such
notice the Debentures are represented by the Global Bond.

          20. Governing Law and Counterparts. This Agreement shall be governed by, and
interpreted in accordance with, the laws of the State of New York. This Agreement may be executed
in any number of counterparts, each of which shall be deemed an original, but all of which together
shall constitute one and the same instrument.

          21. Headings. The headings for the sections of this Agreement are for convenience
only and are not part of this Agreement.

-16-

 

          22. Inurement. This Agreement shall enure to the benefit of and be binding upon the
parties hereto and their respective successors and permitted assigns.

[signature page follows]

-17-

 

          IN WITNESS WHEREOF, the parties hereto have executed this Fiscal Agency Agreement as of the
date first above written.

	 	 	 	 	 
	 	PROVINCE OF MANITOBA

 	 
	 	By:  	/s/ Ian Hasanally
 	 
	 	 	Name:  	Ian Hasanally 	 
	 	 	Title:  	Director, Capital Markets 	 
	 

	 	 	 	 	 
	 	CITIBANK, N.A.

 	 
	 	By:  	/s/ Wafaa Orfy
 	 
	 	 	Name:  	Wafaa Orfy 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 
	 	CITIBANK, N.A., LONDON BRANCH

 	 
	 	By:  	/s/ Wafaa Orfy
 	 
	 	 	Name:  	Wafaa Orfy 	 
	 	 	Title:  	Vice President 	 
	 

-18-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]