Document:

ecig_ex103.htm

Exhibit 10.3

 

EXHIBIT D

SECURITY AGREEMENT

            This SECURITY AGREEMENT, dated as of January __, 2014 (this “Agreement”), is among Victory Electronic Cigarettes Corporation, a Nevada corporation (the “Debtor”) and the holders of the Company’s 15% Senior Secured Convertible Promissory Notes (collectively, the “Notes”) signatory hereto, their endorsees, transferees and assigns (collectively, the “Secured Parties”).

W I T N E S S E T H:

            WHEREAS, pursuant to the Purchase Agreement (as defined in the Notes), the Secured Parties have severally agreed to extend the loans to the Debtor evidenced by the Notes; and

            WHEREAS, in order to induce the Secured Parties to extend the loans evidenced by the Notes, the Debtor has agreed to execute and deliver to the Secured Parties this Agreement and to grant the Secured Parties, pari passu with each other Secured Party and through the Agent (as defined in Section 18 hereof), a security interest in certain property of the Debtor to secure the prompt payment, performance and discharge in full of all of the Debtor’s obligations under the Notes.

            NOW, THEREFORE, in consideration of the agreements herein contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

            1.                      Certain Definitions. As used in this Agreement, the following terms shall have the meanings set forth in this Section 1.  Terms used but not otherwise defined in this Agreement that are defined in Article 9 of the UCC (such as “account”, “chattel paper”, “commercial tort claim”, “deposit account”, “document”, “equipment”, “fixtures”, “general intangibles”, “goods”, “instruments”, “inventory”, “investment property”, “letter-of-credit rights”, “proceeds” and “supporting obligations”) shall have the respective meanings given such terms in Article 9 of the UCC.

(a)           “Collateral” means the collateral in which the Secured Parties are granted a security interest by this Agreement and which shall include the following personal property of the Debtor, whether presently owned or existing or hereafter acquired or coming into existence, wherever situated, and all additions and accessions thereto and all substitutions and replacements thereof, and all proceeds, products and accounts thereof, including, without limitation, all proceeds from the sale or transfer of the Collateral and of insurance covering the same and of any tort claims in connection therewith, and all dividends, interest, cash, notes, securities, equity interest or other property at any time and from time to time acquired, receivable or otherwise distributed in respect of, or in exchange for, any or all of the Pledged Securities (as defined below):

(i)   All goods, including, without limitation, (A) all machinery, equipment, computers, motor vehicles, trucks, tanks, boats, ships, appliances, furniture, special and general tools, fixtures, test and quality control devices and other equipment of every kind and nature and wherever situated, together with all documents of title and documents representing the same, all additions and accessions thereto, replacements therefor, all parts therefor, and all substitutes for any of the foregoing and all other items used and useful in connection with the Debtor’s businesses and all improvements thereto; and (B) all inventory, including all now owned or hereafter acquired inventory wherever located including in transit or in warehouses;

(ii)           All contract rights and other general intangibles, including, without limitation, all partnership interests, membership interests, stock or other securities, rights under any of the Organizational Documents, agreements related to the Pledged Securities, licenses, distribution and other agreements, computer software (whether “off-the-shelf”, licensed from any third party or developed by Debtor), computer software development rights, leases, franchises, customer lists, quality control procedures, grants and rights, goodwill, Intellectual Property and income tax refunds;

 

(iii)           All accounts, together with all instruments, all documents of title representing any of the foregoing, all rights in any merchandising, goods, equipment, motor vehicles and trucks which any of the same may represent, and all right, title, security and guaranties with respect to each account, including any right of stoppage in transit;

(iv)           All documents, letter-of-credit rights, instruments and chattel paper;

(v)           All commercial tort claims;

(vi)           All deposit accounts and all cash (whether or not deposited in such deposit accounts);

(vii)          All investment property;

(viii)         All supporting obligations; and

(ix)           All files, records, books of account, business papers, and computer programs; and

(x)           the products and proceeds of all of the foregoing Collateral set forth in clauses (i)-(ix) above.

Without limiting the generality of the foregoing, the “Collateral” shall include all investment property and general intangibles respecting ownership and/or other equity interests in each Guarantor, including, without limitation, the shares of capital stock and the other equity interests listed on Schedule H hereto (as the same may be modified from time to time pursuant to the terms hereof), and any other shares of capital stock and/or other equity interests of any other direct or indirect subsidiary of Debtor obtained in the future, and, in each case, all certificates representing such shares and/or equity interests and, in each case, all rights, options, warrants, stock, other securities and/or equity interests that may hereafter be received, receivable or distributed in respect of, or exchanged for, any of the foregoing and all rights arising under or in connection with the Pledged Securities, including, but not limited to, all dividends, interest and cash.

 

Notwithstanding the foregoing, nothing herein shall be deemed to constitute an assignment of any asset which, in the event of an assignment, becomes void by operation of applicable law or the assignment of which is otherwise prohibited by applicable law (in each case to the extent that such applicable law is not overridden by Sections 9-406, 9-407 and/or 9-408 of the UCC or other similar applicable law); provided, however, that to the extent permitted by applicable law, this Agreement shall create a valid security interest in such asset and, to the extent permitted by applicable law, this Agreement shall create a valid security interest in the proceeds of such asset.

  

 

  

 

      (b)           “Intellectual Property” means the collective reference to all rights, priorities and privileges relating to intellectual property, whether arising under United States, multinational or foreign laws or otherwise, including, without limitation, (i) all copyrights arising under the laws of the United States, any other country or any political subdivision thereof, whether registered or unregistered and whether published or unpublished, all registrations and recordings thereof, and all applications in connection therewith, including, without limitation, all registrations, recordings and applications in the United States Copyright Office, (ii) all letters patent of the United States, any other country or any political subdivision thereof, all reissues and extensions thereof, and all applications for letters patent of the United States or any other country and all divisions, continuations and continuations-in-part thereof, (iii) all trademarks, trade names, corporate names, company names, business names, fictitious business names, trade dress, service marks, logos, domain names and other source or business identifiers, and all goodwill associated therewith, now existing or hereafter adopted or acquired, all registrations and recordings thereof, and all applications in connection therewith, whether in the United States Patent and Trademark Office or in any similar office or agency of the United States, any State thereof or any other country or any political subdivision thereof, or otherwise, and all common law rights related thereto, (iv) all trade secrets arising under the laws of the United States, any other country or any political subdivision thereof, (v) all rights to obtain any reissues, renewals or extensions of the foregoing, (vi) all licenses for any of the foregoing, and (vii) all causes of action for infringement of the foregoing.

                   (c)           “Majority in Interest” means, at any time of determination, the majority in interest (based on then-outstanding principal amounts of Notes at the time of such determination) of the Secured Parties.

                   (d)           “Necessary Endorsement” means undated stock powers endorsed in blank or other proper instruments of assignment duly executed and such other instruments or documents as the Agent (as that term is defined below) may reasonably request.

   (e)           “Obligations” means all of the liabilities and obligations (primary, secondary, direct, contingent, sole, joint or several) due or to become due, or that are now or may be hereafter contracted or acquired, or owing to, of Debtor to the Secured Parties, including, without limitation, all obligations under this Agreement, the Notes, and any other instruments, agreements or other documents executed and/or delivered in connection herewith or therewith, in each case, whether now or hereafter existing, voluntary or involuntary, direct or indirect, absolute or contingent, liquidated or unliquidated, whether or not jointly owed with others, and whether or not from time to time decreased or extinguished and later increased, created or incurred, and all or any portion of such obligations or liabilities that are paid, to the extent all or any part of such payment is avoided or recovered directly or indirectly from any of the Secured Parties as a preference, fraudulent transfer or otherwise as such obligations may be amended, supplemented, converted, extended or modified from time to time.  Without limiting the generality of the foregoing, the term “Obligations” shall include, without limitation: (i) principal of, and interest on the Notes and the loans extended pursuant thereto; (ii) any and all other fees, indemnities, costs, obligations and liabilities of the Debtor from time to time under or in connection with this Agreement, the Notes, and any other instruments, agreements or other documents executed and/or delivered in connection herewith or therewith; and (iii) all amounts (including but not limited to post-petition interest) in respect of the foregoing that would be payable but for the fact that the obligations to pay such amounts are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving Debtor.

(f)           “Organizational Documents” means with respect to Debtor, the documents by which Debtor was organized (such as a certificate of incorporation, certificate of limited partnership or articles of organization, and including, without limitation, any certificates of designation for preferred stock or other forms of preferred equity) and which relate to the internal governance of Debtor (such as bylaws, a partnership agreement or an operating, limited liability or members agreement).

(g)           “Pledged Interests” shall have the meaning ascribed to such term in Section 4(j).

(h)           “Pledged Securities” shall have the meaning ascribed to such term in Section 4(i).

(i)           “UCC” means the Uniform Commercial Code of the State of New York and or any other applicable law of any state or states which has jurisdiction with respect to all, or any portion of, the Collateral or this Agreement, from time to time.  It is the intent of the parties that defined terms in the UCC should be construed in their broadest sense so that the term “Collateral” will be construed in its broadest sense.  Accordingly if there are, from time to time, changes to defined terms in the UCC that broaden the definitions, they are incorporated herein and if existing definitions in the UCC are broader than the amended definitions, the existing ones shall be controlling.

  

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           2.           Grant of Security Interest in Collateral. As an inducement for the Secured Parties to extend the loans as evidenced by the Notes and to secure the complete and timely payment, performance and discharge in full, as the case may be, of all of the Obligations, Debtor hereby unconditionally and irrevocably pledges, grants and hypothecates to the Secured Parties a security interest in and to, a lien upon and a right of set-off against all of their respective right, title and interest of whatsoever kind and nature in and to, the Collateral (a “Security Interest” and, collectively, the “Security Interests”).

           3.           Delivery of Certain Collateral.  Contemporaneously or prior to the execution of this Agreement, Debtor shall deliver or cause to be delivered to the Agent (a) any and all certificates and other instruments representing or evidencing the Pledged Securities, and (b) any and all certificates and other instruments or documents representing any of the other Collateral, in each case, together with all Necessary Endorsements.  The Debtor is, contemporaneously with the execution hereof, delivering to Agent, or has previously delivered to Agent, a true and correct copy of each Organizational Document governing any of the Pledged Securities.

            4.         Representations, Warranties, Covenants and Agreements of the Debtor. Except as set forth under the corresponding section of the disclosure schedules delivered to the Secured Parties concurrently herewith (the “Disclosure Schedules”), which Disclosure Schedules shall be deemed a part hereof, Debtor represents and warrants to, and covenants and agrees with, the Secured Parties as follows:

(a)   Debtor has the requisite corporate, partnership, limited liability company or other power and authority to enter into this Agreement and otherwise to carry out its obligations hereunder. The execution, delivery and performance by Debtor of this Agreement and the filings contemplated therein have been duly authorized by all necessary action on the part of Debtor and no further action is required by Debtor.  This Agreement has been duly executed by Debtor.  This Agreement constitutes the legal, valid and binding obligation of Debtor, enforceable against Debtor in accordance with its terms except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization and similar laws of general application relating to or affecting the rights and remedies of creditors and by general principles of equity.

 (b)           The Debtor has no place of business or offices where their respective books of account and records are kept (other than temporarily at the offices of its attorneys or accountants) or places where Collateral is stored or located, except as set forth on Schedule A attached hereto.  Except as specifically set forth on Schedule A, Debtor is the record owner of the real property where such Collateral is located, and there exist no mortgages or other liens on any such real property.  Except as disclosed on Schedule A, none of such Collateral is in the possession of any consignee, bailee, warehouseman, agent or processor.

(c)           Except as set forth on Schedule B attached hereto, the Debtor is the sole owner of the Collateral (except for non-exclusive licenses granted by Debtor in the ordinary course of business), free and clear of any liens, security interests, encumbrances, rights or claims, and is fully authorized to grant the Security Interests.  Except as set forth on Schedule C attached hereto, there is not on file in any governmental or regulatory authority, agency or recording office an effective financing statement, security agreement, license or transfer or any notice of any of the foregoing (other than those that will be filed in favor of the Secured Parties pursuant to this Agreement) covering or affecting any of the Collateral.  Except as set forth on Schedule C attached hereto and except pursuant to this Agreement, as long as this Agreement shall be in effect, the Debtor shall not execute and shall not knowingly permit to be on file in any such office or agency any other financing statement or other document or instrument (except to the extent filed or recorded in favor of the Secured Parties pursuant to the terms of this Agreement).

(d)           Except as set forth on Schedule I attached hereto, no written claim has been received that any Collateral or Debtor's use of any Collateral violates the rights of any third party.  Except as set forth on Schedule I attached hereto, there has been no adverse decision to Debtor's claim of ownership rights in or exclusive rights to use the Collateral in any jurisdiction or to Debtor's right to keep and maintain such Collateral in full force and effect, and there is no proceeding involving said rights pending or, to the best knowledge of Debtor, threatened before any court, judicial body, administrative or regulatory agency, arbitrator or other governmental authority.

  

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(e)           The Debtor shall at all times maintain its books of account and records relating to the Collateral at its principal place of business and its Collateral at the locations set forth on Schedule A attached hereto and may not relocate such books of account and records or tangible Collateral unless it delivers to the Secured Parties at least 30 days prior to such relocation (i) written notice of such relocation and the new location thereof (which must be within the United States) and (ii) evidence that appropriate financing statements under the UCC and other necessary documents have been filed and recorded and other steps have been taken to perfect the Security Interests to create in favor of the Secured Parties a valid, perfected and continuing perfected first priority lien in the Collateral.

(f)           This Agreement creates in favor of the Secured Parties a valid security interest in the Collateral securing the payment and performance of the Obligations.  Upon making the filings described in the immediately following paragraph, all security interests created hereunder in any Collateral which may be perfected by filing Uniform Commercial Code financing statements shall have been duly perfected.  Except for the filing of the Uniform Commercial Code financing statements referred to in the immediately following paragraph, the recordation of the Intellectual Property Security Agreement (as defined in Section 4(p) hereof) with respect to copyrights and copyright applications in the United States Copyright Office referred to in paragraph (m), the execution and delivery of deposit account control agreements satisfying the requirements of Section 9-104(a)(2) of the UCC with respect to each deposit account of the Debtor, and the delivery of the certificates and other instruments provided in Section 3, no action is necessary to create, perfect or protect the security interests created hereunder.  Without limiting the generality of the foregoing, except for the filing of said financing statements, the recordation of said Intellectual Property Security Agreement, and the execution and delivery of said deposit account control agreements, no consent of any third parties and no authorization, approval or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for (i) the execution, delivery and performance of this Agreement, (ii) the creation or perfection of the Security Interests created hereunder in the Collateral or (iii) the enforcement of the rights of the Agent and the Secured Parties hereunder.

 (g)           Debtor hereby authorizes the Agent to file one or more financing statements under the UCC or any other similar law, with respect to the Security Interests, with the proper filing and recording agencies in any jurisdiction deemed proper by it, including foreign jurisdictions, including but not limited to filing a fixed and floating charge over the Security Interests in the United Kingdom.

 (h)           The execution, delivery and performance of this Agreement by the Debtor does not (i) violate any of the provisions of any Organizational Documents of Debtor or any judgment, decree, order or award of any court, governmental body or arbitrator or any applicable law, rule or regulation applicable to Debtor or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing Debtor's debt or otherwise) or other understanding to which Debtor is a party or by which any property or asset of Debtor is bound or affected. If any, all required consents (including, without limitation, from stockholders or creditors of Debtor) necessary for Debtor to enter into and perform its obligations hereunder have been obtained.

(i)           The capital stock and other equity interests listed on Schedule H hereto (the “Pledged Securities”) represent all of the capital stock and other equity interests of all of the subsidiaries of the Debtor, and represent all capital stock and other equity interests owned, directly or indirectly, by the Debtor.  All of the Pledged Securities are validly issued, fully paid and nonassessable, and except as set forth on Schedule H attached hereto the Debtor is the legal and beneficial owner of the Pledged Securities, free and clear of any lien, security interest or other encumbrance except for the security interests created by this Agreement.

(j)           The ownership and other equity interests in partnerships and limited liability companies (if any) included in the Collateral (the “Pledged Interests”) by their express terms do not provide that they are securities governed by Article 8 of the UCC and are not held in a securities account or by any financial intermediary.

  

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(k)           Debtor shall at all times maintain the liens and Security Interests provided for hereunder as valid and perfected first priority liens and security interests in the Collateral in favor of the Secured Parties until this Agreement and the Security Interest hereunder shall be terminated pursuant to Section 14 hereof.  Debtor hereby agrees to defend the same against the claims of any and all persons and entities. Debtor shall safeguard and protect all Collateral for the account of the Secured Parties.  At the request of the Agent, Debtor will sign and deliver to the Agent on behalf of the Secured Parties at any time or from time to time one or more financing statements pursuant to the UCC in form reasonably satisfactory to the Agent and will pay the cost of filing the same in all public offices wherever filing is, or is deemed by the Agent to be, necessary or desirable to effect the rights and obligations provided for herein. Without limiting the generality of the foregoing, Debtor shall pay all fees, taxes and other amounts necessary to maintain the Collateral and the Security Interests hereunder, and Debtor shall obtain and furnish to the Agent from time to time, upon demand, such releases and/or subordinations of claims and liens which may be required to maintain the priority of the Security Interests hereunder.

(l)           Debtor will note transfer, pledge, hypothecate, encumber, license, sell or otherwise dispose of any of the Collateral (except for non-exclusive licenses granted by Debtor in its ordinary course of business and sales of inventory by Debtor in its ordinary course of business) without the prior written consent of a Majority in Interest.

(m)           Debtor shall keep and preserve its equipment, inventory and other tangible Collateral in good condition, repair and order and shall not operate or locate any such Collateral (or cause to be operated or located) in any area excluded from insurance coverage.

(n)           Debtor shall maintain with financially sound and reputable insurers, insurance with respect to the Collateral, including Collateral hereafter acquired, against loss or damage of the kinds and in the amounts customarily insured against by entities of established reputation having similar properties similarly situated and in such amounts as are customarily carried under similar circumstances by other such entities and otherwise as is prudent for entities engaged in similar businesses but in any event sufficient to cover the full replacement cost thereof.  Debtor shall cause each insurance policy issued in connection herewith to provide, and the insurer issuing such policy to certify to the Agent, that (a) the Agent will be named as lender loss payee and additional insured under each such insurance policy; (b) if such insurance be proposed to be cancelled or materially changed for any reason whatsoever, such insurer will promptly notify the Agent and such cancellation or change shall not be effective as to the Agent for at least thirty (30) days after receipt by the Agent of such notice, unless the effect of such change is to extend or increase coverage under the policy; and (c) the Agent will have the right (but no obligation) at its election to remedy any default in the payment of premiums within thirty (30) days of notice from the insurer of such default.  If no Event of Default (as defined in the Notes) exists and if the proceeds arising out of any claim or series of related claims do not exceed $100,000, loss payments in each instance will be applied by the Debtor to the repair and/or replacement of property with respect to which the loss was incurred to the extent reasonably feasible, and any loss payments or the balance thereof remaining, to the extent not so applied, shall be payable to the Debtor; provided, however, that payments received by Debtor after an Event of Default occurs and is continuing or in excess of $100,000 for any occurrence or series of related occurrences shall be paid to the Agent on behalf of the Secured Parties and, if received by Debtor, shall be held in trust for the Secured Parties and immediately paid over to the Agent unless otherwise directed in writing by the Agent.   Copies of such policies or the related certificates, in each case, naming the Agent as lender loss payee and additional insured shall be delivered to the Agent at least annually and at the time any new policy of insurance is issued.

(o)           Debtor shall, within ten (10) days of obtaining knowledge thereof, advise the Secured Parties promptly, in sufficient detail, of any material adverse change in the Collateral, and of the occurrence of any event which would have a material adverse effect on the value of the Collateral or on the Secured Parties’ security interest, through the Agent, therein.

 (p)           Debtor shall promptly execute and deliver to the Agent such further deeds, mortgages, assignments, security agreements, financing statements or other instruments, documents, certificates and assurances and take such further action as the Agent may from time to time request and may in its sole discretion deem necessary to perfect, protect or enforce the Secured Parties’ security interest in the Collateral including, without limitation, if applicable, the execution and delivery of a separate security agreement with respect to Debtor’s Intellectual Property (“Intellectual Property Security Agreement”) in which the Secured Parties have been granted a security interest hereunder, substantially in a form reasonably acceptable to the Agent, which Intellectual Property Security Agreement, other than as stated therein, shall be subject to all of the terms and conditions hereof.

(q)           Debtor shall permit the Agent and its representatives and agents to inspect the Collateral during normal business hours and upon reasonable prior notice, and to make copies of records pertaining to the Collateral as may be reasonably requested by the Agent from time to time.

  

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(r)           Debtor shall take all steps reasonably necessary to diligently pursue and seek to preserve, enforce and collect any rights, claims, causes of action and accounts receivable in respect of the Collateral.

(s)           Debtor shall promptly notify the Secured Parties in sufficient detail upon becoming aware of any attachment, garnishment, execution or other legal process levied against any Collateral and of any other information received by Debtor that may materially affect the value of the Collateral, the Security Interest or the rights and remedies of the Secured Parties hereunder.

(t)           All information heretofore, herein or hereafter supplied to the Secured Parties by or on behalf of Debtor with respect to the Collateral is accurate and complete in all material respects as of the date furnished.

(u)           The Debtor shall at all times preserve and keep in full force and effect their respective valid existence and good standing and any rights and franchises material to its business.

(v)           Debtor will not change its name, type of organization, jurisdiction of organization, organizational identification number (if it has one), legal or corporate structure, or identity, or add any new fictitious name unless it provides at least 30 days prior written notice to the Secured Parties of such change and, at the time of such written notification, Debtor provides any financing statements or fixture filings necessary to perfect and continue the perfection of the Security Interests granted and evidenced by this Agreement.

(w)           Except in the ordinary course of business, Debtor may not consign any of its inventory or sell any of its inventory on bill and hold, sale or return, sale on approval, or other conditional terms of sale without the consent of the Agent which shall not be unreasonably withheld.

(x)           Debtor may not relocate its chief executive office to a new location without providing 30 days prior written notification thereof to the Secured Parties and so long as, at the time of such written notification, Debtor provides any financing statements or fixture filings necessary to perfect and continue the perfection of the Security Interests granted and evidenced by this Agreement.

 (y)           Debtor was organized and remains organized solely under the laws of the state set forth next to Debtor’s name in Schedule D attached hereto, which Schedule D sets forth Debtor’s organizational identification number or, if Debtor does not have one, states that one does not exist.

(z)            (i) The actual name of Debtor is the name set forth in Schedule D attached hereto; (ii) Debtor has no trade names except as set forth on Schedule E attached hereto; (iii) Debtor has not used any name other than that stated in the preamble hereto or as set forth on Schedule E for the preceding five years; and (iv) no entity has merged into Debtor or been acquired by Debtor within the past five years except as set forth on Schedule E.

(aa)           At any time and from time to time that any Collateral consists of instruments, certificated securities or other items that require or permit possession by the secured party to perfect the security interest created hereby, the Debtor shall deliver such Collateral to the Agent.

                (bb)           Debtor, in its capacity as issuer, hereby agrees to comply with any and all orders and instructions of Agent regarding the Pledged Interests consistent with the terms of this Agreement without the further consent of Debtor as contemplated by Section 8-106 (or any successor section) of the UCC.  Further, Debtor agrees that it shall not enter into a similar agreement (or one that would confer “control” within the meaning of Article 8 of the UCC) with any other person or entity.

 

(cc)           Debtor shall cause all tangible chattel paper constituting Collateral to be delivered to the Agent, or, if such delivery is not possible, then to cause such tangible chattel paper to contain a legend noting that it is subject to the security interest created by this Agreement.  To the extent that any Collateral consists of electronic chattel paper, the Debtor shall cause the underlying chattel paper to be “marked” within the meaning of Section 9-105 of the UCC (or successor section thereto).

  

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(dd)           If there is any investment property or deposit account included as Collateral that can be perfected by “control” through an account control agreement, the Debtor shall cause such an account control agreement, in form and substance in each case satisfactory to the Agent, to be entered into and delivered to the Agent for the benefit of the Secured Parties.

(ee)           To the extent that any Collateral consists of letter-of-credit rights, the Debtor shall cause the issuer of each underlying letter of credit to consent to an assignment of the proceeds thereof to the Secured Parties.

(ff)            To the extent that any Collateral is in the possession of any third party, the Debtor shall join with the Agent in notifying such third party of the Secured Parties’ security interest in such Collateral and shall use its best efforts to obtain an acknowledgement and agreement from such third party with respect to the Collateral, in form and substance reasonably satisfactory to the Agent.

(gg)           If Debtor shall at any time hold or acquire a commercial tort claim, Debtor shall promptly notify the Secured Parties in a writing signed by Debtor of the particulars thereof and grant to the Secured Parties in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance satisfactory to the Agent.

(hh)          Debtor shall immediately provide written notice to the Secured Parties of any and all accounts which arise out of contracts with any governmental authority and, to the extent necessary to perfect or continue the perfected status of the Security Interests in such accounts and proceeds thereof, shall execute and deliver to the Agent an assignment of claims for such accounts and cooperate with the Agent in taking any other steps required, in its judgment, under the Federal Assignment of Claims Act or any similar federal, state or local statute or rule to perfect or continue the perfected status of the Security Interests in such accounts and proceeds thereof.

 (ii)           Debtor shall cause each subsidiary of Debtor to immediately become a party hereto (an “Additional Debtor”), by executing and delivering an Additional Debtor Joinder in substantially the form of Annex A attached hereto and comply with the provisions hereof applicable to the Debtor.  Concurrent therewith, the Additional Debtor shall deliver replacement schedules for, or supplements to all other Schedules to (or referred to in) this Agreement, as applicable, which replacement schedules shall supersede, or supplements shall modify, the Schedules then in effect.  The Additional Debtor shall also deliver such opinions of counsel, authorizing resolutions, good standing certificates, incumbency certificates, organizational documents, financing statements and other information and documentation as the Agent may reasonably request.  Upon delivery of the foregoing to the Agent, the Additional Debtor shall be and become a party to this Agreement with the same rights and obligations as the Debtor, for all purposes hereof as fully and to the same extent as if it were an original signatory hereto and shall be deemed to have made the representations, warranties and covenants set forth herein as of the date of execution and delivery of such Additional Debtor Joinder, and all references herein to the “Debtor” shall be deemed to include each Additional Debtor.

(jj)             Debtor shall vote the Pledged Securities to comply with the covenants and agreements set forth herein and in the Notes.

(kk)           Debtor shall register the pledge of the applicable Pledged Securities on the books of Debtor.  Debtor shall notify each issuer of Pledged Securities to register the pledge of the applicable Pledged Securities in the name of the Secured Parties on the books of such issuer.  Further, except with respect to certificated securities delivered to the Agent, the Debtor shall deliver to Agent an acknowledgement of pledge (which, where appropriate, shall comply with the requirements of the relevant UCC with respect to perfection by registration) signed by the issuer of the applicable Pledged Securities, which acknowledgement shall confirm that: (a) it has registered the pledge on its books and records; and (b) at any time directed by Agent during the continuation of an Event of Default, such issuer will transfer the record ownership of such Pledged Securities into the name of any designee of Agent, will take such steps as may be necessary to effect the transfer, and will comply with all other instructions of Agent regarding such Pledged Securities without the further consent of the Debtor.

  

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(ll)              In the event that, upon an occurrence of an Event of Default, Agent shall sell all or any of the Pledged Securities to another party or parties (herein called the “Transferee”) or shall purchase or retain all or any of the Pledged Securities, Debtor shall, to the extent applicable: (i) deliver to Agent or the Transferee, as the case may be, the articles of incorporation, bylaws, minute books, stock certificate books, corporate seals, deeds, leases, indentures, agreements, evidences of indebtedness, books of account, financial records and all other Organizational Documents and records of the Debtor and their direct and indirect subsidiaries; (ii) use its best efforts to obtain resignations of the persons then serving as officers and directors of the Debtor and its direct and indirect subsidiaries, if so requested; and (iii) use its best efforts to obtain any approvals that are required by any governmental or regulatory body in order to permit the sale of the Pledged Securities to the Transferee or the purchase or retention of the Pledged Securities by Agent and allow the Transferee or Agent to continue the business of the Debtor and its direct and indirect subsidiaries.

 

(mm)           Without limiting the generality of the other obligations of the Debtor hereunder, Debtor shall promptly (i) cause to be registered at the United States Copyright Office all of its material copyrights, (ii) cause the security interest contemplated hereby with respect to all Intellectual Property registered at the United States Copyright Office or United States Patent and Trademark Office to be duly recorded at the applicable office, and (iii) give the Agent notice whenever it acquires (whether absolutely or by license) or creates any additional material Intellectual Property.

 (nn)           Debtor will from time to time promptly execute and deliver all such further instruments and documents, and take all such further action as may be necessary or desirable, or as the Agent may reasonably request, in order to perfect and protect any security interest granted or purported to be granted hereby or to enable the Secured Parties to exercise and enforce their rights and remedies hereunder and with respect to any Collateral or to otherwise carry out the purposes of this Agreement.

(oo)           Schedule F attached hereto lists all of the patents, patent applications, trademarks, trademark applications, registered copyrights, and domain names owned by the Debtor as of the date hereof.  Schedule F lists all material licenses in favor of Debtor for the use of any patents, trademarks, copyrights and domain names as of the date hereof.  All material patents and trademarks of the Debtor have been duly recorded at the United States Patent and Trademark Office and all material copyrights of the Debtor have been duly recorded at the United States Copyright Office.

(pp)           Except as set forth on Schedule G attached hereto, none of the account debtors or other persons or entities obligated on any of the Collateral is a governmental authority covered by the Federal Assignment of Claims Act or any similar federal, state or local statute or rule in respect of such Collateral.

           5.           Effect of Pledge on Certain Rights. If any of the Collateral subject to this Agreement consists of nonvoting equity or ownership interests (regardless of class, designation, preference or rights) that may be converted into voting equity or ownership interests upon the occurrence of certain events (including, without limitation, upon the transfer of all or any of the other stock or assets of the issuer), it is agreed that the pledge of such equity or ownership interests pursuant to this Agreement or the enforcement of any of Agent’s rights hereunder shall not be deemed to be the type of event which would trigger such conversion rights notwithstanding any provisions in the Organizational Documents or agreements to which Debtor is subject or to which Debtor is party.

  

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              6.           Defaults. The following events shall be “Events of Default”:

(a)   The occurrence of an Event of Default (as defined in the Notes) under the Notes;

(b)   Any representation or warranty of Debtor in this Agreement shall prove to have been incorrect in any material respect when made;

(c)   The failure by Debtor to observe or perform any of its obligations hereunder for five (5) days after delivery to Debtor of notice of such failure by or on behalf of a Secured Party unless such default is capable of cure but cannot be cured within such time frame and Debtor is using best efforts to cure same in a timely fashion; or

(d)   If any provision of this Agreement shall at any time for any reason be declared to be null and void, or the validity or enforceability thereof shall be contested by Debtor, or a proceeding shall be commenced by Debtor, or by any governmental authority having jurisdiction over Debtor, seeking to establish the invalidity or unenforceability thereof, or Debtor shall deny that Debtor has any liability or obligation purported to be created under this Agreement.

            7.           Duty To Hold In Trust.

   (a)           Upon the occurrence of any Event of Default and at any time thereafter, Debtor shall, upon receipt of any revenue, income, dividend, interest or other sums subject to the Security Interests, whether payable pursuant to the Notes or otherwise, or of any check, draft, note, trade acceptance or other instrument evidencing an obligation to pay any such sum, hold the same in trust for the Secured Parties and shall forthwith endorse and transfer any such sums or instruments, or both, to the Secured Parties, pro-rata in proportion to their respective then-currently outstanding principal amount of Notes for application to the satisfaction of the Obligations (and if any Note is not outstanding, pro-rata in proportion to the initial purchases of the remaining Notes).

   (b)           If Debtor shall become entitled to receive or shall receive any securities or other property (including, without limitation, shares of Pledged Securities or instruments representing Pledged Securities acquired after the date hereof, or any options, warrants, rights or other similar property or certificates representing a dividend, or any distribution in connection with any recapitalization, reclassification or increase or reduction of capital, or issued in connection with any reorganization of Debtor or any of its direct or indirect subsidiaries) in respect of the Pledged Securities (whether as an addition to, in substitution of, or in exchange for, such Pledged Securities or otherwise), Debtor agrees to (i) accept the same as the agent of the Secured Parties; (ii) hold the same in trust on behalf of and for the benefit of the Secured Parties; and (iii) to deliver any and all certificates or instruments evidencing the same to Agent on or before the close of business on the fifth business day following the receipt thereof by Debtor, in the exact form received together with the Necessary Endorsements, to be held by Agent subject to the terms of this Agreement as Collateral.

            8.       Rights and Remedies Upon Default.

                   (a)           Upon the occurrence of any Event of Default and at any time thereafter, the Secured Parties, acting through the Agent, shall have the right to exercise all of the remedies conferred hereunder and under the Notes, and the Secured Parties shall have all the rights and remedies of a secured party under the UCC.  Without limitation, the Agent, for the benefit of the Secured Parties, shall have the following rights and powers:

(i)   The Agent shall have the right to take possession of the Collateral and, for that purpose, enter, with the aid and assistance of any person, any premises where the Collateral, or any part thereof, is or may be placed and remove the same, and Debtor shall assemble the Collateral and make it available to the Agent at places which the Agent shall reasonably select, whether at Debtor’s premises or elsewhere, and make available to the Agent, without rent, all of Debtor’s respective premises and facilities for the purpose of the Agent taking possession of, removing or putting the Collateral in saleable or disposable form.

(ii)         Upon notice to the Debtor by Agent, all rights of Debtor to exercise the voting and other consensual rights which it would otherwise be entitled to exercise and all rights of Debtor to receive the dividends and interest which it would otherwise be authorized to receive and retain, shall cease.  Upon such notice, Agent shall have the right to receive, for the benefit of the Secured Parties, any interest, cash dividends or other payments on the Collateral and, at the option of Agent, to exercise in such Agent’s discretion all voting rights pertaining thereto.  Without limiting the generality of the foregoing, Agent shall have the right (but not the obligation) to exercise all rights with respect to the Collateral as it were the sole and absolute owner thereof, including, without limitation, to vote and/or to exchange, at its sole discretion, any or all of the Collateral in connection with a merger, reorganization, consolidation, recapitalization or other readjustment concerning or involving the Collateral or Debtor or any of its direct or indirect subsidiaries.

  

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(iii)   The Agent shall have the right to operate the business of Debtor using the Collateral and shall have the right to assign, sell, lease or otherwise dispose of and deliver all or any part of the Collateral, at public or private sale or otherwise, either with or without special conditions or stipulations, for cash or on credit or for future delivery, in such parcel or parcels and at such time or times and at such place or places, and upon such terms and conditions as the Agent may deem commercially reasonable, all without (except as shall be required by applicable statute and cannot be waived) advertisement or demand upon or notice to Debtor or right of redemption of Debtor, which are hereby expressly waived.  Upon each such sale, lease, assignment or other transfer of Collateral, the Agent, for the benefit of the Secured Parties, may, unless prohibited by applicable law which cannot be waived, purchase all or any part of the Collateral being sold, free from and discharged of all trusts, claims, right of redemption and equities of Debtor, which are hereby waived and released.

(iv)         The Agent shall have the right (but not the obligation) to notify any account debtors and any obligors under instruments or accounts to make payments directly to the Agent, on behalf of the Secured Parties, and to enforce the Debtor’s rights against such account debtors and obligors.

(v)         The Agent, for the benefit of the Secured Parties, may (but is not obligated to) direct any financial intermediary or any other person or entity holding any investment property to transfer the same to the Agent, on behalf of the Secured Parties, or its designee.

(vi)         The Agent may (but is not obligated to) transfer any or all Intellectual Property registered in the name of Debtor at the United States Patent and Trademark Office and/or Copyright Office into the name of the Secured Parties or any designee or any purchaser of any Collateral.

                  (b)         The Agent shall comply with any applicable law in connection with a disposition of Collateral and such compliance will not be considered adversely to affect the commercial reasonableness of any sale of the Collateral.  The Agent may sell the Collateral without giving any warranties and may specifically disclaim such warranties.  If the Agent sells any of the Collateral on credit, the Debtor will only be credited with payments actually made by the purchaser.  In addition, Debtor waives any and all rights that it may have to a judicial hearing in advance of the enforcement of any of the Agent’s rights and remedies hereunder, including, without limitation, its right following an Event of Default to take immediate possession of the Collateral and to exercise its rights and remedies with respect thereto.

 

(c)           For the purpose of enabling the Agent to further exercise rights and remedies under this Section 8 or elsewhere provided by agreement or applicable law, Debtor hereby grants to the Agent, for the benefit of the Agent and the Secured Parties, an irrevocable, nonexclusive license (exercisable without payment of royalty or other compensation to Debtor) to use, license or sublicense following an Event of Default, any Intellectual Property now owned or hereafter acquired by Debtor, and wherever the same may be located, and including in such license access to all media in which any of the licensed items may be recorded or stored and to all computer software and programs used for the compilation or printout thereof.

            9.        Applications of Proceeds. The proceeds of any such sale, lease or other disposition of the Collateral hereunder or from payments made on account of any insurance policy insuring any portion of the Collateral shall be applied first, to the expenses of retaking, holding, storing, processing and preparing for sale, selling, and the like (including, without limitation, any taxes, fees and other costs incurred in connection therewith) of the Collateral, to the reasonable attorneys’ fees and expenses incurred by the Agent in enforcing the Secured Parties’ rights hereunder and in connection with collecting, storing and disposing of the Collateral, and then to satisfaction of the Obligations pro rata among the Secured Parties (based on then-outstanding principal amounts of Notes at the time of any such determination), and to the payment of any other amounts required by applicable law, after which the Secured Parties shall pay to the Debtor any surplus proceeds. If, upon the sale, license or other disposition of the Collateral, the proceeds thereof are insufficient to pay all amounts to which the Secured Parties are legally entitled, the Debtor will be liable for the deficiency, together with interest thereon, at the rate of 18% per annum or the lesser amount permitted by applicable law (the “Default Rate”), and the reasonable fees of any attorneys employed by the Secured Parties to collect such deficiency.  To the extent permitted by applicable law, Debtor waives all claims, damages and demands against the Secured Parties arising out of the repossession, removal, retention or sale of the Collateral, unless due solely to the gross negligence or willful misconduct of the Secured Parties as determined by a final judgment (not subject to further appeal) of a court of competent jurisdiction.

           10.        Securities Law Provision.  Debtor recognizes that Agent may be limited in its ability to effect a sale to the public of all or part of the Pledged Securities by reason of certain prohibitions in the Securities Act of 1933, as amended, or other federal or state securities laws (collectively, the “Securities Laws”), and may be compelled to resort to one or more sales to a restricted group of purchasers who may be required to agree to acquire the Pledged Securities for their own account, for investment and not with a view to the distribution or resale thereof.  Debtor agrees that sales so made may be at prices and on terms less favorable than if the Pledged Securities were sold to the public, and that Agent has no obligation to delay the sale of any Pledged Securities for the period of time necessary to register the Pledged Securities for sale to the public under the Securities Laws.  Debtor shall cooperate with Agent in its attempt to satisfy any requirements under the Securities Laws (including, without limitation, registration thereunder if requested by Agent) applicable to the sale of the Pledged Securities by Agent.

 

  

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           11.           Costs and Expenses. Debtor agrees to pay all reasonable out-of-pocket fees, costs and expenses incurred in connection with any filing required hereunder, including without limitation, any financing statements pursuant to the UCC, continuation statements, partial releases and/or termination statements related thereto or any expenses of any searches reasonably required by the Agent.  The Debtor shall also pay all other claims and charges which in the reasonable opinion of the Agent is reasonably likely to prejudice, imperil or otherwise affect the Collateral or the Security Interests therein.  The Debtor will also, upon demand, pay to the Agent the amount of any and all reasonable expenses, including the reasonable fees and expenses of its counsel and of any experts and agents, which the Agent, for the benefit of the Secured Parties, may incur in connection with the creation, perfection, protection, satisfaction, foreclosure, collection or enforcement of the Security Interest and the preparation, administration, continuance, amendment or enforcement of this Agreement and pay to the Agent the amount of any and all reasonable expenses, including the reasonable fees and expenses of its counsel and of any experts and agents, which the Agent, for the benefit of the Secured Parties, and the Secured Parties may incur in connection with (i) the enforcement of this Agreement, (ii) the custody or preservation of, or the sale of, collection from, or other realization upon, any of the Collateral, or (iii) the exercise or enforcement of any of the rights of the Secured Parties under the Notes. Until so paid, any fees payable hereunder shall be added to the principal amount of the Notes and shall bear interest at the Default Rate.

            12.          Responsibility for Collateral. The Debtor assumes all liabilities and responsibility in connection with all Collateral, and the Obligations shall in no way be affected or diminished by reason of the loss, destruction, damage or theft of any of the Collateral or its unavailability for any reason.  Without limiting the generality of the foregoing, (a) neither the Agent nor any Secured Party (i) has any duty (either before or after an Event of Default) to collect any amounts in respect of the Collateral or to preserve any rights relating to the Collateral, or (ii) has any obligation to clean-up or otherwise prepare the Collateral for sale, and (b) Debtor shall remain obligated and liable under each contract or agreement included in the Collateral to be observed or performed by Debtor thereunder.  Neither the Agent nor any Secured Party shall have any obligation or liability under any such contract or agreement by reason of or arising out of this Agreement or the receipt by the Agent or any Secured Party of any payment relating to any of the Collateral, nor shall the Agent or any Secured Party be obligated in any manner to perform any of the obligations of Debtor under or pursuant to any such contract or agreement, to make inquiry as to the nature or sufficiency of any payment received by the Agent or any Secured Party in respect of the Collateral or as to the sufficiency of any performance by any party under any such contract or agreement, to present or file any claim, to take any action to enforce any performance or to collect the payment of any amounts which may have been assigned to the Agent or to which the Agent or any Secured Party may be entitled at any time or times.

           13.          Security Interests Absolute. All rights of the Secured Parties and all obligations of the Debtor hereunder, shall be absolute and unconditional, irrespective of: (a) any lack of validity or enforceability of this Agreement, the Notes or any agreement entered into in connection with the foregoing, or any portion hereof or thereof; (b) any change in the time, manner or place of payment or performance of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to any departure from the Notes or any other agreement entered into in connection with the foregoing; (c) any exchange, release or nonperfection of any of the Collateral, or any release or amendment or waiver of or consent to departure from any other collateral for, or any guarantee, or any other security, for all or any of the Obligations; (d) any action by the Secured Parties to obtain, adjust, settle and cancel in its sole discretion any insurance claims or matters made or arising in connection with the Collateral; or (e) any other circumstance which might otherwise constitute any legal or equitable defense available to Debtor, or a discharge of all or any part of the Security Interests granted hereby.  Until the Obligations shall have been paid and performed in full, the rights of the Secured Parties shall continue even if the Obligations are barred for any reason, including, without limitation, the running of the statute of limitations or bankruptcy.  Debtor expressly waives presentment, protest, notice of protest, demand, notice of nonpayment and demand for performance. In the event that at any time any transfer of any Collateral or any payment received by the Secured Parties hereunder shall be deemed by final order of a court of competent jurisdiction to have been a voidable preference or fraudulent conveyance under the bankruptcy or insolvency laws of the United States, or shall be deemed to be otherwise due to any party other than the Secured Parties, then, in any such event, Debtor’s obligations hereunder shall survive cancellation of this Agreement, and shall not be discharged or satisfied by any prior payment thereof and/or cancellation of this Agreement, but shall remain a valid and binding obligation enforceable in accordance with the terms and provisions hereof.  Debtor waives all right to require the Secured Parties to proceed against any other person or entity or to apply any Collateral which the Secured Parties may hold at any time, or to marshal assets, or to pursue any other remedy. Debtor waives any defense arising by reason of the application of the statute of limitations to any obligation secured hereby.

            14.         Term of Agreement. This Agreement and the Security Interests shall terminate on the date on which all payments under the Notes have been indefeasibly paid in full and all other Obligations have been paid or discharged; provided, however, that all indemnities of the Debtor contained in this Agreement (including, without limitation, Annex B hereto) shall survive and remain operative and in full force and effect regardless of the termination of this Agreement.

  

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            15.           Power of Attorney; Further Assurances.

 (a)           Debtor authorizes the Agent, and does hereby make, constitute and appoint the Agent and its officers, agents, successors or assigns with full power of substitution, as Debtor’s true and lawful attorney-in-fact, with power, in the name of the Agent or Debtor, to, after the occurrence and during the continuance of an Event of Default, (i) endorse any note, checks, drafts, money orders or other instruments of payment (including payments payable under or in respect of any policy of insurance) in respect of the Collateral that may come into possession of the Agent; (ii) to sign and endorse any financing statement pursuant to the UCC or any invoice, freight or express bill, bill of lading, storage or warehouse receipts, drafts against debtors, assignments, verifications and notices in connection with accounts, and other documents relating to the Collateral; (iii) to pay or discharge taxes, liens, security interests or other encumbrances at any time levied or placed on or threatened against the Collateral; (iv) to demand, collect, receipt for, compromise, settle and sue for monies due in respect of the Collateral; (v) to transfer any Intellectual Property or provide licenses respecting any Intellectual Property; and (vi) generally, at the option of the Agent, and at the expense of the Debtor, at any time, or from time to time, to execute and deliver any and all documents and instruments and to do all acts and things which the Agent deems necessary to protect, preserve and realize upon the Collateral and the Security Interests granted therein in order to effect the intent of this Agreement and the Notes all as fully and effectually as the Debtor might or could do; and Debtor hereby ratifies all that said attorney shall lawfully do or cause to be done by virtue hereof.  This power of attorney is coupled with an interest and shall be irrevocable for the term of this Agreement and thereafter as long as any of the Obligations shall be outstanding.  The designation set forth herein shall be deemed to amend and supersede any inconsistent provision in the Organizational Documents or other documents or agreements to which Debtor is subject or to which Debtor is a party.  Without limiting the generality of the foregoing, after the occurrence and during the continuance of an Event of Default, each Secured Party is specifically authorized to execute and file any applications for or instruments of transfer and assignment of any patents, trademarks, copyrights or other Intellectual Property with the United States Patent and Trademark Office and the United States Copyright Office.

 (b)           On a continuing basis, Debtor will make, execute, acknowledge, deliver, file and record, as the case may be, with the proper filing and recording agencies in any jurisdiction, including, without limitation, the jurisdictions indicated on Schedule C attached hereto, all such instruments, and take all such action as may reasonably be deemed necessary or advisable, or as reasonably requested by the Agent, to perfect the Security Interests granted hereunder and otherwise to carry out the intent and purposes of this Agreement, or for assuring and confirming to the Agent the grant or perfection of a perfected security interest in all the Collateral under the UCC.

(c)          Debtor hereby irrevocably appoints the Agent as Debtor’s attorney-in-fact, with full authority in the place and instead of Debtor and in the name of Debtor, from time to time in the Agent’s discretion, to take any action and to execute any instrument which the Agent may deem necessary or advisable to accomplish the purposes of this Agreement, including the filing, in its sole discretion, of one or more financing or continuation statements and amendments thereto, relative to any of the Collateral without the signature of Debtor where permitted by law, which financing statements may (but need not) describe the Collateral as “all assets” or “all personal property” or words of like import, and ratifies all such actions taken by the Agent.  This power of attorney is coupled with an interest and shall be irrevocable for the term of this Agreement and thereafter as long as any of the Obligations shall be outstanding.

            16.            Notices. All notices, requests, demands and other communications hereunder shall be subject to the notice provision of the Purchase Agreement (as such term is defined in the Notes).

            17.            Other Security. To the extent that the Obligations are now or hereafter  secured by property other than the Collateral or by the guarantee, endorsement or property of any other person, firm, corporation or other entity, then the Agent shall have the right, in its sole discretion, to pursue, relinquish, subordinate, modify or take any other action with respect thereto, without in any way modifying or affecting any of the Secured Parties’ rights and remedies hereunder.

           18.          Appointment of Agent.  The Secured Parties hereby appoint Vapor Holdings, LLC to act as their agent (“Agent”) for purposes of exercising any and all rights and remedies of the Secured Parties hereunder.  Such appointment shall continue until revoked in writing by a Majority in Interest, at which time a Majority in Interest shall appoint a new Agent.  The Agent shall have the rights, responsibilities and immunities set forth in Annex B hereto.

 

 

  

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       19.                Miscellaneous.

(a)           No course of dealing between the Debtor and the Secured Parties, nor any failure to exercise, nor any delay in exercising, on the part of the Secured Parties, any right, power or privilege hereunder or under the Notes shall operate as a waiver thereof; nor shall any single or partial exercise of any right, power or privilege hereunder or thereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege.

(b)           All of the rights and remedies of the Secured Parties with respect to the Collateral, whether established hereby or by the Notes or by any other agreements, instruments or documents or by law shall be cumulative and may be exercised singly or concurrently.

(c)           This Agreement, together with the exhibits and schedules hereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into this Agreement and the exhibits and schedules hereto. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in the case of an amendment, by the Debtor and the Secured Parties holding 67% or more of the principal amount of Notes then outstanding, or, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought.

(d)           If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

(e)           No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.

(f)           This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns.  The Debtor may not assign this Agreement or any rights or obligations hereunder without the prior written consent of each Secured Party (other than by merger).  Any Secured Party may assign any or all of its rights under this Agreement to any Person (as defined in the Purchase Agreement) to whom such Secured Party assigns or transfers any Obligations, provided such transferee agrees in writing to be bound, with respect to the transferred Obligations, by the provisions of this Agreement that apply to the “Secured Parties.”

(g)           Each party shall take such further action and execute and deliver such further documents as may be necessary or appropriate in order to carry out the provisions and purposes of this Agreement.

(h)  Except to the extent mandatorily governed by the jurisdiction or situs where the Collateral is located, all questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof.  Except to the extent mandatorily governed by the jurisdiction or situs where the Collateral is located, Debtor agrees that all proceedings concerning the interpretations, enforcement and defense of the transactions contemplated by this Agreement and the Notes (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, partners, members, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York, Borough of Manhattan.  Except to the extent mandatorily governed by the jurisdiction or situs where the Collateral is located, Debtor hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York, Borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such proceeding is improper.  Each party hereto hereby irrevocably waives personal service of process and consents to process being served in any such proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law.  Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.

  

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(i)           This Agreement may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and, all of which taken together shall constitute one and the same Agreement. In the event that any signature is delivered by facsimile transmission, such signature shall create a valid binding obligation of the party executing (or on whose behalf such signature is executed) the same with the same force and effect as if such facsimile signature were the original thereof.

(j)           Debtor shall indemnify, reimburse and hold harmless the Agent and the Secured Parties and their respective partners, members, shareholders, officers, directors, employees and agents (and any other persons with other titles that have similar functions) (collectively, “Indemnitees”) from and against any and all losses, claims, liabilities, damages, penalties, suits, costs and expenses, of any kind or nature, (including fees relating to the cost of investigating and defending any of the foregoing) imposed on, incurred by or asserted against such Indemnitee in any way related to or arising from or alleged to arise from this Agreement or the Collateral, except any such losses, claims, liabilities, damages, penalties, suits, costs and expenses which result from the gross negligence or willful misconduct of the Indemnitee as determined by a final, nonappealable decision of a court of competent jurisdiction.  This indemnification provision is in addition to, and not in limitation of, any other indemnification provision in the Notes, the Purchase Agreement (as such term is defined in the Notes) or any other agreement, instrument or other document executed or delivered in connection herewith or therewith.

(k)           Nothing in this Agreement shall be construed to subject Agent or any Secured Party to liability as a partner in Debtor or any if its direct or indirect subsidiaries that is a partnership or as a member in Debtor or any of its direct or indirect subsidiaries that is a limited liability company, nor shall Agent or any Secured Party be deemed to have assumed any obligations under any partnership agreement or limited liability company agreement, as applicable, of any Debtor or any of its direct or indirect subsidiaries or otherwise, unless and until any such Secured Party exercises its right to be substituted for Debtor as a partner or member, as applicable, pursuant hereto.

(l)           To the extent that the grant of the security interest in the Collateral and the enforcement of the terms hereof require the consent, approval or action of any partner or member, as applicable, of Debtor or any direct or indirect subsidiary of Debtor or compliance with any provisions of any of the Organizational Documents, the Debtor hereby grants such consent and approval and waives any such noncompliance with the terms of said documents.

[SIGNATURE PAGES FOLLOW]

  

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            IN WITNESS WHEREOF, the parties hereto have caused this Security Agreement to be duly executed on the day and year first above written.

 

	 	

VICTORY ELECTRONIC CIGARETTES CORPORATION

	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

 

                      [SIGNATURE PAGE OF HOLDERS FOLLOWS]

 

  

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[SIGNATURE PAGE OF HOLDERS TO SA]

                 Name of Investing Entity: __________________________

 

Signature of Authorized Signatory of Investing entity: _________________________

 

Name of Authorized Signatory: _________________________

 

Title of Authorized Signatory: __________________________

  

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SCHEDULE A

SCHEDULE B

SCHEDULE C

SCHEDULE D

SCHEDULE E

SCHEDULE F

SCHEDULE G

SCHEDULE H

SCHEDULE I

  

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ANNEX A

to

SECURITY

AGREEMENT

	
  

	
FORM OF ADDITIONAL DEBTOR JOINDER

Security Agreement dated as of January ___, 2014 made by

Victory Electronic Cigarettes Corporation, as Debtor

to and in favor of

the Secured Parties identified therein (the “Security Agreement”)

           Reference is made to the Security Agreement as defined above; capitalized terms used herein and not otherwise defined herein shall have the meanings given to such terms in, or by reference in, the Security Agreement.

           The undersigned hereby agrees that upon delivery of this Additional Debtor Joinder to the Secured Parties referred to above, the undersigned shall (a) be an Additional Debtor under the Security Agreement, (b) have all the rights and obligations of the Debtor under the Security Agreement as fully and to the same extent as if the undersigned was an original signatory thereto and (c) be deemed to have made the representations and warranties set forth therein as of the date of execution and delivery of this Additional Debtor Joinder.  WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, THE UNDERSIGNED SPECIFICALLY GRANTS TO THE SECURED PARTIES A SECURITY INTEREST IN THE COLLATERAL AS MORE FULLY SET FORTH IN THE SECURITY AGREEMENT AND ACKNOWLEDGES AND AGREES TO THE WAIVER OF JURY TRIAL PROVISIONS SET FORTH THEREIN.

           Attached hereto are supplemental and/or replacement Schedules to the Security Agreement, as applicable.

           An executed copy of this Joinder shall be delivered to the Secured Parties, and the Secured Parties may rely on the matters set forth herein on or after the date hereof.  This Joinder shall not be modified, amended or terminated without the prior written consent of the Secured Parties.

 

  

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IN WITNESS WHEREOF, the undersigned has caused this Joinder to be executed in the name and on behalf of the undersigned.

	 	
[Name of Additional Debtor]

	 	
By:

	 	
Name:

	 	
Title:

	 	
Address:

 

	
  

	
Dated:

 

 

  

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ANNEX B

to

SECURITY

AGREEMENT

THE AGENT

                      1.  Appointment. The Secured Parties (all capitalized terms used herein and not otherwise defined shall have the respective meanings provided in the Security Agreement to which this Annex B is attached (the "Agreement")), by their acceptance of the benefits of the Agreement, hereby designate Dominion Capital LLC (“Dominion” or “Agent”) as the Agent to act as specified herein and in the Agreement.  Each Secured Party shall be deemed irrevocably to authorize the Agent to take such action on its behalf under the provisions of the Agreement and any other Transaction Document (as such term is defined in the Purchase Agreement) and to exercise such powers and to perform such duties hereunder and thereunder as are specifically delegated to or required of the Agent by the terms hereof and thereof and such other powers as are reasonably incidental thereto.  The Agent may perform any of its duties hereunder by or through its agents or employees.

                      2. Nature of Duties.  The Agent shall have no duties or responsibilities except those expressly set forth in the Agreement.  Neither the Agent nor any of its partners, members, shareholders, officers, directors, employees or agents shall be liable for any action taken or omitted by it as such under the Agreement or hereunder or in connection herewith or therewith, be responsible for the consequence of any oversight or error of judgment or answerable for any loss, unless caused solely by its or their gross negligence or willful misconduct as determined by a final judgment (not subject to further appeal) of a court of competent jurisdiction.  The duties of the Agent shall be mechanical and administrative in nature; the Agent shall not have by reason of the Agreement or any other Transaction Document a fiduciary relationship in respect of Debtor or any Secured Party; and nothing in the Agreement or any other Transaction Document, expressed or implied, is intended to or shall be so construed as to impose upon the Agent any obligations in respect of the Agreement or any other Transaction Document except as expressly set forth herein and therein.

                      3. Lack of Reliance on the Agent.  Independently and without reliance upon the Agent, each Secured Party, to the extent it deems appropriate, has made and shall continue to make (i) its own independent investigation of the financial condition and affairs of the Debtor and its subsidiaries in connection with such Secured Party’s investment in the Debtor, the creation and continuance of the Obligations, the transactions contemplated by the Transaction Documents, and the taking or not taking of any action in connection therewith, and (ii) its own appraisal of the creditworthiness of the Company and its subsidiaries, and of the value of the Collateral from time to time, and the Agent shall have no duty or responsibility, either initially or on a continuing basis, to provide any Secured Party with any credit, market or other information with respect thereto, whether coming into its possession before any Obligations are incurred or at any time or times thereafter.  The Agent shall not be responsible to the Debtor or any Secured Party for any recitals, statements, information, representations or warranties herein or in any document, certificate or other writing delivered in connection herewith, or for the execution, effectiveness, genuineness, validity, enforceability, perfection, collectibility, priority or sufficiency of the Agreement or any other Transaction Document, or for the financial condition of the Debtor or the value of any of the Collateral, or be required to make any inquiry concerning either the performance or observance of any of the terms, provisions or conditions of the Agreement or any other Transaction Document, or the financial condition of the Debtor, or the value of any of the Collateral, or the existence or possible existence of any default or Event of Default under the Agreement, the Notes or any of the other Transaction Documents.

                      4. Certain Rights of the Agent.  The Agent shall have the right to take any action with respect to the Collateral, on behalf of all of the Secured Parties.  To the extent practical, the Agent shall request instructions from the Secured Parties with respect to any material act or action (including failure to act) in connection with the Agreement or any other Transaction Document, and shall be entitled to act or refrain from acting in accordance with the instructions of a Majority in Interest; if such instructions are not provided despite the Agent’s request therefor, the Agent shall be entitled to refrain from such act or taking such action, and if such action is taken, shall be entitled to appropriate indemnification from the Secured Parties in respect of actions to be taken by the Agent; and the Agent shall not incur liability to any person or entity by reason of so refraining.  Without limiting the foregoing, (a) no Secured Party shall have any right of action whatsoever against the Agent as a result of the Agent acting or refraining from acting hereunder in accordance with the terms of the Agreement or any other Transaction Document, and the Debtor shall have no right to question or challenge the authority of, or the instructions given to, the Agent pursuant to the foregoing and (b) the Agent shall not be required to take any action which the Agent believes (i) could reasonably be expected to expose it to personal liability or (ii) is contrary to this Agreement, the Transaction Documents or applicable law.

                      5.  Reliance.  The Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice, statement, certificate, telex, teletype or telecopier message, cablegram, radiogram, order or other document or telephone message signed, sent or made by the proper person or entity, and, with respect to all legal matters pertaining to the Agreement and the other Transaction Documents and its duties thereunder, upon advice of counsel selected by it and upon all other matters pertaining to this Agreement and the other Transaction Documents and its duties thereunder, upon advice of other experts selected by it.  Anything to the contrary notwithstanding, the Agent shall have no obligation whatsoever to any Secured Party to assure that the Collateral exists or is owned by the Debtor or is cared for, protected or insured or that the liens granted pursuant to the Agreement have been properly or sufficiently or lawfully created, perfected, or enforced or are entitled to any particular priority.

  

20

  

                     

               6.  Indemnification.  To the extent that the Agent is not reimbursed and indemnified by the Debtor, the Secured Parties will jointly and severally reimburse and indemnify the Agent, in proportion to their initially purchased respective principal amounts of Notes, from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever which may be imposed on, incurred by or asserted against the Agent in performing its duties hereunder or under the Agreement or any other Transaction Document, or in any way relating to or arising out of the Agreement or any other Transaction Document except for those determined by a final judgment (not subject to further appeal) of a court of competent jurisdiction to have resulted solely from the Agent's own gross negligence or willful misconduct.  Prior to taking any action hereunder as Agent, the Agent may require each Secured Party to deposit with it sufficient sums as it determines in good faith is necessary to protect the Agent for costs and expenses associated with taking such action.

                      7.  Resignation by the Agent.

(a)  The Agent may resign from the performance of all its functions and duties under the Agreement and the other Transaction Documents at any time by giving 30 days' prior written notice (as provided in the Agreement) to the Debtor and the Secured Parties.  Such resignation shall take effect upon the appointment of a successor Agent pursuant to clauses (b) and (c) below.

(b)  Upon any such notice of resignation, the Secured Parties, acting by a Majority in Interest, shall appoint a successor Agent hereunder.

(c) If a successor Agent shall not have been so appointed within said 30-day period, the Agent shall then appoint a successor Agent who shall serve as Agent until such time, if any, as the Secured Parties appoint a successor Agent as provided above.  If a successor Agent has not been appointed within such 30-day period, the Agent may petition any court of competent jurisdiction or may interplead the Debtor and the Secured Parties in a proceeding for the appointment of a successor Agent, and all fees, including, but not limited to, extraordinary fees associated with the filing of interpleader and expenses associated therewith, shall be payable by the Debtor on demand.

                      8.  Rights with respect to Collateral.  Each Secured Party agrees with all other Secured Parties and the Agent (i) that it shall not, and shall not attempt to, exercise any rights with respect to its security interest in the Collateral, whether pursuant to any other agreement or otherwise (other than pursuant to this Agreement), or take or institute any action against the Agent or any of the other Secured Parties in respect of the Collateral or its rights hereunder (other than any such action arising from the breach of this Agreement) and (ii) that such Secured Party has no other rights with respect to the Collateral other than as set forth in this Agreement and the other Transaction Documents.  Upon the acceptance of any appointment as Agent hereunder by a successor Agent, such successor Agent shall thereupon succeed to and become vested with all the rights, powers, privileges and duties of the retiring Agent and the retiring Agent shall be discharged from its duties and obligations under the Agreement.  After any retiring Agent’s resignation or removal hereunder as Agent, the provisions of the Agreement including this Annex B shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent.

21Ohr Pharmaceutical, Inc. S-3

Exhibit 4.2

 

OHR PHARMACEUTICAL, INC.

 

Issuer

 

AND

 

[_______________________________]

 

Trustee

 

INDENTURE

 

Dated as of [_____________________]

 

Senior Debt Securities

 

    	 

    	 

    

 

CROSS-REFERENCE TABLE (1)

 

	Section of Trust Indenture Act of 1939, as Amended	 	
        Section of Indenture

	 	 	 
	310(a)	 	7.09
	310(b)	 	7.08
	 	 	7.10
	310(c)	 	Inapplicable
	311(a)	 	7.13(a)
	311(b)	 	7.13(b)
	311(c)	 	Inapplicable
	312(a)	 	5.02(a)
	312(b)	 	5.02(b)
	312(c)	 	5.02(c)
	313(a)	 	5.04(a)
	313(b)	 	5.04(a)
	313(c)	 	5.04(a)
	 	 	5.04(b)
	313(d)	 	5.04(b)
	314(a)	 	5.03
	314(b)	 	Inapplicable
	314(c)	 	13.06
	314(d)	 	Inapplicable
	314(e)	 	13.06
	314(f)	 	Inapplicable
	315(a)	 	7.01(a)
	 	 	7.02
	315(b)	 	6.07
	315(c)	 	7.01
	315(d)	 	7.01(b)
	 	 	7.01(c)
	315(e)	 	6.07
	316(a)	 	6.06
	 	 	8.04
	316(b)	 	6.04
	316(c)	 	8.01
	317(a)	 	6.02
	317(b)	 	4.03
	318(a)	 	13.08

 

	(1)	This Cross-Reference Table does not constitute part of the Indenture and shall not have any bearing
on the interpretation of any of its terms or provisions.

 

    	 

    	 

    

 

TABLE OF
CONTENTS (2)

 

	 	 	Page
	 	 	 
	Article I        	DEFINITIONS	1
	 	Section 1.01.	 	Definitions
of Terms.	1
	 	 	 	 	 
	Article II	ISSUE, DESCRIPTION, TERMS, EXECUTION, REGISTRATION
AND EXCHANGE OF SECURITIES	5
	 	Section 2.01.	 	Designation
and Terms of Securities.	5
	 	Section 2.02.	 	Form
of Securities and Trustee’s Certificate.	7
	 	Section 2.03.	 	Denominations:
Provisions for Payment.	7
	 	Section 2.04.	 	Execution and Authentications.	9
	 	Section 2.05.	 	Registration of Transfer and Exchange.	10
	 	Section 2.06.	 	Temporary
Securities.	11
	 	Section 2.07.	 	Mutilated,
Destroyed, Lost or Stolen Securities.	12
	 	Section 2.08.	 	Cancellation.9	12
	 	Section 2.09.	 	Benefits of Indenture.	13
	 	Section 2.10.	 	Authenticating
Agent.	13
	 	Section 2.11.	 	Global Securities	14
	 	 	 	 	 
	Article III	REDEMPTION OF SECURITIES AND SINKING FUND PROVISIONS	15
	 	Section 3.01.	 	Redemption.	15
	 	Section 3.02.	 	Notice of Redemption.	15
	 	Section 3.03.	 	Payment Upon Redemption.	16
	 	Section 3.04.	 	Sinking Fund.	17
	 	Section 3.05.	 	Satisfaction of Sinking Fund Payments with Securities.	17
	 	Section 3.06.	 	Redemption of Securities for Sinking Fund.	17
	 	 	 		 
	Article IV 	COVENANTS 	18
	 	Section 4.01.	 	Payment
of Principal, Premium and Interest.	18
	 	Section 4.02.	 	Maintenance of Office or Agency.	18
	 	Section 4.03.	 	Paying Agents.	18
	 	Section 4.04.	 	Appointment
to Fill Vacancy in Office of Trustee.	20
	 	Section 4.05.	 	Compliance
with Consolidation Provisions.	20
	 	 	 	 	 
	Article V	SECURITYHOLDERS’ LISTS AND REPORTS BY THE COMPANY AND THE TRUSTEE14	20
	 	Section 5.01.	 	Company
to Furnish Trustee Names and Addresses of Securityholders.	20
	 	Section 5.02.	 	Preservation Of Information; Communications With Securityholders.	20
	 	Section 5.03.	 	Reports by the Company.	21
	 	Section 5.04.	 	Reports
by the Trustee.	21
	 	 	 	 	 	 

 

    	i

    	 

    

 

	Article VI	REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS ON EVENT OF DEFAULT	22
	 	Section 6.01.	 	Events
of Default.	22
	 	Section 6.02.	 	Collection
of Indebtedness and Suits for Enforcement by Trustee.	24
	 	Section 6.03.	 	Application
of Moneys Collected.	25
	 	Section 6.04.	 	Limitation on Suits.	26
	 	Section 6.05.	 	Rights
and Remedies Cumulative; Delay or Omission Not Waiver.	26
	 	Section 6.06.	 	Control by Securityholders.	27
	 	Section 6.07.	 	Undertaking to Pay Costs.	28
	 	 	 	 	 	 
	Article VII	CONCERNING THE TRUSTEE	28
	 	Section 7.01.	 	Certain
Duties and Responsibilities of Trustee.	28
	 	Section 7.02.	 	Certain Rights of Trustee.	29
	 	Section 7.03.	 	Trustee Not Responsible for Recitals or Issuance of Securities.	31
	 	Section 7.04.	 	May
Hold Securities.	31
	 	Section 7.05.	 	Moneys Held in Trust.	31
	 	Section 7.06.	 	Compensation
and Reimbursement.	31
	 	Section 7.07.	 	Reliance on Officers’ Certificate.	32
	 	Section 7.08.	 	Disqualification;
Conflicting Interests.	32
	 	Section 7.09.	 	Corporate Trustee Required; Eligibility.	32
	 	Section 7.10.	 	Resignation and Removal; Appointment of Successor.	33
	 	Section 7.11.	 	Acceptance
of Appointment By Successor.	34
	 	Section 7.12.	 	Merger, Conversion, Consolidation or Succession to Business.	36
	 	Section 7.13.	 	Preferential Collection of Claims Against the
Company.	36
	 	 	 	 	 	 
	Article VIII	CONCERNING THE SECURITYHOLDERS	36
	 	Section 8.01.	 	Evidence
of Action by Securityholders.	36
	 	Section 8.02.	 	Proof of Execution by Securityholders.	37
	 	Section 8.03.	 	Who May be Deemed Owners.	37
	 	Section 8.04.	 	Certain Securities Owned by Company Disregarded.	37
	 	Section 8.05.	 	Actions Binding on Future Securityholders.	38
	 	Section 8.06.	 	Purposes for Which Meetings May Be Called.	38
	 	Section 8.07.	 	Call Notice and Place of Meetings.	38
	 	Section 8.08.	 	Persons Entitled To Vote at Meetings.	39
	 	Section 8.09.	 	Quorum; Action.	39
	 	Section 8.10.	 	Determination of Voting Rights; Conduct and Adjournment of Meetings.	40
	 	Section 8.11.	 	Counting
Votes and Recording Action of Meetings.	41
	 	 	 	 	 
	Article IX	SUPPLEMENTAL INDENTURES	41
	 	Section 9.01.	 	Supplemental
Indentures Without the Consent of Securityholders.	41
	 	Section 9.02.	 	Supplemental Indentures With Consent of Securityholders.	42
	 	Section 9.03.	 	Effect of Supplemental Indentures.	43
	 	Section 9.04.	 	Securities
Affected by Supplemental Indentures.	43
	 	Section 9.05.	 	Execution of Supplemental Indentures.	43

 

    	ii

    	 

    

 

	Article X 	SUCCESSOR ENTITY	44
	 	Section 10.01.	 	Company May Consolidate, Etc.	44
	 	Section 10.02.	 	Successor Entity Substituted.	44
	 	Section 10.03.	 	Evidence
of Consolidation, Etc. to Trustee.	45
	 	 	 	 	 	 
	Article XI	SATISFACTION AND DISCHARGE	45
	 	Section 11.01.	 	Satisfaction
and Discharge of Indenture.	45
	 	Section 11.02.	 	Discharge of Obligations.	46
	 	Section 11.03.	 	Deposited
Moneys to be Held in Trust.	46
	 	Section 11.04.	 	Payment of Moneys Held by Paying Agents.	46
	 	Section 11.05.	 	Repayment
to Company.	46
	 	 	 	 	 	 
	Article XII	IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS	47
	 	Section 12.01.	 	No
Recourse.	47
	 	 	 	 	 	 
	Article XIII 	MISCELLANEOUS PROVISIONS	47
	 	Section 13.01.	 	Effect
on Successors and Assigns.	47
	 	Section 13.02.	 	Actions by Successor.	48
	 	Section 13.03.	 	Surrender
of Company Powers.	48
	 	Section 13.04.	 	Notices.	48
	 	Section 13.05.	 	Governing
Law.	48
	 	Section 13.06.	 	Treatment of Securities as Debt.	48
	 	Section 13.07.	 	Compliance Certificates and Opinions.	49
	 	Section 13.08.	 	Payments on Business Days.	49
	 	Section 13.09.	 	Conflict with Trust Indenture Act.	49
	 	Section 13.10.	 	Counterparts.	49
	 	Section 13.11.	 	Separability.	50
	 	Section 13.12.	 	Assignment.	50

 

	(2)	This Table of Contents does not constitute part of the Indenture and shall not have any bearing
on the interpretation of any of its terms and provisions.

 

    	iii

    	 

    

 

INDENTURE, dated as of [_____________________],
by and between Ohr Pharmaceutical, Inc., a Delaware corporation (the “Company”), and [_____________________], as trustee
(the “Trustee”):

 

WHEREAS, for its lawful corporate purposes,
the Company has duly authorized the execution and delivery of this Indenture to provide for the issuance of debt securities (hereinafter
referred to as the “Securities”), in an unlimited aggregate principal amount to be issued from time to time in one
or more series as in this Indenture provided, as registered Securities without coupons, to be authenticated by the certificate
of the Trustee;

 

WHEREAS, to provide the terms and conditions
upon which the Securities are to be authenticated, issued and delivered, the Company has duly authorized the execution of this
Indenture; and

 

WHEREAS, all things necessary to make this
Indenture a valid agreement of the Company, in accordance with its terms, have been done.

 

NOW, THEREFORE, in consideration of the premises
and the purchase of the Securities by the holders thereof, it is mutually covenanted and agreed as follows for the equal and ratable
benefit of the holders of Securities:

 

Article
I

DEFINITIONS

 

Section
1.01.   Definitions
of Terms.

 

The terms defined in this Section (except as
in this Indenture otherwise expressly provided or unless the context otherwise requires) for all purposes of this Indenture and
of any indenture supplemental hereto shall have the respective meanings specified in this Section and shall include the plural
as well as the singular. All other terms used in this Indenture that are defined in the Trust Indenture Act of 1939, as amended,
or that are by reference in such Act defined in the Securities Act of 1933, as amended (except as herein otherwise expressly provided
or unless the context otherwise requires), shall have the meanings assigned to such terms in said Trust Indenture Act and in said
Securities Act as in force at the date of the execution of this instrument.

 

“Authenticating Agent” means an
authenticating agent with respect to all or any of the series of Securities appointed with respect to all or any series of the
Securities by the Trustee pursuant to Section 2.10.

 

“Bankruptcy Law” means Title 11,
U.S. Code, or any similar federal or state law for the relief of debtors.

 

“Board of Directors” means the
Board of Directors of the Company or any duly authorized committee of such Board.

  

    	 

    	 

    

 

“Board Resolution” means a copy
of a resolution certified by the Secretary or an Assistant Secretary of the Company to have been duly adopted by the Board of Directors
and to be in full force and effect on the date of such certification.

 

“Business Day” means, with respect
to any series of Securities, any day other than a day on which Federal or State banking institutions in the Borough of Manhattan,
the City and State of New York, are authorized or obligated by law, executive order or regulation to close.

 

“Certificate” means a certificate
signed by the principal executive officer, the principal financial officer or the principal accounting officer of the Company.
The Certificate need not comply with the provisions of Section 13.07.

 

“Commission” means the Securities
and Exchange Commission.

 

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

 

“Corporate Trust Office” means
the office of the Trustee at which, at any particular time, its corporate trust business shall be principally administered, which
office at the date hereof is located at [____________________], except that whenever a provision herein refers to an office or
agency of the Trustee in the Borough of Manhattan, the City and State of New York, such office is located, at the date hereof,
at [____________________].

 

“Custodian” means any receiver,
trustee, assignee, liquidator, or similar official under any Bankruptcy Law.

 

“Default” means an event which
is, or after notice or lapse of time, or both, would constitute an Event of Default.

 

“Depositary” means, with respect
to Securities of any series, for which the Company shall determine that such Securities will be issued as a Global Security, The
Depository Trust Company, New York, New York, another clearing agency, or any successor registered as a clearing agency under the
Exchange Act, or other applicable statute or regulation, which, in each case, shall be designated by the Company pursuant to either
Section 2.01 or Section 2.11.

 

“Event of Default” means, with
respect to Securities of a particular series, any event specified in Section 6.01, continued for the period of time, if any, therein
designated.

 

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

 

“Global Security” means, with respect
to any series of Securities, a Security executed by the Company and delivered by the Trustee to the Depositary or pursuant to the
Depositary’s instruction, all in accordance with this Indenture, which shall be registered in the name of the Depositary
or its nominee.

 

    	2

    	 

    

 

“Governmental Obligations” means
securities that are (i) direct obligations of the United States of America for the payment of which its full faith and credit is
pledged or (ii) obligations of a Person controlled or supervised by and acting as an agency or instrumentality of the United States
of America, the payment of which is unconditionally guaranteed as a full faith and credit obligation by the United States of America
that, in either case, are non-callable at the option of the issuer thereof, and shall also include a depositary receipt issued
by a bank (as defined in Section 3(a)(2) of the Securities Act of 1933, as amended) as custodian with respect to any such Governmental
Obligation or a specific payment of principal of or interest on any such Governmental Obligation held by such custodian for the
account of the holder of such depositary receipt; provided, however, that (except as required by law) such custodian is not authorized
to make any deduction from the amount payable to the holder of such depositary receipt from any amount received by the custodian
in respect of the Governmental Obligation or the specific payment of principal of or interest on the Governmental Obligation evidenced
by such depositary receipt.

 

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

 

“Indenture” means this instrument
as originally executed or as it may from time to time be supplemented or amended by one or more indentures supplemental hereto
entered into in accordance with the terms hereof.

 

“Interest Payment Date,” when used
with respect to any installment of interest on a Security of a particular series, means the date specified in such Security or
in a Board Resolution or in an indenture supplemental hereto with respect to such series as the fixed date on which an installment
of interest with respect to Securities of that series is due and payable.

 

“Officers’ Certificate” means
a certificate signed by the President or a Vice President and by the Chief Financial Officer, the Treasurer or an Assistant Treasurer
or the Controller or an Assistant Controller or the Secretary or an Assistant Secretary of the Company that is delivered to the
Trustee in accordance with the terms hereof. Certificate shall include the statements provided for in Section 13.07, if and to
the extent required by the provisions thereof.

 

“Opinion of Counsel” means a written
opinion of counsel, who may be counsel to the Company (and may include directors or employees of the Company) and which opinion
is acceptable to the Trustee which acceptance shall not be unreasonably withheld.

 

“Outstanding”, when used with reference
to Securities of any series, means, subject to the provisions of Section 8.04, as of any particular time, all Securities of that
series theretofore authenticated and delivered by the Trustee under this Indenture, except (a) Securities theretofore canceled
by the Trustee or any paying agent, or delivered to the Trustee or any paying agent for cancellation or that have previously been
canceled; (b) Securities or portions thereof for the payment or redemption of which moneys or Governmental Obligations in the necessary
amount shall have been deposited in trust with the Trustee or with any paying agent (other than the Company) or shall have been
set aside and segregated in trust by the Company (if the Company shall act as its own paying agent); provided, however, that if
such Securities or portions of such Securities are to be redeemed prior to the maturity thereof, notice of such redemption shall
have been given as in Article III provided, or provision satisfactory to the Trustee shall have been made for giving such notice;
and (c) Securities in lieu of or in substitution for which other Securities shall have been authenticated and delivered pursuant
to the terms of Section 2.07.

 

    	3

    	 

    

 

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

 

“Predecessor Security” of any particular
Security means every previous Security evidencing all or a portion of the same debt as that evidenced by such particular Security;
and, for the purposes of this definition, any Security authenticated and delivered under Section 2.07 in lieu of a mutilated, destroyed,
lost or stolen Security shall be deemed to evidence the same debt as the mutilated, destroyed, lost or stolen Security.

 

“Responsible Officer,” when used
with respect to the Trustee, means any officer of the Trustee, including any vice president, assistant vice president, secretary,
assistant secretary, the treasurer, any assistant treasurer, the managing director or any other officer of the Trustee customarily
performing functions similar to those performed by any of the above designated officers and also means, with respect to a particular
corporate trust matter, any other officer to whom such matter is referred because of such officer’s knowledge of and familiarity
with the particular subject.

 

“Securities” means the debt Securities
authenticated and delivered under this Indenture.

 

“Security Register” has the meaning
specified in Section 2.05.

 

“Security Registrar” has the meaning
specified in Section 2.05.

 

“Securityholder,”“holder
of Securities,”“registered holder,” or other similar term, means the Person or Persons in whose name or names
a particular Security shall be registered in the Security Register.

 

“Subsidiary” means, with respect
to any Person, (i) any corporation at least a majority of whose outstanding Voting Stock shall at the time be owned, directly or
indirectly, by such Person or by one or more of its Subsidiaries or by such Person and one or more of its Subsidiaries, (ii) any
general partnership, joint venture or similar entity, at least a majority of whose outstanding partnership or similar interests
shall at the time be owned by such Person, or by one or more of its Subsidiaries, or by such Person and one or more of its Subsidiaries
and (iii) any limited partnership of which such Person or any of its Subsidiaries is a general partner.

 

“Trustee” means the Person named
as the “Trustee” in the first paragraph of this instrument until a successor Trustee shall have become such pursuant
to the applicable provisions of this Indenture, and thereafter “Trustee” shall mean such successor Trustee. The term
“Trustee” as used with respect to a particular series of the Securities shall mean the trustee with respect to that
series.

 

    	4

    	 

    

 

“Trust Indenture Act” means the
Trust Indenture Act of 1939, as amended, subject to the provisions of Sections 9.01, 9.02, and 10.01, as in effect at the date
of execution of this instrument; provided, however, that in the event the Trust Indenture Act is amended after such date, Trust
Indenture Act means, to the extent required by such amendment, the Trust Indenture Act of 1939, as so amended, or any successor
statute.

 

“Voting Stock,” as applied to any
Person, means shares, interests, participations or other equivalents in the equity interest (however designated) in such Person
having ordinary voting power for the election of a majority of the directors (or the equivalent) of such Person, other than shares,
interests, participations or other equivalents having such power only by reason of the occurrence of a contingency.

 

Article
II

ISSUE, DESCRIPTION, TERMS, EXECUTION,

REGISTRATION AND EXCHANGE OF SECURITIES

 

Section
2.01.   Designation and Terms of Securities.

 

		(a)	The aggregate principal amount of Securities
that may be authenticated and delivered under this Indenture is unlimited. The Securities may be issued in one or more series up
to the aggregate principal amount of Securities of that series from time to time authorized by or pursuant to a Board Resolution
of the Company or pursuant to one or more indentures supplemental hereto. Prior to the initial issuance of Securities of a given
series, there shall be established in or pursuant to a Board Resolution of the Company, and set forth in an Officers’ Certificate
of the Company, or established in one or more indentures supplemental hereto: 

 

		(1)	the title of the Security of the series
(which shall distinguish the Securities of the series from all other Securities); 

 

		(2)	the aggregate principal amount of the Securities
of such series initially to be issued and any limit upon the aggregate principal amount of the Securities of that series that may
be authenticated and delivered under this Indenture (except for Securities authenticated and delivered upon registration of transfer
of, or in exchange for, or in lieu of, other Securities of that series); 

 

		(3)	the currency or units based on or relating
to currencies in which debt securities of such series are denominated and the currency or units in which principal or interest
or both will or may be payable; 

 

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		(4)	the date or dates on which the principal
of the Securities of the series is payable and the place(s) of payment; 

 

		(5)	the rate or rates at which the Securities
of the series shall bear interest or the manner of calculation of such rate or rates, if any; 

 

		(6)	the date or dates from which such interest
shall accrue, the Interest Payment Dates on which such interest will be payable or the manner of determination of such Interest
Payment Dates, the place(s) of payment, and the record date for the determination of holders to whom interest is payable on any
such Interest Payment Dates or the method for determining such dates; 

 

		(7)	the right, if any, to extend the interest
payment periods or to defer the payment of interest and the duration of such extension; 

 

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

 

		(9)	the obligation, if any, of the Company to
redeem or purchase Securities of the series pursuant to any sinking fund or analogous provisions (including payments made in cash
in satisfaction of future sinking fund obligations) or at the option of a holder thereof and the period or periods within which,
the price or prices at which, and the terms and conditions upon which, Securities of the series shall be redeemed or purchased,
in whole or in part, pursuant to such obligation; 

 

		(10)	whether
or not the debt securities will be secured or unsecured, and the terms of any secured debt;

                                                                                               

                                                                                              

		(11)	the form of the Securities of the series
including the form of the Certificate of Authentication for such series; 

 

		(12)	if other than denominations of one thousand
U.S. dollars ($1,000) or any integral multiple thereof, the denominations in which the Securities of the series shall be issuable;

 

		(13)	any and all other terms with respect to
such series (which terms shall not be inconsistent with the terms of this Indenture, as amended by any supplemental indenture)
including any terms which may be required by or advisable under United States laws or regulations or advisable in connection with
the marketing of Securities of that series; 

 

		(14)	whether the Securities are issuable as a
Global Security and, in such case, the identity of the Depositary for such series;

 

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		(15)	whether
the Securities will be convertible into shares of common stock or other securities of the Company and, if so, the terms and conditions
upon which such Securities will be so convertible, including the conversion price and the conversion period;

 

		(16)	if
other than the principal amount thereof, the portion of the principal amount of Securities of the series which shall be payable
upon declaration of acceleration of the maturity thereof pursuant to Section 6.01; and

 

		(17)	any additional or different Events of Default
or restrictive covenants provided for with respect to the Securities of the series. 

 

All Securities of any one series shall be substantially
identical except as to denomination and except as may otherwise be provided in or pursuant to any such Board Resolution or in any
indentures supplemental hereto.

 

If any of the terms of the series are established
by action taken pursuant to a Board Resolution of the Company, a copy of an appropriate record of such action shall be certified
by the Secretary or an Assistant Secretary of the Company and delivered to the Trustee at or prior to the delivery of the Officers’
Certificate of the Company setting forth the terms of the series.

 

Securities of any particular series may be
issued at various times, with different dates on which the principal or any installment of principal is payable, with different
rates of interest, if any, or different methods by which rates of interest may be determined, with different dates on which such
interest may be payable and with different redemption dates.

 

Section
2.02.   Form of
Securities and Trustee’s Certificate.

 

The Securities of any series and the Trustee’s
certificate of authentication to be borne by such Securities shall be substantially of the tenor and purport as set forth in one
or more indentures supplemental hereto or as provided in a Board Resolution of the Company and as set forth in an Officers’
Certificate of the Company and the and may have such letters, numbers or other marks of identification or designation and such
legends or endorsements printed, lithographed or engraved thereon as the Company may deem appropriate and as are not inconsistent
with the provisions of this Indenture, or as may be required to comply with any law or with any rule or regulation made pursuant
thereto or with any rule or regulation of any stock exchange on which Securities of that series may be listed, or to conform to
usage.

 

Section
2.03.   Denominations: Provisions for Payment.

 

The Securities shall be issuable as registered
Securities and in the denominations of one thousand U.S. dollars ($1,000) or any integral multiple thereof, subject to Section
2.01(a)(12). The Securities of a particular series shall bear interest payable on the dates and at the rate specified with respect
to that series. The principal of and the interest on the Securities of any series, as well as any premium thereon in case of redemption
thereof prior to maturity, shall be payable in the coin or currency of the United States of America that at the time is legal tender
for public and private debt, at the office or agency of the Company maintained for that purpose in the Borough of Manhattan, the
City and State of New York. Each Security shall be dated the date of its authentication. Interest on the Securities shall be computed
on the basis of a 360-day year composed of twelve 30-day months.

 

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The interest installment on any Security that
is payable, and is punctually paid or duly provided for, on any Interest Payment Date for Securities of that series shall be paid
to the Person in whose name said Security (or one or more Predecessor Securities) is registered at the close of business on the
regular record date for such interest installment. In the event that any Security of a particular series or portion thereof is
called for redemption and the redemption date is subsequent to a regular record date with respect to any Interest Payment Date
and prior to such

 

Interest Payment Date, interest on such Security
will be paid upon presentation and surrender of such Security as provided in Section 3.03.

 

Any interest on any Security that is payable,
but is not punctually paid or duly provided for, on any Interest Payment Date for Securities of the same series (herein called
“Defaulted Interest”) shall forthwith cease to be payable to the registered holder on the relevant regular record date
by virtue of having been such holder; and such Defaulted Interest shall be paid by the Company, at its election, as provided in
clause (1) or clause (2) below:

 

		(1)	The Company may make payment of any Defaulted
Interest on Securities to the Persons in whose names such Securities (or their respective Predecessor Securities) are registered
at the close of business on a special record date for the payment of such Defaulted Interest, which shall be fixed in the following
manner: the Company shall notify the Trustee in writing of the amount of Defaulted Interest proposed to be paid on each such Security
and the date of the proposed payment, and at the same time the Company shall deposit with the Trustee an amount of money equal
to the aggregate amount proposed to be paid in respect of such Defaulted Interest or shall make arrangements satisfactory to the
Trustee for such deposit prior to the date of the proposed payment, such money when deposited to be held in trust for the benefit
of the Persons entitled to such Defaulted Interest as in this clause provided. Thereupon the Trustee shall fix a special record
date for the payment of such Defaulted Interest which shall not be more than 15 nor less than 10 days prior to the date of the
proposed payment and not less than 10 days after the receipt by the Trustee of the notice of the proposed payment. The Trustee
shall promptly notify the Company of such special record date and, in the name and at the expense of the Company, shall cause notice
of the proposed payment of such Defaulted Interest and the special record date therefor to be mailed, first class postage prepaid,
to each Securityholder at his or her address as it appears in the Security Register, not less than 10 days prior to such special
record date. Notice of the proposed payment of such Defaulted Interest and the special record date therefor having been mailed
as aforesaid, such Defaulted Interest shall be paid to the Persons in whose names such Securities (or their respective Predecessor
Securities) are registered on such special record date.

 

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		(2)	The Company may make payment of any Defaulted
Interest on any Securities in any other lawful manner not inconsistent with the requirements of any securities exchange on which
such Securities may be listed, and upon such notice as may be required by such exchange, if, after notice given by the Company
to the Trustee of the proposed payment pursuant to this clause, such manner of payment shall be deemed practicable by the Trustee.

 

Unless otherwise set forth in a Board Resolution
of the Company or one or more indentures supplemental hereto establishing the terms of any series of Securities pursuant to Section
2.01 hereof, the term “regular record date” as used in this Section with respect to a series of Securities with respect
to any Interest Payment Date for such series shall mean either the fifteenth day of the month immediately preceding the month in
which an Interest Payment Date established for such series pursuant to Section 2.01 hereof shall occur, if such Interest Payment
Date is the first day of a month, or the last day of the month immediately preceding the month in which an Interest Payment Date
established for such series pursuant to Section 2.01 hereof shall occur, if such Interest Payment Date is the fifteenth day of
a month, whether or not such date is a Business Day.

 

Subject to the foregoing provisions of this
Section, each Security of a series delivered under this Indenture upon transfer of or in exchange for or in lieu of any other Security
of such series shall carry the rights to interest accrued and unpaid, and to accrue, that were carried by such other Security.

 

Section
2.04.   Execution and Authentications.

 

The Securities shall be signed on behalf of
the Company by its President, or one of its Vice Presidents, or its Treasurer, or one of its Assistant Treasurers, or its Secretary,
or one of its Assistant Secretaries, under its corporate seal attested by its Secretary or one of its Assistant Secretaries. Signatures
may be in the form of a manual or facsimile signature. The Company may use the facsimile signature of any Person who shall have
been a President or Vice President thereof, or of any Person who shall have been a Treasurer or Assistant Treasurer thereof, or
of any Person who shall have been a Secretary or Assistant Secretary thereof, notwithstanding the fact that at the time the Securities
shall be authenticated and delivered or disposed of such Person shall have ceased to be the President or a Vice President, the
Treasurer or an Assistant Treasurer or the Secretary or an Assistant Secretary, of the Company. The seal of the Company may be
in the form of a facsimile of such seal and may be impressed, affixed, imprinted or otherwise reproduced on the Securities. The
Securities may contain such notations, legends or endorsements required by law, stock exchange rule or usage. Each Security shall
be dated the date of its authentication.

 

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A Security shall not be valid or obligatory
for any purpose and shall not be entitled to any benefit under this Indenture, in each case, until authenticated with a certificate
of authentication manually signed by an authorized signatory of the Trustee, or by an Authenticating Agent. Such certificate shall
be conclusive evidence, and the only evidence, that the Security so authenticated has been duly authenticated and delivered hereunder
and that the Security is entitled to the benefits of this Indenture. At any time and from time to time after the execution and
delivery of this Indenture, the Company may deliver Securities of any series executed by the Company to the Trustee for authentication,
together with a written order of the Company for the authentication and delivery of such Securities, signed by its President or
any Vice President and its Secretary or any Assistant Secretary, and the Trustee in accordance with such written order shall authenticate
and deliver such Securities.

 

In authenticating such Securities and accepting
the additional responsibilities under this Indenture in relation to such Securities, the Trustee shall be entitled to receive,
and (subject to Section 7.01) shall be fully protected in relying upon, an Opinion of Counsel stating that the form and terms thereof
have been established in conformity with the provisions of this Indenture.

 

The Trustee shall not be required to authenticate
such Securities if the issue of such Securities pursuant to this Indenture will affect the Trustee’s own rights, duties or
immunities under the Securities and this Indenture or otherwise in a manner that is not reasonably acceptable to the Trustee.

 

Section
2.05.   Registration of Transfer and Exchange.

 

		(a)	Securities
of any series may be exchanged upon presentation thereof at the office or agency of the Company designated for such purpose in
the Borough of Manhattan, the City and State of New York, for other Securities of such series of authorized denominations, and
for a like aggregate principal amount, upon payment of a sum sufficient to cover any tax or other governmental charge in relation
thereto, all as provided in this Section. In respect of any Securities so surrendered for exchange, the Company shall execute,
the Trustee shall authenticate and such office or agency shall deliver in exchange therefor the Security or Securities of the
same series that the Securityholder making the exchange shall be entitled to receive, bearing numbers not contemporaneously outstanding.

 

		(b)	The Company shall keep, or cause to be kept,
at its office or agency designated for such purpose in the Borough of Manhattan, the City and State of New York, or such other
location designated by the Company a register or registers (herein referred to as the “Security Register”) in which,
subject to such reasonable regulations as it may prescribe, the Company shall register the Securities and the transfers of Securities
as in this Article provided and which at all reasonable times shall be open for inspection by the Trustee. The registrar for the
purpose of registering Securities and transfer of Securities as herein provided shall be appointed as authorized by Board Resolution
(the “Security Registrar”). 

 

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Upon surrender for transfer of any
Security at the office or agency of the Company designated for such purpose, the Company shall execute, the Trustee shall authenticate
and such office or agency shall deliver in the name of the transferee or transferees a new Security or Securities of the same series
as the Security presented for a like aggregate principal amount.

 

All Securities presented or surrendered
for exchange or registration of transfer, as provided in this Section, shall be accompanied (if so required by the Company or the
Security Registrar) by a written instrument or instruments of transfer, in form satisfactory to the Company or the Security Registrar,
duly executed by the registered holder or by such holder’s duly authorized attorney in writing.

 

		(c)	No service charge shall be made for any
exchange or registration of transfer of Securities, or issue of new Securities in case of partial redemption of any series, but
the Company may require payment of a sum sufficient to cover any tax or other governmental charge in relation thereto, other than
exchanges pursuant to Section 2.06, Section 3.03(b) and Section 9.04 not involving any transfer. 

 

		(d)	The
Company shall not be required (i) to issue, exchange or register the transfer of any Securities during a period beginning at the
opening of business 15 days before the day of the mailing of a notice of redemption of less than all the Outstanding Securities
of the same series and ending at the close of business on the day of such mailing, nor (ii) to register the transfer of or exchange
any Securities of any series or portions thereof called for redemption. The provisions of this Section 2.05 are, with respect
to any Global Security, subject to Section 2.11 hereof.

 

Section
2.06.   Temporary Securities.

 

Pending the preparation of definitive Securities
of any series, the Company may execute, and the Trustee shall authenticate and deliver, temporary Securities (printed, lithographed
or typewritten) of any authorized denomination. Such temporary Securities shall be substantially in the form of the definitive
Securities in lieu of which they are issued, but with such omissions, insertions and variations as may be appropriate for temporary
Securities, all as may be determined by the Company. Every temporary Security of any series shall be executed by the Company and
be authenticated by the Trustee upon the same conditions and in substantially the same manner, and with like effect, as the definitive
Securities of such series. Without unnecessary delay the Company will execute and will furnish definitive Securities of such series
and thereupon any or all temporary Securities of such series may be surrendered in exchange therefor (without charge to the holders),
at the office or agency of the Company designated for the purpose in the Borough of Manhattan, the City and State of New York,
and the Trustee shall authenticate and such office or agency shall deliver in exchange for such temporary Securities an equal aggregate
principal amount of definitive Securities of such series, unless the Company advises the Trustee to the effect that definitive
Securities need not be executed and furnished until further notice from the Company. Until so exchanged, the temporary Securities
of such series shall be entitled to the same benefits under this Indenture as definitive Securities of such series authenticated
and delivered hereunder.

 

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Section
2.07.   Mutilated, Destroyed, Lost or Stolen Securities.

 

In case any temporary or definitive Security
shall become mutilated or be destroyed, lost or stolen, the Company (subject to the next succeeding sentence) shall execute, and
upon the Company’s request the Trustee (subject as aforesaid) shall authenticate and deliver, a new Security of the same
series, bearing a number not contemporaneously outstanding, in exchange and substitution for the mutilated Security, or in lieu
of and in substitution for the Security so destroyed, lost or stolen. In every case the applicant for a substituted Security shall
furnish to the Company and the Trustee such security or indemnity as may be required by them to save each of them harmless, and,
in every case of destruction, loss or theft, the applicant shall also furnish to the Company and the Trustee evidence to their
satisfaction of the destruction, loss or theft of the applicant’s Security and of the ownership thereof. The Trustee may
authenticate any such substituted Security and deliver the same upon the written request or authorization of any officer of the
Company. Upon the issuance of any substituted Security, the Company may require the payment of a sum sufficient to cover any tax
or other governmental charge that may be imposed in relation thereto and any other expenses (including the fees and expenses of
the Trustee) connected therewith. In case any Security that has matured or is about to mature shall become mutilated or be destroyed,
lost or stolen, the Company may, instead of issuing a substitute Security, pay or authorize the payment of the same (without surrender
thereof except in the case of a mutilated Security) if the applicant for such payment shall furnish to the Company and the Trustee
such security or indemnity as they may require to save them harmless, and, in case of destruction, loss or theft, evidence to the
satisfaction of the Company and the Trustee of the destruction, loss or theft of such Security and of the ownership thereof.

 

Every replacement Security issued pursuant
to the provisions of this Section shall constitute an additional contractual obligation of the Company whether or not the mutilated,
destroyed, lost or stolen Security shall be found at any time, or be enforceable by anyone, and shall be entitled to all the benefits
of this Indenture equally and proportionately with any and all other Securities of the same series duly issued hereunder. All Securities
shall be held and owned upon the express condition that the foregoing provisions are exclusive with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Securities, and shall preclude (to the extent lawful) any and all other rights
or remedies, notwithstanding any law or statute existing or hereafter enacted to the contrary with respect to the replacement or
payment of negotiable instruments or other securities without their surrender.

 

Section
2.08.   Cancellation.

 

All Securities surrendered for the purpose
of payment, redemption, exchange or registration of transfer shall, if surrendered to the Company or any paying agent, be delivered
to the Trustee for cancellation, or, if surrendered to the Trustee, shall be cancelled by it, and no Securities shall be issued
in lieu thereof except as expressly required or permitted by any of the provisions of this Indenture. On request of the Company
at the time of such surrender, the Trustee shall deliver to the Company canceled Securities held by the Trustee. In the absence
of such request the Trustee may dispose of canceled Securities in accordance with its standard procedures and deliver a certificate
of disposition to the Company. If the Company shall otherwise acquire any of the Securities, however, such acquisition shall not
operate as a redemption or satisfaction of the indebtedness represented by such Securities unless and until the same are delivered
to the Trustee for cancellation.

 

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Section
2.09.   Benefits of Indenture.

 

Nothing in this Indenture or in the Securities,
express or implied, shall give or be construed to give to any Person, other than the parties hereto and the holders of the Securities
any legal or equitable right, remedy or claim under or in respect of this Indenture, or under any covenant, condition or provision
herein contained; all such covenants, conditions and provisions being for the sole benefit of the parties hereto and of the holders
of the Securities.

 

Section
2.10.   Authenticating Agent.

 

So long as any of the Securities of any series
remain Outstanding there may be an Authenticating Agent for any or all such series of Securities which the Trustee shall have the
right to appoint. Said Authenticating Agent shall be authorized to act on behalf of the Trustee to authenticate Securities of such
series issued upon exchange, transfer or partial redemption thereof, and Securities so authenticated shall be entitled to the benefits
of this Indenture and shall be valid and obligatory for all purposes as if authenticated by the Trustee hereunder. All references
in this Indenture to the authentication of Securities by the Trustee shall be deemed to include authentication by an Authenticating
Agent for such series. Each Authenticating Agent shall be acceptable to the Company and shall be a corporation that has a combined
capital and surplus, as most recently reported or determined by it, sufficient under the laws of any jurisdiction under which it
is organized or in which it is doing business to conduct a trust business, and that is otherwise authorized under such laws to
conduct such business and is subject to supervision or examination by Federal or State authorities. If at any time any Authenticating
Agent shall cease to be eligible in accordance with these provisions, it shall resign immediately.

 

Any Authenticating Agent may at any time resign
by giving written notice of resignation to the Trustee and to the Company. The Trustee may at any time (and upon request by the
Company shall) terminate the agency of any Authenticating Agent by giving written notice of termination to such Authenticating
Agent and to the Company. Upon resignation, termination or cessation of eligibility of any Authenticating Agent, the Trustee may
appoint an eligible successor Authenticating Agent acceptable to the Company. Any successor Authenticating Agent, upon acceptance
of its appointment hereunder, shall become vested with all the rights, powers and duties of its predecessor hereunder as if originally
named as an Authenticating Agent pursuant hereto.

 

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Section
2.11.   Global Securities

 

		(a)	If the Company shall establish pursuant
to Section 2.01 that some or all of the Securities of a particular series are to be issued as a Global Security, then the Company
shall execute and the Trustee shall, in accordance with Section 2.04, authenticate and deliver, a Global Security that (i) shall
represent, and shall be denominated in an amount equal to the aggregate principal amount of, the Outstanding Securities of such
series which are to be issued as a Global Security, (ii) shall be registered in the name of the Depositary or its nominee, (iii)
shall be delivered by the Trustee to the Depositary or pursuant to the Depositary’s instruction and (iv) shall bear a legend
substantially to the following effect: “Except as otherwise provided in Section 2.11 of the Indenture, this Security may
be transferred, in whole but not in part, only to another nominee of the Depositary or to a successor Depositary or to a nominee
of such successor Depositary.”

 

		(b)	Notwithstanding the provisions of Section
2.05, the Global Security of a series may be transferred, in whole but not in part and in the manner provided in Section 2.05,
only to another nominee of the Depositary for such series, or to a successor Depositary for such series selected or approved by
the Company or to a nominee of such successor Depositary. 

 

		(c)	If at any time the Depositary for a series
of the Securities notifies the Company that it is unwilling or unable to continue as Depositary for such series or if at any time
the Depositary for such series shall no longer be registered or in good standing under the Exchange Act, or other applicable statute
or regulation, and a successor Depositary for such series is not appointed by the Company within 90 days after the Company receives
such notice or becomes aware of such condition, as the case may be, this Section 2.11 shall no longer be applicable to the Securities
of such series and the Company will execute, and subject to Section 2.05, the Trustee will authenticate and deliver the Securities
of such series in definitive registered form without coupons, in authorized denominations, and in an aggregate principal amount
equal to the principal amount of the Global Security of such series in exchange for such Global Security. In addition, the Company
may at any time determine that the Securities of any series shall no longer be represented by a Global Security and that the provisions
of this Section 2.11 shall no longer apply to the Securities of such series. In such event the Company will execute and subject
to Section 2.05, the Trustee, upon receipt of an Officers’ Certificate evidencing such determination by the Company, will
authenticate and deliver the Securities of such series in definitive registered form without coupons, in authorized denominations,
and in an aggregate principal amount equal to the principal amount of the Global Security of such series in exchange for such Global
Security. Upon the exchange of the Global Security for such Securities in definitive registered form without coupons, in authorized
denominations, the Global Security shall be canceled by the Trustee. Such Securities in definitive registered form issued in exchange
for the Global Security pursuant to this Section 2.11(c) shall be registered in such names and in such authorized denominations
as the Depositary, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Trustee.
The Trustee shall deliver such Securities to the Depositary for delivery to the Persons in whose names such Securities are so registered.

 

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Article
III

REDEMPTION OF SECURITIES AND SINKING

FUND PROVISIONS

 

Section
3.01.   Redemption.

 

The
Company may redeem the Securities of any series issued hereunder on and after the dates and in accordance with the terms established
for such series pursuant to Section 2.01 hereof.

 

Section
3.02.Notice of Redemption.

 

		(a)	In
                                         case the Company shall desire to exercise such right to redeem all or, as the case may
                                         be, a portion of the Securities of any series in accordance with the right reserved so
                                         to do, the Company shall, or shall cause the Trustee to, give notice of such redemption
                                         to holders of the Securities of such series to be redeemed by mailing, first class postage
                                         prepaid, a notice of such redemption not less than 30 days and not more than 90 days
                                         before the date fixed for redemption of that series to such holders at their last addresses
                                         as they shall appear upon the Security Register unless a shorter period is specified
                                         in the Securities to be redeemed. Any notice that is mailed in the manner herein provided
                                         shall be conclusively presumed to have been duly given, whether or not the registered
                                         holder receives the notice. In any case, failure duly to give such notice to the holder
                                         of any Security of any series designated for redemption in whole or in part, or any defect
                                         in the notice, shall not affect the validity of the proceedings for the redemption of
                                         any other Securities of such series or any other series. In the case of any redemption
                                         of Securities prior to the expiration of any restriction on such redemption provided
                                         in the terms of such Securities or elsewhere in this Indenture, the Company shall furnish
                                         the Trustee with an Officers’ Certificate evidencing compliance with any such restriction.
                                         

 

Each
such notice of redemption shall specify the date fixed for redemption and the redemption price at which Securities of that series
are to be redeemed, and shall state that payment of the redemption price of such Securities to be redeemed will be made at the
office or agency of the Company in the Borough of Manhattan, the City and State of New York, upon presentation and surrender of
such Securities, that interest accrued to the date fixed for redemption will be paid as specified in said notice, that from and
after said date interest will cease to accrue and that the redemption is for a sinking fund, if such is the case. If less than
all the Securities of a series are to be redeemed, the notice to the holders of Securities of that series to be redeemed in whole
or in part shall specify the particular Securities to be so redeemed. In case any Security is to be redeemed in part only, the
notice that relates to such Security shall state the portion of the principal amount thereof to be redeemed, and shall state that
on and after the redemption date, upon surrender of such Security, a new Security or Securities of such series in principal amount
equal to the unredeemed portion thereof will be issued.

 

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		(b)	If
                                         less than all the Securities of a series are to be redeemed, the Company shall give the
                                         Trustee at least 30 days’ notice in advance of the date fixed for redemption as
                                         to the aggregate principal amount of Securities of the series to be redeemed, and thereupon
                                         the Trustee shall select, by lot or in such other manner as it shall deem appropriate
                                         and fair in its discretion and that may provide for the selection of a portion or portions
                                         (equal to one thousand U.S. dollars ($1,000) or any integral multiple thereof) of the
                                         principal amount of such Securities of a denomination larger than $1,000, the Securities
                                         to be redeemed and shall thereafter promptly notify the Company in writing of the numbers
                                         of the Securities to be redeemed, in whole or in part. The Company may, if and whenever
                                         it shall so elect, by delivery of instructions signed on its behalf by its President
                                         or any Vice President, instruct the Trustee or any paying agent to call all or any part
                                         of the Securities of a particular series for redemption and to give notice of redemption
                                         in the manner set forth in this Section, such notice to be in the name of the Company
                                         or its own name as the Trustee or such paying agent may deem advisable. In any case in
                                         which notice of redemption is to be given by the Trustee or any such paying agent, the
                                         Company shall deliver or cause to be delivered to, or permit to remain with, the Trustee
                                         or such paying agent, as the case may be, such Security Register, transfer books or other
                                         records, or suitable copies or extracts therefrom, sufficient to enable the Trustee or
                                         such paying agent to give any notice by mail that may be required under the provisions
                                         of this Section.

 

Section
3.03.   Payment Upon Redemption.

 

		(a)	If
the giving of notice of redemption shall have been completed as above provided, the Securities or portions of Securities of the
series to be redeemed specified in such notice shall become due and payable on the date and at the place stated in such notice
at the applicable redemption price, together with interest accrued to the date fixed for redemption and interest on such Securities
or portions of Securities shall cease to accrue on and after the date fixed for redemption, unless the Company shall default in
the payment of such redemption price and accrued interest with respect to any such Security or portion thereof. On presentation
and surrender of such Securities on or after the date fixed for redemption at the place of payment specified in the notice, said
Securities shall be paid and redeemed at the applicable redemption price for such series, together with interest accrued thereon
to the date fixed for redemption (but if the date fixed for redemption is an interest payment date, the interest installment payable
on such date shall be payable to the registered holder at the close of business on the applicable record date pursuant to Section
2.03). 

 

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		(b)	Upon
                                         presentation of any Security of such series that is to be redeemed in part only, the
                                         Company shall execute and the Trustee shall authenticate and the office or agency where
                                         the Security is presented shall deliver to the holder thereof, at the expense of the
                                         Company, a new Security of the same series of authorized denominations in principal amount
                                         equal to the unredeemed portion of the Security so presented. 

 

Section
3.04.   Sinking Fund.

 

The
provisions of Sections 3.04, 3.05 and 3.06 shall be applicable to any sinking fund for the retirement of Securities of a series,
except as otherwise specified as contemplated by Section 2.01 for Securities of such series.

 

The
minimum amount of any sinking fund payment provided for by the terms of Securities of any series is herein referred to as a “mandatory
sinking fund payment,” and any payment in excess of such minimum amount provided for by the terms of Securities of any series
is herein referred to as an “optional sinking fund payment.” If provided for by the terms of Securities of any series,
the cash amount of any sinking fund payment may be subject to reduction as provided in Section 3.05. Each sinking fund payment
shall be applied to the redemption of Securities of any series as provided for by the terms of Securities of such series.

 

Section
3.05.   Satisfaction of Sinking Fund Payments with Securities.

 

The
Company (i) may deliver Outstanding Securities of a series (other than any Securities previously called for redemption) and (ii)
may apply as a credit Securities of a series that have been redeemed either at the election of the Company pursuant to the terms
of such Securities or through the application of permitted optional sinking fund payments pursuant to the terms of such Securities,
in each case in satisfaction of all or any part of any sinking fund payment with respect to the Securities of such series required
to be made pursuant to the terms of such Securities as provided for by the terms of such series, provided that such Securities
have not been previously so credited. Such Securities shall be received and credited for such purpose by the Trustee at the redemption
price specified in such Securities for redemption through operation of the sinking fund and the amount of such sinking fund payment
shall be reduced accordingly.

 

Section
3.06.   Redemption of Securities for Sinking Fund.

 

Not
less than 45 days prior to each sinking fund payment date for any series of Securities, the Company will deliver to the Trustee
an Officers’ Certificate specifying the amount of the next ensuing sinking fund payment for that series pursuant to the
terms of the series, the portion thereof, if any, that is to be satisfied by delivering and crediting Securities of that series
pursuant to Section 3.05 and the basis for such credit and will, together with such Officers’ Certificate, deliver to the
Trustee any Securities to be so delivered. Not less than 30 days before each such sinking fund payment date the Trustee shall
select the Securities to be redeemed upon such sinking fund payment date in the manner specified in Section 3.02 and cause notice
of the redemption thereof to be given in the name of and at the expense of the Company in the manner provided in Section 3.02.
Such notice having been duly given, the redemption of such Securities shall be made upon the terms and in the manner stated in
Section 3.03.

 

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Article
IV

COVENANTS

 

Section
4.01.   Payment of Principal, Premium and Interest.

 

The
Company will duly and punctually pay or cause to be paid the principal of (and premium, if any) and interest on the Securities
of that series at the time and place and in the manner provided herein and established with respect to such Securities.

 

Section
4.02.   Maintenance of Office or Agency.

 

So
long as any series of the Securities remain Outstanding, the Company agrees to maintain an office or agency in the Borough of
Manhattan, the City and State of New York, with respect to each such series and at such other location or locations as may be
designated as provided in this Section 4.02, where (i) Securities of that series may be presented or surrendered for payment,
(ii) Securities of that series may be presented as herein above authorized for registration of transfer and exchange, and (iii)
notices and demands to or upon the Company in respect of the Securities of that series and this Indenture may be given or served,
such designation to continue with respect to such office or agency until the Company shall, by written notice signed by its President
or a Vice President and delivered to the trustee, designate some other office or agency for such purposes or any of them. If at
any time the Company shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address
thereof, such presentations, notices and demands may be made or served at the Corporate Trust Office of the Trustee, and the Company
hereby appoints the Trustee as its agent to receive all such presentations, notices and demands.

 

Section
4.03.   Paying Agents.

 

		(a)	If
the Company shall appoint one or more paying agents for all or any series of the Securities, other than the Trustee, the Company
will cause each such paying agent to execute and deliver to the Trustee an instrument in which such agent shall agree with the
Trustee, subject to the provisions of this Section:

 

		(1)	that
                                         it will hold all sums held by it as such agent for the payment of the principal of (and
                                         premium, if any) or interest on the Securities of that series (whether such sums have
                                         been paid to it by the Company or by any other obligor of such Securities) in trust for
                                         the benefit of the Persons entitled thereto;

 

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		(2)	that
                                         it will give the Trustee notice of any failure by the Company (or by any other obligor
                                         of such Securities) to make any payment of the principal of (and premium, if any) or
                                         interest on the Securities of that series when the same shall be due and payable;

 

		(3)	that
                                         it will, at any time during the continuance of any failure referred to in the preceding
                                         paragraph (a)(2) above, upon the written request of the Trustee, forthwith pay to the
                                         Trustee all sums so held in trust by such paying agent; and

 

		(4)	that
it will perform all other duties of paying agent as set forth in this Indenture.

 

		(b)	If
                                         the Company shall act as its own paying agent with respect to any series of the Securities,
                                         it will on or before each due date of the principal of (and premium, if any) or interest
                                         on Securities of that series, set aside, segregate and hold in trust for the benefit
                                         of the Persons entitled thereto a sum sufficient with monies held by all other paying
                                         agents to pay such principal (and premium, if any) or interest so becoming due on Securities
                                         of that series until such sums shall be paid to such Persons or otherwise disposed of
                                         as herein provided and will promptly notify the Trustee of such action, or any failure
                                         (by it or any other obligor on such Securities) to take such action. Whenever the Company
                                         shall have one or more paying agents for any series of Securities, it will, prior to
                                         each due date of the principal of (and premium, if any) or interest on any Securities
                                         of that series, deposit with the paying agent a sum sufficient to pay the principal (an
                                         premium, if any) or interest so becoming due, such sum to be held in trust for the benefit
                                         of the Persons entitled to such principal, premium or interest, and (unless such paying
                                         agent is the Trustee) the Company will promptly notify the Trustee of this action or
                                         failure so to act. 

 

		(c)	Notwithstanding
                                         anything in this Section to the contrary, (i) the agreement to hold sums in trust as
                                         provided in this Section is subject to the provisions of Section 11.05, and (ii) the
                                         Company may at any time, for the purpose of obtaining the satisfaction and discharge
                                         of this Indenture or for any other purpose, pay, or direct any paying agent to pay, to
                                         the Trustee all sums held in trust by the Company or such paying agent, such sums to
                                         be held by the Trustee upon the same terms and conditions as those upon which such sums
                                         were held by the Company or such paying agent; and, upon such payment by any paying agent
                                         to the Trustee, such paying agent shall be released from all further liability with respect
                                         to such money. 

 

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Section
4.04.   Appointment to Fill Vacancy in Office of Trustee.

 

The
Company, whenever necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in the manner provided in Section
7.10, a Trustee, so that there shall at all times be a Trustee hereunder.

 

Section
4.05.   Compliance with Consolidation Provisions.

 

The
Company will not, while any of the Securities remain Outstanding, consolidate with or merge into any other Person, in either case
where the Company is not the survivor of such transaction, or sell or convey all or substantially all of its property to any other
company unless the provisions of Article X hereof are complied with.

 

Article
V

SECURITYHOLDERS’ LISTS AND REPORTS

BY THE COMPANY AND THE TRUSTEE

 

Section
5.01.   Company to Furnish Trustee Names and Addresses of Securityholders.

 

If
the Company is not the Security Register, the Company will furnish or use reasonable efforts to cause to be furnished to the Trustee
(a) on each regular record date (as defined in Section 2.03) a list, in such form as the Trustee may reasonably require, of the
names and addresses of the holders of each series of Securities as of such regular record date, provided that the Company shall
not be obligated to furnish or cause to furnish such list at any time that the list shall not differ in any respect from the most
recent list furnished to the Trustee by the Company and (b) at such other times as the Trustee may request in writing within 30
days after the receipt by the Company of any such request, a list of similar form and content as of a date not more than 15 days
prior to the time such list is furnished; provided, however, that, in either case, no such list need be furnished for any series
for which the Trustee shall be the Security Registrar.

 

Section
5.02.   Preservation Of Information; Communications With Securityholders.

 

		(a)	The
Trustee shall preserve, in as current a form as is reasonably practicable, all information as to the names and addresses of the
holders of Securities contained in the most recent list furnished to it as provided in Section 5.01 and as to the names and addresses
of holders of Securities received by the Trustee in its capacity as Security Registrar (if acting in such capacity) and shall
otherwise comply with Section 312(a) of the Trust Indenture Act.

 

		(b)	The
                                         Trustee may destroy any list furnished to it as provided in Section 5.01 upon receipt
                                         of a new list so furnished.

 

		(c)	Securityholders
                                         may communicate as provided in Section 312(b) of the Trust Indenture Act with other Securityholders
                                         with respect to their rights under this Indenture or under the Securities.

 

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Section
5.03.   Reports by the Company.

 

		(a)	The
                                         Company covenants and agrees to file with the Trustee, within 15 days after the Company
                                         is required to file the same with the Commission, copies of the annual reports and of
                                         the information, documents and other reports (or copies of such portions of any of the
                                         foregoing as the Commission may from time to time by rules and regulations prescribe)
                                         that the Company may be required to file with the Commission pursuant to Section 13 or
                                         Section 15(d) of the Exchange Act; or, if the Company is not required to file information,
                                         documents or reports pursuant to either of such sections, then to file with the Trustee
                                         and the Commission, in accordance with the rules and regulations prescribed from time
                                         to time by the Commission, such of the supplementary and periodic information, documents
                                         and reports that may be required pursuant to Section 13 of the Exchange Act, in respect
                                         of a security listed and registered on a national securities exchange as may be prescribed
                                         from time to time in such rules and regulations; provided, however, the Company shall
                                         not be required to deliver to the Trustee any materials for which the Company has sought
                                         and received confidential treatment by the Commission. The Company also shall comply
                                         with the other provisions of Section 314(a) of the Trust Indenture Act.

 

		(b)	The
                                         Company covenants and agrees to file with the Trustee and the Commission, in accordance
                                         with the rules and regulations prescribed from to time by the Commission, such additional
                                         information, documents and reports with respect to compliance by the Company with the
                                         conditions and covenants provided for in this Indenture as may be required from time
                                         to time by such rules and regulations.

 

		(c)	The
Company covenants and agrees to transmit by mail, first class postage prepaid, or reputable over-night delivery service that provides
for evidence of receipt, to the Securityholders, as their names and addresses appear upon the Security Register, within 30 days
after the filing thereof with the Trustee, such summaries of any information, documents and reports required to be filed by the
Company pursuant to subsections (a) and (b) of this Section as may be required by rules and regulations prescribed from time to
time by the Commission.

 

Section
5.04.   Reports by the Trustee.

 

		(a)	The
                                         Trustee shall transmit to holders as provided in Section 313 of the Trust Indenture Act
                                         such reports concerning the Trustee and its actions under this Indenture as may be required
                                         by Section 313 of the Trust Indenture Act at the times and in the manner provided by
                                         the Trust Indenture Act.

 

		(b)	A
copy of each such report shall, at the time of such transmission to Securityholders, be filed by the Trustee with the Company,
with each stock exchange upon which any Securities are listed (if so listed) and, if required by Section 313 of the Trust Indenture
Act, also with the Commission. The Company agrees to notify the Trustee when any Securities become listed on any stock exchange.

 

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Article
VI

REMEDIES OF THE TRUSTEE AND SECURITYHOLDERS

ON EVENT OF DEFAULT

 

Section
6.01.   Events of Default.

 

		(a)	Whenever
                                         used herein with respect to Securities of a particular series, “Event of Default”
                                         means any one or more of the following events that has occurred and is continuing:

 

		(1)	the
                                         Company defaults in the payment of any installment of interest upon any of the Securities
                                         of that series, as and when the same shall become due and payable, and continuance of
                                         such default for a period of 90 days; provided, however, that a valid extension of an
                                         interest payment period by the Company in accordance with the terms of any indenture
                                         supplemental hereto shall not constitute a default in the payment of interest for this
                                         purpose;

 

		(2)	the
                                         Company defaults in the payment of the principal of (or premium, if any, on) any of the
                                         Securities of that series as and when the same shall become due and payable whether at
                                         maturity, upon redemption, by declaration or otherwise, or in any payment required by
                                         any sinking or analogous fund established with respect to that series; provided, however,
                                         that a valid extension of the maturity of such Securities in accordance with the terms
                                         of any indenture supplemental hereto shall not constitute a default in the payment of
                                         principal or premium, if any;

 

		(3)	the
                                         Company fails to observe or perform any other of its covenants or agreements with respect
                                         to that series contained in this Indenture or otherwise established with respect to that
                                         series of Securities pursuant to Section 2.01 hereof (other than a covenant or agreement
                                         that has been expressly included in this Indenture solely for the benefit of one or more
                                         series of Securities other than such series) for a period of 90 days after the date on
                                         which written notice of such failure, requiring the same to be remedied and stating that
                                         such notice is a “Notice of Default” hereunder, shall have been given to
                                         the Company by the Trustee, by registered or certified mail, or to the Company and the
                                         Trustee by the holders of not less than a majority in principal amount of the Securities
                                         of that series at the time Outstanding; (4)the Company pursuant to or within the meaning
                                         of any Bankruptcy Law (i) commences a voluntary case, (ii) consents to the entry of an
                                         order for relief against it in an involuntary case, (iii) consents to the appointment
                                         of a Custodian of it or for all or substantially all of its property or (iv) makes a
                                         general assignment for the benefit of its creditors; or (5)a court of competent jurisdiction
                                         enters an order under any Bankruptcy Law that (i) is for relief against the Company in
                                         an involuntary case, (ii) appoints a Custodian of the Company for all or substantially
                                         all of its property, or (iii) orders the liquidation of the Company, and the order or
                                         decree remains unstayed and in effect for 90 consecutive days.

 

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		(b)	In
                                         each and every such case, unless the principal of all the Securities of that series shall
                                         have already become due and payable, either the Trustee or the holders of not less than
                                         a majority in aggregate principal amount of the Securities of that series then Outstanding
                                         hereunder, by notice in writing to the Company (and to the Trustee if given by such Securityholders),
                                         may declare the principal (or, if any Securities of that series are discount securities,
                                         that portion of the principal amount as may be specified in the terms of that series
                                         pursuant to Section 2.01(a)(16)) of (and premium, if any, on) and accrued and unpaid
                                         interest, if any, on all the Securities of that series to be due and payable immediately,
                                         and upon any such declaration the same shall become and shall be immediately due and payable.                                         

 

		(c)	At
                                         any time after the principal of the Securities of that series shall have been so declared
                                         due and payable, and before a judgment or decree for the payment of the moneys due shall
                                         have been obtained or entered as hereinafter provided, the holders of a majority in aggregate
                                         principal amount of the Securities of that series then Outstanding hereunder (or, by
                                         action at a meeting of holders of the Securities of such series in accordance with Section
                                         8.09, the holders of a majority in aggregate principal amount of the Securities of such
                                         series then Outstanding represented at such meeting), by written notice to the Company
                                         and the Trustee, may rescind and annul such declaration and its consequences if: (i)
                                         the Company has paid or deposited with the Trustee a sum sufficient to pay all matured
                                         installments of interest upon all the Securities of that series and the principal of
                                         (and premium, if any, on) any and all Securities of that series that shall have become
                                         due otherwise than by acceleration and (ii) any and all Events of Default under this
                                         Indenture with respect to such series, other than the nonpayment of principal of (and
                                         premium, if any, on) and accrued and unpaid interest, if any, on Securities of that series
                                         that shall have become due solely because of such acceleration, shall have been remedied,
                                         cured or waived as provided in Section 6.06. No such rescission and annulment shall extend
                                         to or shall affect any subsequent default or impair any right consequent thereon. 

 

		(d)	In
                                         case the Trustee shall have proceeded to enforce any right with respect to Securities
                                         of that series under this Indenture and such proceedings shall have been discontinued
                                         or abandoned because of such rescission or annulment or for any other reason or shall
                                         have been determined adversely to the Trustee, then and in every such case, subject to
                                         any determination in such proceedings, the Company, and the Trustee shall be restored
                                         respectively to their former positions and rights hereunder, and all rights, remedies
                                         and powers of the Company and the Trustee shall continue as though no such proceedings
                                         had been taken. 

 

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

 

		(a)	The
                                         Company covenants that (1) in case it shall default in the payment of any installment
                                         of interest on any of the Securities of a series, or any payment required by any sinking
                                         or analogous fund established with respect to that series as and when the same shall
                                         have become due and payable, and such default shall have continued for a period of 90
                                         Business Days, or (2) in case it shall default in the payment of the principal of (or
                                         premium, if any, on) any of the Securities of a series when the same shall have become
                                         due and payable, whether upon maturity of the Securities of a series or upon redemption
                                         or upon declaration or otherwise, then, upon demand of the Trustee, the Company will
                                         pay to the Trustee, for the benefit of the holders of the Securities of that series,
                                         the whole amount that then shall have been become due and payable on all such Securities
                                         for principal (and premium, if any) or interest, or both, as the case may be, with interest
                                         upon the overdue principal (and premium, if any) and (to the extent that payment of such
                                         interest is enforceable under applicable law) upon overdue installments of interest at
                                         the rate per annum expressed in the Securities of that series; and, in addition thereto,
                                         such further amount as shall be sufficient to cover the costs and expenses of collection,
                                         and the amount payable to the Trustee under Section 7.06. 

 

		(b)	If
                                         the Company shall fail to pay such amounts forthwith upon such demand, the Trustee, in
                                         its own name and as trustee of an express trust, shall be entitled and empowered to institute
                                         any action or proceedings at law or in equity for the collection of the sums so due and
                                         unpaid, and may prosecute any such action or proceeding to judgment or final decree,
                                         and may enforce any such judgment or final decree against the Company or other obligor
                                         upon the Securities of that series and collect the moneys adjudged or decreed to be payable
                                         in the manner provided by law out of the property of the Company or other obligor upon
                                         the Securities of that series, wherever situated.

 

		(c)	In
case of any receivership, insolvency, liquidation, bankruptcy, reorganization, readjustment, arrangement, composition or judicial
proceedings affected the Company, or its creditors or property, the Trustee shall have power to intervene in such proceedings
and take any action therein that may be permitted by the court and shall (except as may be otherwise provided by law) be entitled
to file such proofs of claim and other papers and documents as may be necessary or advisable in order to have the claims of the
Trustee and of the holders of Securities of such series allowed for the entire amount due and payable by the Company under this
Indenture at the date of institution of such proceedings and for any additional amount that may become due and payable by the
Company after such date, and to collect and receive any moneys or other property payable or deliverable on any such claim, and
to distribute the same after the deduction of the amount payable to the Trustee under Section 7.06; and any receiver, assignee
or trustee in bankruptcy or reorganization is hereby authorized by each of the holders of Securities of such series to make such
payments to the Trustee, and, in the event that the Trustee shall consent to the making of such payments directly to such Securityholders,
to pay to the Trustee any amount due it under Section 7.06.

 

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		(d)	All
rights of action and of asserting claims under this Indenture, or under any of the terms established with respect to Securities
of that series, may be enforced by the Trustee without the possession of any of such Securities, or the production thereof at
any trial or other proceeding relative thereto, and any such suit or proceeding instituted by the Trustee shall be brought in
its own name as trustee of an express trust, and any recovery of judgment shall, after provision for payment to the Trustee of
any amounts due under Section 7.06, be for the ratable benefit of the holders of the Securities of such series. 

 

In
case of an Event of Default hereunder, the Trustee may in its discretion proceed to protect and enforce the rights vested in it
by this Indenture by such appropriate judicial proceedings as the Trustee shall deem most effectual to protect and enforce any
of such rights, either at law or in equity or in bankruptcy or otherwise, whether for the specific enforcement of any covenant
or agreement contained in this Indenture or in aid of the exercise of any power granted in this Indenture, or to enforce any other
legal or equitable right vested in the Trustee by this Indenture or by law.

 

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

 

Section
6.03.   Application of Moneys Collected.

 

Any
moneys collected by the Trustee pursuant to this Article with respect to a particular series of Securities shall be applied in
the following order, at the date or dates fixed by the Trustee and, in case of the distribution of such moneys on account of principal
(or premium, if any) or interest, upon presentation of the Securities of that series, and notation thereon the payment, if only
partially paid, and upon surrender thereof if fully paid:

 

FIRST:
To the payment of costs and expenses of collection and of all amounts payable to the Trustee under Section 7.06; and

 

SECOND:
To the payment of the amounts then due and unpaid upon Securities of such series for principal (and premium, if any) and interest,
in respect of which or for the benefit of which such money has been collected, ratably, without preference or priority of any
kind, according to the amounts due and payable on such Securities for principal (and premium, if any) and interest, respectively.

 

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Section
6.04.   Limitation on Suits.

 

No
holder of any Security of any series shall have any right by virtue or by availing of any provision of this Indenture to institute
any suit, action or proceeding in equity or at law upon or under or with respect to this Indenture or for the appointment of a
receiver or trustee, or for any other remedy hereunder, unless (i) such holder previously shall have given to the Trustee written
notice of an Event of Default and of the continuance thereof with respect to the Securities of such series specifying such Event
of Default, as hereinbefore provided; (ii) the holders of not less than a majority in aggregate principal amount of the Securities
of such series then Outstanding shall have made written request upon the Trustee to institute such action, suit or proceeding
in its own name as trustee hereunder; (iii) such holder or holders shall have offered to the Trustee such reasonable indemnity
as it may require against the costs, expenses and liabilities to be incurred therein or thereby; and (iv) the Trustee for 60 days
after its receipt of such notice, request and offer of indemnity, shall have failed to institute any such action, suit or proceeding
and (v) during such 60 day period, the holders of a majority in principal amount of the Securities of that series (or such amount
as shall have acted at a meeting of the holders of Securities of such series pursuant to the provisions of this Indenture) do
not give the Trustee a direction inconsistent with the request; provided, however, that no one or more of such holders may use
this Indenture to prejudice the rights of another holder or to obtain preference or priority over another holder.

 

Notwithstanding
anything contained herein to the contrary, any other provisions of this Indenture, the right of any holder of any Security to
receive payment of the principal of (and premium, if any) and interest on such Security, as therein provided, on or after the
respective due dates expressed in such Security (or in the case of redemption, on the redemption date), or to institute suit for
the enforcement of any such payment on or after such respective dates or redemption date, shall not be impaired or affected without
the consent of such holder and by accepting a Security hereunder it is expressly understood, intended and covenanted by the taker
and holder of every Security of such series with every other such taker and holder and the Trustee, that no one or more holders
of Securities of such series shall have any right in any manner whatsoever by virtue or by availing of any provision of this Indenture
to affect, disturb or prejudice the rights of the holders of any other of such Securities, or to obtain or seek to obtain priority
over or preference to any other such holder, or to enforce any right under this Indenture, except in the manner herein provided
and for the equal, ratable and common benefit of all holders of Securities of such series. For the protection and enforcement
of the provisions of this Section, each and every Securityholder and the Trustee shall be entitled to such relief as can be given
either at law or in equity.

 

Section
6.05.   Rights and Remedies Cumulative; Delay or Omission Not Waiver.

 

		(a)	Except
                                         as otherwise provided in Section 2.07, all powers and remedies given by this Article
                                         to the Trustee or to the Securityholders shall, to the extent permitted by law, be deemed
                                         cumulative and not exclusive of any other powers and remedies available to the Trustee
                                         or the holders of the Securities, by judicial proceedings or otherwise, to enforce the
                                         performance or observance of the covenants and agreements contained in this Indenture
                                         or otherwise established with respect to such Securities. 

 

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		(b)	No
                                         delay or omission of the Trustee or of any holder of any of the Securities to exercise
                                         any right or power accruing upon any Event of Default occurring and continuing as aforesaid
                                         shall impair any such right or power, or shall be construed to be a waiver of any such
                                         default or on acquiescence therein; and, subject to the provisions of Section 6.04, every
                                         power and remedy given by this Article or by law to the Trustee or the Securityholders
                                         may be exercised from time to time, and as often as shall be deemed expedient, by the
                                         Trustee or by the Securityholders. 

 

Section
6.06.   Control by Securityholders.

 

The
holders of a majority in aggregate principal amount of the Securities of any series at the time Outstanding, determined in accordance
with Section 8.01, shall have the right to direct the time, method and place of conducting any proceeding for any remedy available
to the Trustee, or exercising any trust or power conferred on the Trustee with respect to such series; provided, however, that
such direction shall not be in conflict with any rule of law or with this Indenture or be unduly prejudicial to the rights of
holders of Securities of any other series at the time Outstanding determined in accordance with Section 8.01. Subject to the provisions
of Section 7.01, the Trustee shall have the right to decline to follow any such direction if the Trustee in good faith shall,
by a Responsible Officer or Officers of the Trustee, determine that the proceeding so directed would involve the Trustee in personal
liability. The holders either (a) through the written consent of not less than a majority in aggregate principal amount of the
Securities of any series at the time Outstanding or (b) by action at a meeting of holders of the Securities of such series in
accordance with Section 8.09, by the holders of a majority in aggregate principal amount of the Securities of such series then
Outstanding represented at such meeting, may on behalf of the holders of all of the Securities of such series waive any past default
in the performance of any of the covenants contained herein or established pursuant to Section 2.01 with respect to such series
and its consequences, except a default in the payment of the principal of, or premium, if any, or interest on, any of the Securities
of that series as and when the same shall become due by the terms of such Securities otherwise than by acceleration (unless such
default has been cured and a sum sufficient to pay all matured installments of interest and principal and any premium has been
deposited with the Trustee (in accordance with Section 6.01(c)) and except in respect a provision hereof which, under Section
9.02, cannot be modified or amended without the consent of the holders of each Outstanding Security affected; provided however
that this Section shall not limit the right of holders of Securities of a series to rescind and annul any acceleration as set
forth in Section 6.01. Upon any such waiver, the default covered thereby shall be deemed to be cured for all purposes of this
Indenture and the Company, the Trustee and the holders of the Securities of such series shall be restored to their former positions
and rights hereunder, respectively; but no such waiver shall extend to any subsequent or other default or impair any right consequent
thereon. The provisions which otherwise would be automatically deemed to be contained in this Indenture pursuant to Section (316)(a)(1)
of the Trust Indenture Act are hereby expressly excluded from this Indenture, except to the extent such provisions are expressly
included herein.

 

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Section
6.07.   Undertaking to Pay Costs.

 

All
parties to this Indenture agree, and each holder of any Securities by such holder’s acceptance thereof shall be deemed to
have agreed, that any court may in its discretion require, in any suit for the enforcement of any right or remedy under this Indenture,
or in any suit against the Trustee for any action taken or omitted by it as Trustee, the filing by any party litigant in such
suit of an undertaking to pay the costs of such suit, and that such court may in its discretion assess reasonable costs, including
reasonable attorneys’ fees, against any party litigant in such suit, having due regard to the merits and good faith of the
claims or defenses made by such party litigant; but the provisions of this Section shall not apply to any suit instituted by the
Trustee, to any suit instituted by any Securityholder, or group of Securityholders, holding more than 10% in aggregate principal
amount of the Outstanding Securities of any series, or to any suit instituted by any Securityholder for the enforcement of the
payment of the principal of (or premium, if any) or interest on any Security of such series, on or after the respective due dates
expressed in such Security or established pursuant to this Indenture.

 

Article
VII

CONCERNING THE TRUSTEE

 

Section
7.01.   Certain Duties and Responsibilities of Trustee.

 

		(a)	The
Trustee, prior to the occurrence of an Event of Default with respect to the Securities of a series and after the curing of all
Events of Default with respect to the Securities of that series that may have occurred, shall undertake to perform with respect
to the Securities of such series such duties and only such duties as are specifically set forth in this Indenture, and no implied
covenants shall be read into this Indenture against the Trustee. In case an Event of Default with respect to the Securities of
a series has occurred (that has not been cured or waived), the Trustee shall exercise with respect to Securities of that series
such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as
a prudent man would exercise or use under the circumstances in the conduct of his own affairs.

 

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

 

		(1)	prior
                                         to the occurrence of an Event of Default with respect to the Securities of a series and
                                         after the curing or waiving of all such Events of Default with respect to that series
                                         that may have occurred: 

 

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		(i)	the
                                         duties and obligations of the Trustee shall with respect to the Securities of such series
                                         be determined solely by the express provisions of this Indenture, and the Trustee shall
                                         not be liable with respect to the Securities of such series except for the performance
                                         of such duties and obligations as are specifically set forth in this Indenture, and no
                                         implied covenants or obligations shall be read into this Indenture against the Trustee;
                                         and 

 

		(ii)	in
                                         the absence of bad faith on the part of the Trustee, the Trustee may with respect to
                                         the Securities of such series conclusively rely, as to the truth of the statements and
                                         the correctness of the opinions expressed therein, upon any certificates or opinions
                                         furnished to the Trustee and conforming to the requirements of this Indenture; but in
                                         the case of any such certificates or opinions that by any provision hereof are specifically
                                         required to be furnished to the Trustee, the Trustee shall be under a duty to examine
                                         the same to determine whether or not they conform to the requirement of this Indenture;
                                         

 

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

 

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

 

		(4)	None
                                         of the provisions contained in this Indenture shall require the Trustee to expend or
                                         risk its own funds or otherwise incur personal financial liability in the performance
                                         of any of its duties or in the exercise of any of its rights or powers, if there is reasonable
                                         ground for believing that the repayment of such funds or liability is not reasonably
                                         assured to it under the terms of this Indenture or adequate indemnity against such risk
                                         is not reasonably assured to it. 

 

Section
7.02.   Certain Rights of Trustee.

 

Except
as otherwise provided in Section 7.01:

 

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		(a)	The
                                         Trustee may rely and shall be protected in acting or refraining from acting upon any
                                         resolution, certificate, statement, instrument, opinion, report, notice, request, consent,
                                         order, approval, bond, security or other paper or document believed by it to be genuine
                                         and to have been signed or presented by the proper party or parties; 

 

		(b)	Any
                                         request, direction, order or demand of the Company mentioned herein shall be sufficiently
                                         evidenced by a Board Resolution or an instrument signed in the name of the Company, by
                                         the President or any Vice President and by the Secretary or an Assistant Secretary or
                                         the Treasurer or an Assistant Treasurer thereof (unless other evidence in respect thereof
                                         is specifically prescribed herein); 

 

		(c)	The
                                         Trustee may consult with counsel and the written advice of such counsel or any Opinion
                                         of Counsel shall be full and complete authorization and protection in respect of any
                                         action taken or suffered or omitted hereunder in good faith and in reliance thereon;
                                         

 

		(d)	The
                                         Trustee shall be under no obligation to exercise any of the rights or powers vested in
                                         it by this Indenture at the request, order or direction of any of the Securityholders,
                                         pursuant to the provisions of this Indenture, unless such Securityholders shall have
                                         offered to the Trustee reasonable security or indemnity against the costs, expenses and
                                         liabilities that may be incurred therein or thereby; nothing contained herein shall,
                                         however, relieve the Trustee of the obligation, upon the occurrence of an Event of Default
                                         with respect to a series of the Securities (that has not been cured or waived) to exercise
                                         with respect to Securities of that series such of the rights and powers vested in it
                                         by this Indenture, and to use the same degree of care and skill in their exercise, as
                                         a prudent man would exercise or use under the circumstances in the conduct of his own
                                         affairs; 

 

		(e)	The
                                         Trustee shall not be liable for any action taken or omitted to be taken by it in good
                                         faith and believed by it to be authorized or within the discretion or rights or powers
                                         conferred upon it by this Indenture; 

 

		(f)	The
                                         Trustee shall not be bound to make any investigation into the facts or matters stated
                                         in any resolution, certificate, statement, instrument, opinion, report, notice, request,
                                         consent, order, approval, bond, security, or other papers or documents, unless requested
                                         in writing so to do by the holders of not less than a majority in principal amount of
                                         the Outstanding Securities of the particular series affected thereby (determined as provided
                                         in Section 8.04); provided, however, that if the payment within a reasonable time to
                                         the Trustee of the costs, expenses or liabilities likely to be incurred by it in the
                                         making of such investigation is, in the opinion of the Trustee, not reasonably assured
                                         to the Trustee by the security afforded to it by the terms of this Indenture, the Trustee
                                         may require reasonable indemnity against such costs, expenses or liabilities as a condition
                                         to so proceeding. The reasonable expense of every such examination shall be paid by the
                                         Company or, if paid by the Trustee, shall be repaid by the Company upon demand; and 

 

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

 

Section
7.03.   Trustee Not Responsible for Recitals or Issuance of Securities.

 

		(a)	The
                                         recitals contained herein and in the Securities shall be taken as the statements of the
                                         Company, and the Trustee assumes no responsibility for the correctness of the same. 

 

		(b)	The
                                         Trustee makes no representations as to the validity or sufficiency of this Indenture
                                         or of the Securities. 

 

		(c)	The
                                         Trustee shall not be accountable for the use or application by the Company of any of
                                         the Securities or of the proceeds of such Securities, or for the use or application of
                                         any moneys paid over by the Trustee in accordance with any provision of this Indenture
                                         or established pursuant to Section 2.01, or for the use or application of any moneys
                                         received by any paying agent other than the Trustee. 

 

Section
7.04.   May Hold Securities.

 

The
Trustee or any paying agent or Security Registrar, in its individual or any other capacity, may become the owner or pledgee of
Securities with the same rights it would have if it were not Trustee, paying agent or Security Registrar.

 

Section
7.05.   Moneys Held in Trust.

 

Subject
to the provisions of Section 11.05, all moneys received by the Trustee shall, until used or applied as herein provided, be held
in trust for the purposes for which they were received, but need not be segregated from other funds except to the extent required
by law. The Trustee shall be under no liability for interest on any moneys received by it hereunder except such as it may agree
with the Company to pay thereon.

 

Section
7.06.Compensation and Reimbursement.

 

		(a)	The
                                         Company covenants and agrees to pay to the Trustee, and the Trustee shall be entitled
                                         to, such reasonable compensation (which shall not be limited by any provision of law
                                         in regard to the compensation of a trustee of an express trust), as the Company, and
                                         the Trustee may from time to time agree in writing, for all services rendered by it in
                                         the execution of the trusts hereby created and in the exercise and performance of any
                                         of the powers and duties hereunder of the Trustee, and, except as otherwise expressly
                                         provided herein, the Company will pay or reimburse the Trustee upon its request for all
                                         reasonable expenses, disbursements and advances incurred or made by the Trustee in accordance
                                         with any of the provisions of this Indenture (including the reasonable compensation and
                                         the expenses and disbursements of its counsel and of all Persons not regularly in its
                                         employ) except any such expense, disbursement or advance as may arise from its negligence
                                         or bad faith. The Company also covenants to indemnify the Trustee (and its officers,
                                         agents, directors and employees) for, and to hold it harmless against, any loss, liability
                                         or expense incurred without negligence or bad faith on the part of the Trustee and arising
                                         out of or in connection with the acceptance or administration of this trust, including
                                         the costs and expenses of defending itself against any claim of liability in the premises.
                                         

 

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		(b)	The
                                         obligations of the Company under this Section to compensate and indemnify the Trustee
                                         and to pay or reimburse the Trustee for expenses, disbursements and advances shall constitute
                                         additional indebtedness hereunder. Such additional indebtedness shall be secured by a
                                         lien prior to that of the Securities upon all property and funds held or collected by
                                         the Trustee as such, except funds held in trust for the benefit of the holders of particular
                                         Securities. 

 

Section
7.07.   Reliance on Officers’ Certificate.

 

Except
as otherwise provided in Section 7.01, whenever in the administration of the provisions of this Indenture the Trustee shall deem
it necessary or desirable that a matter be proved or established prior to taking or suffering or omitting to take any action hereunder,
such matter (unless other evidence in respect thereof be herein specifically prescribed) may, in the absence of negligence or
bad faith on the part of the Trustee, be deemed to be conclusively proved and established by an Officers’ Certificate delivered
to the Trustee and such certificate, in the absence of negligence or bad faith on the part of the Trustee, shall be full warrant
to the Trustee for any action taken, suffered or omitted to be taken by it under the provisions of this Indenture upon the faith
thereof.

 

Section
7.08.   Disqualification; Conflicting Interests.

 

If
the Trustee has or shall acquire any “conflicting interest” within the meaning of Section 310(b) of the Trust Indenture
Act, the Trustee and the Company shall in all respects comply with the provisions of Section 310(b) of the Trust Indenture Act.

 

Section
7.09.   Corporate Trustee Required; Eligibility.

 

There
shall at all times be a Trustee with respect to the Securities issued hereunder which shall at all times be a corporation organized
and doing business under the laws of the United States of America or any State or Territory thereof or of the District of Columbia,
or a corporation or other Person permitted to act as trustee by the Commission, authorized under such laws to exercise corporate
trust powers, having a combined capital and surplus of at least 50 million U.S. dollars ($50,000,000), and subject to supervision
or examination by Federal, State, Territorial, or District of Columbia authority. If such corporation publishes reports of condition
at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purposes
of this Section, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as
set forth in its most recent report of condition so published. The Company may not, nor may any Person directly or indirectly
controlling, controlled by, or under common control with the Company, serve as Trustee. In case at any time the Trustee shall
cease to be eligible in accordance with the provisions of this Section, the Trustee shall resign immediately in the manner and
with the effect specified in Section 7.10.

 

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Section
7.10.   Resignation and Removal; Appointment of Successor.

 

		(a)	The
                                         Trustee or any successor hereafter appointed, may at any time resign with respect to
                                         the Securities of one or more series by giving written notice thereof to the Company
                                         and by transmitting notice of resignation by mail, first class postage prepaid, to the
                                         Securityholders of such series, as their names and addresses appear upon the Security
                                         Register. Upon receiving such notice of resignation, the Company shall promptly appoint
                                         a successor trustee with respect to Securities of such series by written instrument,
                                         in duplicate, executed by order of the Board of Directors, one copy of which instrument
                                         shall be delivered to the resigning Trustee and one copy to the successor trustee. If
                                         no successor trustee shall have been so appointed and have accepted appointment within
                                         30 days after the mailing of such notice of resignation, the resigning Trustee may petition
                                         any court of competent jurisdiction for the appointment of a successor trustee with respect
                                         to Securities of such series, or any Securityholder of that series who has been a bona
                                         fide holder of a Security or Securities for at least six months may on behalf of himself
                                         and all others similarly situated, petition any such court for the appointment of a successor
                                         trustee. Such court may thereupon after such notice, if any, as it may deem proper and
                                         prescribe, appoint a successor trustee. 

 

		(b)	In
                                         case at any time any one of the following shall occur: 

 

		(1)	the
                                         Trustee shall fail to comply with the provisions of Section 7.08 after written request
                                         therefor by the Company or by any Securityholder who has been a bona fide holder of a
                                         Security or Securities for at least six months; or 

 

		(2)	the
                                         Trustee shall cease to be eligible in accordance with the provisions of Section 7.09
                                         and shall fail to resign after written request therefor by the Company or by any such
                                         Securityholder; or 

 

		(3)	the
                                         Trustee shall become incapable of acting, or shall be adjudged a bankrupt or insolvent,
                                         or commence a voluntary bankruptcy proceeding, or a receiver of the Trustee or of its
                                         property shall be appointed or consented to, or any public officer shall take charge
                                         or control of the Trustee or of its property or affairs for the purpose of rehabilitation,
                                         conservation or liquidation, then, in any such case, the Company may remove the Trustee
                                         with respect to all Securities and appoint a successor trustee by written instrument,
                                         in duplicate, executed by order of the Board of Directors, one copy of which instrument
                                         shall be delivered to the Trustee so removed and one copy to the successor trustee, or,
                                         unless the Trustee’s duty to resign is stayed as provided herein, any Securityholder
                                         who has been a bona fide holder of a Security or Securities for at least six months may,
                                         on behalf of that holder and all others similarly situated, petition any court of competent
                                         jurisdiction for the removal of the Trustee and the appointment of a successor trustee.
                                         Such court may thereupon after such notice, if any, as it may deem proper and prescribe,
                                         remove the Trustee and appoint a successor trustee. 

 

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		(c)	The
                                         holders of a majority in aggregate principal amount of the Securities of any series at
                                         the time Outstanding may at any time remove the Trustee with respect to such series by
                                         so notifying the Trustee and the Company and may appoint a successor Trustee for such
                                         series with the consent of the Company. 

 

		(d)	Any
                                         resignation or removal of the Trustee and appointment of a successor trustee with respect
                                         to the Securities of a series pursuant to any of the provisions of this Section shall
                                         become effective upon acceptance of appointment by the successor trustee as provided
                                         in Section 7.11. 

 

		(e)	Any
                                         successor trustee appointed pursuant to this Section may be appointed with respect to
                                         the Securities of one or more series or all of such series, and at any time there shall
                                         be only one Trustee with respect to the Securities of any particular series. 

 

Section
7.11.   Acceptance of Appointment By Successor.

 

		(a)	In
                                         case of the appointment hereunder of a successor trustee with respect to all Securities,
                                         every such successor trustee so appointed shall execute, acknowledge and deliver to the
                                         Company and to the retiring Trustee an instrument accepting such appointment, and thereupon
                                         the resignation or removal of the retiring Trustee shall become effective and such successor
                                         trustee, without any further act, deed or conveyance, shall become vested with all the
                                         rights, powers, trusts and duties of the retiring Trustee; but, on the request of the
                                         Company or the successor trustee, such retiring Trustee shall, upon payment of its charges,
                                         execute and deliver an instrument transferring to such successor trustee all the rights,
                                         powers, and trusts of the retiring Trustee and shall duly assign, transfer and deliver
                                         to such successor trustee all property and money held by such retiring Trustee hereunder.
                                         

 

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		(b)	In
                                         case of the appointment hereunder of a successor trustee with respect to the Securities
                                         of one or more (but not all) series, the Company, the retiring Trustee and each successor
                                         trustee with respect to the Securities of one or more series shall execute and deliver
                                         an indenture supplemental hereto wherein each successor trustee shall accept such appointment
                                         and which (1) shall contain such provisions as shall be necessary or desirable to transfer
                                         and confirm to, and to vest in, each successor trustee all the rights, powers, trusts
                                         and duties of the retiring Trustee with respect to the Securities of that or those series
                                         to which the appointment of such successor trustee relates, (2) shall contain such provisions
                                         as shall be deemed necessary or desirable to confirm that all the rights, powers, trusts
                                         and duties of the retiring Trustee with respect to the Securities of that or those series
                                         as to which the retiring Trustee is not retiring shall continue to be vested in the retiring
                                         Trustee, and (3) shall add to or change any of the provisions of this Indenture as shall
                                         be necessary to provide for or facilitate the administration of the trusts hereunder
                                         by more than one Trustee, it being understood that nothing herein or in such supplemental
                                         indenture shall constitute such Trustees co-trustees of the same trust, that each such
                                         Trustee shall be trustee of a trust or trusts hereunder separate and apart from any trust
                                         or trusts hereunder administered by any other such Trustee and that no Trustee shall
                                         be responsible for any act or failure to act on the part of any other Trustee hereunder;
                                         and upon the execution and delivery of such supplemental indenture the resignation or
                                         removal of the retiring Trustee shall become effective to the extent provided therein,
                                         such retiring Trustee shall with respect to the Securities of that or those series to
                                         which the appointment of such successor trustee relates have no further responsibility
                                         for the exercise of rights and powers or for the performance of the duties and obligations
                                         vested in the Trustee under this Indenture, and each such successor trustee, without
                                         any further act, deed or conveyance, shall become vested with all the rights, powers,
                                         trusts and duties of the retiring Trustee with respect to the Securities of that or those
                                         series to which the appointment of such successor trustee relates; but, on request of
                                         the Company or any successor trustee, such retiring Trustee shall duly assign, transfer
                                         and deliver to such successor trustee, to the extent contemplated by such supplemental
                                         indenture, the property and money held by such retiring Trustee hereunder with respect
                                         to the Securities of that or those series to which the appointment of such successor
                                         trustee relates. 

 

		(c)	Upon
                                         request of any such successor trustee, the Company shall execute any and all instruments
                                         for more fully and certainly vesting in and confirming to such successor trustee all
                                         such rights, powers and trusts referred to in paragraph (a) or (b) of this Section, as
                                         the case may be. 

 

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

 

		(e)	Upon
                                         acceptance of appointment by a successor trustee as provided in this Section, the Company
                                         shall transmit notice of the succession of such trustee hereunder by mail, first class
                                         postage prepaid, to the Securityholders, as their names and addresses appear upon the
                                         Security Register. If the Company fails to transmit such notice within ten days after
                                         acceptance of appointment by the successor trustee, the successor trustee shall cause
                                         such notice to be transmitted at the expense of the Company. 

 

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Section 7.12.   Merger,
Conversion, Consolidation or Succession to Business.

 

Any corporation into which the Trustee
may be merged or converted or with which it may be consolidated, or any corporation resulting from any merger, conversion or consolidation
to which the Trustee shall be a party, or any corporation succeeding to the corporate trust business of the Trustee, shall be the
successor of the Trustee hereunder, provided that such corporation shall be qualified under the provisions of Section 7.08 and
eligible under the provisions of Section 7.09, without the execution or filing of any paper or any further act on the part of any
of the parties hereto, anything herein to the contrary notwithstanding. In case any Securities shall have been authenticated, but
not delivered, by the Trustee then in office, any successor by merger, conversion or consolidation to such authenticating Trustee
may adopt such authentication and deliver the Securities so authenticated with the same effect as if such successor Trustee had
itself authenticated such Securities.

 

Section 7.13.   Preferential
Collection of Claims Against the Company.

 

The Trustee shall comply with Section
311(a) of the Trust Indenture Act, excluding any creditor relationship described in Section 311(b) of the Trust Indenture Act.
A Trustee who has resigned or been removed shall be subject to Section 311(a) of the Trust Indenture Act to the extent included
therein.

 

Article
VIII

CONCERNING THE SECURITYHOLDERS

 

Section 8.01.   Evidence
of Action by Securityholders.

 

Whenever in this Indenture it is provided
that the holders of a majority or specified percentage in aggregate principal amount of the Securities of a particular series may
take any action (including the making of any demand or request, the giving of any notice, consent or waiver or the taking of any
other action), the fact that at the time of taking any such action the holders of such majority or specified percentage of that
series have joined therein may be evidenced by any instrument or any number of instruments of similar tenor executed by such holders
of Securities of that series in Person or by agent or proxy appointed in writing.

 

If the Company shall solicit from the
Securityholders of any series any request, demand, authorization, direction, notice, consent, waiver or other action, the Company
may, at its option, as evidenced by an Officers’ Certificate, fix in advance a record date for such series for the determination
of Securityholders entitled to give such request, demand, authorization, direction, notice, consent, waiver or other action, but
the Company shall have no obligation to do so. If such a record date is fixed, such request, demand, authorization, direction,
notice, consent, waiver or other action may be given before or after the record date, but only the Securityholders of record at
the close of business on the record date shall be deemed to be Securityholders for the purposes of determining whether Securityholders
of the requisite proportion of Outstanding Securities of that series have authorized or agreed or consented to such request, demand,
authorization, direction, notice, consent, waiver or other action, and for that purpose the Outstanding Securities of that series
shall be computed as of the record date; provided, however, that no such authorization, agreement or consent by such Securityholders
on the record date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not
later than six months after the record date.

 

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Section 8.02.   Proof
of Execution by Securityholders.

 

Subject to the provisions of Section
7.01, proof of the execution of any instrument by a Securityholder (such proof will not require notarization) or his agent or proxy
and proof of the holding by any Person of any of the Securities shall be sufficient if made in the following manner:

 

		(a)	The fact and date of the execution by any such Person of any instrument may be proved in any reasonable
manner acceptable to the Trustee.

 

		(b)	The ownership of Securities shall be proved by the Security Register of such Securities or by a
certificate of the Security Registrar thereof.

 

		(c)	The Trustee may require such additional proof of any matter referred to in this Section as it shall
deem necessary.

 

Section 8.03.   Who
May be Deemed Owners.

 

Prior to the due presentment for registration
of transfer of any Security, the Company, the Trustee, any paying agent and any Security Registrar may deem and treat the Person
in whose name such Security shall be registered upon the books of the Company as the absolute owner of such Security (whether or
not such Security shall be overdue and notwithstanding any notice of ownership or writing thereon made by anyone other than the
Security Registrar) for the purpose of receiving payment of or on account of the principal of, premium, if any, and (subject to
Section 2.03) interest on such Security and for all other purposes; and neither the Company nor the Trustee nor any paying agent
nor any Security Registrar shall be affected by any notice to the contrary.

 

Section 8.04.   Certain
Securities Owned by Company Disregarded.

 

In determining whether the holders of
the requisite aggregate principal amount of Securities of a particular series have concurred in any direction, consent of waiver
under this Indenture, the Securities of that series that are owned by the Company or any other obligor on the Securities of that
series or by any Person directly or indirectly controlling or controlled by or under common control with the Company or any other
obligor on the Securities of that series shall be disregarded and deemed not to be Outstanding for the purpose of any such determination,
except that for the purpose of determining whether the Trustee shall be protected in relying on any such direction, consent or
waiver, only Securities of such series that the Trustee actually knows are so owned shall be so disregarded. The Securities so
owned that have been pledged in good faith may be regarded as Outstanding for the purposes of this Section, if the pledgee shall
establish to the satisfaction of the Trustee the pledgee’s right so to act with respect to such Securities and that the pledgee
is not a Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Company
or any such other obligor. In case of a dispute as to such right, any decision by the Trustee taken upon the advice of counsel
shall be full protection to the Trustee.

 

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Section 8.05.   Actions
Binding on Future Securityholders.

 

At any time prior to (but not after)
the evidencing to the Trustee, as provided in Section 8.01, of the taking of any action by the holders of the majority or percentage
in aggregate principal amount of the Securities of a particular series specified in this Indenture in connection with such action,
any holder of a Security of that series that is shown by the evidence to be included in the Securities the holders of which have
consented to such action may, by filing written notice with the Trustee, and upon proof of holding as provided in Section 8.02,
revoke such action so far as concerns such Security. Except as aforesaid any such action taken by the holder of any Security shall
be conclusive and binding upon such holder and upon all future holders and owners of such Security, and of any Security issued
in exchange therefor, on registration of transfer thereof or in place thereof, irrespective of whether or not any notation in regard
thereto is made upon such Security. Any action taken by the holders of the majority or percentage in aggregate principal amount
of the Securities of a particular series specified in this Indenture in connection with such action shall be conclusively binding
upon the Company, the Trustee and the holders of all the Securities of that series.

 

Section 8.06.   Purposes
for Which Meetings May Be Called.

 

A meeting of holders of any series of
Securities may be called at any time and from time to time pursuant to this Article to make, give or take any request, demand,
authorization, direction, notice, consent, waiver or other action provided by this Indenture to be made, given or taken by holders
of such series of Securities.

 

Notwithstanding anything contained in
this Article VIII, the Trustee may, during the pendency of a Default or an Event of Default, call a meeting of holders of any series
of Securities in accordance with its standard practices.

 

Section 8.07.   Call
Notice and Place of Meetings.

 

		(a)	The Trustee may at any time call a meeting of holders of any series of Securities for any purpose
specified in Section 8.06 hereof, to be held at such time and at such place in The City of New York or Boston, Massachusetts. Notice
of every meeting of holders of any series of Securities, setting forth the time and the place of such meeting, in general terms
the action proposed to be taken at such meeting and the percentage of the principal amount of the Outstanding Securities of such
series which shall constitute a quorum at such meeting, shall be given, in the manner provided in Section 13.04 hereof, not less
than 21 nor more than 180 days prior to the date fixed for the meeting to holders of Outstanding Securities of such series.

 

    	38

    	 

    

 

		(b)	In case at any time the Company, pursuant to a Board Resolution, or the holders of at least 10%
in principal amount of the Outstanding Securities of any series shall have requested the Trustee to call a meeting of the holders
of Securities of such series for any purpose specified in Section 8.06 hereof, by written request setting forth in reasonable detail
the action proposed to be taken at the meeting, and the Trustee shall not have made the first publication of the notice of such
meeting within 21 days after receipt of such request or shall not thereafter proceed to cause the meeting to be held as provided
herein, then the Company or the holders of Securities of such series in the amount specified, as the case may be, may determine
the time and the place in The City of New York or Boston, Massachusetts for such meeting and may call such meeting for such purposes
by giving notice thereof as provided in paragraph (a) of this Section.

 

Section 8.08.   Persons
Entitled To Vote at Meetings.

 

To be entitled to vote at any meeting
of holders of Securities of a given series, a Person shall be (a) a holder of one or more Outstanding Securities of such series
or (b) a Person appointed by an instrument in writing as proxy for a holder or holders of one or more Outstanding Securities of
such series by such holder or holders. The only Persons who shall be entitled to be present or to speak at any meeting of holders
shall be the Persons entitled to vote at such meeting and their counsel, any representatives of the Trustee and its counsel and
any representatives of the Company and its counsel.

 

Section 8.09.   Quorum;
Action.

 

The Persons entitled to vote a majority
in aggregate principal amount of the Outstanding Securities of a given series shall constitute a quorum with respect to a meeting
of holders of Outstanding Securities of such series. In the absence of a quorum within 30 minutes of the time appointed for any
such meeting, the meeting shall, if convened at the request of holders of Securities of such series, be dissolved. In any other
case, the meeting may be adjourned for a period of not less than 10 days as determined by the chairman of the meeting prior to
the adjournment of such meeting. In the absence of a quorum at any such adjourned meeting, such adjourned meeting may be further
adjourned for a period of not less than 10 days as determined by the chairman of the meeting prior to the adjournment of such adjourned
meeting. Notice of the reconvening of any adjourned meeting shall be given as provided in Section 8.07(a) hereof, except that such
notice need be given only once and not less than five days prior to the date on which the meeting is scheduled to be reconvened.

 

    	39

    	 

    

 

At a meeting or an adjourned meeting
duly reconvened and at which a quorum is present as aforesaid, any resolution and all matters (except as limited by the proviso
to the first paragraph of Section 9.02 hereof) shall be effectively passed and decided if passed or decided by the Persons entitled
to vote not less than a majority in aggregate principal amount of Outstanding Securities of a series represented and voting at
such meeting with respect to a meeting of holders of Outstanding Securities of such series.

 

Any resolution passed or decisions taken
at any meeting of holders of Securities duly held in accordance with this Section shall be binding on all the holders of Securities
of such series, whether or not present or represented at the meeting.

 

Section
8.10.   Determination of Voting Rights; Conduct and Adjournment of Meetings.

 

		(a)	Notwithstanding any other provisions of this Indenture, the Trustee may make such reasonable regulations
as it may deem advisable for any meeting of holders of Securities in regard to proof of the holding of Securities and of the appointment
of proxies and in regard to the appointment and duties of inspectors of votes, the submission and examination of proxies, certificates
and other evidence of the right to vote, and such other matters concerning the conduct of the meeting as it shall deem appropriate.

 

		(b)	The Trustee shall, by an instrument in writing, appoint a temporary chairman (which may be the
Trustee) of the meeting, unless the meeting shall have been called by the Company or by holders of Securities of a given series
as provided in Section 8.07(b) hereof, in which case the Company or the holders of Securities of such series calling the meeting,
as the case may be, shall in like manner appoint a temporary chairman. A permanent chairman and a permanent secretary of the meeting
shall be elected by vote of the Persons entitled to vote a majority in principal amount of the Outstanding Securities of such series
represented at the meeting.

 

		(c)	At any meeting, each holder of a Security of the series in respect of which such meeting is being
held or proxy shall be entitled to one vote for each $1,000 principal amount of Securities of such series held or represented by
him; provided, however, that no vote shall be cast or counted at any meeting in respect of any Security of such series challenged
as not Outstanding and ruled by the chairman of the meeting to be not Outstanding. The chairman of the meeting shall have no right
to vote, except as a holder of a Security of such series or proxy.

 

		(d)	Any meeting of holders of Securities duly called pursuant to Section 8.07 hereof at which a quorum
is present may be adjourned from time to time by Persons entitled to vote a majority in principal amount of the Outstanding Securities
of the series in respect of which such meeting is being held represented at the meeting, and the meeting may be held as so adjourned
without further notice.

 

    	40

    	 

    

 

Section 8.11.   Counting
Votes and Recording Action of Meetings.

 

The vote upon any resolution submitted
to any meeting of holders of Securities of a given series shall be by written ballots on which shall be subscribed the signatures
of the holders of Securities of such series or of their representatives by proxy and the principal amounts and serial numbers of
the Outstanding Securities of such series held or represented by them. The permanent chairman of the meeting shall appoint two
inspectors of votes who shall count all votes cast at the meeting for or against any resolution and who shall make and file with
the secretary of the meeting their verified written reports in duplicate of all votes cast at the meeting. A record, at least in
duplicate, of the proceedings of each meeting of holders of Securities of such series shall be prepared by the secretary of the
meeting and there shall be attached to said record the original reports of the inspectors of votes on any vote by ballot taken
thereat and affidavits by one or more Persons having knowledge of the facts setting forth a copy of the notice of the meeting and
showing that said notice was given as provided in Section 8.07 hereof and, if applicable, Section 8.09 hereof. Each copy shall
be signed and verified by the affidavits of the permanent chairman and secretary of the meeting and one such copy shall be delivered
to the Company and another to the Trustee to be preserved by the Trustee, the latter to have attached thereto the ballots voted
at the meeting. Any record so signed and verified shall be conclusive evidence of the matters therein stated.

 

Article
IX

SUPPLEMENTAL INDENTURES

 

Section 9.01.   Supplemental
Indentures Without the Consent of Securityholders.

 

In addition to any supplemental indenture
otherwise authorized by this Indenture, the Company and the Trustee may from time to time and at any time enter into an indenture
or indentures supplemental hereto (which shall conform to the provisions of the Trust Indenture Act as then in effect), without
the consent of the Securityholders, for one or more of the following purposes:

 

		(a)	cure any ambiguity, correct or supplement any provision herein which may be inconsistent with any
other provision herein or which is otherwise defective, or make any other provisions with respect to matters or questions arising
under this Indenture which the Company and the Trustee may deem necessary or desirable and which shall not be inconsistent with
the provisions of this Indenture;

 

		(b)	to comply with Article X;

 

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

 

		(d)	to add to the covenants of the Company for the benefit of the holders of all or any Series of Securities
(and if such covenants are to be for the benefit of less than all series of Securities, stating that such covenants are expressly
being included solely for the benefit of such series) or to surrender any right or power herein conferred upon the Company;

 

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		(e)	to add to, delete from, or revise the conditions, limitations, and restrictions on the authorized
amount, terms, or purposes of issue, authentication, and delivery of Securities, as herein set forth;

 

		(f)	to make any change that does not adversely affect the rights of any Securityholder in any material
respect;

 

		(g)	to provide for the issuance of and establish the form and terms and conditions of the Securities
of any series as provided in Section 2.01, to establish the form of any certifications required to be furnished pursuant to the
terms of this Indenture or any series of Securities, or to add to the rights of the holders of any series of Securities; or

 

		(h)	comply with the requirements of the Commission in order to effect or maintain the qualification
of this Indenture under the Trust Indenture Act.

 

The Trustee is hereby authorized to
join with the Company in the execution of any such supplemental indenture, and to make any further appropriate agreements and stipulations
that may be therein contained, but the Trustee shall not be obligated to enter into any such supplemental indenture that affects
the Trustee’s own rights, duties or immunities under this Indenture or otherwise.

 

Any supplemental indenture authorized
by the provisions of this Section may be executed by the Company and the Trustee without the consent of the holders of any of the
Securities at the time Outstanding, notwithstanding any of the provisions of Section 9.02.

 

Section 9.02.   Supplemental
Indentures With Consent of Securityholders.

 

With the written consent of the holders
of at least a majority in aggregate principal amount of the Outstanding Securities of any series or by action at a meeting of holders
of the Securities of such series in accordance with Section 8.09, by the holders of a majority in aggregate principal amount of
the Securities of such series then Outstanding represented at such meeting, the Company, when authorized by Board Resolutions,
and the Trustee may from time to time and at any time enter into an indenture or indentures supplemental hereto (which shall conform
to the provisions of the Trust Indenture Act as then in effect) for the purpose of adding any provisions to or changing in any
manner or eliminating any of the provisions of this Indenture or of any supplemental indenture or of modifying in any manner not
covered by Section 9.01 the rights of the holders of the Securities of such series under this Indenture; provided, however, that
no such supplemental indenture shall, without the consent of the holders of each Security then Outstanding and affected thereby,
(i) extend the fixed maturity of any Securities of any series, or reduce the principal amount thereof, or reduce the rate or extend
the time of payment of interest thereon, or reduce any premium payable upon the redemption thereof, (ii) reduce the aforesaid percentage
of Securities, the holders of which are required to consent to any such supplemental indenture, or any consent or waiver, (iii)
reduce the principal amount of discount securities payable upon acceleration of the maturity of any Securities of any series or
(iv) make the principal of or premium or interest on any Security of a series payable in currency or currency units other than
that stated in the Securities of such series.

 

    	42

    	 

    

 

It shall not be necessary for the consent
of the Securityholders of any series affected thereby under this Section to approve the particular form of any proposed supplemental
indenture, but it shall be sufficient if such consent shall approve the substance thereof.

 

Section 9.03.   Effect
of Supplemental Indentures.

 

Upon the execution of any supplemental
indenture pursuant to the provisions of this Article or of Section 10.01, this Indenture shall, with respect to such series, be
and be deemed to be modified and amended in accordance therewith and the respective rights, limitations of rights, obligations,
duties and immunities under this Indenture of the Trustee, the Company and the holders of Securities of the series affected thereby
shall thereafter be determined, exercised and enforced hereunder subject in all respects to such modifications and amendments,
and all the terms and conditions of any such supplemental indenture shall be and be deemed to be part of the terms and conditions
of this Indenture for any and all purposes.

 

Section 9.04.   Securities
Affected by Supplemental Indentures.

 

Securities of any series affected by
a supplemental indenture, authenticated and delivered after the execution of such supplemental indenture pursuant to the provisions
of this Article or of Section 10.01, may bear a notation in form approved by the Company, provided such form meets the requirements
of any exchange upon which such series may be listed, as to any matter provided for in such supplemental indenture. If the Company
shall so determine, new Securities of that series so modified as to conform, in the opinion of the Board of Directors of the Company,
to any modification of this Indenture contained in any such supplemental indenture may be prepared by the Company, authenticated
by the Trustee and delivered in exchange for the Securities of that series then Outstanding.

 

Section 9.05.   Execution
of Supplemental Indentures.

 

Upon the request of the Company, accompanied
by its Board Resolutions authorizing the execution of any such supplemental indenture, and upon the filing with the Trustee of
evidence of the consent of Securityholders required to consent thereto as aforesaid, the Trustee shall join with the Company in
the execution of such supplemental indenture unless such supplemental indenture affects the Trustee’s own rights, duties
or immunities under this Indenture or otherwise, in which case the Trustee may in its discretion but shall not be obligated to
enter into such supplemental indenture. The Trustee, subject to the provisions of Section 7.01, may receive an Opinion of Counsel
as conclusive evidence that any supplemental indenture executed pursuant to this Article is authorized or permitted by, and conforms
to, the terms of this Article and that it is proper for the Trustee under the provisions of this Article to join in the execution
thereof; provided, however, that such Opinion of Counsel need not be provided in connection with the execution of a supplemental
indenture that establishes the terms of a series of Securities pursuant to Section 2.01 hereof.

 

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Promptly after the execution by the
Company and the Trustee of any supplemental indenture pursuant to the provisions of this Section, the Trustee shall transmit by
mail, first class postage prepaid, a notice, setting forth in general terms the substance of such supplemental indenture, to the
Securityholders of all series affected thereby as their names and addresses appear upon the Security Register. Any failure of the
Trustee to mail such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental
indenture.

 

Article
X

SUCCESSOR ENTITY

 

Section 10.01.   Company
May Consolidate, Etc.

 

Nothing contained in this Indenture
or in any of the Securities shall prevent any consolidation or merger of the Company with or into any other Person (whether or
not affiliated with the Company) or successive consolidations or mergers in which the Company or its successor or successors shall
be a party or parties, or shall prevent any sale, conveyance, transfer or other disposition of the property of the Company or its
successor or successors as an entirety, or substantially as an entirety, to any other corporation (whether or not affiliated with
the Company or its successor or successors) authorized to acquire and operate the same; provided, however, the Company hereby covenants
and agrees that, upon any such consolidation or merger (in each case, if the Company is not the survivor of such transaction),
sale, conveyance, transfer or other disposition, the due and punctual payment of the principal of (premium, if any) and interest
on all of the Securities of all series in accordance with the terms of each series, according to their tenor and the due and punctual
performance and observance of all the covenants and conditions of this Indenture with respect to each series or established with
respect to such series pursuant to Section 2.01 to be kept or performed by the Company shall be expressly assumed, by supplemental
indenture (which shall conform to the provisions of the Trust Indenture Act, as then in effect) satisfactory in form to the Trustee
executed and delivered to the Trustee by the entity formed by such consolidation, or into which the Company shall have been merged,
or by the entity which shall have acquired such property.

 

Section 10.02.   Successor
Entity Substituted.

 

		(a)	In case of any such consolidation, merger, sale, conveyance, transfer or other disposition and
upon the assumption by the successor entity by supplemental indenture, executed and delivered to the Trustee and satisfactory in
form to the Trustee, of the due and punctual payment of the principal of, premium, if any, and interest on all of the Securities
of all series Outstanding and the due and punctual performance of all of the covenants and conditions of this Indenture or established
with respect to each series of the Securities pursuant to Section 2.01 to be performed by the Company with respect to each series,
such successor entity shall succeed to and be substituted for the Company with the same effect as if it had been named as the Company
herein, and thereupon the predecessor corporation shall be relieved of all obligations and covenants under this Indenture and the
Securities.

 

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		(b)	In case of any such consolidation, merger, sale, conveyance, transfer or other disposition such
changes in phraseology and form (but not in substance) may be made in the Securities thereafter to be issued as may be appropriate.

 

		(c)	Nothing contained in this Article shall require any action by the Company in the case of a consolidation
or merger of any Person into the Company where the Company is the survivor of such transaction, or the acquisition by the Company,
by purchase or otherwise, of all or any part of the property of any other Person (whether or not affiliated with the Company).

 

Section 10.03.   Evidence
of Consolidation, Etc. to Trustee.

 

The Trustee, subject to the provisions
of Section 7.01, may receive an Opinion of Counsel as conclusive evidence that any such consolidation, merger, sale, conveyance,
transfer or other disposition, and any such assumption, comply with the provisions of this Article.

 

Article
XI

SATISFACTION AND DISCHARGE

 

Section 11.01.   Satisfaction
and Discharge of Indenture.

 

If at any time: (a) the Company shall
have delivered to the Trustee for cancellation all Securities of a series theretofore authenticated (other than any Securities
that shall have been destroyed, lost or stolen and that shall have been replaced or paid as provided in Section 2.07) and Securities
for whose payment money or Governmental Obligations have theretofore been deposited in trust or segregated and held in trust by
the Company (and thereupon repaid to the Company or discharged from such trust, as provided in Section 11.05); or (b) all such
Securities of a particular series not theretofore delivered to the Trustee for cancellation shall have become due and payable,
or are by their terms to become due and payable within one year or are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption, and the Company shall deposit or cause to be deposited with
the Trustee as trust funds the entire amount in moneys or Governmental Obligations sufficient or a combination thereof, sufficient
(assuming that no tax liability will be imposed on the Trustee) in the opinion of a nationally recognized firm of independent public
accountants expressed in a written certification thereof delivered to the Trustee, to pay at maturity or upon redemption all Securities
of that series not theretofore delivered to the Trustee for cancellation, including principal (and premium, if any) and interest
due or to become due to such date of maturity or date fixed for redemption, as the case may be, and if the Company shall also pay
or cause to be paid all other sums payable hereunder with respect to such series by the Company then this Indenture shall thereupon
cease to be of further effect with respect to such series except for the provisions of Sections 2.03, 2.05, 2.07, 4.01, 4.02, 4.03
and 7.10, that shall survive until the date of maturity or redemption date, as the case may be, and Sections 7.06 and 11.05, that
shall survive to such date and thereafter, and the Trustee, on demand of the Company and at the cost and expense of the Company
shall execute proper instruments acknowledging satisfaction of and discharging this Indenture with respect to such series.

 

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Section 11.02.   Discharge
of Obligations.

 

If at any time all such Securities of
a particular series not heretofore delivered to the Trustee for cancellation or that have not become due and payable as described
in Section 11.01 shall have been paid by the Company by depositing irrevocably with the Trustee as trust funds moneys or an amount
of Governmental Obligations sufficient to pay at maturity or upon redemption all such Securities of that series not theretofore
delivered to the Trustee for cancellation, including principal (and premium, if any) and interest due or to become due to such
date of maturity or date fixed for redemption, as the case may be, and if the Company shall also pay or cause to be paid all other
sums payable hereunder by the Company with respect to such series, then after the date such moneys or Governmental Obligations,
as the case may be, are deposited with the Trustee the obligations of the Company under this Indenture with respect to such series
shall cease to be of further effect except for the provisions of Sections 2.03, 2.05, 2.07, 4,01, 4.02, 4.03, 7.06, 7.10 and 11.05
hereof that shall survive until such Securities shall mature and be paid. Thereafter, Sections 7.06 and 11.05 shall survive.

 

Section 11.03.   Deposited
Moneys to be Held in Trust.

 

Subject to Section 11.05, all moneys
or Governmental Obligations deposited with the Trustee pursuant to Sections 11.01 or 11.02 shall be held in trust and shall be
available for payment as due, either directly or through any paying agent (including the Company acting as its own paying agent),
to the holders of the particular series of Securities for the payment or redemption of which such moneys or Governmental Obligations
have been deposited with the Trustee.

 

Section 11.04.   Payment
of Moneys Held by Paying Agents.

 

In connection with the satisfaction
and discharge of this Indenture all moneys or Governmental Obligations then held by any paying agent under the provisions of this
Indenture shall, upon demand of the Company, be paid to the Trustee and thereupon such paying agent shall be released from all
further liability with respect to such moneys or Governmental Obligations.

 

Section 11.05.   Repayment
to Company.

 

Any moneys or Governmental Obligations
deposited with any paying agent or the Trustee, or then held by the Company, in trust for payment of principal of or premium or
interest on the Securities of a particular series that are not applied but remain unclaimed by the holders of such Securities for
two years after the date upon which the principal of (and premium, if any) or interest on such Securities shall have respectively
become due and payable, shall be repaid to the Company or (if then held by the Company) shall be discharged from such trust in
each case, promptly after the end of any such two-year period or, at the request of the Company, on a later date specified by the
Company; and thereupon the paying agent and the Trustee shall be released from all further liability with respect to such moneys
or Governmental Obligations, and the holder of any of the Securities entitled to receive such payment shall thereafter, as an unsecured
general creditor, look only to the Company for the payment thereof.

 

    	46

    	 

    

 

Article
XII

IMMUNITY OF INCORPORATORS, STOCKHOLDERS,

OFFICERS AND DIRECTORS

 

Section 12.01.   No
Recourse.

 

No recourse under or upon any obligation,
covenant or agreement of this Indenture, or of any Security, or for any claim based thereon or otherwise in respect thereof, shall
be had against any incorporator, stockholder, officer or director, past, present or future as such, of the Company or of any predecessor
or successor corporation, either directly or through the Company or any such predecessor or successor corporation, whether by virtue
of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly
understood that this Indenture and the obligations issued hereunder are solely corporate obligations, and that no such personal
liability whatever shall attach to, or is or shall be incurred by, the incorporators, stockholders, officers or directors as such,
of the Company or of any predecessor or successor corporation, or any of them, because of the creation of the indebtedness hereby
authorized, or under or by reason of the obligations, covenants or agreements contained in this Indenture or in any of the Securities
or implied therefrom; and that any and all such personal liability of every name and nature, either at common law or in equity
or by constitution or statute, of, and any and all such rights and claims against, every such incorporator, stockholder, officer
or director as such, because of the creation of the indebtedness hereby authorized, or under or by reason of the obligations, covenants
or agreements contained in this Indenture or in any of the Securities or implied therefrom, are hereby expressly waived and released
as a condition of, and as a consideration for, the execution of this Indenture and the issuance of such Securities.

 

Article
XIII

MISCELLANEOUS PROVISIONS

 

Section 13.01.   Effect
on Successors and Assigns.

 

All the covenants, stipulations, promises
and agreements in this Indenture contained by or on behalf of the Company shall bind its successors and assigns, whether so expressed
or not.

 

    	47

    	 

    

 

Section 13.02.   Actions
by Successor.

 

Any act or proceeding by any provision
of this Indenture authorized or required to be done or performed by any board, committee or officer of the Company shall and may
be done and performed with like force and effect by the corresponding board, committee or officer of any corporation that shall
at the time be the lawful successor of the Company.

 

Section 13.03.   Surrender
of Company Powers.

 

The Company by instrument in writing
executed by authority of its Board of Directors and delivered to the Trustee may surrender any of the powers reserved to the Company,
and thereupon such power so surrendered shall terminate both as to the Company and as to any successor corporation.

 

Section 13.04.   Notices.

 

Except as otherwise expressly provided
herein any notice or demand that by any provision of this Indenture is required or permitted to be given or served by the Trustee
or by the holders of Securities to or on the Company may be given or served by being deposited first class postage prepaid in a
post-office letterbox addressed (until another address is filed in writing by the Company with the Trustee), as follows: [___________________].
Any notice, election, request or demand by the Company or any Securityholder to or upon the Trustee shall be deemed to have been
sufficiently given or made, for all purposes, if given or made in writing at the Corporate Trust Office of the Trustee. Any notice
or communication to a holder shall be mailed by first-class mail to his address shown on the Security Register kept by the Security
Registrar. Failure to mail a notice or communication to a holder or any defect in such notice or communication shall not affect
its sufficiency with respect to other holders. If a notice or communication is mailed or sent in the manner provided above within
the time prescribed, it is duly given as of the date it is mailed, whether or not the addressee receives it, except that notice
to the Trustee or the Company shall only be effective upon receipt thereof by the Trustee or the Company, respectively. If the
Company mails a notice or communication to holders of Securities, it shall mail a copy to the Trustee at the same time.

 

Section 13.05.   Governing
Law.

 

This Indenture and each Security shall
be deemed to be a contract made under the internal laws of the State of New York, and for all purposes shall be construed in accordance
with the laws of said State.

 

Section 13.06.   Treatment
of Securities as Debt.

 

It is intended that the Securities will
be treated as indebtedness and not as equity for federal income tax purposes. The provisions of this Indenture shall be interpreted
to further this intention.

 

    	48

    	 

    

 

Section 13.07.   Compliance
Certificates and Opinions.

 

		(a)	Upon any application or demand by the Company to the Trustee to take any action under any of the
provisions of this Indenture, the Company, shall furnish to the Trustee an Officers’ Certificate stating that all conditions
precedent provided for in this Indenture relating to the proposed action have been complied with and an Opinion of Counsel stating
that in the opinion of such counsel all such conditions precedent have been complied with, except that in the case of any such
application or demand as to which the furnishing of such documents is specifically required by any provision of this Indenture
relating to such particular application or demand, no additional certificate or opinion need be furnished.

 

		(b)	Each certificate or opinion provided for in this Indenture and delivered to the Trustee with respect
to compliance with a condition or covenant in this Indenture shall include (1) a statement that the Person making such certificate
or opinion has read such covenant or condition; (2) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based; (3) a statement that, in the opinion
of such Person, he has made such examination or investigation as is necessary to enable him to express an informed opinion as to
whether or not such covenant or condition has been complied with; and (4) a statement as to whether or not, in the opinion of such
Person, such condition or covenant has been complied with.

 

Section 13.08.   Payments
on Business Days.

 

Except as provided pursuant to Section
2.01 pursuant to a Board Resolution, and as set forth in an Officers’ Certificate, or established in one or more indentures
supplemental to this Indenture, in any case where the date of maturity of interest or principal of any Security or the date of
redemption of any Security shall not be a Business Day, then payment of interest or principal (and premium, if any) may be made
on the next succeeding Business Day with the same force and effect as if made on the nominal date of maturity or redemption, and
no interest shall accrue for the period after such nominal date.

 

Section 13.09.   Conflict
with Trust Indenture Act.

 

If and to the extent that any provision
of this Indenture limits, qualifies or conflicts with the duties imposed by Sections 310 to 317, inclusive, of the Trust Indenture
Act, such imposed duties shall control.

 

Section 13.10.   Counterparts.

 

This Indenture may be executed in any
number of counterparts, each of which shall be an original, but such counterparts shall together constitute but one and the same
instrument.

 

    	49

    	 

    

 

Section 13.11.   Separability.

 

In case any one or more of the provisions
contained in this Indenture or in the Securities of any series shall for any reason be held to be invalid, illegal or unenforceable
in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this Indenture or of such
Securities, but this Indenture and such Securities shall be construed as if such invalid or illegal or unenforceable provision
had never been contained herein or therein.

 

Section 13.12.   Assignment.

 

The Company will have the right at all
times to assign any of its rights or obligations under this Indenture to a direct or indirect wholly-owned Subsidiary of the Company,
provided that, in the event of any such assignment, the Company, will remain liable for all such obligations. Subject to the foregoing,
this Indenture is binding upon and inures to the benefit of the parties thereto and their respective successors and assigns. This
Indenture may not otherwise be assigned by the parties thereto.

 

    	50

    	 

    

 

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

 

	 	Ohr Pharmaceutical, Inc.
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	[	]	,
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	 

 

51

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