Document:

Senior Facilities Commitment Letter

 Exhibit 10.19 
  

			
	 

	  	

    

 August 22, 2006 
 Senior Facilities 
 Commitment Letter 
 Weyerhaeuser TIA, Inc. 
 c/o Weyerhaeuser Company 
 33663 Weyerhaeuser Way South 
 Federal Way, WA 98003 
 Domtar Inc. 
 395 de Maisonneuve Blvd. West 
 Montreal, QC 
 Canada H3A 1L6 
 Ladies and Gentlemen: 
 You have advised J.P. Morgan
Securities Inc. (“JPMorgan”), Morgan Stanley Senior Funding, Inc. (“Morgan Stanley”) and JPMorgan Chase Bank, N.A. (“JPMorgan Chase Bank” and, together with JPMorgan and Morgan Stanley, the
“Commitment Parties”) that you intend to consummate the transactions described in the introductory paragraph of Exhibit A hereto. Capitalized terms used but not defined herein are used with the meanings assigned to them in said
paragraph. In addition, when used in this letter, “you” or “your” refers collectively to Spinco and East. 
 JPMorgan and
Morgan Stanley are pleased to advise you that they are willing to act as the joint lead arrangers and joint bookrunners for the Senior Facilities (including the Cash Consideration Term Loans) (in such capacities, the “Joint Lead
Arrangers”). Furthermore, JPMorgan Chase Bank and Morgan Stanley (collectively, the “Initial Lenders”) are pleased to advise you of their several, but not joint, commitments to provide, or to cause an affiliate to provide
(the term “Initial Lender” as used in this Commitment Letter, the Term Sheets and the Fee Letter, and each reference herein or therein to a specific Initial Lender, being understood to include any such affiliate) the percentage of the
aggregate principal amount of the Senior Facilities set forth opposite such Initial Lender’s name below: 

				
	 Initial Lender
	  	Commitment Percentage	 
	 JPMorgan Chase Bank
	  	60	%
	 Morgan Stanley
	  	40	%

 This Commitment Letter and the Summary of Terms and Conditions attached hereto (collectively, the “Term
Sheet”) set forth the principal terms and conditions on and subject to which the Initial Lenders are willing to make available the Senior Facilities. 
 It is agreed that JPMorgan and Morgan Stanley will act as co-lead arrangers and joint bookrunners for the Senior Facilities (it being understood that JPMorgan shall be the “left-lead” arranger and bookrunner
in respect of the Senior Facilities and will appear on the left of the front cover of any marketing materials and all documentation), that JPMorgan Chase Bank will act as the sole administrative agent, and that Morgan Stanley will act as the sole
syndication agent in respect of the Senior Facilities, and each of JPMorgan Chase Bank and Morgan Stanley will, in such capacities, perform the duties and exercise the authority customarily performed and exercised by it in such roles. You agree
that, as a condition to the commitments and agreements hereunder, no other agents, co-agents or arrangers will be appointed, no other titles will be awarded and no compensation (other than that expressly contemplated by the Term Sheet and the Fee
Letter referred to below) will be paid in connection with the Senior Facilities unless you and we shall so agree. 
 We intend to syndicate
the Senior Facilities to a group of lenders (together with the Initial Lenders, the “Lenders”) identified by us in consultation with you, and reasonably acceptable to you. We reserve the right to commence syndication efforts
promptly and expect to do so at or about the time “Hart-Scott Rodino”, “Competition Act” and “Investment Canada Act” approvals (or indications that such approvals are expected to be received) are received in connection
with the Transaction, and you agree actively to assist us in completing a syndication reasonably satisfactory to you and us. Such assistance shall include (a) your using commercially reasonable efforts to ensure that the syndication efforts
benefit materially from West’s and East’s existing banking relationships, (b) direct contact between senior management and advisors of SpinCo and East and the proposed Lenders, (c) assistance in the preparation of materials,
including Confidential Information Memoranda, to be used in connection with the syndication which are customary for use in such syndication (collectively with the Term Sheet, the “Information Materials”) and (d) the hosting,
with us and senior management of SpinCo and East, of one or more meetings of prospective Lenders in accordance with customary practices mutually acceptable to you and us. 
 If requested, you also will assist us in preparing an additional version of the Information Materials (the “Public-Side Version”) to be used by prospective Lenders’ public-side employees and
representatives (“Public-Siders”) who do not wish to receive material non-public information (within the meaning of United States federal and applicable Canadian securities laws) with respect to the Borrowers (as defined in part 2
of the Term Sheet) and their respective subsidiaries, their respective affiliates and any of their respective securities (“MNPI”) and who may be engaged in investment and other market related activities with respect to any such
entity’s securities or loans. Before distribution of any Information Materials, you agree to execute and deliver to us (i) a letter in which you authorize distribution of the Information Materials to a prospective Lender’s employees
willing to receive MNPI (“Private-Siders”) and (ii) a separate letter in which you authorize distribution of the Public-Side Version to Public-Siders and represent that, to your knowledge, no MNPI is contained therein.

 You agree that the following documents may be distributed to both Private-Siders and Public-Siders, unless you advise the Joint Lead
Arrangers in writing (including by email) within a reasonable time prior to their intended distribution that such materials should only be distributed to 

  

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Private-Siders: (a) administrative materials prepared by the Commitment Parties for prospective Lenders (such as a lender meeting invitation, lender
allocation, if any, and funding and closing memoranda) and (b) notification of changes in the terms of the Senior Facilities. If you advise us that any of the foregoing should be distributed only to Private-Siders, then Public-Siders will not
receive such materials without further discussions with you. 
 You hereby authorize the Commitment Parties to distribute drafts of
definitive documentation with respect to the Senior Facilities to Private-Siders and Public-Siders. 
 JPMorgan and Morgan Stanley, in their
capacities as Joint Lead Arrangers, will manage, in consultation with you, all aspects of the syndication, including decisions as to the selection of institutions to be approached and when they will be approached, when their commitments will be
accepted, which institutions will participate (subject to your approval, not to be unreasonably withheld), the allocation of the commitments among the Lenders and the amount and distribution of fees among the Lenders. In their capacities as Joint
Lead Arrangers, JPMorgan and Morgan Stanley will have no responsibility other than to arrange the syndication as set forth herein and in no event shall be subject to any fiduciary or other implied duties. Additionally, you acknowledge and agree
that, as Joint Lead Arrangers, JPMorgan and Morgan Stanley are not advising the Borrowers as to any legal, tax, investment, accounting or regulatory matters in any jurisdiction. The Borrowers shall consult with their own advisors concerning such
matters and shall be responsible for making its own independent investigation and appraisal of the transactions contemplated hereby, and the Joint Lead Arrangers shall have no responsibility or liability to the Borrowers with respect thereto.

 To assist us in our syndication efforts, you agree to promptly prepare and provide to us all information reasonably requested by us with
respect to the Borrowers and their respective subsidiaries and the Transaction and the other transactions contemplated hereby, including all financial information and projections, budgets, pro forma data, estimates and forward-looking
information (the “Projections”), as we may reasonably request in connection with the arrangement and syndication of the Senior Facilities. You hereby represent and covenant that (a) all written information (other than the
Projections and information of a general economic nature) (the “Information”) that has been or will be made available to us by you or any of your representatives (taken as a whole) does not or will not, when furnished, contain any
untrue statement of a material fact or omit to state a material fact necessary in order to make the statements contained therein not materially misleading in light of the circumstances under which such statements are made and (b) the
Projections that have been or will be made available to us by you or any of your representatives have been or will be prepared in good faith based upon assumptions believed to be reasonable at the time made, it being understood that in making the
foregoing representations, Spinco makes no representation regarding information, including Projections, provided by East or any third party and East makes no representation regarding information, including Projections, provided by West, any West
subsidiary, Newco or any third party. You understand that in arranging and syndicating the Senior Facilities we may use and rely on the Information and Projections without independent verification thereof. 
 As consideration for the commitments and agreements of the Commitment Parties hereunder, you agree to pay when due and payable the nonrefundable fees set
forth in Annex I to the Term Sheet and in the Fee Letter dated the date hereof and delivered herewith (the “Fee Letter”). 
 Each Commitment Party’s commitments and agreements hereunder are subject to (a) there being no East Material Adverse Effect and no Newco Material Adverse Effect in existence, (b) such Commitment Party’s reasonable
satisfaction that prior to and during the syndication of the Senior Facilities there shall be no material competing offering, placement or arrangement of any debt securities or bank financing by or on behalf of the Borrowers or any of their
respective subsidiaries, (c) the closing 

  

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of the Senior Facilities on or before the date that is 364 days from the date of this Commitment Letter and (d) the other conditions set forth in the
Summary of Terms and Conditions or annexes attached thereto. The terms and conditions of the commitments hereunder and of the Senior Facilities are not limited to those set forth herein and in the Term Sheet. Those matters that are not covered by
the provisions hereof and of the Term Sheet are subject to the approval and agreement of the Commitment Parties and the Borrowers. For purposes of the foregoing, “East Material Adverse Effect” means any state of facts, change,
effect, condition, development, event or occurrence (any such item, an “Effect”), including any Effect regarding Norampac Inc., that has been or would reasonably be likely to be material and adverse to (A) the business,
assets, properties, condition (financial or otherwise), or results of operations of East and its subsidiaries, taken as a whole, or of their business, operations and affairs (the “East Business”), other than an Effect relating to
(i) the economy generally, (ii) the industries in which East operates generally (including changes in prices for energy and raw materials), (iii) the financial, securities and currency markets generally and (iv) the
entering into or the public announcement or disclosure of the Transaction Agreement or the consummation or proposed consummation of the Transaction or the pendency thereof (in each of clauses (i), (ii) and (iii) to the extent such Effect
does not disproportionally affect East or the East Business), or to (B) the ability of East to perform its obligations under the Transaction Agreement or related documents or consummate the Transaction; and “Newco Material Adverse
Effect” means any Effect that has been or would reasonably be likely to be material and adverse to (A) the business, assets, properties, condition (financial or otherwise), or results of operations of Newco and its subsidiaries, taken
as a whole, or of their business, operations and affairs after giving effect to the Contribution and the sale of certain assets to the Canadian subsidiaries of Newco (the “Newco Business”) other than an Effect relating to
(i) the economy generally, (ii) the industries in which Newco or the Newco Business operates generally (including changes in prices for energy and raw materials), (iii) the financial, securities and currency markets generally and
(iv) the entering into or the public announcement or disclosure of the Transaction Agreement or the consummation or proposed consummation of the Transaction or the pendency thereof (in each of clauses (i), (ii) and (iii) to the extent
such Effect does not disproportionally affect Newco or the Newco Business), or to (B) the ability of West and Newco to perform their obligations under the Transaction Agreement or related documents or consummate the Transaction. 
 You agree (a) to indemnify and hold harmless the Commitment Parties, their respective affiliates and their respective officers, directors,
employees, advisors, and agents (each, an “indemnified person”) from and against any and all losses, claims, damages and liabilities to which any such indemnified person may become subject arising out of or in connection with this
Commitment Letter, the Senior Facilities, the use of the proceeds thereof, or any claim, litigation, investigation or proceeding relating to any of the foregoing, regardless of whether any indemnified person is a party thereto (collectively,
“Losses”), and to reimburse each indemnified person promptly upon request for any reasonable, out-of-pocket legal or other reasonable, out-of-pocket expenses (collectively, “Expenses”) incurred in connection with
investigating or defending any of the foregoing, provided that the foregoing indemnity will not, as to any indemnified person, apply to Losses to the extent they are found by a final, non-appealable judgment (or a settlement tantamount
thereto) of a court to arise from the willful misconduct or gross negligence of, or material breach of the Commitment Letter or Fee Letter by, any indemnified person or any Related Person (as defined below) of such indemnified person, and
(b) to reimburse each Commitment Party and their respective affiliates promptly for all reasonable and documented out-of-pocket expenses (including due diligence expenses, syndication expenses, consultant’s fees and expenses (to the extent
the retention of any such consultant has been approved by you, such approval not to be unreasonably withheld), travel expenses, and reasonable fees, charges and disbursements of counsel (which counsel are as specified in the Term Sheet))
(collectively, “Transaction Expenses”) incurred in connection with the Senior Facilities and any related documentation (including this Commitment Letter, the Term Sheet, the Fee Letter and the definitive financing documentation) or
the administration, amendment, modification or waiver thereof. For purposes hereof, “Related Person” of an indemnified person means: (i) if the indemnified person is any of JPMorgan Chase Bank, JPMorgan or 

  

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any of their respective affiliates, or any of their respective officers, directors, employees and agents, any of JPMorgan Chase Bank, JPMorgan and their
respective affiliates and their respective officers, directors, employees and agents or (ii) if the indemnified person is Morgan Stanley or any of its affiliates, or any of its respective officers, directors, employees and agents, any of Morgan
Stanley and its affiliates and their respective officers, directors, employees and agents. No indemnified person shall be liable for (x) any damages arising from the use by unauthorized persons of Information or other materials sent through
electronic, telecommunications or other information transmission systems that are intercepted by such persons, provided that such unauthorized persons’ use did not arise from the gross negligence or willful misconduct of any indemnified
person or (y) any special, indirect, consequential or punitive damages in connection with the Senior Facilities. The foregoing indemnity shall be several, not joint, and Spinco shall be liable hereunder only to the extent of 55% of the Losses,
Expenses and Transaction Expenses, and East shall be liable only to the extent of 45% of the Losses, Expenses and Transaction Expenses. 
 You acknowledge that each Commitment Party and their respective affiliates (the term “Commitment Party” as used below in this paragraph being understood to include such affiliates) may be providing debt financing, equity capital
or other services (including financial advisory services) to other companies in respect of which you may have conflicting interests (including Morgan Stanley advising West with respect to the Transaction and JPMorgan advising East with respect to
the Transaction). No Commitment Party will use confidential information obtained from you by virtue of the transactions contemplated hereby or its other relationships with you in connection with the performance by such Commitment Party of services
for other companies, and no Commitment Party will furnish any such information to other companies, their counsel or other advisors, representatives or agents thereof. You also acknowledge that no Commitment Party has any obligation to use in
connection with the transactions contemplated hereby, or to furnish to you, confidential information obtained from other companies. You further acknowledge that JPMorgan and Morgan Stanley are full service securities firms and JPMorgan and Morgan
Stanley may from time to time effect transactions, for their own or their respective affiliates’ account or the account of customers, and hold positions in loans, securities or options on loans or securities of the Borrowers and their
respective affiliates and of other companies that may be the subject of the transactions contemplated by this Commitment Letter. 
 The
Commitment Parties may employ the services of their affiliates in providing certain services hereunder and, in connection with the provision of such services, may exchange with such affiliates information concerning you and the other companies that
may be the subject of the transactions contemplated by this Commitment Letter, and, to the extent so employed, such affiliates shall be entitled to the benefits afforded such Commitment Party hereunder. 
 Each Commitment Party agrees to keep any information supplied by you or on your behalf or obtained by it based on a review of books and records relating
to the Borrowers or any of their respective subsidiaries or the Senior Facilities confidential from anyone other than each other and any of their respective affiliates (provided that each such affiliate keeps such information confidential in
accordance herewith) and to use (and cause any such affiliate to use) such information only in connection with the transactions contemplated by this Commitment Letter, provided that nothing herein shall prevent any Commitment Party, or any
such affiliate thereof, from disclosing such information (a) upon the order of any court or administrative agency, (b) upon the request or demand of any regulatory agency or authority having jurisdiction over such Commitment Party or such
affiliate thereof, as the case may be, (c) which had been publicly disclosed other than as a result of a disclosure by any Commitment Party or any of their respective affiliates where the disclosure by it is prohibited by the terms of this
letter or by the terms of any other confidentiality obligation or undertaking binding on it to or for the benefit of either Borrower or any subsidiary thereof, (d) already in its possession prior to its receipt of such information from you,
from another supplying it on your behalf or from its review of books and records described above (as the case may be), other than any such information that is subject to any confidentiality 

  

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obligation or undertaking binding on it to or for the benefit of either Borrower or any subsidiary thereof, (e) in connection with any litigation to
which any Commitment Party or any of their respective affiliates may be a party, to the extent compelled by legal process in such litigation, (f) to the extent necessary in connection with the exercise of any remedy hereunder, (g) to any
Commitment Party’s, or any such affiliate’s, legal counsel and independent auditors, provided that such counsel and auditors keep such information confidential in accordance herewith and (h) subject to confidentiality arrangements
(including “click through” confirmations prior to accessing information posted to the Intralinks website) in the agreed form, to any prospective syndicate member or participant, provided that, in the case of clause (a) or (e),
JPMorgan, Morgan Stanley or JPMorgan Chase Bank (as the case may be) shall, to the extent practicable and in accordance with its reasonable business practice, notify you of the proposed disclosure as far in advance of such disclosure as practicable
and at your request and expense, use reasonable efforts to ensure that any information so disclosed is accorded confidential treatment; provided, however, that if JPMorgan, Morgan Stanley or JPMorgan Chase Bank (as the case may be) are
unable to notify you in advance of such disclosure, such notice shall be delivered to you thereafter. This undertaking by each Commitment Party shall automatically terminate three years following the earlier of the closing of the Senior Facilities
or termination of this Commitment Letter. 
 Neither this Commitment Letter nor the Fee Letter shall be assignable by you without the prior
written consent (such consent not to be unreasonably withheld) of each Commitment Party (and any purported assignment without such consent shall be null and void), except for an assignment to a direct or indirect subsidiary of West in connection
with a modification of the transaction structure that does not adversely affect the Commitment Parties or their collateral position. This Commitment Letter shall not be assignable by any Commitment Party without your prior written consent (and any
purported assignment without such consent shall be null and void), is intended to be solely for the benefit of the parties hereto and is not intended to confer any benefits upon, or create any rights in favor of, any person other than the parties
hereto and the indemnified persons. Subject to the preceding paragraph, JPMorgan, Morgan Stanley and JPMorgan Chase Bank may share information obtained in connection with this Commitment Letter with their affiliates, and each may perform its
agreements or fulfill its commitment hereunder in conjunction with such affiliates. Any such affiliate shall be entitled to the benefits of and be subject to the terms of this Commitment Letter. This Commitment Letter may not be amended or waived
except by an instrument in writing signed by you and each Commitment Party. This Commitment Letter may be executed in any number of counterparts, each of which shall be an original, and all of which, when taken together, shall constitute one
agreement. Delivery of an executed signature page of this Commitment Letter by facsimile transmission shall be effective as delivery of a manually executed counterpart hereof. This Commitment Letter and the Fee Letter are the only agreements that
have been entered into among us with respect to the Senior Facilities and set forth the entire understanding of the parties with respect thereto. This Commitment Letter shall be governed by, and construed and interpreted in accordance with, the laws
of the State of New York. 
 This Commitment Letter is delivered to you on the understanding that neither this Commitment Letter, the Term
Sheet or the Fee Letter nor any of their terms or substance shall be disclosed, directly or indirectly, to any other person (including, without limitation, other potential providers or arrangers of financing) except (a) to your affiliates and
to your and their directors, officers, employees, attorneys, agents and advisors who are directly involved in the consideration of this matter and to your and their accountants or (b) as may be compelled in a judicial or administrative
proceeding or as otherwise required by law (in which case you agree to inform us promptly thereof); provided, that the foregoing restrictions shall cease to apply (except in respect of the Fee Letter and its terms and substance) after this
Commitment Letter and the Fee Letter have been accepted by you. 
 Each of the Commitment Parties hereby notifies you that, pursuant to the
requirements of the USA Patriot Act, Title III of Pub. L. 107-56 (signed into law on October 26, 2001) (the “Patriot Act”), 

  

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it is required to obtain, verify and record information that identifies each Borrower and each Guarantor (as defined in the Term Sheet), which information
includes names and addresses and other information that will allow such Lender to identify each Borrower and each Guarantor in accordance with the Patriot Act. 
 The compensation, reimbursement, indemnification and confidentiality provisions contained herein and in the Fee Letter and any other provision herein or therein which by its terms expressly survives the termination of
this Commitment Letter shall remain in full force and effect regardless of whether definitive financing documentation shall be executed and delivered and notwithstanding the termination of this Commitment Letter or the commitments hereunder, which
such termination may be made by you upon notice to us. 
 If the foregoing correctly sets forth our agreement, please indicate your
acceptance of the terms hereof and of the Term Sheet and the Fee Letter by returning to us executed counterparts hereof and of the Fee Letter not later than midnight, New York City time, on August 22, 2006. Each Initial Lender’s commitment
and each Commitment Party’s agreements herein will automatically expire at such time in the event each Initial Lender has not received such executed counterparts in accordance with the immediately preceding sentence. 
 [Rest of page left intentionally blank] 
  

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 We are pleased to have been given the opportunity to assist you in connection with this important
financing. 
  

			
	 Very truly yours,

	
	J.P. MORGAN SECURITIES INC.
		
	By:	 	 /s/ Pierre Maman

	Name:	 	Pierre Maman
	Title:	 	Managing Director
	
	JPMORGAN CHASE BANK, N.A.
		
	By:	 	 /s/ Marian N. Schulman

	Name:	 	Marian N. Schulman
	Title:	 	Managing Director
	
	MORGAN STANLEY SENIOR FUNDING, INC.
		
	By:	 	 /s/ Jaap L. Tonckens

	Name:	 	Jaap L. Tonckens
	Title:	 	Vice President

 Signature page to the Commitment Letter 

 Accepted and agreed to as of the date 
 first written above by: 
  

			
	WEYERHAEUSER TIA, INC.
		
	By:	 	/s/ Jeffrey W. Nitta
		 	 
	Name:	 	Jeffrey W. Nitta
	Title:	 	Vice President

 By its signature below, Domtar Inc. hereby acknowledges the terms and conditions of the foregoing Commitment
Letter and agrees to the obligations, covenants, agreements, indemnities and representations of East set forth herein: 
  

			
	DOMTAR INC.
		
	By:	 	/s/ Daniel Buron
		 	 
	Name:	 	Daniel Buron
	Title:	 	Senior Vice President-Chief Financial Officer
		
	By:	 	/s/ Razvan L. Theodoru
		 	 
	Name:	 	Razvan L. Theodoru
	Title:	 	Secretary

 Signature page to the Commitment Letter 

 Exhibit A 
 SENIOR FACILITIES 
 Summary of Terms and Conditions 
 August 22, 2006 
 Weyerhaeuser Company (“West”) intends to
contribute (the “Contribution”) its paper business to a newly formed, wholly owned subsidiary Weyerhaeuser ELI, LLC (“Newco”) in exchange for LLC interests of Newco. West’s Canadian subsidiaries will also sell
certain assets to Canadian subsidiaries of Newco. Following the Contribution, West intends to transfer the LLC interests of Newco to another newly formed, wholly owned subsidiary of West, Weyerhaeuser TIA, Inc., (“Spinco”) for a
combination of Spinco common stock and cash currently anticipated to be approximately $1,350,000,000, and then to distribute the shares of the common stock of Spinco to its shareholders in a spin-off or split-off transaction (the
“Spin-Off”). The cash consideration will be financed by term loans made to Spinco in a like amount (as further defined below, the “Cash Consideration Term Loans”). Following or concurrently with the Spin-Off, Spinco
and certain of its subsidiaries (including a Canadian exchange subsidiary, Weyerhaeuser Yukon, Inc. (“Newco ExchangeCo”)) will consummate a Plan of Arrangement (the “Plan of Arrangement”) contemplated by a
Transaction Agreement with Domtar, Inc. (“East”) (the “Transaction Agreement”), pursuant to which the shareholders of East will receive shares of Class B common stock of Newco ExchangeCo that are automatically
exchanged into common stock of Spinco or (in the case of certain qualifying East shareholders) shares of stock of Newco ExchangeCo that are exchangeable into shares of common stock of Spinco, and East will become a direct subsidiary of Newco
ExchangeCo. In connection with the consummation of the Plan of Arrangement, (i) the Cash Consideration Term Loans will be converted to be part of a new term facility in the aggregate amount (including the converted Cash Consideration Term
Loans) of $1,700,000,000, which may be increased by up to $325,000,000, in the aggregate, as contemplated below (as further defined below, the “Permanent Term Facility”) and (ii) new revolving credit facilities of $750,000,000
(as further defined below, the “Revolving Credit Facilities”) will be made available to Spinco, Newco and East to replace the existing revolving credit facility of East, in order to provide funding for general corporate
purposes, including working capital requirements of Spinco, Newco and East. Such conversion of the Cash Consideration Term Loans will be documented under the documentation for the Permanent Term Facility and Revolving Credit Facilities
(collectively, the “Permanent Facilities”, and together with the Cash Consideration Term Loans, the “Senior Facilities”) and such documentation will constitute in part an amendment and restatement of the original
documentation for the Cash Consideration Term Loans. Set forth below in Part 1 is a summary of the terms and conditions for the Cash Consideration Term Loans, and set forth below in Part 2 is a summary of the terms and conditions for the
Permanent Term Facility and the Revolving Credit Facilities. All of the foregoing described transactions are herein collectively referred to as the “Transaction”. Following the Transaction, East may transfer some or all of its U.S.
subsidiaries to Spinco. 

 PART 1 
 CASH CONSIDERATION TERM FACILITY 
 Parties 
  

			
	Borrowers:	  	Spinco.
		
	Guarantors:	  	Each of Spinco’s direct and indirect, existing and future, wholly owned U.S. subsidiaries, subject to exceptions to be agreed (collectively, the
“Guarantors”).
		
	Joint Lead Arrangers and Joint Bookrunners:	  	J.P. Morgan Securities Inc. and Morgan Stanley Senior Funding, Inc. (collectively, in such capacity, the “Arrangers” and individually, each an
“Arranger”).
		
	Administrative Agent:	  	JPMorgan Chase Bank, N.A. (“JPMorgan Chase Bank”, in such capacity, the “Administrative Agent”).
		
	Syndication Agent:	  	Morgan Stanley Senior Funding, Inc. (“Morgan Stanley”, in such capacity, the “Syndication Agent”).
		
	Lenders:	  	A syndicate of banks, financial institutions and other entities, including JPMorgan Chase Bank and Morgan Stanley arranged by the Arrangers and reasonably satisfactory to Spinco (collectively,
the “Lenders”).

 Cash Consideration Term Facility 
  

			
	Amount and Tenor:	  	A three-month term loan facility in the amount of US$1,350,000,000 (the “Cash Consideration Term Facility”; the commitments thereunder, the “Cash Consideration Term
Commitments”; the loans thereunder, the “Cash Consideration Term Loans”). The Cash Consideration Term Loans shall be repayable on the date that is three months after the Contribution Closing Date (as defined
below).
		
	Availability:	  	On the Contribution Closing Date (as defined below).
		
	Purpose:	  	The proceeds of the Cash Consideration Term Loans shall be used to finance a portion of the consideration payable to West by Spinco for the common stock of Newco and to pay fees, expenses and
obligations related to or triggered by the Spin-Off.

 Certain Payment Provisions 
  

			
	Fees and Interest Rates:	  	The Cash Consideration Term Loans shall bear interest at the rate per annum equal to the Alternate Base Rate (as defined in Annex I) plus the effective margin to be applicable to the
Permanent Term Loans that are ABR Loans (as defined in Annex I), payable at maturity and upon payment in full.

  

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	 Optional Prepayments and
 Commitment
Reductions:
	  	Cash Consideration Term Loans may be prepaid and commitments may be reduced, in each case without premium or penalty, by Spinco in minimum amounts to be agreed upon.
		
	Mandatory Prepayment:	  	The Cash Consideration Term Loans shall be prepaid in full without premium or penalty on the date three business days after the Contribution Closing Date if the PoA Closing Date (as defined
below) has not then occurred.

  

			
		
	Collateral	  	The Cash Consideration Term Loan will be unsecured.

 Certain Conditions 
  

			
		  	The availability of the Cash Consideration Term Facility shall be conditioned upon the satisfaction of the conditions set forth in Part 1 of Annex II and upon delivery to the
Administrative Agent of a certificate of a responsible officer of Spinco that the conditions precedent to the availability of the Permanent Facilities are expected to be satisfied within three business days from the date of such certificate (the
date upon which all such conditions precedent shall be satisfied, the “Contribution Closing Date”) on or before the date that is 364 days from the date of the Commitment Letter.
		
		  	The availability of the Cash Consideration Term Facility shall also be conditioned upon (a) the accuracy in all material respects of all representations and warranties in the documentation
(the “Cash Consideration Term Facility Documentation”) with respect to the Cash Consideration Term Facility and (b) there being no default or event of default in existence at the time of, or immediately after giving effect to
the making of, such extension of credit. The no material adverse change representation for this purpose shall be that there is no East Material Adverse Effect and no Newco Material Adverse Effect (as each is defined in the Commitment
Letter).

 Certain Documentation Matters 
  

			
		  	The Cash Consideration Term Facility Documentation shall contain representations, warranties, covenants and events of default (in each case, applicable to Spinco and its subsidiaries) not
more restrictive than the documentation for the Permanent Facilities (subject to qualifications for materiality where appropriate), including covenants under which Spinco agrees, pending the consummation of the Plan of Arrangement, to conduct its
business in the ordinary course, to comply with all its agreements and undertakings related to the Plan of Arrangement and to take all actions reasonably necessary or useful and within its control to assure that the Transaction Agreement is
completed in as timely a manner as is reasonable.
		
		  	The Cash Consideration Term Facility Documentation shall also include customary provisions for financings of this type relating to

  

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		  	voting (it being understood that the required voting group shall in any event include two unaffiliated Lenders), assignments, yield protection, expenses and indemnification.
		
	Governing Law and Forum:	  	State of New York.
		
	Counsel to the Administrative Agent and the Arrangers:	  	Simpson Thacher & Bartlett LLP.

 PART 2 
 PERMANENT FACILITIES 
 Parties 
  

			
	Borrowers:	  	Spinco; also Newco, as to the U.S. Revolving Facility (as defined below); also East (which for the purpose of defining the “Borrowers” shall include any Canadian entity that owns, on
the Closing Date or thereafter, substantially all of the Canadian operating assets of East), as to the Incremental Facility (as defined below); also East (together with Spinco and Newco, the “Borrowers”), as to the Canadian
Revolving Facility (as defined below).
		
	Guarantors:	  	As to the obligations of Spinco and Newco (including their guarantee obligations), each other and their direct and indirect, existing and future, wholly owned U.S. subsidiaries, subject to
exceptions for U.S. subsidiaries of East and other exceptions to be agreed. As to the obligations of East, its direct and indirect, existing and future, wholly owned subsidiaries, Spinco and Newco (the foregoing, collectively, the
“Guarantors”; the Borrowers and the Guarantors, collectively, the “Loan Parties”), subject to exceptions to be agreed.
		
	Joint Lead Arrangers and Joint Bookrunners:	  	J.P. Morgan Securities Inc. and Morgan Stanley Senior Funding, Inc. (collectively, in such capacity, the “Arrangers” and individually, each an
“Arranger”).
		
	Administrative Agent:	  	JPMorgan Chase Bank, N.A. (“JPMorgan Chase Bank”, in such capacity, the “Administrative Agent”).
		
	Syndication Agent:	  	Morgan Stanley Senior Funding, Inc. (“Morgan Stanley”, in such capacity, the “Syndication Agent”).
		
	Lenders:	  	A syndicate of banks, financial institutions and other entities (it being understood that such entities that lend to East under the Canadian Revolving Facility (as defined below) shall qualify
as authorized foreign banks under the Income Tax Act (Canada) and lend out of lending offices located in Canada or shall be resident in

  

 4 

			
		  	Canada for the purposes of Part XIII of the Income Tax Act (Canada)), including JPMorgan Chase Bank and Morgan Stanley arranged by the Arrangers and reasonably satisfactory to the Borrowers
(collectively, the “Lenders”).

 Permanent Term Facility 
  

			
	Amount and Tenor:	  	A seven-year term loan facility (the “Permanent Term Facility”; the commitments thereunder, the “Permanent Term Commitments”; the loans thereunder, the
“Permanent Term Loans”) in the amount of US$1,700,000,000, including the Cash Consideration Term Loans upon conversion thereof to Permanent Term Loans under the amendment and restatement of the Cash Consideration Term Facility
Documentation as part of the Permanent Credit Documentation (as defined below). The Permanent Term Facility may be increased at the option of Spinco prior to the launch of the syndication of the Senior Facilities by up to $200,000,000 to the extent
necessary to refinance on the PoA Closing Date the existing accounts receivable securitization of East. The Term Loans shall be repayable in quarterly installments equal to 1% per annum for the first six years and nine months with the unpaid
principal balance to be due on the seventh anniversary of the PoA Closing Date (as defined below).
		
	Availability:	  	On the PoA Closing Date (with the portion of the Permanent Term Facility not represented by the conversion of the Cash Consideration Term Facility being advanced on such date).
		
	Incremental Amount:	  	 The Permanent Term Facility may be increased (such increase, the “Incremental Facility”), at the option of Spinco prior to the
commencement of syndication of the Senior Facilities (as defined below), by up to $125,000,000 in order to provide financing for a possible purchase by East or Spinco of East’s US$125,000,000 9.5% Debentures due August 2016 pursuant to a
“change of control offer” for such Debentures following consummation of the Plan of Arrangement. Any loans under the Incremental Facility shall be available on a delayed draw basis for a period of up to 40 days from the PoA Closing
Date.
  
 The Incremental Facility will be available to East, at Spinco’s option, to
the extent that East may borrow thereunder without requiring that indebtedness under East’s indentures be equally and ratably secured by collateral provided by East and its subsidiaries.

		
	Purpose:	  	The proceeds of the Permanent Term Loans shall be used to finance a portion of the Transaction, including fees, expenses and obligations related to or triggered by the
Transaction.

  

 5 

 Revolving Facility 
  

			
	Amount and Tenor:	  	Revolving credit facilities (the “Revolving Credit Facilities” and, together with the Term Facility, the “Permanent Facilities” and, the Permanent Facilities
together with the Cash Consideration Term Facility, the “Senior Facilities”; the loans under the Revolving Credit Facilities, together with the Swingline Loans (as defined below), the “Revolving Credit Loans” and,
together with the Permanent Term Loans, the “Permanent Loans”) as follows:
		
		  	 U.S. Revolving Facility:
  
 A five-year revolving facility (the “US Revolving Facility”; the commitments thereunder, the “US Revolving Commitments”) to be available
to Spinco and Newco in US Dollars in the amount of $750,000,000 (the loans thereunder, the “US Revolving Loans”) less amounts then utilized under the Canadian Revolving Facility (as defined below).

		
		  	 Canadian Revolving Facility:
  
 A five-year revolving facility (the “Canadian Revolving Facility”; the commitments thereunder, the “Canadian Revolving Commitments” and,
together with the US Revolving Commitments, the “Revolving Commitments”) to be available to East (at its option) in US Dollars, Canadian dollars or a combination thereof, in an amount up to US$350,000,000 or the Canadian dollar
equivalent thereof (the loans thereunder, the “Canadian Revolving Loans”), provided that (i) such availability, to the extent applicable, shall not at any time exceed 10% of the amount equal to East’s CNTA (as that term
is defined in its relevant existing indentures), and (ii) the aggregate extensions of credit at any one time outstanding under the Revolving Credit Facilities shall not exceed $750,000,000.

		
		  	It is understood that Lenders (or their applicable lending offices) participating in the Canadian Revolving Facility must also be able to participate in the US Revolving
Facility.
		
	Availability:	  	The Revolving Credit Facilities shall be available on a revolving basis during the period commencing on the PoA Closing Date and ending on the date that is five years after such date (the
“Revolving Termination Date”).
		
	Bankers’ Acceptances:	  	East may request Bankers’ Acceptances denominated in Canadian dollars for acceptance and, at East’s option, purchase by the participating Lenders under the Canadian Revolving Facility
from time to time in an aggregate principal amount at any one time outstanding not to exceed each such Lender’s commitment. Each Bankers’ Acceptance shall have a term of 30, 60, 90 or 180 days (or such longer term as shall be agreed to by
all of the Lenders under the Canadian Revolving Facility), shall mature on or before the

  

 6 

			
		  	 Revolving Termination Date and shall be in form and substance reasonably satisfactory to each participating Lender under the Canadian Revolving
Facility.
  
 East shall reimburse a Lender on the contract maturity date for each
Bankers’ Acceptance for an amount in Canadian dollars in same day funds equal to the amount of such Bankers’ Acceptance.

		
	Letters of Credit:	  	A portion of the Revolving Credit Facilities not in excess of US$100,000,000 or the Canadian dollar equivalent thereof shall be available for the issuance of letters of credit (the
“Letters of Credit”) by one or more Lenders to be selected by the Borrowers in consultation with the Administrative Agent (each in such capacity, an “Issuing Lender”). Letters of Credit issued for Spinco or Newco
will be denominated in US Dollars. Letters of Credit issued for East may be denominated in US Dollars or Canadian dollars at the option of East. No Letter of Credit shall have an expiration date after the earlier of (a) one year after the date
of issuance and (b) five business days prior to the Revolving Termination Date; provided that any Letter of Credit with a one-year tenor may provide for the renewal thereof for additional one-year periods (which shall in no event extend
beyond the date referred to in clause (b) above).
		
		  	Drawings under any Letter of Credit shall be reimbursed by the applicable Borrower (whether with its own funds or with the proceeds of Revolving Credit Loans) on the same business day. To the
extent that such Borrower does not so reimburse the relevant Issuing Lender, the Lenders under the applicable Revolving Credit Facility shall be irrevocably and unconditionally obligated to reimburse such Issuing Lender on a pro rata
basis.
		
	Swingline Loans:	  	A portion of the Revolving Credit Facilities not in excess of US$50,000,000 or the Canadian dollar equivalent thereof shall be available for swingline loans (the “Swingline
Loans”) from one or more Lenders to be selected by the Borrowers in consultation with the Administrative Agent (each in such capacity, a “Swingline Lender”) on same-day notice. Any such Swingline Loans will reduce
availability under the applicable Revolving Credit Facility on a dollar-for-dollar basis. Swingline Loans to Spinco or Newco will be denominated in US Dollars. Swingline Loans to East will be denominated in US Dollars or Canadian dollars at the
option of East. Each Lender under the applicable Revolving Credit Facility shall acquire, under certain circumstances, an irrevocable and unconditional pro rata participation in each Swingline Loan.
		
	Maturity:	  	The Revolving Termination Date, or with respect to any borrowing of Revolving Credit Loans for which the relevant Borrower so elects a date on or prior to the Revolving Termination Date which is
no later than 365 days after such borrowing is made.

  

 7 

			
	Purpose:	  	The proceeds of the Revolving Credit Loans shall be used to finance working capital needs and for general corporate purposes of the Borrowers and their respective subsidiaries, including
acquisitions, working capital and capital expenditures.

 Certain Payment Provisions 
  

			
	Fees and Interest Rates:	  	As set forth on Annex I.
		
	Optional Prepayments and Commitment Reductions:	  	Permanent Loans may be prepaid and commitments may be reduced by the Borrowers in minimum amounts to be agreed upon, in each case without premium or penalty. Bankers’ Acceptances may not be
prepaid, but may be cash collateralized.
		
	Mandatory Prepayments:	  	The Permanent Term Loans shall be prepaid in an amount equal to:
		
		  	(a) 100% of the net cash proceeds (which, among other things, shall be net of taxes, including taxes on transfers of funds) of any incurrence of debt after the PoA Closing Date by Spinco or
any of its subsidiaries (subject to exceptions to be agreed).
		
		  	(b) 100% of the net cash proceeds (which, among other things, shall be net of taxes, including taxes on transfers of funds) of any sale or other disposition (including as a result of
casualty or condemnation) by Spinco or any of its subsidiaries of any assets, except for sales of inventory, receivables or obsolete or worn-out property in the ordinary course of business and subject to certain other customary exceptions (including
annual baskets to be determined and capacity for reinvestment) to be agreed upon.
		
		  	(c) 50% of excess cash flow (to be defined) for each fiscal year of Spinco (commencing with the 2007 fiscal year), provided, that the foregoing percentage shall be reduced upon
achievement of leverage targets to be agreed.
		
		  	 Mandatory prepayments of the Term Loans shall be applied first to scheduled installments thereof occurring within the next 12 months in direct
order of maturity and second ratably to the remaining respective installments thereof. Mandatory prepayments of the Term Loans may not be reborrowed.
  
 In the event that East is the Borrower under any Incremental Facility, the mandatory prepayment requirements shall be structured so as to qualify the Incremental Facility
for exemption from Canadian withholding tax.
  
 The Canadian Revolving Loans shall be
prepaid and the Letters of Credit and Bankers’ Acceptances shall be cash collateralized or replaced to the extent such extensions of credit exceed 105% of the amount of the Canadian Revolving Facility due to currency fluctuations to eliminate
excess borrowings.

  

 8 

			
	Collateral:	  	 The obligations of each of Spinco and Newco (and all obligations of U.S. Guarantors) in respect of the Permanent Facilities and any swap agreements
and cash management arrangements provided by any Lender (or any affiliate of a Lender) shall be secured by all of the equity interests of Spinco’s direct and indirect U.S. subsidiaries (other than of the U.S. subsidiaries of East) and 65% of
the equity interests of Spinco’s direct and indirect “first-tier” foreign subsidiaries, and a perfected first priority security interest in substantially all of Spinco’s and its direct and indirect U.S. subsidiaries’ (other
than the U.S. subsidiaries of East) tangible and intangible assets (including, without limitation, intellectual property and real property), except for those assets as to which the Administrative Agent shall determine in its reasonable discretion
that the cost of obtaining a security interest therein are excessive in relation to the value of the security to be afforded thereby.
  
 The obligations of East (and all obligations of foreign Guarantors) in respect of the Permanent Facilities and any swap agreements and cash management arrangements
provided by any Lender (or any affiliate of a Lender) shall be secured by all of the equity interests of Spinco’s direct and indirect subsidiaries, and a perfected first priority security interest, lien and hypothec in substantially all the
tangible and intangible assets (including, without limitation, intellectual property and real property) of Spinco, its direct and indirect subsidiaries, and tangible and intangible assets of East, its direct and indirect subsidiaries, except for
those assets as to which the Administrative Agent shall determine in its reasonable discretion that the cost of obtaining a security interest therein are excessive in relation to the value of the security to be afforded thereby and the amount of the
indebtedness to be secured. By virtue of the limitations on the utilization of the Canadian Revolving Facility and the covenant limiting additional secured indebtedness of East and its subsidiaries, it is intended that the indebtedness under
East’s indentures shall not be required to be equally and ratably secured by collateral provided by East and its subsidiaries.

 Certain Conditions 
  

			
	Initial Conditions:	  	The availability of the Permanent Facilities shall be conditioned upon the satisfaction of the conditions to the availability of the Cash Consideration Term Facility on the Contribution Closing
Date and the conditions set forth in Annex II (the date upon which all such conditions precedent shall be satisfied, the “PoA Closing Date”) on or before the date that is 364 days from the date of the Commitment
Letter:
		
	On-Going Conditions:	  	The making of each extension of credit (including for the initial extensions of credit) shall be conditioned upon (a) the accuracy in all material respects of all representations and warranties
in the

  

 9 

			
		  	documentation (the “Permanent Credit Documentation”) with respect to the Permanent Facilities and (b) there being no default or event of default in existence at the time of,
or immediately after giving effect to the making of, such extension of credit. As used in this Term Sheet and in the Permanent Credit Documentation for purposes after the PoA Closing Date, a “material adverse change” shall mean any
event, development or circumstance that has had or would reasonably be expected to have a material adverse effect on (a) the business, property, operations or condition (financial or otherwise) of the Borrowers and their respective subsidiaries
taken as a whole or (b) the validity or enforceability of the Permanent Credit Documentation or the rights and remedies of the Administrative Agent and the Lenders thereunder. On the PoA Closing Date, the no material adverse change representation
shall be that there is no East Material Adverse Effect and no Newco Material Adverse Effect.

 Certain Documentation Matters 
  

			
		  	The Permanent Credit Documentation shall contain representations, warranties, covenants and events of default applicable to Spinco and its subsidiaries customary for financings of this type,
consisting of (in each case subject to customary exceptions and qualifications for materiality and other exceptions and qualifications to be agreed):
		
	Representations and Warranties:	  	Organization; corporate existence; corporate power and authority; authorization of transactions; due execution and enforceability of Permanent Credit Documentation; no governmental approvals; no
conflict with law or contractual obligations; financial statements (including pro forma financial statements); absence of undisclosed liabilities; no material adverse change; ownership of property; no conflict with law or contractual
obligations; no material litigation; compliance with laws and agreements; taxes; liens; intellectual property; taxes; ERISA and Canadian pension and benefit plans; insurance; Federal Reserve regulations; labor matters; Investment Company Act and
other regulations; subsidiaries; use of proceeds; accuracy of information; environmental matters; no default under Credit Documentation; accuracy of disclosure; creation and perfection of security interests; solvency; maintenance of required flood
insurance; and delivery of certain documents.
		
	Affirmative Covenants:	  	Delivery of financial statements, reports, accountants’ letters, proxy statements, publicly filed materials, annual budgets, officers’ certificates and other information reasonably
requested by the Lenders customary for transactions of this type (including as to the USA PATRIOT Act); notice of material events; continuation of business and maintenance of existence and material rights and privileges; payment of taxes and other
obligations; maintenance of properties and insurance; maintenance of books and records; right of the Lenders to inspect property and books and records;

  

 10 

			
		  	compliance with laws and material contractual obligations; Canadian benefit and pension plans; ERISA; notice of defaults, litigation and other material events; compliance with environmental
laws; and further assurances (including, without limitation, with respect to security interests in after-acquired property).
		
	Financial Covenants:	  	Minimum interest coverage ratio, maximum leverage ratio and maximum capital expenditures.
		
	Negative Covenants:	  	Limitations on: indebtedness; liens (including sale and leasebacks and guarantee obligations); fundamental changes; sales or disposition of property or assets; investments, loans, advances,
guarantees and acquisitions; transactions with affiliates; hedge agreements; dividends and other payments in respect of capital stock; changes in fiscal periods; environmental activity; payments and modifications of other material debt instruments;
negative pledge clauses and clauses restricting subsidiary distributions; changes in lines of business; and amendments to the Transaction Agreement and other transaction documents to the extent that any such amendment would be materially adverse to
the interests of the Lenders.
		
	Events of Default:	  	Nonpayment of principal when due; nonpayment of interest, fees or other amounts after a grace period of five business days; material inaccuracy of representations and warranties; violation of
covenants (subject, in the case of certain covenants, to a grace period of 30 days); cross-default; bankruptcy events; material judgments; certain ERISA events; actual or asserted invalidity of any of the Permanent Credit Documentation; a change of
control (to be defined); and actual or asserted invalidity of any guarantee, security document or subordination provisions or non-perfection of security interest.
		
	Voting:	  	 Amendments and waivers with respect to the Permanent Credit Documentation shall require the approval of Lenders holding more than 50% of the
aggregate amount of Permanent Term Loans and Revolving Commitments, except that (a) the consent of each Lender directly affected thereby shall be required with respect to (i) reductions in the amount or extensions of the scheduled date of final
maturity of any Permanent Loan, (ii) reductions in the rate of interest or any fee or extensions of any due date thereof and (iii) increases in the amount or extensions of the expiry date of any Lender’s commitment and (b) the consent of 100%
of the Lenders shall be required with respect to (i) modifications to any of the voting percentages, (ii) releases of all or substantially all the collateral and (iii) releases of all or substantially all of the Guarantors.
  
 The Permanent Credit Documentation shall contain customary provisions for replacing non-consenting
Lenders in connection with amendments and waivers requiring the consent of all Lenders or of all Lenders directly affected thereby so long as Lenders holding at least 75% of the aggregate amount of Permanent Term Loans and the Revolving Credit
Facilities shall have consented thereto.

  

 11 

			
	Assignments and Participations:	  	The Lenders shall be permitted to assign all or a portion of their loans and commitments with the consent, not to be unreasonably withheld, of (a) Spinco, unless (i) the assignee is a Lender, an
affiliate of a Lender or an approved fund or (ii) a payment or bankruptcy event of default has occurred and is continuing, (b) the Administrative Agent, unless a Permanent Term Loan is being assigned to a Lender, an affiliate of a Lender or an
approved fund, and (c) the Issuing Lender(s), unless a Permanent Term Loan is being assigned. In the case of partial assignments (other than to another Lender, an affiliate of a Lender or an approved fund), the minimum assignment amount shall be
$1,000,000 (in the case of the Permanent Term Facility) and $5,000,000 (in the case of a Revolving Credit Facility, in each case unless otherwise agreed by relevant Borrower and the Administrative Agent. The Administrative Agent shall receive a
processing and recordation fee of US$3,500 in connection with all assignments. The Lenders shall also be permitted to sell participations in their Loans. Participants shall have the same benefits as the Lenders (who shall not be relieved of any of
their obligations by virtue of selling a participation) with respect to yield protection and increased cost provisions subject to customary limitations (but no greater than the benefits that the relevant Lender would receive in the absence of such
participation). Voting rights of participants shall be limited to those matters with respect to which the affirmative vote of the Lender from which it purchased its participation would be required as described in the exception to the first sentence
under “Voting” above. Pledges of Permanent Loans in accordance with applicable law shall be permitted without restriction, but any foreclosure thereon shall be subject to the provisions restricting assignments. Promissory notes shall be
issued under the Revolving Credit Facility only upon request.
		
	Yield Protection:	  	The Permanent Credit Documentation shall contain customary provisions (a) protecting the Lenders against increased costs or loss of yield resulting from changes in reserve, tax, capital
adequacy and other requirements of law and from the imposition of or changes in withholding or other taxes (other than such increased costs resulting solely from a Lender voluntarily transferring its office) and (b) indemnifying the Lenders for
“breakage costs” incurred in connection with, among other things, any prepayment of a Eurodollar Loan (as defined in Annex I) on a day other than the last day of an interest period with respect thereto (subject to customary mitigation
by the Lenders).
		
	Expenses and Indemnification:	  	The Borrowers shall pay (a) all reasonable and documented out-of-pocket expenses of the Administrative Agent and the Arrangers associated with the syndication of the Permanent Facilities and the
preparation, execution, delivery and administration of the

  

 12 

			
		  	Permanent Credit Documentation and any amendment or waiver with respect thereto (including the reasonable fees, disbursements and other charges of the counsel named herein and one local counsel
per relevant jurisdiction) as provided in the Commitment Letter and (b) all reasonable and documented out-of-pocket expenses of the Administrative Agent and the Lenders (including the reasonable fees, disbursements and other charges of one counsel
plus, if necessary, one local counsel per relevant jurisdiction) in connection with the enforcement of the Permanent Credit Documentation.
		
		  	The Administrative Agent, the Arrangers and the Lenders (and their affiliates and their respective officers, directors, employees, advisors and agents) (each of (x) the Administrative Agent and
the Arrangers and (y) the Lenders, together with, in each case, its or their affiliates, officers, directors, employees, advisors and agents, collectively, an “indemnified party”) will have no liability for, and will be indemnified and
held harmless against, any losses, claims, damages, liabilities or expenses incurred in respect of the financing contemplated hereby or the use or the proposed use of proceeds thereof, except to the extent they are found by a final, non-appealable
judgment of a court (or a settlement tantamount thereto) to arise from the gross negligence or willful misconduct or material breach of the Permanent Credit Documentation of or by the relevant indemnified party or a Related Person (as defined in the
Commitment Letter).
		
	Loan Reallocation Mechanism:	  	The Permanent Credit Documentation will provide that, upon an acceleration of the Permanent Loans a mechanism will be activated such that each Lender’s outstanding risk with respect to
Spinco, Newco and East under the Permanent Facilities will be allocated based on each Lender’s share of the Lenders’ total credit exposures to the Borrowers under the Permanent Facilities, so that each Lender will share, to the maximum
extent possible, on a pro rata basis, in any recoveries with respect to such credit exposure, whether from a realization on any collateral for the Permanent Facilities or otherwise. The foregoing will be set forth in an annex to the
Permanent Credit Documentation to which only the Lenders will be parties.
		
	Governing Law and Forum:	  	State of New York.
		
	U.S. and Canadian Counsel to the Administrative Agent, the Syndication Agent, the Arrangers and the Initial Lenders:	  	Simpson Thacher & Bartlett LLP; McMillan Binch Mendelsohn LLP.

  

 13 

 Annex I 
 INTEREST AND CERTAIN FEES 
  

			
	Interest Rate Options:	  	(a) US Dollar Loans.
		
		  	 The Borrowers may elect that Permanent Loans denominated in US Dollars comprising each borrowing bear interest at a rate per annum equal to:

		
		  	 the Alternate Base Rate or the U.S. Base Rate (as the case may be) plus the Applicable Margin; or
  
 LIBOR plus the Applicable Margin.

		
		  	(b) Canadian Revolving Loans. Canadian Revolving Loans comprising each borrowing in Canadian dollars shall bear interest at a rate per annum equal to the Canadian Prime Rate plus the
Applicable Margin.
		
		  	(c) Bankers’ Acceptances. East may issue Bankers’ Acceptances, denominated in Canadian dollars, for acceptance and, at East’s option, purchase by the Lenders at the
Discount Rate. The acceptance fee, payable on the date of acceptance, shall be calculated at a rate per annum equal to the Applicable Margin and shall be denominated in Canadian dollars.
		
		  	As used herein:
		
		  	“ABR” when used in reference to any Loan or borrowing, refers to whether such Loan, or the Loans comprising such borrowing, are bearing interest at a rate determined by
reference to the Alternate Base Rate.
		
		  	“Alternate Base Rate” means, for any day, a rate per annum equal to the greater of (a) the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in
effect on such day plus 1/2 of 1%. Any change in the Alternate Base Rate due to a change in the Prime Rate or the Federal Funds Effective Rate shall be effective from and including the effective date of such change in the Prime Rate or the
Federal Funds Effective Rate respectively.
		
		  	“Applicable Margin” means a percentage determined on the PoA Closing Date as set forth below:

									
	  	 	 Level
	  	 Rating of Spinco’s
 senior secured
 long-term
debt
	  	Bankers’
Acceptances/
LIBOR
Margin (bps)	  	ABR / U.S. Base
Rate /Canadian
Prime Rate
Margin (bps)
		 	 I
	  	Greater than or equal to BB- and Ba3 (in each case with a stable outlook) on the PoA Closing Date	  	200	  	100
					
		 	 II
	  	Not Level I on the PoA Closing Date or lower	  	225	  	125

  

			
		  	The foregoing margins applicable to Revolving Credit Loans shall be subject to change after financial statements have been delivered for the first full fiscal quarter after the PoA Closing Date
by amounts to be agreed upon based on the achievement of performance targets or credit ratings (such basis as chosen by the Borrowers no later than five days prior to the launch of syndication) to be determined and provided that no event of default
is in existence.
		
		  	“Canadian Prime Rate” means the higher of (a) the rate of interest publicly announced by the Administrative Agent from time to time as its reference rate then in effect for
determining interest rates on Canadian dollar commercial loans made in Canada, and (b) the average annual rate as determined by the Administrative Agent as being the “BA 1 month” rates applicable to bankers’ acceptances in
Canadian dollars displayed and identified as such on the “Reuters screen CDOR page” (the “CDOR Rate”) at approximately 10:00 am on such day, or if such day is not a Business Day, then on the immediately preceding Business
Day, plus 1.0%; provided that if such rates do not appear on the Reuters screen CDOR page, then the CDOR Rate shall be selected as of the immediately preceding Business Day for which such rate was available.
		
		  	“Discount Rate” means, with respect to any Bankers’ Acceptance (a) for a Lender which is a Schedule I chartered bank, the average discount rate of bankers’
acceptances having periods identical to the period of such Bankers’ Acceptance as quoted on Reuters Service page CDOR as of approximately 10:00 a.m. Toronto time on such day, or if such day is not a Business Day, then on the immediately
preceding Business Day, and (b) for other Lenders, the rate determined by the Administrative Agent as being the arithmetic average (rounded upwards to the nearest multiple of .01%) of the discount rates, calculated on the basis of a year of 365
days, of the

  

 2 

			
		  	Schedule II/III Reference Lenders established in accordance with their normal practices at or about 10:00 a.m. (Toronto time) on the issuance date of such Bankers’ Acceptance, for
bankers’ acceptances having maturities identical to the maturities of such Bankers’ Acceptances, provided that the Discount Rate of such other Lenders shall not exceed for any issue the Discount Rate established pursuant to (a) above plus
..10% per annum.
		
		  	“LIBOR” means the rate (adjusted as appropriate for statutory reserve requirements for eurocurrency liabilities) for US Dollar deposits for a period, selected by the applicable
Borrower, equal to one, two, three or six months (or such longer period if all of the Lenders so agree) appearing on Page 3750 of the Telerate screen.
		
		  	“Schedule II/III Reference Lenders” means certain Lenders that are Schedule II Banks or Schedule III Banks to be agreed between East and the Administrative
Agent.
		
		  	“U.S. Base Rate” means a fluctuating rate of interest per annum which is equal at all times to the greater of: (a) the reference rate of interest (however designated) of the
Administrative Agent for determining interest chargeable by it on US Dollar commercial loans made in Canada; and (b) 0.50% above the federal funds effective rate from time to time in effect.
		
	Interest Payment Dates:	  	In the case of Permanent Loans bearing interest based upon LIBOR (“LIBOR Loans”), on the last day of each relevant interest period and, in the case of any interest period longer
than three months, on each successive date three months after the first day of such interest period.
		
		  	In the case of Permanent Loans bearing interest based upon the Alternate Base Rate (“ABR Loans”), U.S. Base Rate (“U.S. Base Rate Loans”) or the Canadian Prime
Rate (“Canadian Prime Rate Loans”) quarterly in arrears on the last business day of each quarter.
		
	Commitment Fees:	  	The relevant Borrower shall pay, or cause to be paid, commitment fees from and after the PoA Closing Date in an amount equal to 0.375% per annum on the average daily unused portion of the
Revolving Credit Facilities and in an amount equal to 0.75% per annum on the average daily unused portion of the Incremental Facility, in each case so long as it is in effect, payable quarterly in arrears and on expiry or termination thereof.
Swingline Loans shall, for purposes of the commitment fee calculations only, not be deemed to be a utilization of the Revolving Credit Facilities. The commitment fee rate for the Revolving Credit Facilities shall be subject to change after financial
statements have been delivered for the first full fiscal quarter after the Closing Date by amounts to be agreed upon based on the achievement of performance targets to be determined and provided that no event of default is in
existence.

  

 3 

			
	Letter of Credit Fees:	  	The relevant Borrower shall pay a fee on all outstanding Letters of Credit at a per annum rate equal to the Applicable Margin for LIBOR Loans under the Revolving Credit Facilities on the face
amount of each Letter of Credit. Such fee shall be shared ratably among the Lenders participating in the Revolving Credit Facilities and shall be payable quarterly in arrears.
		
		  	A fronting fee to be agreed upon with each Issuing Lender shall be payable quarterly in arrears to the relevant Issuing Lender for its own account. In addition, customary administrative,
issuance, amendment, payment and negotiation charges shall be payable to each Issuing Lender for its own account.
		
	Default Rate:	  	At any time when any Borrower is in default in the payment of any amount of principal due under the Senior Facilities (including the Cash Consideration Term Facility), such amount shall bear
interest at 2% above the rate otherwise applicable thereto. Overdue interest, fees and other amounts shall bear interest at 2% above the rate applicable to ABR Loans, U.S. Base Rate Loans or Canadian Prime Rate Loans, as the case may
be.
		
	Rate and Fee Basis:	  	All per annum rates shall be calculated on the basis of a year of 365 or 366 days (or 360 days, in the case of LIBOR Loans, and solely 365 days, in the case of Bankers’ Acceptances) for
actual days elapsed.

  

 4 

 Annex II 
 The availability of the Senior Facilities, in addition to the conditions set forth in Exhibit A, shall be subject to the satisfaction of the following conditions. Capitalized terms used but not defined herein
have the meanings given in said Exhibit. Part 1 sets forth the conditions to the availability of the Cash Consideration Term Loan Facility, and Part 2 sets forth the conditions to the availability of the Permanent Facilities, in each case in
addition to the other conditions thereto specified in Exhibit A. 
 PART 1 
 CASH CONSIDERATION TERM FACILITY 
 (a) Each Loan Party shall have executed
and delivered Cash Consideration Term Facility Documentation consistent with the terms set forth in the Term Sheet and otherwise customary for transactions of this type. 
 (b) All government and third party approvals in connection with the Contribution, the sale of Newco stock and the continuing operations of Spinco and its subsidiaries shall have been obtained to the extent
required by the Transaction Agreement. 
 (c) The Lenders shall have received audited consolidated financial statements of each of Newco
and East for 2003, 2004 and 2005 and, to the extent 2006 financial statements are then available, 2006 and interim unaudited consolidated financial statements of each of them for any quarterly period completed at least 45 days prior to the
Contribution Closing Date. 
 (d) The Lenders shall have received (i) a pro forma consolidated balance sheet of Spinco
as at the date of the most recent balance sheet delivered pursuant to the preceding paragraph and giving effect to the Transaction and (ii) a pro forma statement of operations for the 12-month period ending on such date, in each
case adjusted to give effect to the consummation of the Transaction as if the same had occurred on such date or on the first day of such period, as applicable, prepared in accordance with Regulation S-X of the Securities Act of 1933, as
amended. 
 (e) The Administrative Agent shall have received such legal opinions (including from counsel to Spinco), certificates
(including a chief financial officer’s solvency certificate), documents and other instruments as are customary for transactions of this type or as they may reasonably request. 
 (f) The Lenders shall have received reasonably satisfactory information required for compliance by Lenders with applicable “know your
customer” and anti-money laundering requirements (including information required under the PATRIOT Act). 
 (g) The Permanent
Facilities shall have received a rating from both Moody’s Investors Service, Inc. (“Moody’s”) and Standard & Poor’s Ratings Group (“S&P”) at least 30 days prior to the then scheduled PoA
Closing Date. 
 (h) (i) The Contribution shall be consummated in accordance with applicable law; and (ii) the documentation
for the Contribution and the Plan of Arrangement (including the Transaction Agreement) shall have satisfactory terms (it being acknowledged that the draft of the Transaction Agreement dated August 22, 2006 and its exhibits are 

  

 1 

 
satisfactory), and no provision thereof shall have been waived, amended, supplemented or otherwise modified in any respect materially adverse to the Lenders,
except as consented thereto by the Administrative Agent and the Arrangers, such consent not to be unreasonably withheld or delayed. 
 (i) There shall be no East Material Adverse Effect and no Newco Material Adverse Effect. 
 PART 2 
 PERMANENT FACILITIES 
 (a) Each
Loan Party shall have executed and delivered Permanent Credit Documentation consistent with the terms set forth in the Term Sheet and otherwise customary for transactions of this type. 
 (b) The Lenders, the Administrative Agent and the Arrangers shall have received all documented fees and invoiced expenses required to be paid on or
before the PoA Closing Date. 
 (c) The existing credit agreement of East shall have been terminated and all amounts owing thereunder
shall have been paid in full (or arrangements satisfactory to the Lenders shall have been made for all amounts to be paid in full). 
 (d) All material government and third party approvals necessary in connection with (i) the Plan of Arrangement, (ii) the financing thereof and (iii) the continuing operations of the Borrowers and their subsidiaries shall
have been obtained to the extent, with respect to clauses (i) and (iii), provided in the Transaction Agreement. 
 (e) All actions
reasonably necessary (including obtaining lien searches) to establish that the Administrative Agent will have a perfected first priority security interest, lien and hypothec in the collateral under the Permanent Facilities shall have been taken,
and, in connection with real estate collateral, the Administrative Agent shall have received satisfactory title insurance policies, surveys and other customary documentation to the extent reasonably requested by it. 
 (f) The Administrative Agent shall have received such legal opinions (including from counsel to Spinco), certificates (including a chief financial
officer’s solvency certificate), documents and other instruments as are customary for transactions of this type or as they may reasonably request. 
 (g) The Lenders shall have received reasonably satisfactory information required for compliance by Lenders with applicable “know your customer” and anti-money laundering requirements (including
information required under the PATRIOT Act). 
 (h) (x) The Plan of Arrangement shall be consummated in accordance with applicable
law; and (y) the documentation for the Plan of Arrangement (including the Transaction Agreement) shall have satisfactory terms (it being acknowledged that the draft of the Transaction Agreement dated August 22, 2006 and its exhibits are
satisfactory), and no provision thereof shall have been waived, amended, supplemented or otherwise modified in any respect materially adverse to the Lenders, except as consented thereto by the Administrative Agent, such consent not to be
unreasonably withheld or delayed. 
 (i) There shall be no East Material Adverse Effect and no Newco Material Adverse Effect. 

 

 2Indenture between Domtar Inc. and the Bank of New York dated as of July 31, 1996

 Exhibit 10.20 
 EXECUTION COPY 
  

 INDENTURE 
 between 
 DOMTAR INC. 
 as Issuer 
 and 
 THE BANK OF NEW YORK 
 as Trustee 
 $125,000,000 9-1/2% Debentures Due 2016 
 Dated as of July 31, 1996 
  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
		  	ARTICLE I	  	
	
	 Definitions and Incorporation by Reference

			
	SECTION 1.01.	  	Definitions	  	1
	SECTION 1.02.	  	Other Definitions	  	29
	SECTION 1.03.	  	Incorporation by Reference of Trust Indenture Act	  	29
	SECTION 1.04.	  	Rules of Construction	  	30
			
		  	ARTICLE II	  	
			
		  	The Securities	  	
			
	SECTION 2.01.	  	Form and Dating	  	30
	SECTION 2.02.	  	Execution and Authentication	  	30
	SECTION 2.03.	  	Registrar and Paying Agent	  	31
	SECTION 2.04.	  	Paying Agent To Hold Money in Trust	  	32
	SECTION 2.05.	  	Holder Lists	  	33
	SECTION 2.06.	  	Registration of Transfer and Exchange	  	33
	SECTION 2.07.	  	Replacement Securities	  	35
	SECTION 2.08.	  	Outstanding Securities	  	36
	SECTION 2.09.	  	Treasury Securities	  	37
	SECTION 2.10.	  	Temporary Securities	  	37
	SECTION 2.11.	  	Cancellation	  	38
	SECTION 2.12.	  	Defaulted Interest	  	38
	SECTION 2.13.	  	Record Date	  	38
	SECTION 2.14.	  	Computation of Interest	  	39
	SECTION 2.15.	  	Predecessor Securities	  	40
	SECTION 2.16.	  	CUSIP Numbers	  	40
			
		  	ARTICLE III	  	
			
		  	Covenants	  	
			
	SECTION 3.01.	  	Certain Covenants Suspended	  	40
	SECTION 3.02.	  	Payment of Securities	  	41
	SECTION 3.03.	  	Limitation on Indebtedness	  	41

					
	SECTION 3.04.	  	Limitation on Restrictions on Distributions from Restricted Subsidiaries	  	44
	SECTION 3.05.	  	Limitation on Liens	  	46
	SECTION 3.06.	  	Limitation on Restricted Payments	  	46
	SECTION 3.07.	  	Limitation on Asset Sales	  	48
	SECTION 3.08.	  	Limitation on Transactions with Affiliates	  	51
	SECTION 3.09.	  	Limitation on Sale and Leaseback Transactions	  	52
	SECTION 3.10.	  	Designation of Restricted and Unrestricted Subsidiaries	  	53
	SECTION 3.11.	  	Canadian Withholding Taxes	  	54
	SECTION 3.12.	  	SEC Reports; Reports to Holders	  	55
	SECTION 3.13.	  	Compliance Certificates	  	56
	SECTION 3.14.	  	Notice of Defaults	  	56
			
		  	ARTICLE IV	  	
			
		  	Redemption of the Securities	  	
			
	SECTION 4.01.	  	Notice of Trustee	  	57
	SECTION 4.02.	  	Selection of Securities To Be Redeemed	  	57
	SECTION 4.03.	  	Notice of Redemption	  	58
	SECTION 4.04.	  	Effect of Notice of Redemption	  	59
	SECTION 4.05.	  	Deposit of Redemption Price	  	59
	SECTION 4.06.	  	Redemption for Changes in Canadian Withholding Taxes	  	60
			
		  	ARTICLE V	  	
			
		  	Right To Require Repurchase	  	
			
	SECTION 5.01.	  	Purchase of Securities at the Option of Holders upon a Change of Control	  	60
	SECTION 5.02.	  	Covenant To Comply with Securities Laws upon Purchase of Securities	  	62

					
	 	  	ARTICLE VI	  	 
	
	Merger, Amalgamation, Consolidation and Sale of Assets
			
	SECTION 6.01.	  	When Corporation May Merge, Amalgamate, Consolidate or Sell Assets	  	63
			
		  	ARTICLE VII	  	
			
		  	Defaults and Remedies	  	
			
	SECTION 7.01.	  	Events of Default	  	65
	SECTION 7.02.	  	Acceleration	  	67
	SECTION 7.03.	  	Other Remedies	  	68
	SECTION 7.04.	  	Waiver of Past Defaults	  	69
	SECTION 7.05.	  	Control by Majority	  	69
	SECTION 7.06.	  	Limitation on Suits	  	69
	SECTION 7.07.	  	Rights of Holders To Receive Payment	  	70
	SECTION 7.08.	  	Collection Suit by Trustee	  	70
	SECTION 7.09.	  	Trustee May File Proofs of Claim	  	71
	SECTION 7.10.	  	Application of Moneys Collected by Trustee	  	71
	SECTION 7.11.	  	Undertaking for Costs	  	72
	SECTION 7.12.	  	Parties May Be Restored to Former Position and Rights in Certain Circumstances	  	73
			
		  	ARTICLE VIII	  	
			
		  	Trustee	  	
	SECTION 8.01.	  	Duties of Trustee	  	73
	SECTION 8.02.	  	Rights of Trustee	  	74
	SECTION 8.03.	  	Individual Rights of Trustee	  	75
	SECTION 8.04.	  	Trustee’s Disclaimer	  	75
	SECTION 8.05.	  	Notice of Defaults	  	76
	SECTION 8.06.	  	Reports by Trustee to Holders	  	76
	SECTION 8.07.	  	Compensation and Indemnity	  	76
	SECTION 8.08.	  	Replacement of Trustee	  	77
	SECTION 8.09.	  	Successor Trustee by Merger, Etc.	  	79

					
	SECTION 8.10.	  	Eligibility; Disqualification	  	79
	SECTION 8.11.	  	Preferential Collection of Claims Against the Corporation	  	79
			
		  	ARTICLE IX	  	
	
	Discharge of Indenture; Defeasance
			
	SECTION 9.01.	  	Discharge of Liability on Securities; Defeasance	  	80
	SECTION 9.02.	  	Conditions to Defeasance	  	81
	SECTION 9.03.	  	Application of Trust Money	  	82
	SECTION 9.04.	  	Repayment to Corporation	  	82
	SECTION 9.05.	  	Indemnity for Government Obligations	  	83
	SECTION 9.06.	  	Reinstatement	  	83
			
		  	ARTICLE X	  	
			
		  	Amendments	  	
			
	SECTION 10.01.	  	Without Consent of Holders	  	83
	SECTION 10.02.	  	With Consent of Holders	  	84
	SECTION 10.03.	  	Compliance with Trust Indenture Act	  	85
	SECTION 10.04.	  	Revocation and Effect of Consents and Waivers	  	85
	SECTION 10.05.	  	Notation on or Exchange of Securities	  	86
	SECTION 10.06.	  	Trustee To Sign Amendments	  	86
	SECTION 10.07.	  	Payment for Consent	  	87
			
		  	ARTICLE XI	  	
			
		  	Miscellaneous	  	
			
	SECTION 11.01.	  	Trust Indenture Act Controls	  	87
	SECTION 11.02.	  	Notices	  	87
	SECTION 11.03.	  	Communication by Holders with Other Holders	  	89
	SECTION 11.04.	  	Certificate and Opinion as to Conditions Precedent	  	89

					
	SECTION 11.05.	  	Statements Required in Certificate or Opinion	  	89
	SECTION 11.06.	  	Rules by Trustee and Agents	  	89
	SECTION 11.07.	  	No Recourse Against Others	  	89
	SECTION 11.08.	  	Duplicate Originals	  	90
	SECTION 11.09.	  	Governing Law	  	90
	SECTION 11.10.	  	Successors	  	90
	SECTION 11.11.	  	Severability	  	90
	SECTION 11.12.	  	Consent to Jurisdiction and Service	  	90
	SECTION 11.13.	  	Counterpart Originals	  	92
	SECTION 11.14.	  	Benefits of Indenture	  	92
			
	EXHIBIT A	  	Form of 2016 Debenture	  	A–l

 EXECUTION COPY 
 INDENTURE dated as of July 31, 1996, between DOMTAR INC., a corporation incorporated under the Canada Business Corporations
Act (the “Corporation”), as issuer (the “Issuer”) and THE BANK OF NEW YORK, as trustee (the “Trustee”). 
 Each Party hereto agrees, for the equal and ratable benefit (except as otherwise provided in this Indenture) of the Holders of the Corporation’s 9- 1/2% Debentures Due 2016 (the “Securities”), as follows: 
 ARTICLE I 
 Definitions and Incorporation by Reference 
 SECTION 1.01. Definitions. The terms defined in this Section (except as herein otherwise expressly provided or unless the context otherwise
requires) for all purposes of this Indenture shall have the respective meanings specified in this Section. All other terms used in this Indenture which are defined in the TIA or which are by reference therein defined in the Securities Act shall have
the meanings (except as herein otherwise expressly provided or unless the context otherwise requires) assigned to such terms in the TIA and in the Securities Act as in force at the date of this Indenture as originally executed. 
 “Additional Assets” means (i) any Property (other than cash, cash equivalents or securities) to be owned by the Corporation or a
Restricted Subsidiary and used in a Related Business, (ii) the costs of improving or developing any Property owned by the Corporation or a Restricted Subsidiary which is used in a Related Business and (iii) Investments in any other Person
engaged primarily in a Related Business (including the acquisition from third parties of Capital Stock of such Person) as a result of which such other Person becomes a Restricted Subsidiary or is merged or consolidated with or into the Corporation
or any Restricted Subsidiary. 
 “Affiliate” means, with respect to any specified Person, any other Person directly or
indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, “control” when used with respect to any 

 
specified Person means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing. 
 “Agent” means any Registrar, Paying Agent or agent for service of notices and demands. 
 “Asset
Sale” means, with respect to any Person, any transfer, conveyance, assignment, sale, lease or other disposition (including dispositions pursuant to any amalgamation, consolidation or merger) by such Person or any of its Restricted
Subsidiaries in any single transaction or series of transactions of (a) shares of Capital Stock or other ownership interests in another Person (including, with respect to the Corporation and its Restricted Subsidiaries, Capital Stock of
Unrestricted Subsidiaries) or (b) any other Property of such Person or any of its Restricted Subsidiaries; provided, however, that the term “Asset Sale” shall not include: (i) the sale or transfer of Property in the
ordinary course of business consistent with past practice; (ii) the liquidation of Property received in settlement of debts owing to such Person or any of its Subsidiaries as a result of foreclosure, perfection or enforcement of any Lien or
debt, which debts were owing to such Person or any of its Subsidiaries in the ordinary course of business; (iii) when used with respect to the Corporation, any asset disposition permitted pursuant to Section 6.01 which constitutes a
disposition of all or substantially all of the Corporation’s Property; (iv) the sale or transfer of any Property by such Person or any of its Restricted Subsidiaries to such Person or any of its Restricted Subsidiaries; (v) sales of
accounts receivable and related assets of the type specified in the definition of “Qualified Receivables Transaction” to a Receivables Subsidiary; (vi) transfers of accounts receivable and related assets of the type specified in the
definition of “Qualified Receivables Transaction” (or a fractional undivided interest therein) by a Receivables Subsidiary in a Qualified Receivables Transaction; (vii) a disposition in the form of a Restricted Payment permitted to be
made pursuant to Section 3.06; (viii) the sale of Temporary Cash Investments owned by such Person in the ordinary course of business; (ix) a Sale and Leaseback Transaction subject to the terms of Section 3.09; (x) the sale
by the Corporation of its St. Catharines, Ontario mill and/or its Beauharnois, Québec mill; (xi) operating leases with a term of two years 

  

 2 

 
or less; (xii) the sale or transfer of Property in which the aggregate gross proceeds (including the fair market value of any Property or other assets
received and any Indebtedness assumed in connection with such sale or transfer) do not exceed $1 million for any such transaction or series of related transactions; and (xiii) any Investments by such Person. 
 “Attributable Indebtedness” means Indebtedness deemed to be Incurred in respect of a Sale and Leaseback Transaction and shall be, at the
date of determination, the present value (discounted at the actual rate of interest implicit in such transaction, compounded annually) of the total obligations of the lessee for rental payments during the remaining term of the lease included in such
Sale and Leaseback Transaction (including any period for which such lease has been extended), excluding payments for insurance, taxes, assessments, utilities, operating and labor costs and similar charges. 
 “Average Life” means, as of the date of determination, with respect to any Indebtedness or Preferred Stock, the quotient obtained by
dividing (i) the sum of the products of the numbers of years (rounded to the nearest one-twelfth of one year) from the date of determination to the dates of each successive scheduled principal payment of such Indebtedness or redemption or
similar payment with respect to such Preferred Stock multiplied by the amount of such payment by (ii) the sum of all such payments. 
 “Bankruptcy Law” means the Bankruptcy and Insolvency Act (Canada), the Companies Creditors Arrangement Act (Canada) , the Winding-up Act (Canada) or any other Canadian federal or provincial law
or the law of any other jurisdiction relating to bankruptcy, insolvency, winding-up, liquidation, reorganization or relief of debtors. 
 “Board of Directors” means the board of directors or any authorized committee thereof responsible for the management of the business and affairs of the Corporation. 
 “Board Resolution” means a copy of a resolution certified by the Secretary or an Assistant Secretary of the Corporation to have been
duly adopted by the Board of Directors, to be in full force and effect on the date of such certification and delivered to the Trustee. 
  

 3 

 “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday that is not a
day on which banking institutions in the City of New York or the City of Montreal are authorized or obligated by law, regulation or executive order to close. 
 “Capital Stock” means, with respect to any Person, any and all shares or other equivalents (however designated) of corporate stock, partnership interests or any other participation, right, warrants,
options or other interest in the nature of an equity interest in such Person, but excluding any debt security convertible or exchangeable into such equity interest. 
 “Capital Stock Sale Proceeds” means the aggregate Net Cash Proceeds received by the Corporation from the issue or sale (other than to a Subsidiary of the Corporation or an employee stock ownership
plan or trust established by the Corporation or any Subsidiary of the Corporation, unless and only to the extent that, after taking into account any related Incurrence of Indebtedness by the Corporation or any Subsidiary of the Corporation, the
issue or sale to an employee stock ownership plan or trust results in and has the same financial impact to the Corporation as if made to an independent third party) by the Corporation of any class of its Capital Stock (other than Disqualified Stock)
after the Issue Date. 
 “Capitalized Lease Obligations” means Indebtedness represented by obligations under a lease that is
required to be capitalized for financial reporting purposes in accordance with GAAP and the amount of such Indebtedness shall be the capitalized amount of such obligations determined in accordance with GAAP. 
 “Change of Control” means such time as (i)(A) a “person” or “group” (within the meaning of Sections 13(d) and 14(d)
of the Exchange Act), other than the Current Equity Holders and their respective Affiliates that are other agencies of the Crown in right of Québec or corporations directly or indirectly wholly owned by the Government of Québec,
becomes the “beneficial owner” (as defined in Rule 13d-3 and 13d-5 under the Exchange Act) of more than (x) 35% of the total voting rights attaching to the then outstanding Voting Capital Stock of the Corporation and (y) the
total voting rights attached to the then outstanding Voting Capital Stock of the Corporation beneficially owned by the Current Equity Holders and their 

  

 4 

 
respective Affiliates that are other agencies of the Crown in right of Québec or corporations directly or indirectly wholly owned by the Government of
Québec, and (B) the Current Equity Holders and their respective Affiliates that are other agencies of the Crown in right of Québec or corporations directly or indirectly wholly owned by the Government of Québec do not have
the right or the ability by voting right, contract or otherwise to elect or designate for election a majority of the Board of Directors; (ii) during any period of two consecutive calendar years, individuals who at the beginning of such period
constituted the Board of Directors (together with any new directors whose election by the Board of Directors or whose nomination for election by the Corporation’s shareholders was approved by a vote of at least two-thirds of the directors then
still in office who either were directors at the beginning of such period or whose election or nomination for election was previously so approved or approved by the Current Equity Holders and their respective Affiliates that are other agencies of
the Crown in right of Québec or corporations directly or indirectly wholly owned by the Government of Québec at a time when they have the right or ability referred to in clause (i)(B) of this definition) cease for any reason to
constitute a majority of the directors then in office; or (iii)(A) the Corporation amalgamates or consolidates with or merges into any other Person or sells, conveys, transfers or leases all or substantially all of its assets to any Person or
(B) any Person amalgamates or consolidates with or merges into the Corporation, in either event pursuant to a transaction in which any Voting Capital Stock of the Corporation outstanding immediately prior to the effectiveness thereof is
reclassified or changed into or exchanged for cash, securities or other property, unless, in the case of (A) or (B), as applicable, pursuant to such transaction such securities are changed into or exchanged for, in addition to any other
consideration, securities of the surviving corporation that represent immediately after such transaction, at least a majority of the aggregate voting power of the Voting Capital Stock of the surviving corporation. 
 “Change of Control Triggering Event” means the occurrence of both a Change of Control and a Rating Decline. 
 “Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a maturity
comparable to the remaining term of the Securities that would be utilized, at 
  

 5 

 
the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the
remaining term of such Securities. 
 “Comparable Treasury Price” means, with respect to any redemption date, (i) the
average of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) on the third business day preceding such redemption date, as set forth in the daily statistical release (or any
successor release) published by the Federal Reserve Bank of New York and designated “Composite 3:30 p.m. Quotations for U.S. Government Securities” or (ii) if such release (or any successor release) is not published or does not
contain such prices on such business day, (A) the average of the Reference Treasury Dealer Quotations for such redemption date, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (B) if the Trustee
obtains fewer than three such Reference Treasury Dealer Quotations, the average of all such Quotations. 
 “Consolidated Current
Liabilities” as of the date of determination means the aggregate amount of liabilities of the Corporation and its consolidated Restricted Subsidiaries which may properly be classified as current liabilities, on a consolidated basis, after
eliminating (i) all intercompany items between the Corporation and any Restricted Subsidiary and (ii) all current maturities of long-term Indebtedness, all as determined in accordance with GAAP consistently applied. 
 “Consolidated Fixed Charge Coverage Ratio” means, as of the date of the transaction giving rise to the need to calculate the
Consolidated Fixed Charge Coverage Ratio (the “Transaction Date”), the ratio of (i) the aggregate amount of EBITDA of the Corporation and its consolidated Restricted Subsidiaries for the four full fiscal quarters immediately prior to
the Transaction Date to (ii) the aggregate Consolidated Interest Expense of the Corporation and its Restricted Subsidiaries that is anticipated to accrue during a period consisting of the fiscal quarter in which the Transaction Date occurs and
the three fiscal quarters immediately subsequent thereto (based upon the pro forma amount and maturity of, and interest payments in respect of, Indebtedness of the Corporation and its Restricted Subsidiaries expected by the Corporation to be
outstanding on the Transaction Date, taking into account in such pro 

  

 6 

 
forma calculation the receipt and application of the proceeds of any Indebtedness Incurred on such date), assuming for the purposes of this measurement the
continuation of market interest rates prevailing on the Transaction Date and base interest rates in respect of floating interest rate obligations equal to the base interest rates on such obligations in effect as of the Transaction Date;
provided that if the Corporation or any of its Restricted Subsidiaries is party to any Interest Rate Agreement which would have the effect of changing the interest rate on any Indebtedness of the Corporation or any of its Restricted
Subsidiaries for such four-quarter period (or a portion thereof), the resulting rate shall be used for such four quarter period or portion thereof; provided further that any Consolidated Interest Expense with respect to Indebtedness Incurred
or retired by the Corporation or any of its Restricted Subsidiaries during the fiscal quarter in which the Transaction Date occurs shall be calculated as if such Indebtedness was so Incurred or retired on the first day of the fiscal quarter in which
the Transaction Date occurs. In addition, (x) if since the beginning of the four full fiscal quarter period preceding the Transaction Date, the Corporation or any of its Restricted Subsidiaries shall have engaged in any Asset Sale, EBITDA for
such period shall be reduced by an amount equal to the EBITDA (if positive), or increased by an amount equal to the EBITDA (if negative), directly attributable to the assets which are the subject of such Asset Sale for such period calculated on a
pro forma basis as if such Asset Sale and any related retirement of Indebtedness had occurred on the first day of such period or (y) if since the beginning of the four fiscal quarter period preceding the Transaction Date, the Corporation or any
of its Restricted Subsidiaries shall have acquired any material assets (including a Restricted Subsidiary), or if the transaction giving rise to the need to calculate the Consolidated Fixed Charge Coverage Ratio involves the acquisition of any
material assets or a Restricted Subsidiary, EBITDA shall be calculated on a pro forma basis as if the acquisition of such assets (or such Restricted Subsidiary), had occurred on the first day of such four fiscal quarter period. 
 “Consolidated Interest Expense” means, for any Person (or in the case of the Corporation, the Corporation and its Restricted
Subsidiaries), for any period, the amount of interest in respect of Indebtedness (including amortization of original issue discount, fees payable in connection with financings, including commitment, 

  

 7 

 
availability and similar fees, and amortization of debt issuance costs, non-cash interest payments on any Indebtedness and the interest portion of any
deferred payment obligation and after taking into account the effect of elections made under, and the net costs (excluding realized gains or losses in connection with Exchange Rate Agreements) associated with, any Hedging Obligation, however
denominated, with respect to such Indebtedness), the amount of dividends in respect of Disqualified Stock of such Person, the amount of Preferred Stock dividends in respect of all Preferred Stock of Subsidiaries of such Person held by Persons other
than such Person or a Subsidiary of such Person, commissions, discounts and other fees and charges owed with respect to letters of credit and bankers’ acceptance financing, the amount of interest on Indebtedness Incurred pursuant to clause
(iii) of the definition of Indebtedness, the interest component of rentals in respect of any Capitalized Lease Obligation or Sale and Leaseback Transaction paid, accrued or scheduled to be paid or accrued by such Person during such period, but
excluding any gains or losses in respect of Indebtedness denominated in foreign currency as a result of fluctuations in exchange rates and any losses on repayment of any Indebtedness, determined on a consolidated basis in accordance with GAAP and
the cash contributions to any employee stock ownership plan or similar trust to the extent such contributions are used by such plan or trust to pay interest or fees to any Person (other than the Corporation) in connection with Indebtedness Incurred
by such plan or trust. For purposes of this definition, interest on a Capitalized Lease Obligation or a Sale and Leaseback Transaction shall be deemed to accrue at an interest rate reasonably determined by such Person to be the rate of interest
implicit in such Capitalized Lease Obligation or Sale and Leaseback Transaction in accordance with GAAP consistently applied. 
 “Consolidated Net Assets” as of any date of determination, means the total amount of assets (less accumulated depreciation and amortization, allowances for doubtful receivables, other applicable reserves and other properly
deductible items) which would appear on a consolidated balance sheet of the Corporation and its consolidated Restricted Subsidiaries, determined on a Consolidated basis in accordance with GAAP, and after giving effect to purchase accounting and
after deducting therefrom Consolidated Current Liabilities and, to the extent otherwise included, the amounts of: (i) minority interests in consolidated subsidiaries held by Persons other than the 

  

 8 

 
Corporation or a Restricted Subsidiary; (ii) any revaluation or other write-up in book value of assets subsequent to the Issue Date as a result of a
change in the method of valuation in accordance with GAAP consistently applied; (iii) treasury stock; (iv) cash set apart and held in a sinking or other analogous fund established for the purpose of redemption or other retirement of
Capital Stock to the extent such obligation is not reflected in Consolidated Current Liabilities; and (v) Investments in and assets of Unrestricted Subsidiaries. 
 “Consolidated Net Income” of a Person means for any period, the net income (loss) of such Person and its Subsidiaries; provided, however, that there shall not be included in such
Consolidated Net Income (i) with respect to the Corporation, any net income (loss) of any Person if such Person is not a Restricted Subsidiary, except that (a) subject to the limitations contained in clause (iv) below, the
Corporation’s equity in the net income of any such Person for such period shall be included in such Consolidated Net Income up to the aggregate amount of cash actually distributed by such Person during such period to the Corporation or a
Restricted Subsidiary as a dividend or other distribution (subject, in the case of a dividend or other distribution to a Restricted Subsidiary, to the limitations contained in clause (iii) below) and (b) the Corporation’s equity in a
net loss of any such Person (other than an Unrestricted Subsidiary) for such period shall be included in determining such Consolidated Net Income, (ii) any net income (loss) of any Person acquired by such Person or a Subsidiary of such Person
in a pooling of interests transaction for any period prior to the date of such acquisition (although such net income (loss) shall be taken into account for purposes of the definition of “Consolidated Fixed Charge Coverage Ratio” and the
pro forma calculations provided for therein), (iii) with respect to the Corporation, any net income (loss) of any Restricted Subsidiary if such Subsidiary is subject to restrictions, directly or indirectly, on the payment of dividends or the
making of distributions by such Restricted Subsidiary, directly or indirectly, to the Corporation, except that (A) subject to the limitations contained in (iv) below, the Corporation’s equity in the net income of any such Restricted
Subsidiary for such period shall be included in such Consolidated Net Income up to the aggregate amount of cash that could have been distributed by such Restricted Subsidiary during such period to the Corporation or another Restricted Subsidiary as
a dividend (subject, in the case of 

  

 9 

 
a dividend to another Restricted Subsidiary, to the limitation contained in this clause) and (B) the Corporation’s equity in a net loss of any such
Restricted Subsidiary for such period shall be included in determining such Consolidated Net Income, (iv) any gain (or loss) realized upon the sale or other disposition of any Property of such Person or its consolidated Subsidiaries (including
pursuant to any Sale and Leaseback Transaction) which is not sold or otherwise disposed of in the ordinary course of business and any gain (or loss) realized upon the sale or other disposition of any Capital Stock of any Person, (v) any
extraordinary gain or loss (or any unusual or non-recurring items or any losses incurred, in each case in respect of the purchase by the Corporation of any of its Indebtedness) and (vi) the cumulative effect of a change in accounting
principles. 
 “Consolidated Net Tangible Assets” as of any date of determination, means the total amount of assets (less
accumulated depreciation and amortization, allowances for doubtful receivables, other applicable reserves and other properly deductible items) which would appear on a consolidated balance sheet of the Corporation and its consolidated Restricted
Subsidiaries, determined on a consolidated basis in accordance with GAAP, and after giving effect to purchase accounting and after deducting therefrom Consolidated Current Liabilities and, to the extent otherwise included, the amounts of:
(i) minority interests in consolidated Subsidiaries held by Persons other than the Corporation or a Restricted Subsidiary; (ii) excess of cost over fair value of assets of businesses acquired, as determined in good faith by the Board of
Directors; (iii) any revaluation or other write-up in book value of assets subsequent to the Issue Date as a result of a change in the method of valuation in accordance with GAAP consistently applied; (iv) unamortized debt discount and
expenses and other unamortized deferred charges, goodwill, patents, trademarks, service marks, trade names, copyrights, licenses, organization or developmental expenses and other intangible items; (v) treasury stock; (vi) cash set apart
and held in a sinking or other analogous fund established for the purpose of redemption or other retirement of Capital Stock to the extent such obligation is not reflected in Consolidated Current Liabilities; and (vii) Investments in and assets
of Unrestricted Subsidiaries. 
 “Consolidated Net Worth” means the total of the amounts shown on the balance sheet of the
Corporation and 

  

 10 

 
the Restricted Subsidiaries, determined on a consolidated basis, as of the end of the most recent fiscal quarter of the Corporation ended at least 45 days
prior to the taking of any action for the purpose of which the determination is being made, as (i) the stated capital with respect to the Capital Stock of the Corporation plus (ii) contributed capital and surplus relating to such Capital
Stock plus (iii) any retained earnings or earned surplus less (A) any accumulated deficit and (B) any amounts attributable to Disqualified Stock. 
 “Consolidation” means the consolidation of the accounts of each of the Restricted Subsidiaries with those of the Corporation in accordance with GAAP consistently applied; provided,
however, that “Consolidation” will not include consolidation of the accounts of any Unrestricted Subsidiary, but the interest of the Corporation or any Restricted Subsidiary in an Unrestricted Subsidiary will be accounted for as an
investment. The term “Consolidated” has a correlative meaning. 
 “Corporate Trust Office” means the office of the
Trustee located in New York, New York, at which at any particular time its corporate services business shall be principally administered, which office at the date of execution of this Indenture is located at 101 Barclay Street, New York, New York
10286, except that for purposes of the presentation of Securities for payment or registration of transfer or exchange, such term means the office or agency of the Trustee at which at any particular time the corporate agency business of the Trustee
shall be conducted, which office at the date of execution of this Indenture is located at 101 Barclay Street, New York, New York 10286. 
 “Credit Agreement” means the $450,000,000 Credit Agreement among the Corporation, as borrower, and Domtar Industries Inc., Domtar Gypsum Inc., Norkraft Quévillon Inc., La Compagnie J.B. Rolland & Fils, as
Material Subsidiaries, and two Canadian banks, as Administrative Agents, and certain Canadian banks, as Landers, as in effect on the date of the Indenture. 
 “Current Equity Holders” means Société générale de financement du Québec (“SGF”), Caisse de dépot et placement du Québec (“Caisse”)
or any other agency of the Crown in right of Québec. 
  

 11 

 “Default” means any event which is, or after notice or passage of time or both would be,
an Event of Default. 
 “Depositary” means The Depository Trust Company, its nominees, and their respective successors.

 “Disqualified Stock” of a Person means Redeemable Stock of such Person as to which the maturity, mandatory redemption,
conversion or exchange or redemption at the option of the holder thereof occurs, or may occur, on or prior to the first anniversary of the Stated Maturity of the Securities. 
 “EBITDA” means, for any Person, for any period, an amount equal to (A) the sum of (i) Consolidated Net income for such period,
plus (ii) the provision for taxes for such period based on income or profits to the extent such income or profits were included in computing Consolidated Net Income and any provision for taxes utilized in computing net loss under clause
(i) hereof, plus (iii) Consolidated Interest Expense for such period, plus (iv) depreciation for such period on a consolidated basis, plus (v) amortization of intangibles for such period on a consolidated basis, plus
(vi) any other non-cash items reducing Consolidated Net Income for such period, minus (B) all non-cash items increasing Consolidated Net Income for such period, all for such Person and its Subsidiaries determined in accordance with GAAP
consistently applied, except that with respect to the Corporation each of the foregoing items shall be determined on a consolidated basis with respect to the Corporation and its Restricted Subsidiaries only. 
 “Event of Default” has the meaning set forth under Section 7.01. 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 “Exchange Rate Agreement” means, for any Person, any foreign exchange contract, currency swap agreement or other similar agreement as to
which such Person is a party or a beneficiary, designed to provide protection against fluctuations in currency exchange rates, incurred in the ordinary course of business. 
 “Existing Lines of Business” means the lines of business of the Corporation and its Subsidiaries described 

  

 12 

 
in the 1995 Annual Information Form under “Item 3—Narrative Description of the Business” and any businesses directly related or ancillary
thereto. 
 “GAAP” means accounting principles generally accepted in Canada as in effect on the Issue Date, unless stated
otherwise. 
 “Guarantee” means with respect to any Person, without duplication, any obligation, contingent or otherwise
(other than an endorsement for collection or deposit in the ordinary course of business), directly or indirectly guaranteeing any Indebtedness of any Person and any obligation, direct or indirect, contingent or otherwise, (i) to purchase or pay
(or advance or supply funds for the purchase or payment of) such Indebtedness or (ii) entered into for the purpose of assuring in any other manner the obligee of such indebtedness of the payment thereof or to protect such obligee against loss
in respect to such Indebtedness (in whole or in part). The term “Guarantee” used as a verb has a corresponding meaning. 
 “Hedging Obligation” means, for any Person, any obligation of such Person pursuant to any Interest Rate Agreement, Exchange Rate Agreement, commodity swap agreement, commodity option, forward agreement or any other similar
agreement or arrangement. 
 “Holder” means the person in whose name a Security is registered on the register maintained by
the Registrar as provided in Section 2.03 . 
 “Incur” means, with respect to any Indebtedness or other obligation of
any Person, to create, issue, incur (by merger, conversion, exchange or otherwise), extend, assume, Guarantee or become liable in respect of such indebtedness or other obligation or the recording, as required pursuant to GAAP or otherwise, of any
such Indebtedness or obligation on the balance sheet of such Person (and “incurrence”, “Incurred”, “Incurrable” and “Incurring” shall have meanings correlative to the foregoing); provided,
however, that a change in GAAP that results in an obligation of such Person that exists at such time, and is not theretofore classified as Indebtedness, becoming Indebtedness shall not be deemed an Incurrence of such Indebtedness; provided
further that, solely for purposes of determining compliance with Section 3.03, amortization of debt discount shall not be deemed to be the Incurrence of Indebtedness; provided that 

  

 13 

 
in the case of Indebtedness sold at a discount, the amount of such Indebtedness Incurred shall at all times be the aggregate principal amount at Stated
Maturity. 
 “Indebtedness” means (without duplication), with respect to any Person, any indebtedness, secured or unsecured,
contingent or otherwise, which is for borrowed money (whether or not the recourse of the lender is to the whole of the assets of such Person or only to a portion thereof), or evidenced by bonds, notes, debentures or similar instruments or
representing the balance deferred and unpaid of the purchase price of any Property (excluding any balances that constitute subscriber advance payments and deposits, accounts payable or trade payables, and other accrued liabilities arising in the
ordinary course of business) if and to the extent any of the foregoing indebtedness would appear as a liability upon a balance sheet of such Person prepared in accordance with GAAP (and, in the case of indebtedness any portion of which is required
to be presented as an equity element upon a balance sheet of such Person prepared in accordance with GAAP, the amount of such equity element; provided that the amount of Indebtedness in respect of any such indebtedness shall not exceed the aggregate
principal amount then outstanding of such indebtedness), and shall also include, to the extent not otherwise included (i) any Capitalized Lease Obligations, (ii) Indebtedness of other Persons secured by a Lien to which the Property owned
or held by such Person is subject, whether or not the obligation or obligations secured thereby shall have been assumed (the amount of such Indebtedness being deemed to be the lesser of the value of such Property or the amount of the Indebtedness so
secured), (iii) Guarantees of Indebtedness of other Persons, (iv) any Disqualified Stock (for purposes of this definition, the amount of Indebtedness in respect of Disqualified Stock shall be the amount of all obligations with respect to
the redemption, repayment or other repurchase of such Disqualified Stock), (v) any Attributable Indebtedness, (vi) all obligations of such Person in respect of letters of credit, banker’s acceptances or other similar instruments or
credit transactions (including reimbursement obligations with respect thereto), other than obligations with respect to letters of credit or similar instruments securing obligations (other than obligations described in this definition) entered into
in the ordinary course of business of such Person to the extent such letters of credit are not drawn upon or, if and to the extent drawn upon, such drawing is reimbursed no later than the third Business Day following 
  

 14 

 
receipt by such Person of a demand for reimbursement following payment on the letter of credit, (vii) in the case of the Corporation, Preferred Stock of
its Restricted Subsidiaries and (viii) to the extent not otherwise included in clauses (i) through (vii) of this paragraph, any payment obligations of any such Person at the time of determination under any Hedging Obligation. For
purposes of this definition, the maximum fixed repurchase price of any Disqualified Stock that does not have a fixed repurchase price shall be calculated in accordance with the terms of such Disqualified Stock as if such Disqualified Stock were
repurchased on any date on which Indebtedness shall be required to be determined pursuant to the Indenture; provided, however, that if such Disqualified Stock is not then permitted to be repurchased, the repurchase price shall be the
book value of such Disqualified Stock. The amount of Indebtedness of any Person at any date shall be the outstanding balance at such date of all unconditional obligations as described above and the maximum liability of any contingent obligations in
respect thereof at such date. For purposes of determining compliance with Section 3.03, in the event that an item of Indebtedness meets the criteria of more than one of the types of Indebtedness described in the above clauses or more than one
of the clauses of the definition of “Permitted Indebtedness”, the Corporation, in its sole discretion, shall not be required to include the amount and type of such Indebtedness in more than one of such clauses and the amount of
Indebtedness, other than Disqualified Stock, issued at a price that is less than the principal amount thereof shall be equal at the relevant time to the amount of the liability in respect thereof determined in accordance with GAAP. 
 “Indenture” means this Indenture, as amended, supplemented or modified from time to time. 
 “Independent Appraiser” means an investment banking firm of national standing with experience in underwriting debt and/or equity
securities for operators of Related Businesses or any third party appraiser of national standing; provided, however, that such firm or appraiser is not an Affiliate of the Corporation. 
 “Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the Trustee at the direction of the
Corporation. 
  

 15 

 “Interest Rate Agreement” means, for any Person, any interest rate swap agreement,
interest rate cap agreement, interest rate collar agreement or other similar agreement designed to provide protection against fluctuations in interest rates. 
 “Internal Revenue Code” means the United States Internal Revenue Code of 1986, as amended. 
 “Investment” by any Person means any direct or indirect loan, advance or other extension of credit or capital contribution (by means of transfers of cash or other Property to others or payments for Property or services for
the account or use of others, or otherwise) to, or Incurrence of a Guarantee of any obligation of, or purchase or acquisition of Capital Stock, bonds, notes, debentures or other securities or evidence of Indebtedness issued by, any other Person.

 “Investment Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) and BBB- (or the equivalent) by
Moody’s Investors Service, Inc. (or any successor to the rating agency business thereof) and Standard & Poor’s Rating Group (or any successor to the rating agency business thereof), respectively, or the equivalent thereof by any
other Rating Agencies contemplated by the definition thereof. 
 “Investment Grade Status” shall be deemed to have been
reached on the date that the rating assigned to the Securities by all Rating Agencies is an Investment Grade Rating. 
 “Issue
Date” means the date on which the Securities are initially issued. 
 “Lien” means with respect to any Property of
any Person, any mortgage or deed of trust, pledge, hypothecation, assignment, deposit arrangement, security interest, lien, charge, encumbrance, preference, priority, or other security agreement or preferential arrangement of any kind or nature
whatsoever on or with respect to such Property (including any capitalized Lease Obligation, conditional sale or other title retention agreement having substantially the same economic effect as any of the foregoing or any Sale and Leaseback
Transaction). 
  

 16 

 “Net Available Cash” from an Asset Sale means cash payments received therefrom
(including any cash payments received by way of deferred payment of principal pursuant to a note or installment receivable or otherwise, but only as and when received, but excluding any other consideration received in the form of assumption by the
acquiring Person of Indebtedness or other obligations relating to such Properties or assets or received in any other non-cash form) in each case net of, without duplication, (i) all legal, title and recording tax expenses, commissions and other
fees and expenses incurred, and all Federal, state, provincial, foreign and local taxes required to be accrued as a liability under GAAP, as a consequence of such Asset Sale, (ii) all payments made on any Indebtedness which is secured by any
assets subject to such Asset Sale, in accordance with the terms of any agreement relating to such Indebtedness or of any Lien upon or other security agreement of any kind with respect to such assets, or which must by its terms, or in order to obtain
a necessary consent to such Asset Sale, or by applicable law be repaid out of the proceeds from such Asset Sale, (iii) all distributions and other payments required to be made to minority interest holders in Subsidiaries or joint ventures as a
result of such Asset Sale and all amounts segregated from the general funds of the Corporation for payment to such minority interest holders, and (iv) all amounts provided by the Corporation or its Subsidiaries as a reserve, in accordance with
GAAP, against any liabilities associated with such Asset Sale and retained by the Corporation or a Subsidiary thereof, after such Asset Sale (including in respect of environmental, pension, other post-employment liabilities and liabilities in
respect of indemnification claims associated with such Asset Sale). 
 “Net Cash Proceeds” with respect to any issuance or
sale of Capital Stock, means the cash proceeds of such issuance or sale, net of attorneys’ fees, accountants’ fees, underwriters’ or placement agents’ fees, discounts or commissions and brokerage, consultant and other fees
actually incurred in connection with such issuance or sale and net of taxes paid or payable as a result thereof. 
 “Norkraft” means Norkraft Quévillon Inc., a corporation organized under the laws of Canada. 
 “Notes” means the Corporation’s 8-3/4% Notes due 2006. 
  

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 “Officer” means any of the Treasurer, Assistant Treasurer, any Senior Vice President or
Vice President, the Chief Financial Officer or the Chief Executive Officer. 
 “Officers’ Certificate” means a
certificate signed by two Officers at least one of whom shall be the principal executive officer or principal financial officer of the Corporation. 
 “Opinion of Counsel” means a written opinion from legal counsel who is acceptable to the Trustee. The counsel may be counsel to the Corporation or the Trustee. 
 “Permitted Liens” means (i) Liens on the Property of the Corporation or any Restricted Subsidiary existing on the Issue Date;
(ii) Liens on the Property of the Corporation or any Restricted Subsidiary to secure any extension, renewal, refinancing, replacement or refunding (or successive extensions, renewals, refinancings, replacements or refundings), in whole or in
part, of any Indebtedness secured by Liens referred to in any of clauses (i), (vi), (ix) or (xii) of this definition; provided, however, that any such Lien will be limited to all or part of the same Property subject to the
original Lien (plus improvements on or additions to such Property) or substitute Property of the Corporation or the Restricted Subsidiary, as applicable, the fair market value of which is determined in good faith by the Board of Directors (as
evidenced by a Board Resolution) and, in the case of Property with a fair market value of US $10 million or more, an Independent Appraiser to be substantially the same as, or less than, the fair market value of the Property substituted and the
aggregate principal amount of Indebtedness that is secured by such Lien will not be increased to an amount greater than the sum of (A) the outstanding principal amount, or, if greater, the committed amount, of the Indebtedness described under
clauses (i), (vi), (ix) or (xii) at the time the original Lien became a Permitted Lien under this Indenture and (B) an amount necessary to pay any premiums, fees and other expenses Incurred by the Corporation in connection with such
refinancing, refunding, extension, renewal or replacement; (iii) Liens for taxes, assessments or governmental charges or levies on the Property of the Corporation or any Restricted Subsidiary if the same shall not at the time be delinquent or
thereafter can be paid without penalty, or are being contested in good faith and by appropriate proceedings or Liens for the excess of the amount of any past due taxes for which a final 

  

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assessment has not been received over the amount of such taxes as estimated and paid; (iv) Liens imposed by law, such as carriers’,
warehousemen’s and mechanics’ Liens and other similar Liens on the Property of the Corporation or any Restricted Subsidiary arising in the ordinary course of business which secure payment of obligations not more than 60 days past due or
are being contested in good faith and by appropriate proceedings; (v) Liens on the Property of the Corporation or any Restricted Subsidiary Incurred in the ordinary course of business to secure performance of obligations with respect to
statutory or regulatory requirements, performance or return-of-money bonds, surety bonds or other obligations of a like nature and Incurred in a manner consistent with industry practice; (vi) Liens on Property at the time the Corporation or any
Restricted Subsidiary acquired such Property, including any acquisition by means of a merger or consolidation with or into the Corporation or such Restricted Subsidiary; provided, however, that such Lien shall not have been Incurred in
anticipation of such transaction or series of related transactions pursuant to which such Property was acquired by the Corporation or any Restricted Subsidiary; provided further, however, that such Lien may not extend to any other
Property (other than improvements on or additions to such Property) owned by the Corporation or any other Restricted Subsidiary; (vii) other Liens on the Property of the Corporation or any Restricted Subsidiary incidental to the conduct of
their respective businesses or the ownership of their respective Properties which were not created in connection with the Incurrence of Indebtedness or the obtaining of advances or credit and which do not in the aggregate materially detract from the
value of their respective Properties or materially impair the use thereof in the operation of their respective businesses; (viii) pledges or deposits by the Corporation or any Restricted Subsidiary under workmen’s compensation laws,
unemployment insurance laws or similar legislation, or good faith deposits in connection with bids, tenders, contracts (other than for the payment of Indebtedness) or leases to which the Corporation or any Restricted Subsidiary is a party, or
deposits to secure public or statutory obligations of the Corporation or any Restricted Subsidiary, or deposits for the payment of rent, in each case incurred in the ordinary course of business; (ix) Liens on the Property of a Person at the
time such Person becomes a Restricted Subsidiary; provided, however, that any such Lien may not extend to any other Property (other than improvements on or additions to such Property) of the Corporation or any other 
  

 19 

 
Restricted Subsidiary which is not a direct Subsidiary of such Person; provided further, however, that any such Lien shall not have been
incurred in anticipation of or in connection with the transaction or series of related transactions pursuant to which such Person became a Restricted Subsidiary; (x) reservations, limitations, provisos and conditions expressed in any original
grants from the Crown which do not materially adversely impair the use of the subject property by the Corporation or a Subsidiary as such property is used as of the Issue Date; (xi) Liens securing Purchase Money Obligations incurred in
compliance with the provisions of this Indenture, limited to the property acquired in the transaction in which the Purchase Money Obligation was incurred; (xii) Liens securing Indebtedness (and other related obligations) under the Credit
Agreement; (xiii) Liens on the assets of a Receivables Subsidiary in a Qualified Receivables Transaction; (xiv) servitudes, licenses, easements, rights-of-way and rights in the nature of easements (including servitudes, licenses,
easements, rights-of-way and rights in the nature of easements for sidewalks, public ways, sewers, drains, gas, steam and water mains or electric light and power, or telephone and telegraph conduits, poles, wires and cable) which, in each case, do
not in the aggregate materially adversely impair or interfere with the use of the subject Property by the Corporation or any of its Subsidiaries or in respect to which the Corporation or any of its Subsidiaries has made satisfactory arrangements for
relocation so that such use will not in the aggregate be materially and adversely impaired; (xv) zoning and building by-laws and ordinances and municipal by-laws and regulations, which, in each case, do not materially adversely impair or
interfere with the use of the subject Property by the Corporation or any of its Subsidiaries; or (xvi) the Lien in respect of any judgment rendered which is being contested diligently and in good faith by appropriate proceedings by the
Corporation or any of its Subsidiaries and which does not have a material adverse effect on the ability of the Corporation and its Subsidiaries to operate the business or operations of the Corporation or its Subsidiaries. 
 “Permitted Refinancing Indebtedness” means any renewals, extensions, substitutions, refinancings or replacements of any Indebtedness
including any successive extensions, renewals, substitutions, refinancings or replacements, so long as (i) the aggregate amount of Indebtedness represented thereby is not increased by such 

  

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renewal, extension, substitution, refinancing or replacement (other than to finance fees and expenses, including any premium and defeasance costs),
(ii) the Average Life of such Indebtedness is equal to or greater than the Average Life of the Indebtedness being refinanced, (iii) the Stated Maturity of such Indebtedness is no earlier than the Stated Maturity of the Indebtedness being
refinanced and (iv) the new Indebtedness shall not be senior in right of payment to the Indebtedness that is being extended, renewed, substituted, refinanced or replaced; provided that Permitted Refinancing Indebtedness shall not include
(a) Indebtedness of a Restricted Subsidiary that refinances Indebtedness of the Corporation or (b) Indebtedness of the Corporation or a Restricted Subsidiary that refinances Indebtedness of an Unrestricted Subsidiary. 
 “Person” means any individual, corporation, company (including any limited liability company), partnership, joint venture, trust,
unincorporated organization or government or any agency or political subdivision thereof. 
 “Preferred Stock” means any
Capital Stock of a Person, however designated, which entitles the holder thereof to a preference with respect to dividends, distributions or liquidation proceeds of such Person over the holders of other Capital Stock issued by such Person.

 “principal” of a Security means the principal of such Security plus the premium, if any, payable on such Security which
is due or overdue or is to become due at the relevant time. 
 “Property” means, with respect to any Person, any interest of
such Person in any kind of property or asset, whether real, personal or mixed, or tangible or intangible, including, without limitation, Capital Stock in any other Person (but excluding Capital Stock or other securities issued by such Person).

 “Purchase Money Obligations” of any Person means any obligations of such Person or any of its subsidiaries to any seller
or any other Person incurred or assumed in connection with the purchase of real or personal property to be used or related to the business of such Person or any of its subsidiaries. 
  

 21 

 “Qualified Letter of Credit” means an irrevocable letter of credit or similar assurance
of payment issued by a bank or trust company which has capital, surplus and undivided profits aggregating in excess of $50,000,000 (or the foreign currency equivalent thereof) and has outstanding debt which is rated “A” (or such similar
equivalent rating) or higher by at least one “nationally recognized statistical rating organization” (as defined in Rule 436 under the Securities Act). 
 “Qualified Receivables Transaction” means any transaction or series of transactions that may be entered into by the Corporation or any of its Subsidiaries pursuant to which the Corporation or any of
its Subsidiaries may sell, convey or otherwise transfer to (i) a Receivables Subsidiary (in the case of a transfer by the Corporation or any of its Subsidiaries) and (ii) any other Person (in the case of a transfer by a Receivables
subsidiary), or may grant a security interest in, any accounts receivable (whether now existing or arising in the future) of the Corporation or any of its Subsidiaries, and any assets related thereto including all collateral securing such accounts
receivable, all contracts and all guarantees or other obligations in respect of such accounts receivable, proceeds of such accounts receivable and other assets which, in each case, are customarily and regularly transferred, or in respect of which
security interests are customarily granted, in connection with asset securitization transactions involving accounts receivable. 
 “Rating Agencies” mean Standard & Poor’s Rating Group, a division of McGraw Hill, Inc. (“S&P’s”), and Moody’s Investor Services, Inc. (“Moody’s”) or any successor to the
respective rating agency businesses thereof; provided, that in the event that either but not both of S&P’s or Moody’s or any successor to the respective rating agency businesses thereof shall cease to exist as a rating agency
business, then the other shall be the sole Rating Agency for purposes of this definition; provided, further, that in the event that both S&P’s or any successor to the rating agency business thereof and Moody’s or any
successor to the rating agency business thereof shall cease to exist as rating agency businesses, then “Rating Agencies” shall mean two “nationally recognized statistical rating organizations” (as defined in Rule 436 under the
Securities Act) . 
  

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 “Bating Date” means the date which is 90 days prior to the earlier of (i) a Change
of Control and (ii) public notice of the occurrence of a Change of Control or of the intention of the Corporation to effect a Change of Control. 
 “Rating Decline” means the occurrence of the following on, or within 90 days after, the date of public notice of the occurrence of a Change of Control or of the intention by the Corporation to effect
a Change of Control (which period shall be extended so long as the rating of the Securities is under publicly announced consideration for possible downgrade by any of the Rating Agencies): (a) in the event the Securities are rated by any Rating
Agency on the Rating Date as an Investment Grade Rating, the rating of the Securities by the Rating Agencies shall be below an Investment Grade Rating, or (b) in the event the Securities are rated below an Investment Grade Rating by the Rating
Agencies on the Rating Date, the rating of the Securities by any Rating Agency shall be decreased by one or more gradations (including gradations within rating categories as well as between rating categories). 
 “Receivables Subsidiary” means a Wholly Owned Subsidiary of the Corporation which engages in no activities other than in connection with
the financing of accounts receivable and which is designated by or pursuant to the authority of the Board of Directors (as provided below) as a Receivables Subsidiary (a) no portion of the Indebtedness or any other obligations (contingent or
otherwise) of which (i) is guaranteed by the Corporation or any Subsidiary of the Corporation (excluding guarantees of obligations (other than the principal of, and interest on, Indebtedness) pursuant to representations, warranties, covenants
and indemnities entered into in the ordinary course of business in connection with a Qualified Receivables Transaction), (ii) is recourse to or obligates the Corporation or any Subsidiary of the Corporation in any manner other than pursuant to
representations, warranties, covenants and indemnities entered into in connection with a Qualified Receivables Transaction or (iii) subjects any Property of the Corporation or any Subsidiary of the Corporation, directly or indirectly,
contingently or otherwise, to the satisfaction thereof, other than pursuant to the representations, warranties, covenants and indemnities entered into in the ordinary course of business in connection with a Qualified Receivables Transaction and
other than in respect of the related pledge of the financed 

  

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accounts receivable and (b) with which neither the Corporation nor any Subsidiary of the Corporation has any obligation to maintain or preserve such
Subsidiary’s financial condition (other than restrictions on dividends and distributions by such Subsidiary) or cause such Subsidiary to achieve certain levels of operating results. Any such designation shall be evidenced to the Trustee by
filing with the Trustee a certified copy of the Board Resolution giving effect to or authorizing such designation and an Officers’ Certificate certifying that such designation complied with the foregoing conditions. 
 “Redeemable Stock” means, with respect to any Person, any Capital Stock that by its terms (or by the terms of any security into which it
is convertible or for which it is exchangeable) or otherwise (i) matures or is mandatorily redeemable pursuant to a sinking fund obligation or otherwise, (ii) is redeemable at the option of the holder thereof, in whole or in part, or
(iii) is convertible or exchangeable for Indebtedness. 
 “Redemption Date” means, when used with respect to any
Security or part thereof to be redeemed hereunder, the date fixed for redemption of such Security pursuant to the terms of the Security and this Indenture. 
 “Redemption Price” means, when used with respect to any Security or part thereof to be redeemed hereunder, the price fixed for redemption of such Security pursuant to the terms of the Security and
this Indenture, plus accrued and unpaid interest thereon, if any, to the Redemption Date (subject to the right of Holders of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date). 
 “Reference Treasury Dealer” means Salomon Brothers Inc and Goldman, Sachs & Co., and their respective successors;
provided, however, that if any of the foregoing shall cease to be a primary U.S. Government securities dealer in New York City (a “Primary Treasury Dealer”) the Corporation shall substitute therefor another Primary Treasury
Dealer. 
 “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption
date, the average, as provided to the Trustee by the Corporation, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of 
  

 24 

 
its principal amount) quoted in writing to the Trustee by such Reference Treasury Dealer at 5:00 p.m. on the third business day preceding such redemption
date. 
 “Related Business” means any business, ancillary or complementary to the businesses of the Corporation and the
Restricted Subsidiaries on the Issue Date. 
 “Restricted Payment” means (i) any dividend or distribution (whether made
in cash, Property or securities) declared or paid on or with respect to any shares of Capital Stock of the Corporation or Capital Stock of any Restricted Subsidiary except for any dividend or distribution which is made solely to the Corporation or a
Restricted Subsidiary (and, if such Restricted Subsidiary is not a Wholly Owned Subsidiary, to the other shareholders of such Restricted Subsidiary on a pro rata basis) or dividends or distributions payable solely in shares of Capital Stock (other
than Disqualified Stock) of the Corporation; (ii) a payment made by the Corporation or any Restricted Subsidiary to purchase, redeem, acquire or retire any Capital Stock of the Corporation or Capital Stock of any Affiliate of the Corporation
(other than a Restricted Subsidiary) or any warrants, rights or options to directly or indirectly purchase or acquire any such Capital Stock or any securities exchangeable for or convertible into any such Capital Stock; or (iii) a payment made
by the Corporation or any Restricted Subsidiary to redeem, repurchase, defease or otherwise acquire or retire for value, prior to any scheduled maturity, scheduled sinking fund or mandatory redemption payment (other than the purchase, repurchase, or
other acquisition of any Indebtedness subordinate in right of payment to the Securities purchased in anticipation of satisfying a sinking fund obligation, principal installment or final maturity, in each case due within one year of the date of
acquisition), Indebtedness of the Corporation which is subordinate (whether pursuant to its terms or by operation of law) in right of payment to the Securities and was scheduled to mature after the maturity of the Securities. 
 “Restricted Subsidiary” means (i) any Subsidiary of the Corporation, unless such Subsidiary is an Unrestricted Subsidiary or shall
have been designated as an Unrestricted Subsidiary as permitted pursuant to Section 3.10 and (ii) an Unrestricted Subsidiary which is redesignated as a Restricted Subsidiary as permitted pursuant to Section 3.10. 
  

 25 

 “Sale and Leaseback Transaction” means, with respect to any Person, any direct or
indirect arrangement pursuant to which Property is sold or transferred by such Person or a Subsidiary of such Person and is thereafter leased back from the purchaser or transferee thereof by such Person or one of its Subsidiaries. 
 “SEC” means the Securities and Exchange Commission and any government agency succeeding to its functions. 
 “Secured Indebtedness” means any Indebtedness of the Corporation secured by a Lien. 
 “Securities Act” means the Securities Act of 1933, as amended. 
 “Special Record Date” for the payment of any defaulted interest means a date fixed by the Trustee pursuant to Section 2.12. 

“Stated Maturity” means, with respect to any Indebtedness or security, the date specified in the agreement pursuant to which such
Indebtedness was created or in such security as the fixed date on which the payment of principal of such security is due and payable, including pursuant to any mandatory redemption provision providing for partial or full mandatory redemption or any
sinking fund (but excluding, in each case, any provision providing for the repurchase of such security at the option of the holder thereof upon the happening of any contingency beyond the control of the issuer unless such contingency has occurred).

 “Subordinated Obligation” means any Indebtedness of the Corporation (whether outstanding on the Issue Date or thereafter
Incurred) which is subordinate or junior in right of payment to the Securities pursuant to an agreement to that effect or by operation of law. 
 “Subsidiary” of any specified Person means any corporation, partnership, joint venture, association or other business entity, whether now existing or hereafter organized or acquired, (i) in the case of a corporation,
of which more than 50% of the total voting power of the Capital Stock entitled (without regard to the occurrence of any contingency) to vote in the election of directors, officers or trustees thereof is held by such first-named Person or any of its
Subsidiaries; or (ii) in the case of a partnership, joint venture, association or other business entity 
  

 26 

 
(other than a corporation) with respect to which such first-named Person or any of its Subsidiaries has the power to direct or cause the direction of the
management and policies of such entity by contract or otherwise if in accordance with GAAP such entity is consolidated with the first-named Person for financial statement purposes. 
 “Temporary Cash Investments” means any of the following: (i) any investment in direct obligations of the United States of America
or any agency thereof or Canada or any agency thereof or obligations guaranteed by the United States of America or any agency thereof or Canada or any agency thereof, (ii) investments in time deposit accounts, certificates of deposit,
money-market deposits, bankers acceptances and obligations maturing within 180 days of the date of acquisition thereof issued by a bank or trust company which is organized under the laws of the United States of America, any state thereof, Canada or
any country recognized by the United States and Canada, and which bank or trust company has, or the obligation of which bank or trust company is guaranteed by a bank or trust company which has, capital, surplus and undivided profits aggregating in
excess of $50,000,000 (or the foreign currency equivalent thereof) and has outstanding debt which is rated “A” (or such similar equivalent rating) or higher by at least one “nationally recognized statistical rating organization”
(as defined in Rule 436 under the Securities Act) or by Dominion Bond Rating Service or Canadian Bond Rating Service or any money-market fund sponsored by a registered broker dealer or mutual fund distributor, (iii) repurchase obligations with
a term of not more than 30 days for underlying securities of the types described in clause (i) above entered into with a bank meeting the qualifications described in clause (ii) above, (iv) investments in commercial paper, maturing
not more than 90 days after the date of acquisition, issued by a corporation (other than an Affiliate of the Corporation) organized and in existence under the laws of the United States of America, Canada or any foreign country recognized by the
United States of America and Canada with a rating at the time as of which any investment therein is made of “P-1” (or higher) according to Moody’s or “A-1” (or higher) according to S&P’s or an equivalent rating by
Dominion Bond Rating Service or Canadian Bond Rating Service, and (v) investments in securities with maturities of six months or less from the date of acquisition issued or fully guaranteed by any state, commonwealth or territory of the United
States of America, or by any political subdivision or 

  

 27 

 
taxing authority thereof, and rated at least “A” by S&P’s or “A” by Moody’s. 
 “TIA” means the Trust Indenture Act of 1939 (15 U.S. Code § 77aaa-77bbbb), as in effect on the date of this Indenture (except as
otherwise provided in Section 10.03) and, to the extent required by law, as amended. 
 “Treasury Rate” means, with
respect to any redemption date and with respect to the Securities, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, assuming a price for such Comparable Treasury Issue (expressed as a
percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date. 
 “Trustee” means the
party named as such above until a successor replaces it pursuant to this Indenture and thereafter means the successor or such successor’s successor. 
 “Trust Officer” means any officer in the Corporate Trust Department of the Trustee or any other officer of the Trustee assigned by the Trustee to administer this Indenture. 
 “Unrestricted Subsidiary” means (a) any Subsidiary of the Corporation in existence on the Issue Date that is not a Restricted
Subsidiary; (b) any Subsidiary of an Unrestricted Subsidiary; and (c) any Subsidiary of the Corporation which is designated after the Issue Date as an Unrestricted Subsidiary as permitted pursuant to Section 3.10 and not thereafter
redesignated as a Restricted Subsidiary as permitted pursuant thereto. 
 “U.S. Government Obligations” means direct
obligations (or certificates representing an ownership interest in such obligations) of the United States of America (including any agency or instrumentality thereof) for the payment of which the full faith and credit of the United States of America
is pledged and which are not callable or redeemable at the issuer’s option. 
 “Voting Capital Stock” means Capital
Stock in a corporation or other Person with voting power under ordinary circumstances entitling the holders thereof to elect the board of directors or other governing body of such corporation or Person. 
  

 28 

 “Wholly Owned Subsidiary” means a Restricted Subsidiary of the Corporation all the
Capital Stock of which (other than directors’ qualifying shares) is owned by the Corporation and/or one or more other Wholly Owned Subsidiaries. 
 SECTION 1.02. Other Definitions. 
  

				
	 Term
	  	Defined in
Section	 
	 “Additional Amounts”
	  	3.11	 
	 “Affiliate Transaction”
	  	3.08	 
	 “Allocable Excess Proceeds”
	  	3.07	 
	 “Change of Control Offer”
	  	5.01	(a)
	 “Change of Control Payment”
	  	5.01	(a)
	 “Change of Control Payment Date”
	  	5.01	(b)(2)
	 “Custodian”
	  	7.01	 
	 “Deficiency”
	  	3.07	 
	 “Event of Default”
	  	7.01	 
	 “Excess Proceeds”
	  	3.07	 
	 “Excluded Holder”
	  	3.11	 
	 “Fifth Anniversary”
	  	3.07	 
	 “Global Security”
	  	2.02	 
	 “Paying Agent”
	  	2.03	 
	 “Permitted Indebtedness”
	  	3.03	(b)
	 “Prepayment Offer”
	  	3.07	 
	 “Prepayment Offer Notice”
	  	3.07	 
	 “Purchase Date”
	  	3.07	 
	 “Purchase Price”
	  	3.07	 
	 “Registrar”
	  	2.03	 
	 “Security Register”
	  	2.03	 
	 “Taxes”
	  	3.11	 
	 “Transaction Date”
	  	1.01	 
	 “Unoffered Excess Proceeds”
	  	3.07	 

 SECTION 1.03. Incorporation by Reference of Trust Indenture Act. Whenever this Indenture
refers to a provision of the TIA, the provision is incorporated by reference in and made a part of this Indenture. 
  

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 The following TIA terms used in this Indenture have the following meanings: 
 “indenture securities” means the Securities; 
 “indenture security holder” means a Holder;  
 “indenture to be
qualified” means this Indenture; 
 “indenture trustee” or “institutional trustee” means the
Trustee; and 
 “obligor” on the Securities means the Corporation and any other obligor on the indenture securities.

 SECTION 1.04. Rules of Construction. Unless the context otherwise requires: (i) an accounting term not otherwise defined has
the meaning assigned to it in accordance with GAAP as in effect on the date of this Indenture; and (ii) words in the singular include the plural, and in the plural include the singular. 
 ARTICLE II 
 The Securities 
 SECTION 2.01. Form and Dating. The Securities and the Trustee’s certificate of authentication thereof shall be substantially in the form of
Exhibit A hereto. The Securities may have notations, legends or endorsements approved as to form by the Corporation and required by law, stock exchange rule, agreements to which the Corporation is subject or usage. Each Security shall be dated the
date of its authentication. The Securities shall be issuable only in registered form and only in denominations of $1,000 and integral multiples thereof. 
 The terms and provisions contained in the Securities shall constitute, and are hereby expressly made, a part of this Indenture and the Corporation and the Trustee, by their execution and delivery of this Indenture,
expressly agree to such terms and provisions and to be bound thereby. 
 SECTION 2.02. Execution and Authentication. Two Officers of
the Corporation shall sign the Securities for the Corporation by manual or facsimile signature. The 

  

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Corporation’s seal shall be reproduced on the Securities and may be in facsimile form. 
 If an Officer whose signature is on a Security no longer holds that office at the time a Security is authenticated, the Security shall nevertheless be
valid. 
 A Security shall not be valid until authenticated by the manual signature of an authorized signatory of the Trustee. The signature
shall be conclusive evidence that the Security has been authenticated under this Indenture. The form of Trustee’s certificate of authentication to be borne by the Securities shall be substantially as set forth in Exhibit A hereto. 

The Trustee shall, upon a written order of the Corporation signed by two Officers of the Corporation, authenticate Securities for original issue up to
the aggregate principal amount stated in the Securities in the form of one or more Global Securities (herein defined as the “Global Security” or “Global Securities”), which (i) shall represent, and shall be denominated in an
amount equal to the aggregate principal amount of, the outstanding Securities, (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: “Unless and until it is exchanged in whole or in part for the individual Securities represented hereby, this Global Security may not be
transferred except as a whole by the Depositary to a nominee of the Depositary or by a nominee of the Depositary to the Depositary or by a Depositary or any such nominee to a successor Depositary or a nominee of successor Depositary.” The
aggregate principal amount of Securities outstanding at any time may not exceed such amount except as provided in Section 2.07. 
 The
Trustee may appoint an authenticating agent acceptable to the Corporation to authenticate Securities. An authenticating agent may authenticate Securities whenever the Trustee may do so. Each reference in this Indenture to authentication by the
Trustee includes authentication by such agent. An authenticating agent has the same rights as an Agent to deal with the Corporation or an Affiliate of the Corporation. 
 SECTION 2.03. Registrar and Paying Agent. The Corporation shall maintain in the Borough of Manhattan, the 

  

 31 

 
City of New York, an office or agency where Securities may be presented for registration of transfer or for exchange (“Registrar”), an office or
agency where Securities may be presented for payment (“Paying Agent”) and an office or agency where notices and demands to or upon the Corporation in respect of the Securities and this Indenture may be served. The Registrar shall keep a
register of the Securities and of their transfer and exchange (the register kept being herein sometimes referred to as the “Security Register”). The Corporation may appoint one or more co-registrars and one or more additional paying
agents. The term “Registrar” includes any co-registrar and the term “Paying Agent” includes any additional paying agent. The Corporation may change any Paying Agent or Registrar without prior notice to any Holder. No such
appointment or change will relieve the Corporation of its obligation to maintain an office or agency in the Borough of Manhattan, the City of New York for such purposes. The Corporation shall notify the Trustee in writing of the name and address of
any Agent not a party to this Indenture. If the Corporation fails to appoint or maintain another entity as Registrar or Paying Agent, the Trustee shall act as such. The Corporation may act as Paying Agent or Registrar. 
 The Corporation initially appoints the Trustee to act as the Registrar and Paying Agent and agent for service of notices and demands in connection with
the Securities and this Indenture. The initial co-registrar shall be Montreal Trust Company with its principal office in the City of Montreal, Québec, Canada. 
 SECTION 2.04. Paying Agent To Hold Money in Trust. The Corporation shall require each Paying Agent other than the Trustee to agree in writing that the Paying Agent will hold in trust for the benefit of Holders
or the Trustee all money held by the Paying Agent for the payment of principal of, or premium, if any, on the Securities, and will notify the Trustee of any default by the Corporation in making any such payment. While any such default continues, the
Trustee may require a Paying Agent to pay all money held by it to the Trustee. The Corporation at any time may require a Paying Agent to pay all money held by it to the Trustee. Upon payment over to the Trustee, the Paying Agent (if other than the
Corporation) shall have no further liability for the money delivered to the Trustee. If the Corporation acts as Paying Agent, it shall segregate and hold in a separate trust fund for the benefit of the Holders all money held by it as Paying Agent.
Upon any bankruptcy 

  

 32 

 
or reorganization proceedings relating to the Corporation, the Trustee shall serve as Paying Agent for the Securities. 
 SECTION 2.05. Holder Lists. The Trustee shall preserve in as current a form as is reasonably practicable the most recent list available to it of
the names and addresses of Holders. If the Trustee is not the Registrar, the Corporation shall furnish to the Trustee on or before each interest payment date for the Securities and at such other times as the Trustee may request in writing a list in
such form and as of such date as the Trustee may reasonably require of the names and addresses of Holders. 
 SECTION 2.06. Registration
of Transfer and Exchange. When Securities are presented to the Registrar with a request to register their transfer or to exchange them for an equal principal amount of Securities of other authorized denominations, the Registrar shall register
the transfer or make the exchange if its requirements for such transaction are met; provided that a Security surrendered for registration of transfer or exchange shall be duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Registrar duly executed by, the Holder thereof or his attorney duly authorized in writing. To permit registrations of transfers and exchanges, the Corporation shall issue Securities as Securities are presented for transfer or
exchange and the Trustee shall authenticate such Securities at the Registrar’s request. No service charge shall be made for any registration of transfer or exchange, but the Corporation may require payment of a sum sufficient to cover any tax
or other governmental charge that may be imposed in connection with registration of transfer or exchange of Securities other than exchanges not involving any transfer pursuant to Section 2.10, 5.01(c) or 10.05. 
 Prior to due presentment to the Trustee for registration of the transfer of any Security, the Trustee, any Agent and the Corporation may deem and treat
the Person in whose name any Security is registered in the Securities Register as the absolute owner of such Security for the purpose of receiving payment of principal of, or premium, if any, and, subject to Section 2.12, interest on such
Security and for all other purposes whatsoever, whether or not such Security is overdue, and neither the Trustee, any Agent nor the Corporation shall be affected by notice to the contrary. 
  

 33 

 A Global Security may be transferred, in whole but not in part and in the manner provided in this
Section, only to a nominee of the Depositary for such Global Security, or by a nominee of the Depositary to the Depositary, or by a Depositary or any such nominee to a successor Depositary for such Global Security selected or approved by the
Corporation, or to a nominee of such successor Depositary. 
 If at any time the Depositary for the Global Security or Global Securities
notifies the Corporation that it is unwilling or unable to continue as depositary for such Global Security or Global Securities or if at any time the Depositary for the Global Security or Global Securities shall no longer be eligible or in good
standing under the Exchange Act, or other applicable statute or regulation, to continue as depositary for such Global Security or Global Securities the Corporation shall appoint a successor Depositary with respect to such Global Security or Global
Securities. If a successor Depositary for such Global Security or Global Securities is not appointed by the Corporation within 90 days after the Corporation receives such notice or becomes aware of such ineligibility, the Corporation will execute,
and the Trustee, upon receipt of a written order for the authentication and delivery of individual Securities in exchange for such Global Security or Global Securities, will authenticate and make available for delivery individual Securities in
definitive form in an aggregate principal amount equal to the outstanding principal amount of the Global Security or Global Securities in exchange for such Global Security or Global Securities. 
 The Corporation may at any time and in its sole discretion determine that the Securities shall no longer be represented by such Global Security or Global
Securities. Also, if an Event of Default has occurred and is continuing, the Securities shall no longer be represented by such Global Security or Global Securities. In any such event the Corporation will execute, and the Trustee, upon receipt of a
written order for the authentication and delivery of individual Securities in exchange in whole or in part for such Global Security or Global Securities, will authenticate and make available for delivery individual Securities in definitive form in
an aggregate principal amount equal to the outstanding principal amount of such Global Security or Global Securities in exchange for such Global Security or Global Securities. 
  

 34 

 In any exchange provided for in any of the preceding two paragraphs, the Corporation will execute and the
Trustee will authenticate and make available for delivery individual Securities in definitive registered form in authorized denominations. Upon the exchange of a Global Security for individual Securities, such Global Security shall be cancelled by
the Trustee. Securities issued in exchange for a Global Security pursuant to this Section shall be registered in such names and in such authorized denominations as the Depositary for such Global Security shall instruct the Trustee. The Trustee shall
make available for delivery such Securities to the persons in whose names such Securities are so registered. 
 None of the Corporation, the
Trustee, any Paying Agent or the Registrar will have any responsibility or liability for any aspect of the records relating to or payments made on account of beneficial ownership interests of a Global Security or for maintaining, supervising or
reviewing any records relating to such beneficial ownership interests. 
 The Depositary has advised the Corporation that, subject to the
above, it will take any action permitted to be taken by a Holder (including the presentation of Securities for exchange as described above) only at the direction of one or more participants to whose account interests in the Global Security or Global
Securities are credited and only in respect of such portion of the aggregate principal amount of Securities as to which such participant or participants has or have given such direction. 
 SECTION 2.07. Replacement Securities. If (a) any mutilated Security is surrendered to the Trustee or (b) the Corporation and the Trustee
receive evidence to their satisfaction of the destruction, loss or theft of any Security, and, in each case, there is delivered to the Corporation and the Trustee such security or indemnity, as required, referred to in the next succeeding sentence,
then, in the absence of notice to the Corporation or the Trustee that such Security has been acquired by a bona fide purchaser, the Corporation shall issue and the Trustee, upon the written order of the Corporation signed by two Officers of the
Corporation, shall authenticate and deliver a replacement Security of like tenor and principal amount if the Trustee’s requirements for replacement of Securities are met. If required by the Trustee or the Corporation, an 

  

 35 

 
indemnity bond or other security must be supplied by the Holder that is sufficient in the judgment of the Trustee and the Corporation to protect the
Corporation, the Trustee, any Agent and authenticating agent from any loss that any of them may suffer if a Security is replaced. Upon the issuance of any replacement Securities under this Section, the Corporation may require the payment of a sum
sufficient to pay all documentary, stamp or similar issue or transfer taxes or other governmental charges that may be imposed in relation thereto and any other expenses (including the fees and expenses of the Trustee) incurred in replacing a
Security. 
 In case any such mutilated, destroyed, lost or stolen Security has become or is to become due and payable, or is about to be
repurchased or redeemed by the Corporation pursuant to Section 3.07, Article V or Article IV hereof, the Corporation in its discretion may, instead of issuing a new Security, pay or repurchase or redeem such Security, as the case may be.

 Every replacement Security is an additional obligation of the Corporation and shall be entitled to all of the benefits of this Indenture
equally and proportionately with all other Securities duly issued hereunder. 
 The provisions of this Section are exclusive and shall
preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Securities. 
 SECTION 2.08. Outstanding Securities. The Securities outstanding at any time are all the Securities theretofore authenticated and delivered under this Indenture except: 
 (i) Securities theretofore cancelled by the Trustee or delivered to the Trustee for cancellation; 
 (ii) Securities, or portions thereof, for whose payment or redemption money in the necessary amount has been theretofore deposited with
the Trustee or any Paying Agent (other than the Corporation) in trust or set aside and segregated in trust by the Corporation (if the Corporation shall act as its own Paying Agent) for the Holders of such Securities, provided that, if such
Securities are to be redeemed, notice of such 

  

 36 

 
redemption has been duly given pursuant to this Indenture or provisions therefor satisfactory to the Trustee have been made; 
 (iii) Securities, except to the extent provided in Article IX, with respect to which the Company has effected defeasance and/or covenant
defeasance as provided in Article IX; and 
 (iv) Securities which have been paid pursuant to Section 2.07 or in exchange
for or in lieu of which other Securities have been authenticated and delivered pursuant to this Indenture, other than any such Securities in respect of which there shall have been presented to the Trustee proof satisfactory to it that such
Securities are held by a bona fide purchaser in whose hands such Securities are valid obligations of the Corporation. 
 SECTION 2.09.
Treasury Securities. In determining whether the Holders of the required principal amount of Securities have concurred in any direction, waiver or consent, Securities owned by the Issuer or any other obligor, or by an Affiliate of the Issuer
or such other obligor, shall be considered as though they are not outstanding, except that for the purposes of determining whether the Trustee shall be protected in relying on any such direction, waiver or consent, only Securities which the Trustee
knows are so owned shall be so disregarded. Securities so owned which have been pledged in good faith may be regarded as outstanding if the pledgee establishes to the satisfaction of the Trustee the pledgee’s right so to act with respect to
such Securities and that the pledgee is not the Issuer or any other obligor, or any Affiliate of the Issuer or such other obligor. 
 SECTION
2.10. Temporary Securities. Until definitive Securities are ready for delivery, the Corporation may prepare and execute and the Trustee shall authenticate temporary Securities upon a written order of the Corporation signed by two Officers of
the Corporation. Temporary Securities shall be substantially in the form of definitive Securities but may have variations that the Issuer considers appropriate for temporary Securities. 
 If temporary Securities are issued, the Corporation will cause definitive Securities to be prepared without unreasonable delay. After the preparation of

  

 37 

 
definitive Securities, the temporary Securities shall be exchangeable for such definitive Securities upon surrender of such temporary Securities at the
Corporate Trust Office, without charge to the Holder. Upon surrender for exchange of any one or more temporary Securities, the Corporation shall execute and the Trustee shall authenticate and make available for delivery in exchange therefor a like
aggregate principal amount of definitive Securities having the same date as such temporary Securities. Until so exchanged, temporary Securities shall in all respects be entitled to the same benefits under this Indenture as definitive Securities.

 SECTION 2.11. Cancellation. The Corporation at any time may deliver Securities to the Trustee for cancellation. The Registrar and
Paying Agent shall forward to the Trustee any Securities surrendered to them for registration of transfer, exchange, payment or repurchase. The Trustee shall cancel all Securities surrendered for registration of transfer, exchange, payment,
repurchase, replacement or cancellation. The Corporation may not issue new Securities to replace Securities that it has paid or that have been delivered to the Trustee for cancellation, except that a new Security in principal amount equal to the
unredeemed portion of a Security redeemed in part pursuant to Article IV hereof will be issued in the name of the Holder thereof upon cancellation of the Security redeemed in part and otherwise as provided herein. 
 SECTION 2.12. Defaulted Interest. If and to the extent the Corporation fails to make or duly provide for a payment of interest on the Securities,
it shall pay such interest, plus interest payable on the defaulted interest pursuant to Section 3.02 to the persons who are Holders at the close of business on a special record date (the “Special Record Date”), which the Trustee shall
establish for such payment, notice of which shall be delivered by the Trustee to each Holder, not less than 10 days prior to the Special Record Date. 
 SECTION 2.13. Record Date. If the Corporation shall solicit from the Holders any request, demand, authorization, direction, notice, vote, consent, waiver or other act, the Corporation may, at its option, by or
pursuant to a Board Resolution, fix in advance a record date for the determination of such Holders entitled to give such request, demand, authorization, direction, notice, vote, consent, waiver or other act, but the Corporation shall have 

  

 38 

 
no obligation to do so. Notwithstanding Trust Indenture Act Section 316(c), any such record date shall be the record date specified in or pursuant to
such Board Resolution, which shall be a date not more than 30 days prior to the first solicitation of Holders generally in connection therewith and no later than the date such solicitation is completed. 
 If such a record date is fixed, such request, demand, authorization, direction, notice, vote, consent, waiver or other act may be given before or after
such record date, but only the Holders of record at the close of business on such record date shall be deemed to be Holders for the purposes of determining whether Holders of the requisite proportion of Securities then outstanding have authorized or
agreed or consented to such request, demand, authorization, direction, notice, vote, consent, waiver or other act, and for this purpose the Securities then outstanding shall be computed as of such record date; provided that no such request,
demand, authorization, direction, notice, vote, consent, waiver or other act by the Holders on such record date shall be deemed effective unless it shall become effective pursuant to the provisions of this Indenture not later than eleven months
after the record date. 
 Any request, demand, authorization, direction, notice, vote, consent, waiver or other act by the Holder of any
Security shall bind every future Holder of the same Security or the Holder of every Security issued upon the registration of transfer thereof or in exchange therefor or in lieu thereof, in respect of anything done, suffered or omitted to be done by
the Trustee, any Paying Agent or the Corporation in reliance thereon, whether or not notation of such action is made upon such Security. 
 SECTION 2.14. Computation of Interest. Interest on the Securities shall be computed on the basis of a 360-day year of twelve 30-day months. For disclosure purposes under the Interest Act (Canada), whenever in the Indenture or
the Securities interest at a specified rate is to be calculated on the basis of a period less than a calendar year, the yearly rate of interest to which such rate is equivalent is such rate multiplied by the actual number of days in the relevant
calendar year and divided by the number of days in such period. 
  

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 SECTION 2.15. Predecessor Securities. All Securities issued upon any registration of transfer or
exchange of Securities or in replacement of a lost, destroyed or stolen Security pursuant to Section 2.07 shall evidence the same debt, and be entitled to the same benefits under this Indenture, as the predecessor Security or Securities
surrendered upon such registration of transfer or exchange or lost, destroyed or stolen, as the case may be. 
 SECTION 2.16. CUSIP
Numbers. The Corporation in issuing the Securities may use “CUSIP” numbers and, if it does so, the Trustee shall use the CUSIP numbers in notices of redemption or exchange as a convenience to Holders; provided that any such
notice may state that no representation is made as to the correctness or accuracy of the CUSIP numbers printed in the notice or on the Securities and that reliance may be placed only on the other identification numbers printed on the Securities. The
Corporation will promptly notify the Trustee of any change in the CUSIP numbers. 
 ARTICLE III  
 Covenants 
 SECTION 3.01. Certain
Covenants Suspended. The covenants set forth in this Article III and in clause (vi) of Section 6.01(a) will be applicable to the Corporation and its Restricted Subsidiaries unless and until the Corporation reaches Investment Grade
Status, except that upon reaching Investment Grade Status the Corporation and its Restricted Subsidiaries will remain subject to the provisions of this Indenture described in Section 3.02, Section 3.05, Section 3.09, Section 3.10
(except for clause (i) of Section 3.l0(b)), Section 3.11, Section 3.12, Section 3.13 and Section 3.14 (collectively, the “Non-Suspended Covenants”). 
 After the Corporation reaches Investment Grade Status, and notwithstanding that the rating assigned to the Corporation may later cease to be an
Investment Grade Rating by either of the Rating Agencies or both, the Corporation and its Restricted Subsidiaries will be released from their obligations to comply with the covenants set forth in this Article III and in clause (vi) of
Section 6.01(a) other than the Non-Suspended Covenants. 
  

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 SECTION 3.02. Payment of Securities. The Corporation shall pay the principal of, premium (if any)
and interest on the Securities in immediately available funds on the dates and in the manner provided in the Securities and in this Indenture. Principal, premium (if any) and interest shall be considered paid on the date due if the Trustee or Paying
Agent (other than the Corporation or an Affiliate of the Corporation) holds on that date money designated for and sufficient to pay all principal, premium (if any) and interest then due. 
 The Corporation shall pay interest on overdue principal and premium (if any) on the Securities at the rate then borne by the Securities; it shall pay
interest on overdue installments of interest at the same rate to the extent legally permitted. 
 SECTION 3.03. Limitation on
Indebtedness. (a) The Corporation shall not, and shall not permit any Restricted Subsidiary to, directly or indirectly, Incur any Indebtedness unless, after giving effect to the Incurrence on a pro forma basis no Default or Event of Default
would occur as a consequence of such Incurrence or be continuing following such Incurrence and either (i) after giving effect to the Incurrence of such Indebtedness and the receipt and application of the proceeds thereof, the Corporation’s
Consolidated Fixed Charge Coverage Ratio would have been greater than 2.0 or (ii) such Indebtedness is Permitted Indebtedness. 
 (b)
“Permitted Indebtedness” is defined to include any and all of the following: 
 (i) Indebtedness in an aggregate principal amount on
the date of Incurrence which, when added to all other Indebtedness Incurred pursuant to this clause (i) and then outstanding, will not exceed the greater of (x) the maximum aggregate principal amount of Indebtedness that could be Incurred
pursuant to the Credit Agreement by the Corporation on the Issue Date assuming all conditions were satisfied and (y) the sum of (A) 60% of the book value of the inventory of the Corporation and its Restricted Subsidiaries and (B) 80%
of the book value of the accounts receivables of the Corporation and its Restricted Subsidiaries; 
  

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 (ii) Indebtedness of the Corporation owing to and held by a Restricted Subsidiary and Indebtedness of a
Restricted Subsidiary owing to and held by the Corporation or any other Restricted Subsidiary; provided, however, that any subsequent issuance or transfer of any Capital Stock or any other event which results in any such
Restricted Subsidiary ceasing to be a Restricted Subsidiary or any subsequent transfer of any such Indebtedness (except to the Corporation or a Restricted Subsidiary) will be deemed, in each case, to constitute the Incurrence of such Indebtedness by
the issuer thereof on the date of such issuance, transfer or event; 
 (iii) Indebtedness represented by the securities and the Notes, any
Indebtedness (other than the Indebtedness described or referenced in clauses (i) or (ii) above (including in respect of the Credit Agreement)) outstanding on the Issue Date and any Permitted Refinancing Indebtedness Incurred in respect of
any Indebtedness described in this clause (iii), clause (i) of paragraph (a) above or clause (v) of this paragraph (b); 
 (iv) (A) Indebtedness of a Restricted Subsidiary Incurred and outstanding on or prior to the date on which such Restricted Subsidiary was acquired by the Corporation (other than Indebtedness Incurred as consideration in, in
contemplation of, or to provide all or any portion of the funds or credit support utilized to consummate, the transaction or series of related transactions pursuant to which such Restricted Subsidiary became a Subsidiary or was otherwise acquired by
the Corporation); provided, however, that the Corporation, after acquiring such Restricted Subsidiary and after giving effect to the Incurrence of such Indebtedness pursuant to this clause (iv), would have been able to Incur US $1.00
of additional Indebtedness pursuant to clause (i) of paragraph (a) above and (B) Permitted Refinancing Indebtedness Incurred by such Restricted Subsidiary in respect of Indebtedness Incurred by such Restricted Subsidiary pursuant to
this clause (iv); 
  

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 (v) Indebtedness Incurred by the Corporation or any of its Restricted Subsidiaries and used to fund
capital expenditures in an aggregate principal amount on the date of Incurrence which, when added to all other Indebtedness Incurred pursuant to this clause (v) and then outstanding (including any Permitted Refinancing Indebtedness Incurred in
respect of this clause (v) contemplated by clause (iii) of this paragraph (b)), will not exceed US $150 million (including any such Indebtedness incurred within 90 days of a capital expenditure to fund such capital expenditure);

 (vi) Indebtedness (A) in respect of performance bonds, banker’s acceptances, trade letters of credit and surety or appeal bonds
provided by the Corporation and its Restricted Subsidiaries in the ordinary course of their business and which do not secure other Indebtedness, and (B) under Exchange Rate Agreements and Interest Rate Agreements; provided,
however, that, in the case of Exchange Rate Agreements and Interest Rate Agreements, such Exchange Rate Agreements and Interest Rate Agreements do not increase the Indebtedness of the Corporation outstanding any time other than as a result of
fluctuations in foreign currency exchange rates or interest rates or by reason of fees, indemnities and compensation payable thereunder; 
 (vii) Purchase Money Obligations directly incurred by the Corporation or any of its Restricted Subsidiaries and used to fund the acquisition of capital assets in the ordinary course of business (including any such obligations incurred
within 90 days after such acquisition); provided that (A) each such obligation shall be paid in full not later than 360 days after the subject asset is delivered to the purchaser thereof and (B) the aggregate amount of Purchase
Money Obligations outstanding at any time for purposes of this clause (vii) shall not exceed US $50 million; 
 (viii) Indebtedness of
the Corporation or any of its Restricted Subsidiaries arising from agreements providing for indemnification, adjustment of purchase price or similar 
  

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obligations, or from guarantees, letters of credit, surety bonds or performance bonds securing any obligations of the Corporation or any of its Restricted
Subsidiaries, incurred or assumed in connection with the disposition of any business, assets or Restricted Subsidiary of the Corporation other than guarantees or similar credit support by the Corporation or any of its Restricted Subsidiaries of
Indebtedness incurred by any Person acquiring all or any portion of such business, assets or Restricted Subsidiary for the purpose of financing such acquisition; provided that the maximum aggregate liability in respect of all such
Indebtedness in the nature of such guarantees shall at no time exceed the gross proceeds actually received from the sale of such business, assets or Restricted Subsidiary; or 
 (ix) Indebtedness (other than Indebtedness permitted to be Incurred pursuant to clause (i) of paragraph (a) above or any other clause of this
paragraph (b)) in an aggregate principal amount on the date of Incurrence which, when added to all other Indebtedness Incurred pursuant to this clause (ix) and then outstanding, will not exceed US $150 million. 
 (c) Notwithstanding the foregoing, the Corporation may not Incur any Indebtedness pursuant to paragraph (b) above if the proceeds thereof are used,
directly or indirectly, to repay, prepay, redeem, defease, retire, refund or refinance any Subordinated Obligations unless such Indebtedness will be subordinated to the Securities to at least the same extent as such Subordinated Obligations.

 SECTION 3.04. Limitation on Restrictions on Distributions from Restricted Subsidiaries. The Corporation shall not, and shall not
permit any of its Restricted Subsidiaries to, directly or indirectly, create or otherwise cause or suffer to exist or become effective, or enter into any agreement with any Person that would cause to become effective, any consensual encumbrance or
restriction on the ability of any Restricted Subsidiary to (a) pay dividends, in cash or otherwise, or make any other distributions on or in respect of its Capital Stock, or pay any Indebtedness or other obligation owed, to the Corporation or
any other Restricted Subsidiary, (b) make any loans or advances to the 

  

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Corporation or any other Restricted Subsidiary or (c) transfer any of its Property to the Corporation or any other Restricted Subsidiary. Such
limitation will not apply (1) with respect to clauses (a), (b) and (c), to encumbrances and restrictions (i) in existence under or by reason of any agreements in effect on the Issue Date, (ii) relating to Indebtedness of a
Restricted Subsidiary and existing at such Restricted Subsidiary at the time it became a Restricted Subsidiary if either (A) such encumbrance or restriction was not created in connection with or in anticipation of the transaction or series of
related transactions pursuant to which such Restricted Subsidiary became a Restricted Subsidiary or was acquired by the Corporation or (B) such encumbrance or restriction was created in connection with the refinancing of pre-existing
Indebtedness in connection with or in anticipation of the transaction or series of related transactions pursuant to which such Restricted Subsidiary became a Restricted Subsidiary or was acquired by the Corporation, the new Indebtedness is Permitted
Refinancing Indebtedness and such encumbrance or restriction relates only to the Property previously subject to an encumbrance or restriction under the pre-existing Indebtedness (and any improvements or additions to such Property) and is no more
restrictive in the aggregate than was its predecessor or (iii) which result from the renewal, refinancing, extension or amendment of an agreement referred to in clauses (1)(i) and (ii) above and in clauses (2)(i) and
(ii) below, provided, such encumbrance or restriction is no more restrictive in the aggregate to such Restricted Subsidiary and is not less favorable in the aggregate to the Holders of Securities than those under or pursuant to the
agreement evidencing the Indebtedness so extended, renewed, refinanced or replaced, and (2) with respect to clause (c) only, to (i) any encumbrance or restriction relating to Indebtedness that is permitted to be Incurred and secured
pursuant to the provisions under Section 3.03 and Section 3.05 that limits the right of the debtor to dispose of the Property securing such Indebtedness, (ii) any encumbrance or restriction in connection with an acquisition of
Property, so long as such encumbrance or restriction relates solely to the Property so acquired (and any improvements or additions to such Property) and was not created in connection with or in anticipation of such acquisition, (iii) customary
provisions restricting subletting or assignment of leases and customary provisions in other agreements that restrict assignment of such agreements or rights thereunder or (iv) customary restrictions contained in asset sale agreements limiting
the transfer of such assets pending the closing of such sale. 
  

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 SECTION 3.05. Limitation on Liens. The Corporation shall not, and shall not permit any Restricted
Subsidiary to, directly or indirectly, Incur or permit to exist any Lien of any nature whatsoever on any of its Properties (including Capital Stock of a Restricted Subsidiary), whether owned at the Issue Date or thereafter acquired, other than
Permitted Liens, without effectively providing that the Securities shall be secured equally and ratably with (or prior to) the obligations so secured for so long as such obligations are so secured; provided, however, that the
Corporation may Incur Liens to secure Indebtedness as long as, after giving pro forma effect to the Incurrence of such Lien and the receipt and application of proceeds from the Indebtedness secured thereby, the amount of outstanding Indebtedness
secured by Liens Incurred pursuant to this proviso does not exceed 10% of Consolidated Net Assets, as determined based on the consolidated balance sheet of the Corporation as of the end of the most recent fiscal quarter ending at least 45 days prior
thereto. 
 SECTION 3.06. Limitation on Restricted Payments. The Corporation shall not make, and shall not permit any Restricted
Subsidiary to make, any Restricted Payment if at the time of, and after giving effect to, such proposed Restricted Payment, (a) a Default or Event of Default shall have occurred and be continuing, (b) the Corporation could not Incur at
least US $1.00 of additional Indebtedness pursuant to clause (i) of paragraph (a) of Section 3.03 or (c) the aggregate amount of such Restricted Payment and all other Restricted Payments since the Issue Date (the amount of any
Restricted Payment, if made other than in cash, shall be determined based upon fair market value) would exceed an amount equal to the sum of (i) 50% of the aggregate Consolidated Net Income of the Corporation accrued during the period (treated
as one accounting period) from the beginning of the fiscal quarter in which the Issue Date occurs to the end of the most recent fiscal quarter ending at least 30 days prior to the date of such Restricted Payment (or, if Consolidated Net Income
during such period shall be a deficit, less 100% of such deficit), (ii) Capital Stock Sale Proceeds and (iii) the amount by which Indebtedness of the Corporation or any Restricted Subsidiary is reduced upon the conversion or exchange
(other than by a Subsidiary of the Corporation) subsequent to the Issue Date of any Indebtedness of the Corporation or any Restricted 

  

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Subsidiary convertible or exchangeable for Capital Stock (other than Disqualified Stock) of the Corporation (less the amount of any cash or other Property
distributed by the Corporation or any Restricted Subsidiary upon conversion or exchange). 
 Notwithstanding the foregoing limitation, the
Corporation may (a) pay dividends on or make distributions in respect of its Capital Stock within 60 days of the declaration thereof if, on the declaration date, such dividends or distributions could have been paid in compliance with the
foregoing limitation, (b) redeem, repurchase, defease, acquire or retire for value, any Subordinated Obligation (whether pursuant to its terms or by operation of law) with the proceeds of any Permitted Refinancing Indebtedness,
(c) acquire, redeem or retire Capital Stock of the Corporation or any Subordinated Obligation in exchange for, or in connection with a substantially concurrent issuance of, Capital Stock of the Corporation (other than Disqualified Stock),
(d) pay dividends on, or make any mandatory market repurchases in respect of, its Preferred Stock outstanding on the Issue Date, in accordance with the terms of such Preferred Stock as in effect on the Issue Date, (e) make Restricted
Payments (the amount of any Restricted Payment, if made other than in cash, shall be determined based on fair market value) otherwise not permitted as a result of the terms of clause (b) or (c) of the preceding paragraph, the aggregate
amount of such Restricted Payments made since the Issue Date not to exceed US $50 million, and (f) repurchase those shares of Capital Stock of Norkraft issued and outstanding on the Issue Date and not owned on the Issue Date by the Corporation.

 Any payments made pursuant to clauses (b), (c) or (f) of the immediately preceding paragraph shall be excluded from the
calculation of the aggregate amount of Restricted Payments made after the Issue Date; provided, however, that the proceeds from the issuance of Capital Stock pursuant to clause (c) of the immediately preceding paragraph
shall not constitute Capital Stock Sale Proceeds for purposes of clause (c)(ii) of the first paragraph of this covenant if and to the extent such proceeds are utilized to make Restricted Payments. Any payments made pursuant to clauses (a), (d) and
(e) of the immediately preceding paragraph shall be included in the calculation of the aggregate amount of Restricted Payments made after the Issue Date. 
  

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 SECTION 3.07. Limitation on Asset Sales. The Corporation shall not, and shall not permit any
Restricted Subsidiary to, directly or indirectly, consummate any Asset Sale after the Issue Date unless (i) the Corporation or such Restricted Subsidiary, as the case may be, receives consideration at the time of such Asset Sale at least equal
to the fair market value (as determined in good faith by a majority of the Board of Directors, including a majority of the independent directors, as evidenced by a Board Resolution, or as determined based upon an opinion letter from an Independent
Appraiser (which opinion letter shall identify such Independent Appraiser as such and be dated within 30 days of such Asset Sale)) of the Property subject to such Asset Sale and (ii) at least 75% of the consideration paid to the Corporation or
such Restricted Subsidiary in connection with such Asset Sale is in the form of (w) cash or cash equivalents or notes secured as to payment of principal and interest by a Qualified Letter of Credit, (x) the assumption or repayment of
Indebtedness of the Corporation or a Restricted Subsidiary (together, in each case, with a complete and unconditional release of all obligations of the Corporation and its Restricted Subsidiaries in respect of such Indebtedness) or (y) Property
(including Capital Stock constituting a majority of the total voting power attached to the then outstanding Voting Capital Stock of any Person the primary business of which is a Related Business or, in connection with an Investment by the
Corporation or a Restricted Subsidiary in a joint venture in a Related Business, Capital Stock of the Person formed in connection with such joint venture) to be used by the Corporation and its Restricted Subsidiaries in a Related Business (the
amount of consideration in respect of Property to be equal to its fair market value, determined as aforesaid), or (z) any combination of (w), (x) or (y). 
 The Net Available Cash (or any portion thereof) from Asset Sales may be applied by the Corporation or a Restricted Subsidiary, to the extent the Corporation or such Restricted Subsidiary elects, (A) to prepay,
repay or purchase (1) Indebtedness of a Restricted Subsidiary, (2) Indebtedness under the Credit Agreement (without requiring a reduction in the committed amount of the Credit Agreement) or (3) other Indebtedness of the Corporation
(other than any Subordinated Obligation), provided that, in the case of clause (A)(3), such Indebtedness has (i) a Stated Maturity no later than the Stated Maturity of the Securities or the Notes, as applicable, and (ii) an Average

  

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Life equal to or shorter than the Average Life of the Securities or the Notes, as applicable; or (B) to reinvest in Additional Assets (including by
means of an Investment in Additional Assets by a Restricted Subsidiary with Net Available Cash received by the Corporation or another Restricted Subsidiary). 
 Any Net Available Cash from an Asset Sale that is not applied in accordance with the preceding paragraph within twelve months from the date of the receipt of such Net Available Cash or that is not segregated from the
general funds of the Corporation for investment in identified Additional Assets in respect of a project that shall have been commenced prior to the end of such twelve month period and shall not have been completed or abandoned shall constitute
“Excess Proceeds”; provide, however, that the amount of any Net Available Cash that ceases to be so segregated as contemplated above and any Net Available Cash that is segregated in respect of a project that is
abandoned or completed shall also constitute “Excess Proceeds” at the time any such Net Available Cash ceases to be so segregated or at the time the relevant project is so abandoned or completed, as applicable; provided further,
however, that the amount of any Net Available Cash that continues to be segregated for investment and that is not actually reinvested within twenty-four months from the date of the receipt of such Net Available Cash shall also constitute
“Excess Proceeds”. When the aggregate amount of Excess Proceeds exceeds US $20 million, the Corporation will be required to make an offer to purchase (the “Prepayment Offer”) the Securities, in an amount equal to the Allocable
Excess Proceeds (as defined below) at a purchase price (the “Purchase Price”) equal to an amount not less than 100% of the principal amount of each such Security, plus accrued and unpaid interest thereon (if any) to the date of purchase in
accordance with the procedures (including prorating in the event of oversubscription) set forth in this Indenture. If the aggregate principal amount of all Securities surrendered for purchase by Holders thereof exceeds the applicable amount of
Allocable Excess Proceeds, then the Trustee shall select the Securities to be purchased pro rata according to principal amount with such adjustments as may be deemed appropriate by the Corporation so that only Securities in denominations of US
$1,000, or integral multiples thereof, shall be purchased. To the extent that any portion of the amount of Net Available Cash remains after compliance with the preceding sentence and provided that all Holders of Securities have been given the
opportunity to tender their 

  

 49 

 
Securities for purchase as described in the following paragraph in accordance with this Indenture, the Corporation or such Restricted Subsidiary may use such
remaining amount for general corporate purposes and the amount of Excess Proceeds will be reset to zero; provided that the amount of the Unoffered Excess Proceeds (as defined below) shall constitute Excess Proceeds in respect of the
Securities for purposes of the first Prepayment Offer that is made after the fifth anniversary of the Issue Date (the “Fifth Anniversary”), “Allocable Excess Proceeds” means the product of (x) the Excess Proceeds and
(y) a fraction, the numerator of which is the aggregate principal amount of the Securities outstanding on the date of the Prepayment Offer and the denominator of which is the sum of the aggregate principal amount of the Securities outstanding
on the date of the Prepayment Offer and the aggregate principal amount of other Indebtedness of the Corporation outstanding on the date of the Prepayment Offer that is pari passu in right of payment with the Securities and subject to
terms and conditions in respect of Asset Sales similar in all material respects to this Section 3.07 and requiring the Corporation to make an offer to purchase such Indebtedness substantially at the same time of the Prepayment Offer.

 Notwithstanding the foregoing, in no event shall the Corporation be required to repurchase or make a Prepayment Offer or Prepayment Offers
to purchase more than 25% of the original aggregate principal amount of the Securities on or prior to the Fifth Anniversary. If (x) the aggregate Allocable Excess Proceeds (disregarding any resetting to zero pursuant to the preceding paragraph)
resulting from Asset Sales occurring on or prior to the Fifth Anniversary that, but for the first sentence of this paragraph, the Corporation would be required to apply to repurchase or make an offer or offers to purchase Securities, less
(y) any Deficiencies resulting from any Prepayment Offer made on or prior to the Fifth Anniversary, exceed the sum of (a) 25% of the original aggregate principal amount of the Securities, plus (b) without duplication of amounts
specified in clause (y) of this sentence, any portion of such Allocable Excess Proceeds in excess of 25% of the original aggregate principal amount of the Securities applied at the election of the Corporation to repurchase or make an offer or
offers to purchase Securities prior to the Fifth Anniversary (such excess being the “Unoffered Excess Proceeds”), then, subject to and in accordance with the procedures set forth in this covenant, within five Business Days after the Fifth
Anniversary the 

  

 50 

 
Corporation shall make a Prepayment Offer for the Securities in an amount equal to the Unoffered Excess Proceeds applicable to the Securities.
“Deficiency” shall mean an amount equal to the excess, if any, of the aggregate principal amount of Securities offered to be purchased pursuant to a Prepayment Offer over the aggregate principal amount of Securities tendered in respect of
such Prepayment Offer. 
 Within five Business Days after the date Net Available Cash from an Asset Sale is treated as “Excess
Proceeds” under this covenant, the Corporation shall, if it is obligated to make a Prepayment Offer, send a written notice, by first-class mail, to the Holders of Securities (the “Prepayment Offer Notice”), accompanied by such
information regarding the Corporation and its Subsidiaries as the Corporation in good faith believes will enable such Holders to make an informed decision with respect to the Prepayment Offer. The Prepayment Offer Notice will state, among other
things, (a) that the Corporation is offering to purchase Securities pursuant to the provisions of this Section, (b) that any Security (or any portion thereof) accepted for payment (and duly paid on the Purchase Date) pursuant to the
Prepayment Offer shall cease to accrue interest after the Purchase Date, (c) the purchase price and purchase date, which shall be, subject to any contrary requirements of applicable law, no less than 30 days nor more than 60 days from the date
the Prepayment Offer Notice is mailed (the “Purchase Date”), (d) the aggregate principal amount of Securities to be purchased and (e) a description of the procedures which Holders of Securities must follow in order to tender
their Securities (or portions thereof) and the procedures that Holders of Securities must follow in order to withdraw an election to tender their Securities (or portions thereof) for payment. 
 SECTION 3.08. Limitation on Transactions with Affiliates. The Corporation shall not, and shall not permit any Restricted Subsidiary to, enter into
or permit to exist any transaction (including the purchase, sale, lease or exchange of any property, employee compensation arrangements or the rendering of any service) with any Affiliate of the Corporation (an “Affiliate Transaction”)
unless the terms thereof (1) are no less favorable to the Corporation or such Restricted Subsidiary than those that could be obtained at the time of such transaction in arm’s-length dealings with a Person who is not such an Affiliate,
(2) if such Affiliate Transaction involves aggregate consideration in excess of 

  

 51 

 
US $10 million but less than or equal to US $25 million, (i) are set forth in writing, (ii) have been approved by a majority of the members of the
Board of Directors having no personal stake in such Affiliate Transaction and (iii) satisfy the terms of clause (1) of this covenant and (3) if such Affiliate Transaction involves aggregate consideration in excess of US $25 million,
(i) (x) have been determined by an Independent Appraiser to be fair to the Corporation and its Restricted Subsidiaries, from a financial standpoint, or (y) satisfy the terms of clause (2)(ii) of this Section and (ii) satisfy
the terms of clauses (1) and (2)(i) of this Section. 
 Notwithstanding the foregoing limitation, the Corporation may enter into or
suffer to exist the following: (i) any Restricted Payment made in accordance with Section 3.06; (ii) any transaction or series of transactions between the Corporation and one or more of its Restricted Subsidiaries or between two or
more of its Restricted Subsidiaries (provided that no more than 5% of the Capital Stock in any of such Restricted Subsidiaries is beneficially owned by an Affiliate of the Corporation (other than another Restricted Subsidiary));
(iii) the payment of compensation (including, amounts paid pursuant to employee benefit plans) for the personal services of officers, directors and employees of the Corporation or any of its Restricted Subsidiaries, so long as the Board of
Directors of the Corporation in good faith shall have approved the terms thereof and deemed the services theretofore or thereafter to be performed for such compensation or fees to be fair consideration therefor; (iv) any transaction pursuant to
any contract in existence on the Issue Date between the Corporation and a Wholly Owned Subsidiary or between Wholly Owned Subsidiaries; (v) loans and advances to employees made in the ordinary course of business and consistent with past
practice of the Corporation or such Restricted Subsidiary, as the case may be; and (vi) any transaction or series of transactions between the Corporation and Norkraft, so long as Norkraft remains a Restricted Subsidiary owned solely by the
Corporation and an entity owned solely by Norkraft employees. 
 SECTION 3.09. Limitation on Sale and Leaseback Transactions. The
Corporation will not, and will not permit any Restricted Subsidiary to, enter into any Sale and Leaseback Transaction with respect to any Property unless (i) the Corporation or such Subsidiary would be entitled to (A) Incur Indebtedness in
an amount equal to the 

  

 52 

 
Attributable Indebtedness with respect to such Sale and Leaseback Transaction pursuant to Section 3.03 and (B) create a Lien on such property
securing such Attributable Indebtedness without equally and ratably securing the Securities pursuant to Section 3.05 and (ii) the net cash proceeds received by the Corporation or any Restricted Subsidiary in connection with such Sale and
Leaseback Transaction are at least equal to the fair market value (determined as specified in the first paragraph under Section 3.07) of such Property. 
 SECTION 3.10. Designation of Restricted and Unrestricted Subsidiaries. (a) Unless defined or designated as an Unrestricted Subsidiary, any Person that becomes a Subsidiary of the Corporation or any of its
Restricted Subsidiaries shall be classified as a Restricted Subsidiary subject to the provisions of the next paragraph. The Corporation may designate a Subsidiary (including a newly formed or newly acquired Subsidiary) of the Corporation or any of
its Restricted Subsidiaries as an Unrestricted Subsidiary unless such Subsidiary or any of its Subsidiaries owns or holds any Capital Stock or Indebtedness of, or holds any Lien on any Property of, the Corporation, or any Restricted Subsidiary of
the Corporation; provided, however, (i) such designation is effective on the Issue Date or within 30 days after the first meeting of the Board of Directors to occur following the date on which such Subsidiary became a Subsidiary
of the Corporation or of a Restricted Subsidiary or (ii) the Subsidiary to be so designated has total assets of US $1,000 or less. An Unrestricted Subsidiary may be redesignated as a Restricted Subsidiary upon compliance with the provisions of
the next paragraph. The designation of an Unrestricted Subsidiary or removal of such designation shall be made by the Board of Directors pursuant to a Board Resolution delivered to the Trustee and shall be effective as of the date specified in such
Board Resolution, which shall not be prior to the date such Board Resolution is delivered to the Trustee. 
 (b) The Corporation will not,
and will not permit any of its Restricted Subsidiaries to, take any action or enter into any transaction or series of transactions that would result in a Person becoming a Restricted Subsidiary (whether through an acquisition or otherwise) unless,
after giving effect to such action, transaction or series of transactions, on a pro forma basis, (i) the Corporation could Incur at least US $1.00 of additional Indebtedness 

  

 53 

 
pursuant to clause (i) of paragraph (a) of Section 3.03 and (ii) no Default or Event of Default would occur or be continuing. 

SECTION 3.11. Canadian Withholding Taxes. All payments made on behalf of the Corporation under or with respect to the Securities will be made
free and clear of and without withholding or deduction for or on account of any present or future tax, duty, levy, impost, assessment or other governmental charge (including penalties, interest and other liabilities related thereto) imposed or
levied by or on behalf of the Government of Canada or of any province or territory thereof or by any authority or agency therein or thereof having power to tax (“Taxes”), unless the Corporation is required to withhold or deduct Taxes by
law or by the interpretation or administration thereof by the relevant government authority or agency. If the Corporation is so required to withhold or deduct any amount for or on account of Taxes from any payment made under or with respect to the
Securities, the Corporation will be required to pay such additional amounts (“Additional Amounts”) as may be necessary so that the net amount received by each Holder (including Additional Amounts) after such withholding or deduction will
not be less than the amount the Holder would have received if such Taxes had not been withheld or deducted; provided, however, that no Additional Amounts will be payable with respect to payments made to a Holder (an “Excluded
Holder”) in respect of a beneficial owner (i) with which the Corporation does not deal at arm’s length (for the purposes of the Income Tax Act (Canada)) at the time of making of such payment or (ii) which is subject to
such Taxes by reason of its being connected with Canada or any province or territory thereof otherwise than by the mere holding of Securities or the receipt of payments thereunder. The Corporation will also make such withholding or deduction and
remit the full amount deducted or withheld to the relevant authority as and when required in accordance with applicable law. 
 The
Corporation will furnish to the Holder of the Securities, within 30 days after the date the payment of any Taxes is due pursuant to applicable law, certified copies of tax receipts evidencing such payment by the Corporation. The Corporation will
upon written request of each Holder (other than an Excluded Holder), reimburse each such Holder for the amount of (i) any Taxes so levied or imposed and paid by such Holder as a result of payments made under or with respect to the Securities
and (ii) any Taxes imposed 

  

 54 

 with respect to any reimbursement under the immediately preceding clause (i), but excluding any such Taxes on such
Holder’s net income, such that the net amount received by such Holder after such reimbursement will not be less than the net amount the Holder would have received if Taxes (other than such Taxes on such Holder’s net income) on such
reimbursement had not been imposed. 
 At least 30 days prior to each date on which any payment under or with respect to the Securities is
due and payable, if the Corporation becomes obligated to pay Additional Amounts with respect to such payment, the Corporation will deliver to the Trustee an Officers’ Certificate stating the fact that such Additional Amounts will be payable,
and the amounts so payable and will set forth such other information as is necessary to enable the Trustee to pay such Additional Amounts to the Holders on the payment date. Whenever in this Indenture there is mentioned, in any context, (a) the
payment of principal (and premium, if any), (b) purchase prices in connection with a purchase of Securities by the Corporation, (c) interest or (d) any other amount payable on or with respect to any of the Securities, such mention
shall be deemed to include mention of the payment of Additional Amounts provided for in this section to the extent that, in such context, Additional Amounts are, were or would be payable in respect thereof. 
 SECTION 3.12. SEC Reports; Reports to Holders. The Corporation shall transmit to the Commission and file with the Trustee and cause to be mailed
directly to each of the Holders of the Securities at such Holder’s last address appearing in the Security Register, without cost to such Holders, within 15 days after the Corporation 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 rule and regulation prescribe) which the Corporation is required to file with the
Commission pursuant to Section 13 or Section 15(d) of the Exchange Act; or, if the Corporation is not required to file information, documents or reports pursuant to either of such Sections, then the Corporation will file with the
Commission and provide to the Holders of the Securities and the Trustee annual reports and other information, documents and reports which are required to be filed by a Person similarly situated to the Corporation subject to the reporting
requirements of Section 13 or 15(d) of the Exchange Act, which reports, information and documents, 

  

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regardless of applicable requirements, shall, at a minimum, contain such information required to be provided or set forth in, as applicable, annual and
quarterly reports under the laws of Canada or any province thereof provided to securityholders of a company with securities listed on The Toronto Stock Exchange (whether or not the Corporation has any of its securities so listed); provided,
however, that the Corporation shall not be so obligated to file such reports with the Commission if the Commission does not permit such filings. Any financial statement contained in each of such reports will be prepared in accordance with
GAAP, and in the case of the annual financial statements will contain a reconciliation to accounting principles generally accepted in the United States prepared in accordance with the applicable rules and regulations of the Commission in respect of
such reconciliation. The Corporation also shall comply with the other provisions of TIA § 314(a). 
 SECTION 3.13. Compliance
Certificates. The Corporation shall deliver to the Trustee, within 120 days after the end of each fiscal year of the Corporation, an Officers’ Certificate (one signatory to which shall be its principal executive officer, principal financial
officer or principal accounting officer) stating that a review of the activities of the Corporation and its subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officers with a view to determining whether
the Corporation has kept, observed, performed, fulfilled and complied with their obligations, covenants and conditions under this Indenture, and further stating, as to each such Officer signing such certificate, that to the best of such
Officer’s knowledge the Corporation has kept, observed, performed, fulfilled and complied with each and every applicable covenant and condition contained in this Indenture and is not in default in performance or observance of any of the terms,
provisions and conditions hereof (or, if a Default or Event of Default shall have occurred, describing all such Defaults or Events of Default of which he may have knowledge and the nature and status thereof). For purposes of this paragraph,
compliance shall be determined without regard to any period of grace or requirement of notice under this Indenture. 
 SECTION 3.14.
Notice of Defaults. Subject to the last paragraph of Section 7.01, upon the occurrence of any Default or Event of Default under this Indenture, the Corporation within 10 days after it becomes aware thereof, 

  

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shall deliver to the Trustee an Officers’ Certificate specifying such Default or Event of Default and what action the Corporation is taking or proposes
to take with respect thereto. 
 ARTICLE IV  
 Redemption of the Securities 
 SECTION 4.01. Notice of Trustee. If the Corporation elects to
redeem the Securities pursuant to paragraph 5 of the Securities, it shall notify the Trustee in writing of the Redemption Date and the principal amount of Securities to be redeemed. The Corporation shall give each such notice to the Trustee at least
60 calendar days prior to the Redemption Date unless the Trustee consents to a shorter period. Such notice shall be accompanied by an Officers’ Certificate and an Opinion of Counsel from the Corporation to the effect that such redemption will
comply with any conditions to such redemption set forth herein and in the Securities. 
 SECTION 4.02. Selection of Securities To Be
Redeemed. If less than all of the Securities are to be redeemed at any time, the Trustee shall select the Securities to be redeemed on a pro rata basis, by lot or by such other method as the Trustee in its sole discretion shall deem to be fair
and appropriate, provided that the Trustee may not select for redemption in part Securities of US $1,000 in original principal amount or less. In selecting Securities to be redeemed pursuant to this Section 4.02, the Trustee shall make
such adjustments, reallocations and eliminations as it shall deem proper so that the principal amount of each Security to be redeemed shall be $1,000 or an integral multiple thereof, by increasing, decreasing or eliminating any amount less than
$1,000 which would be allocable to any Holder. The Trustee in its discretion may determine the particular Securities (if there are more than one) registered in the name of any Holder which are to be redeemed, in whole or in part. Provisions of this
Indenture that apply to Securities called for redemption also apply to portions of Securities called for redemption. The Trustee shall notify the Corporation promptly of the Securities or portions of Securities to be redeemed. 
  

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 SECTION 4.03. Notice of Redemption. At least 30 calendar days but not more than 60 calendar days
before a Redemption Date, the Corporation shall send a notice of redemption, first class mail, postage prepaid, to Holders of Securities to be redeemed at the addresses of such Holders as they appear in the Security Register. 
 The notice shall identify the Securities to be redeemed and shall state: 
 (a) the Redemption Date; 
 (b) the Redemption Price (and shall specify the portion of such Redemption Price that constitutes the amount of accrued and unpaid interest to be paid, if any) ; 
 (c) the name and address of the Paying Agent; 
 (d) that the Securities called for redemption must be surrendered to the Paying Agent to collect the Redemption price; 
 (e) if any Global Security is being redeemed in part, the portion of the principal amount of such Global Security to be redeemed and that,
after the Redemption Date, the Global Security, with a notation adjusting the principal amount thereof to be equal to the unredeemed portion, will be returned to the Holder thereof; 
 (f) if fewer than all the outstanding Securities are to be redeemed, the identification and principal amounts of the particular Securities
to be redeemed; 
 (g) that, unless the Corporation defaults in making the redemption payment, interest on the Securities (or
portions thereof) called for redemption shall cease and such Securities (or portions thereof) shall cease to accrue interest on and after the Redemption Date; 
 (h) the paragraph of the Securities pursuant to which the Securities are being called for redemption; 
 (i) if any Security is to be redeemed in part only, the portion of the principal amount thereof to be redeemed; 
  

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 (j) that Holders whose Securities are being purchased only in part will be issued new
Securities equal in principal amount to the unpurchased portion of the Securities surrendered, provided that each such new Security issued shall be in a principal amount in denominations of $1,000 and integral multiples thereof; and

 (k) the CUSIP if applicable; 
 (l) any other information necessary to enable Holders to comply with the notice of redemption. 
 At the
Corporation’s request, the Trustee shall give the notice of redemption in the Corporation’s name and at the Corporation’s expense. In such event, the Corporation shall provide the Trustee with the information required by this
Section 4.03 in a timely manner. 
 SECTION 4.04. Effect of Notice of Redemption. Once notice of redemption is mailed, Securities
called for redemption shall become due and payable on the Redemption Date and at the Redemption Price stated in such notice. Upon surrender to the Paying Agent, such Securities shall be paid at the Redemption Price stated in such notice. Failure to
give notice or any defect in the notice to any Holder shall not affect the validity of the notice to any other Holder. 
 SECTION 4.05.
Deposit of Redemption Price. On or prior to 10:00 a.m., New York City time, on each Redemption Date, the Corporation shall deposit with the Paying Agent (or, if the Corporation, one of its Subsidiaries or any of their Affiliates is the Paying
Agent, the Paying Agent shall segregate and hold in trust for the benefit of the Holders) money, in United States Federal or other immediately available funds, sufficient to pay the Redemption Price on all Securities to be redeemed on that date
other than Securities or portions of Securities called for redemption on such date which have been delivered by the Corporation to the Trustee for cancellation. 
 So long as the Corporation complies with the preceding paragraph and the other provisions of this Article IV, interest on the Securities to be redeemed on the applicable Redemption Date shall cease to accrue from and
after such date and such Securities or portions thereof shall be deemed not to be entitled to any benefit under this 

  

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Indenture except to receive payment of the Redemption Price on the Redemption Date. If any Security called for redemption shall not be so paid upon surrender
for redemption, then, from the Redemption Date until such principal, premium (if any) and accrued but unpaid interest is paid, interest shall be paid on the unpaid principal and premium (if any) at the rate then borne by the Securities, and, to the
extent permitted by law, on any accrued but unpaid interest thereon, at the same rate. 
 SECTION 4.06. Redemption for Changes in Canadian
Withholding Taxes. The Securities may be redeemed, at the option of the Corporation, at any time as a whole but not in part, on not less than 30 nor more than 60 days’ notice, at 100% of the principal amount thereof, plus accrued and unpaid
interest (if any) to the date of redemption (subject to the right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date), in the event the Corporation has become or would become obligated to
pay, on the next date on which any amount would be payable with respect to the Securities, any Additional Amounts with respect to the Securities as a result of a change in or an amendment to the laws (including any regulations promulgated
thereunder) of Canada (or any political subdivision or taxing authority thereof or therein), or any change in or amendment to any official position regarding the application or interpretation of such laws or regulations, which change or amendment is
announced or becomes effective on or after July 26, 1996. 
 ARTICLE V  
 Right To Require Repurchase 
 SECTION 5.01. Purchase of Securities at the
Option of Holders upon a Change of Control. (a) Upon the occurrence of a Change of Control Triggering Event, the Corporation shall notify the Trustee in writing of such occurrence within 30 days thereafter and shall make an offer to
purchase (the “Change of Control Offer”), and each Holder of Securities shall have the right to require the Corporation to purchase, all or any part (equal to US $1,000 or an integral multiple thereof) of each Holder’s Securities at a
purchase price equal to 101% of the principal amount thereof, plus accrued and unpaid interest thereon, if any, to the Change of Control Payment Date (as hereinafter defined) (subject to the right of Holders of record on the 

  

 60 

 
relevant Record Date to receive interest due on the relevant Interest Payment Date) (the “Change of Control Payment”) in accordance with the
procedures set forth in this Section 5.01. 
 (b) Within 30 days following any Change of Control Triggering Event with respect to the
Securities, the Corporation shall (i) cause a notice of the Change of Control Offer to be sent at least once to the Dow Jones News Service or similar business news service in the United States and (ii) mail a notice to each Holder of
Securities stating: 
  

	 	(1)	that a Change of Control Triggering Event has occurred and a Change of Control Offer is being made pursuant to this Section 5.01 and that all Securities timely tendered will be
accepted for payment, subject to the terms and conditions set forth herein; 

  

	 	(2)	the Change of Control Payment and the purchase date, which shall be, subject to any contrary requirements of applicable law, no earlier than 30 days nor later than 60 days from the
date such notice is mailed (the “Change of Control Payment Date”); 

  

	 	(3)	that any Security (or portion thereof) accepted for payment (and duly paid on the Change of Control Payment Date) pursuant to the Change of Control Offer shall cease to accrue
interest after the Change of Control Payment Date; 

  

	 	(4)	that any Securities (or portions thereof) not tendered will continue to accrue interest; 

  

	 	(5)	a description of the transaction or transactions constituting the Change of Control Triggering Event; 

  

	 	(6)	that Holders accepting the offer to have their Securities purchased pursuant to a Change of Control Offer will be required to surrender such Securities to the Paying Agent at the
address specified in the notice prior to the close of business on the Business Day preceding the Change of Control Payment Date; 

  

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	 	(7)	that Holders will be entitled to withdraw their acceptance if the Paying Agent receives, not later than the close of business on the third Business Day preceding the Change of
Control Payment Date, a facsimile transmission or letter setting forth the name of the Holder, the principal amount of such Securities delivered for purchase, and a statement that such Holder is withdrawing his election to have such Securities
purchased; 

  

	 	(8)	that Holders whose Securities are being purchased only in part will be issued new Securities equal in principal amount to the unpurchased portion of the Securities surrendered,
provided that each Security purchased and each such new Security issued shall be in a principal amount in denominations of $1,000 and integral multiples thereof; and 

  

	 	(9)	any other procedures that a Holder must follow to accept a Change of Control Offer or effect withdrawal of such acceptance. 

 (c) On the Change of Control Payment Date, the Corporation shall (a) accept for payment the Securities or portions thereof duly tendered pursuant to
the Change of Control Offer and not withdrawn, (b) deposit with the Paying Agent money sufficient to pay the Change of Control Payment with respect to all Securities accepted for payment, and (c) deliver or cause to be delivered to the
Trustee the Securities so accepted together with an Officers’ Certificate indicating the Securities or portions thereof tendered to the Corporation. The Paying Agent shall promptly mail to each Holder of Securities so accepted payment in an
amount equal to the Change of Control Payment for such Securities, and the Trustee shall promptly authenticate and mail to such Holder a new Security equal in principal amount to any unpurchased portion of the Securities surrendered; provided that
each such new Security shall be issued in an original principal amount in denominations of $1,000 and integral multiples thereof. 
 SECTION
5.02. Covenant To Comply with Securities Laws upon Purchase of Securities. In connection with any purchase of Securities under Section 3.07 or Section 5.01 by 

  

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the Corporation, the Corporation shall, to the extent then applicable and required by law, (i) comply with Rule 14e-l (which term, as used herein,
includes any successor provisions thereto) under the Exchange Act and any other securities laws and regulations thereunder and (ii) otherwise comply with all United States Federal and state securities laws so as to permit the rights and
obligations under Section 3.07 or Section 5.01 to be exercised in the time and in the manner specified in such Sections. To the extent that the provisions of any such securities laws or regulations conflict with the provisions of
Section 3.07 or Section 5.01, the Corporation shall comply with the applicable securities laws and regulations and shall not be deemed to have breached its obligations described in such Section 3.07 or Section 5.01 by virtue
thereof. 
 ARTICLE VI  
 Merger, Amalgamation, Consolidation and Sale of Assets 
 SECTION 6.01. When Corporation May Merge, Amalgamate,
Consolidate or Sell Assets. (a) The Corporation may not amalgamate with, consolidate with or merge with or into any Person (other than a merger of a Wholly Owned Subsidiary into the Corporation), or convey, sell, transfer, assign, lease or
otherwise dispose of all or substantially all of its assets (in one transaction or a series of related transactions) to any Person, unless: (i) the Corporation shall be the surviving Person (the “Surviving Person”), or the Surviving
Person (if other than the Corporation) formed by such amalgamation, consolidation or into which the Corporation is merged or to which the assets of the Corporation are transferred, conveyed, sold, assigned or leased shall be a corporation organized
and existing under the Federal laws of Canada or the laws of any province thereof or the laws of the United States or any State thereof or the District of Columbia; (ii) the Surviving Person (if other than the Corporation) shall expressly
assume, by supplemental indenture, executed and delivered to the Trustee, in form satisfactory to the Trustee, all of the obligations of the Corporation under the Securities and this Indenture, and the obligations under this Indenture shall remain
in full force and effect; (iii) in the case of a sale, transfer, assignment, lease, conveyance or other disposition of all or substantially all of the Corporation’s Property, such Property shall have been 

  

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so transferred as an entirety or virtually as an entirety to one Person; (iv) immediately after giving effect to such transaction, the Surviving Person
will have a Consolidated Net Worth in an amount which is not less than the Consolidated Net Worth of the Corporation immediately prior to such transaction; (v) immediately after giving effect to such transaction, no Default or Event of Default
shall have occurred and be continuing; (vi) immediately after giving effect to such transaction on a pro forma basis (including any Indebtedness Incurred or anticipated to be Incurred in connection with such transaction or series of
transactions), (A) the Surviving Person would be able to Incur at least US $1.00 of additional Indebtedness pursuant to clause (i) of paragraph (a) under Section 3.03 or (B) the Surviving Person would have a Consolidated
Fixed Charge coverage Ratio which is not lower than the Consolidated Fixed Charge Coverage Ratio of the Corporation immediately prior to such transaction; and (vii) the Corporation shall have received an opinion of outside counsel in Canada to
the effect that (A) any payment of interest or principal on the Securities by the Corporation to a Holder will, after the amalgamation, consolidation, merger, sale, conveyance, transfer, assignment, lease or other disposition of assets be
exempt from Canadian withholding tax if the Holder is or is deemed to be a non-resident of Canada, deals at arm’s length with the Surviving Person for purposes of the Income Tax Act (Canada) at the time of making the payment and
(B) no other taxes on income (including taxable capital gains) will be payable under the Income Tax Act (Canada) by a Holder of the Securities who is or who is deemed to be a non-resident of Canada in respect of the acquisition,
ownership or disposition of the Securities, including the receipt of interest, principal or premium thereon, provided that such Holder does not use or hold, and is not deemed to use or hold the Securities in carrying on a business in Canada for
purposes of the Income Tax Act (Canada) and, in the case of a Holder of the Securities who carries on an insurance business in Canada and elsewhere, the Securities are not effectively connected with its Canadian insurance business.

 (b) In connection with any amalgamation, consolidation, merger or transfer (or like transaction) contemplated by this provision, the
Corporation shall deliver, or cause to be delivered, to the Trustee, in form and substance reasonably satisfactory to the Trustee, an Officers’ Certificate and an Opinion of Counsel, each stating that such amalgamation, consolidation, merger or
transfer (or like transaction) and the supplemental 

  

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indenture in respect thereto comply with this provision and that all conditions precedent herein provided for relating to such transaction or transactions
have been complied with. 
 (c) The Surviving Person will succeed to, and be substituted for, and may exercise every right and power of, the
Corporation under this Indenture, but the predecessor Corporation in the case of a sale, conveyance, transfer, assignment, lease or other disposition of all or substantially all its assets will not be released from the obligation to pay the
principal of and interest on the Securities. 
 ARTICLE VII  
 Defaults and Remedies 
 SECTION 7.01. Events of Default. An “Event
of Default” occurs with respect to the Securities if: 
  

	 	(1)	the Corporation fails to make the payment of any principal of the Securities when the same becomes due and payable at maturity, upon acceleration, redemption or declaration, or
otherwise; 

  

	 	(2)	the Corporation fails to make the payment of any interest or Additional Amounts on any of the Securities, when the same becomes due and payable, and such failure continues for a
period of 30 days; 

  

	 	(3)	the Corporation fails to comply with any other covenant in the Securities or this Indenture and such failure continues for 45 days after the notice specified below;

  

	 	(4)	a default or defaults resulting in acceleration of any Indebtedness of the Corporation or any Restricted Subsidiary that is outstanding in a principal amount of $25 million or more,
or any failure of the Corporation or any Restricted Subsidiary to pay any such Indebtedness at final maturity beyond any applicable grace period or any failure of the Corporation or any Restricted Subsidiary to pay any such Indebtedness in

  

 65 

	 	 
the event such Indebtedness shall be declared to be due and payable or required to be prepaid prior to the Stated Maturity thereof;

  

	 	(5)	any judgment or judgments for the payment of money in excess of US $25 million shall be rendered against the Corporation or any Restricted Subsidiary and shall not be waived,
satisfied or discharged for any period of 60 consecutive days during which a stay of enforcement shall not be in effect; 

  

	 	(6)	the Corporation or any Restricted Subsidiary pursuant to or within the meaning of any Bankruptcy Law: 

  

	 	 	(A) commences a voluntary case; 

  

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

  

	 	 	(C) consents to the appointment of a Custodian of it or for any substantial part of its property; or 

  

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

 or takes any comparable action under any foreign laws relating to insolvency, unless, in the case of a Restricted Subsidiary, the Consolidated Net Tangible Assets attributable to such Restricted Subsidiary is less than 2 1/2% of the
Consolidated Net Tangible Assets of the Corporation as of the end of the fiscal quarter immediately preceding the date of the occurrence of any such event; and 
  

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

  

	 	 	(A) is for relief against the Corporation or any Restricted Subsidiary in an involuntary case; 

  

	 	 	(B) appoints a Custodian of the Corporation or any Restricted Subsidiary or for any substantial part of its property; or 

  

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 (C) orders the winding up or liquidation of the Corporation or any Restricted Subsidiary;

 or any similar relief is granted under any foreign laws and the order or decree remains unstayed and in effect for 60 days, unless, in the
case of a Restricted Subsidiary, the Consolidated Net Tangible Assets attributable to such Restricted Subsidiary is less than 2 1/2% of the Consolidated Net Tangible Assets of the Corporation as of the end of the quarter immediately preceding the
date of the occurrence of any such event. 
 The foregoing will constitute Events of Default whatever the reason for any such Event of
Default and whether it is voluntary or involuntary or is effected by operation of law or pursuant to any judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental body. 
 The term “Custodian” means any receiver, trustee, assignee, liquidator, custodian or similar official under any Bankruptcy Law. 
 A Default under clause (3) to this Section 7.01 is not an Event of Default until the Trustee or the Holders of at least 25% in aggregate
principal amount of the Securities then outstanding notify the Corporation of the Default (with a copy of the notification to the Trustee in the case of notice from the Holders) and the Corporation does not cure such Default within 45 days after
receipt of such notice. Such notice must specify the Default, demand that it be remedied and state that such notice is a “Notice of Default”. 
 The Corporation shall deliver to the Trustee, within 10 days after the occurrence thereof, written notice in the form of an Officers’ Certificate of any Default that has occurred and is continuing or in the event
that the Trustee, any Holder or the trustee for or the holder of any other evidence of Indebtedness of the Corporation gives any notice or takes any other action with respect to a claimed default (other than with respect to Indebtedness in the
principal amount of less than US $25 million). The Officers’ Certificate shall specify such Default, notice or other action. 
 SECTION
7.02. Acceleration. If an Event of Default (other than an Event of Default specified in 

  

 67 

 
Section 7.01(6) or (7) with respect to the Corporation) occurs and is continuing, the Trustee by notice to the Corporation, or the Holders of at
least 25% in aggregate principal amount of the Securities then outstanding by notice to the Corporation and the Trustee, may declare the principal of all the Securities then outstanding, plus accrued but unpaid interest to the date of acceleration,
to be due and payable. Upon such a declaration, such principal and interest shall be due and payable immediately. If an Event of Default specified in Section 7.01(6) or (7) with respect to the Corporation occurs, the principal of and
accrued but unpaid interest on all the Securities shall ipso facto become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holders. The Holders of a majority in aggregate principal
amount of the Securities then outstanding by notice to the Trustee may rescind and annul any acceleration and its consequences if the rescission would not conflict with any judgment or decree and if all existing Events of Default have been cured or
waived except nonpayment of principal, premium (if any) or accrued but unpaid interest that has become due solely because of acceleration. No such rescission shall affect any subsequent Default or impair any right consequent thereto. 
 Notwithstanding the foregoing, in the event of a declaration of acceleration in respect of the Securities because of an Event of Default specified in
clause (4) of Section 7.01 above, such declaration of acceleration shall be automatically annulled if (a) the Indebtedness that is the subject of such Event of Default has been discharged or the holders thereof have rescinded their
declaration of acceleration, notification or action, as applicable, in respect of such Indebtedness, (b) written notice of such discharge or rescission, as the case may be, shall have been given to the Trustee by the Corporation and
countersigned by the holders of such Indebtedness or a trustee, fiduciary or agent for such holders or Person or Persons entitled to take the action described in clause (4) within 30 days after such declaration of acceleration in respect of the
Securities, and (c) no other Event of Default has occurred during such 30-day period which has not been cured or waived in accordance with the terms of this Indenture. 
 SECTION 7.03. Other Remedies. If an Event of Default with respect to the Securities occurs and is continuing, the Trustee may pursue any available
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principal of, premium (if any) or interest on, the Securities or to enforce the performance of any provision of such Securities or this Indenture.

 The Trustee may maintain a proceeding even if it does not possess any of the Securities or does not produce any of them in the proceeding.
A delay or omission by the Trustee or any Holder in exercising any right or remedy accruing upon an Event of Default shall not impair the right or remedy or constitute a waiver of or acquiescence in the Event of Default. No remedy is exclusive of
any other remedy. All remedies are cumulative to the extent permitted by law. 
 SECTION 7.04. Waiver of Past Defaults. Subject to
Sections 7.02, 7.07 and 10.02, the Holders of at least a majority in principal amount of the Securities then outstanding by notice to the Trustee may waive any existing Default or Event of Default with respect to such Securities and its consequences
or compliance with any provision of this Indenture or the Securities. When a Default or Event of Default with respect to the Securities is waived, it is cured and ceases with respect to the Securities. 
 SECTION 7.05. Control by Majority. Subject to Sections 7.02, 7.07 and 10.02, the Holders of at least a majority in principal amount of the
Securities then outstanding may direct the time, method and place of conducting any proceeding for any remedy available to the Trustee or exercising any trust or power conferred on it with respect to the Securities. However, the Trustee may refuse
to follow any direction that conflicts with law or this Indenture, that the Trustee determines may be unduly prejudicial to the rights of other Holders or that may involve the Trustee in personal liability. 
 SECTION 7.06. Limitation on Suits. A Holder of a Security may not pursue a remedy or institute a proceeding with respect to this Indenture or the
Securities unless: (i) the Holder gives to the Trustee written notice of a continuing Event of Default with respect to the Securities; (ii) the Holders of at least 25% in aggregate principal amount of the Securities then outstanding make a
written request to the Trustee to pursue the remedy or institute the proceeding in its own name as Trustee hereunder; (iii) such Holder or Holders offer to the Trustee indemnity satisfactory to the Trustee against any loss, liability, cost or
expense to be incurred in compliance with such 

  

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request; (iv) the Trustee does not comply with the request within 60 days after receipt of the request and the offer of indemnity; and (v) during
such 60-day period the Holders of at least a majority in aggregate principal amount of the Securities then outstanding do not give the Trustee a direction inconsistent with the request. 
 A Holder may not use this Indenture to prejudice the rights of another Holder or to obtain a preference or priority over another Holder. 
 SECTION 7.07. Rights of Holders To Receive Payment. Notwithstanding any other provision of this Indenture, the right of any Holder of a Security
to receive payment of principal of, premium (if any) or interest on the Security on or after the respective due dates expressed or provided for in such Security, or to bring suit for the enforcement of any such payment on or after such respective
dates, shall not be impaired or affected without the consent of such Holder. 
 SECTION 7.08. Collection Suit by Trustee. If an Event
of Default specified in Section 7.01(1) or (2) occurs and is continuing with respect to the Securities, the Trustee may recover judgment in its own name and as trustee of an express trust against the Corporation or any other obligor on the
Securities for the whole amount of principal, premium (if any) and accrued interest remaining unpaid on the Securities. The Corporation or any other obligor on the Securities shall pay interest on overdue principal and premium, if any (including
interest accruing on or after filing of any petition in bankruptcy or reorganization relating to the Issuer or any other obligor on the Securities, whether or not a claim for post-filing interest is allowed in such proceeding), and the Corporation
or any other obligor on the Securities shall pay interest on overdue installments of interest, to the extent permitted by law (including interest accruing on or after the filing of any petition in bankruptcy or reorganization relating to the issuer
or any other obligor on the Securities, whether or not a claim for post-filing interest is allowed in such proceeding), in each case at the rate then borne by the Securities, and such further amount as shall be sufficient to cover, the costs and
expense of collection, including the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel. 
  

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 SECTION 7.09. Trustee May File Proofs of Claim. The Trustee may file such proofs of claim and
other papers or documents as may be necessary or advisable in order to have the claims of the Trustee and the Holders allowed in any judicial proceeding relative to the Corporation or any other obligor upon the Securities, its creditors or its
property under any Bankruptcy Law, and shall be entitled and empowered to collect and receive any moneys or other property payable or deliverable on any such claims and to distribute the same, and any custodian in any such judicial proceedings is
hereby authorized by each Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due to it under Section 8.07.
Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization, arrangement, adjustment or composition affecting the Securities or the rights of any
Holder thereof, or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding. 
 SECTION 7.10.
Application of Moneys Collected by Trustee. Any moneys collected by the Trustee with respect to the Securities pursuant to this Article VII shall be applied in the order following, at the date or dates fixed by the Trustee and, in case of the
distribution of such moneys on account of principal, premium (if any) or interest, upon presentation of the Securities, and the notation thereon of the payment, if only partially paid, and upon surrender thereof, if fully paid: 
 FIRST: To the payment of all amounts due to the Trustee pursuant to Section 8.07 (which, in the event that moneys have been collected
in respect of the Securities and other securities of the Corporation, shall be allocated among such series of securities pro rata based on the aggregate principal amount of each series then outstanding); 
 SECOND: In case the principal or premium (if any) of the outstanding Securities shall not have become due at maturity, by required
repurchase, by declaration or otherwise, to the payment of interest on the outstanding Securities, in the order of the maturity of the installments of such interest, with interest (to the extent that such interest has been collected by the Trustee)
upon the overdue installments 

  

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of interest at the same rate as the rate of interest specified in the Securities, such payments to be made ratably to the persons entitled thereto, without
discrimination or preference; 
 THIRD: In case the principal or premium (if any) of the outstanding Securities shall have
become due, at maturity, by required repurchase, by declaration or otherwise, to the payment of the whole amount then owing and unpaid upon the Securities for principal and premium, if any, and interest, with interest upon the overdue principal and
premium, if any, and (to the extent that such interest has been collected by the Trustee) upon overdue installments of interest at the same rate as the rate of interest specified in the Securities; and in case such moneys shall be insufficient to
pay in full the whole amount so due and unpaid upon the Securities, then to the payment of such principal, premium, if any, and interest, without preference or priority of principal and premium, if any, over interest, or of interest over principal
and premium, if any, or of any installment of interest over any other installment of interest, or of any Securities over any other Securities, ratably in proportion to the aggregate of such principal and premium, if any, and accrued and unpaid
interest; and 
 FOURTH: The remainder, if any, to the Corporation, its successors or assigns, or to whosoever may be lawfully
entitled to receive the same, or as a court of competent jurisdiction may direct. 
 Any moneys collected by the Trustee with respect to the
Securities and other securities of the Corporation pursuant to this Article VII shall be applied as set forth above in this Section 7.10 upon all such securities pro rata based on the aggregate principal amount of each such series of securities
then outstanding, without discrimination or preference. 
 The Trustee may fix a record date and payment date for any payment to Holders
pursuant to this Section 7.10. At least 15 days before such record date, the Trustee shall mail to each Holder and the Corporation a notice that states the record date, the payment date and the amount to be paid. 
 SECTION 7.11. Undertaking for Costs. In any suit for the enforcement of any right or remedy under this 

  

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Indenture or in any suit against the Trustee for any action taken or omitted by it as a Trustee, a court in its discretion may require the filing by any
party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees, against any party litigant in the suit, having due regard to the
merits and good faith of the claims or defenses made by the party litigant. This Section 7.11 does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 7.07 or a suit by Holders of more than 10% in aggregate principal
amount of the Securities then outstanding. 
 SECTION 7.12. Parties May Be Restored to Former Position and Rights in Certain
Circumstances. In the event the Trustee or any Holder shall have proceeded to enforce any right under this Indenture by suit, foreclosure or otherwise and such proceedings shall have been discontinued or abandoned for any reason, or shall have
been determined adversely to the Trustee or any Holder, then in every such case, the Corporation and the Trustee or any Holder shall be restored without further act to their respective former positions and rights hereunder, and all rights, remedies
and powers of the Trustee or any Holder shall continue as though no such proceedings had been taken, except to the extent determined in litigation adversely to the Trustee or any Holder, as the case may be. 
 ARTICLE VIII  
 Trustee

 SECTION 8.01. Duties of Trustee. (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise
such of the rights and powers vested in it by this Indenture, and use the same degree of care and skill in their exercise, as a prudent person would exercise or use under the circumstances in the conduct of such person’s own affairs.

 (b) Except during the continuance of an Event of Default: (1) the Trustee need perform only those duties that are specifically set
forth in this Indenture and no implied covenants or obligations shall be read into this Indenture against the Trustee and (2) in the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the
correctness of the 

  

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opinions expressed therein, upon certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture. However, the Trustee
shall examine the certificates and opinions to determine whether or not, on their face, they conform to the requirements of this Indenture. 
 (c) The Trustee may not be relieved from liability for its own negligent action, its own negligent failure to act or its own wilful misconduct except that: (1) this paragraph does not limit the effect of paragraph (b) of this
Section 8.01, (2) the Trustee shall not be liable for any error of judgment made in good faith by a Trust Officer or other officer, unless it is proved that the Trustee was negligent in ascertaining the pertinent facts and (3) the
Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 7.05. 
 (d) Whether or not therein expressly so provided, every provision of this Indenture that in any way relates to the Trustee is subject to paragraphs (a),
(b) and (c) of this Section 8.01. 
 (e) No provision of this Indenture shall require the Trustee to expend or risk its own
funds or incur any liability. The Trustee may refuse to perform any duty or exercise any right or power unless it receives indemnity satisfactory to it against any loss, liability, cost or expense (including, without limitation, reasonable fees and
disbursements of counsel). 
 (f) The Trustee shall not be obligated to pay interest on any money received by it unless otherwise agreed in
writing with the Corporation. Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law. 
 SECTION 8.02. Rights of Trustee. Except as provided in Section 8.01: 
 (a) The Trustee may rely on any document believed
by it to be genuine and to have been signed or presented by the proper Person. The Trustee need not investigate any fact or matter stated in the document. 
 (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate or an 
  

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Opinion of Counsel or both. The Trustee shall not be liable for any action it takes or omits to take in good faith in reliance on an Officers’
Certificate or Opinion of Counsel. 
 (c) The Trustee may act through attorneys and agents and shall not be responsible for the misconduct or
negligence of any attorney or agent appointed with due care. 
 (d) The Trustee shall not be liable for any action it takes or omits to take
in good faith which it believes to be authorized or within the rights or powers conferred upon it by this Indenture. 
 (e) Unless otherwise
specifically provided in this Indenture, any demand, request, direction or notice from the Corporation shall be sufficient if signed by an Officer of the Corporation. 
 (f) The Trustee may consult with counsel of its choice and the advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection in respect of any action taken, suffered or
omitted by it hereunder in good faith and in reliance thereon. 
 (g) The Trustee shall be under no obligation to exercise any of the rights
or powers vested in it by this Indenture at the request or direction of any of the Holders of the Securities pursuant to this Indenture, unless such Holders shall have offered to the Trustee reasonable security or indemnity against the costs,
expenses and liabilities that might be incurred by it in compliance with such request or direction. 
 SECTION 8.03. Individual Rights of
Trustee. The Trustee in its individual or any other capacity may become the owner or pledgee of Securities and may otherwise deal with the Corporation or an Affiliate of the Corporation with the same rights it would have if it were not Trustee.
Any Agent may do the same with like rights. However, the Trustee is subject to Sections 8.10 and 8.11. 
 SECTION 8.04. Trustee’s
Disclaimer. The Trustee makes no representation as to the validity or adequacy of this Indenture or the Securities; it shall not be accountable for the Corporation’s use of the proceeds from the Securities or any money paid to the
Corporation upon the Corporation’s direction under any provision hereof; and it shall not be responsible for any statement in the Securities other than its authentication. 
  

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 SECTION 8.05. Notice of Defaults. If a Default or Event of Default with respect to the Securities
occurs and is continuing and if a Trust Officer has received written notice thereof, the Trustee shall mail to Holders a notice of the Default or Event of Default within 90 days after the occurrence thereof unless such Default or Event of Default
shall have been cured or waived. Except in the case of a Default or Event of Default in payment of principal or premium (if any) or interest on any Security (including any failure to make any mandatory repurchase required hereunder), the Trustee may
withhold the notice if and so long as it in good faith determines that withholding the notice is in the best interest of the Holders. 
 SECTION 8.06. Reports by Trustee to Holders. Within 60 days after each January 1 beginning with January 1, 1997, the Trustee shall mail to Holders a brief report dated as of such reporting date that complies with TIA §
313(a) (but if no event described in TIA § 313(a) has occurred within the twelve months preceding the reporting date, no report need be transmitted). Commencing at such time, the Trustee also shall comply with TIA § 313(b)(2). The Trustee
shall also transmit reports required by TIA § 313 by mail as required by TIA § 313(c). 
 A copy of each report at the time of its
mailing to Holders shall be filed with the SEC, if required, and each stock exchange, if any, on which the Securities are listed. The Corporation shall notify the Trustee when the Securities are listed on any stock exchange. 
 SECTION 8.07. Compensation and Indemnity. The Corporation shall pay to the Trustee from time to time such compensation as agreed to by the Trustee
for its services hereunder. The Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express trust. Except as otherwise expressly provided herein, the Corporation shall reimburse the Trustee upon request for
all reasonable disbursements, advances (if any) and expenses incurred by it, including in particular, but without limitation, those incurred in connection with the enforcement of any remedies hereunder. Such expenses may include the reasonable
compensation, disbursements and expenses of the Trustee’s agents and counsel. 
  

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 Except as set forth in the next paragraph, the Corporation shall indemnify and hold harmless the Trustee,
its directors, officers, employees and agents against any damage, claim, loss, liability, cost or expense (including, without limitation, fees and expenses of counsel) other than taxes based upon, measured by or determined by the income of the
Trustee incurred by it arising out of or in connection with the acceptance or administration of its duties under this Indenture, including without limitation the costs and expenses of defending itself against any claim or liability in connection
with the exercise or performance of, or failure to exercise or perform, any of its powers or duties hereunder. The Trustee shall notify the Corporation promptly of any claim for which it may seek indemnity. The Corporation may defend such claim and
the Trustee shall cooperate in such defense. In the event of a conflict between the Corporation and the Trustee, the Trustee may have separate counsel and the Corporation shall pay the reasonable fees and expenses of such counsel. 
 The Corporation need not reimburse any expense or indemnify against any loss, liability, cost or expense incurred by the Trustee through the
Trustee’s negligence, wilful misconduct or bad faith. 
 To secure the Corporation’s payment obligations in this Section, the
Trustee shall have a lien prior to the Securities on all money or property held or collected by the Trustee, except that held in trust to pay the principal of, premium (if any) and interest on particular Securities. Such obligations shall survive
the satisfaction and discharge of this Indenture, and the resignation or removal of the Trustee. 
 When the Trustee incurs expenses or
renders services after an Event of Default specified in clause (6) or (7) of Section 7.01 occurs, the expenses and the compensation for the services are intended to constitute expenses of administration under any Bankruptcy Law.

 SECTION 8.08. Replacement of Trustee. A resignation or removal of the Trustee and appointment of a successor Trustee shall become
effective only upon the successor Trustee’s acceptance of appointment as provided in this Section. 
 The Trustee may resign and be
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notifying the Corporation. The Holders of a majority in principal amount of the then outstanding Securities may remove the Trustee with respect to such
Securities by so notifying the Trustee and the Corporation. The Corporation may remove the Trustee with respect to the Securities if: (i) the Trustee fails to comply with Section 8.10 or TIA § 310; (ii) the Trustee is adjudged a
bankrupt or an insolvent or an order for relief is entered with respect to the Trustee under any Bankruptcy Law; (iii) a Custodian or public officer or receiver takes charge of the Trustee or its property; or (iv) the Trustee becomes
incapable of acting. 
 If the Trustee resigns or is removed or if a vacancy exists in the office of the Trustee for any reason, the
Corporation shall promptly appoint a successor Trustee. The Trustee shall be entitled to payment of its fees and reimbursement of its expenses while acting as Trustee. Within one year after the successor Trustee takes office, the Holders of at least
a majority in principal amount of then outstanding Securities may appoint a successor Trustee with respect to such Securities to replace the successor Trustee appointed by the Corporation. 
 If a successor Trustee does not take office within 30 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Corporation or the
Holders of at least 10% in principal amount of the then outstanding Securities may petition any court of competent jurisdiction for the appointment of a successor Trustee. 
 If the Trustee fails to comply with clauses (i) through (iv) of the second paragraph of this Section with respect to the Securities, any Holder
of such Securities may petition any court of competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee with respect to such Securities. 
 A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee and to the Corporation. Thereupon the resignation or
removal of the retiring Trustee shall become effective, and the successor Trustee shall have all the rights, powers and duties of the Trustee under this Indenture. The Corporation shall mail a notice of the successor Trustee’s succession to
Holders. The retiring Trustee shall promptly transfer all property held by it as Trustee for the Securities to the successor Trustee for the Securities, subject to the lien 
  

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provided for in Section 8.07. Notwithstanding replacement of the Trustee pursuant to this Section 8.08, the Corporation’s obligations under
Section 8.07 hereof shall continue for the benefit of the retiring Trustee with respect to expenses, losses and liabilities incurred by it prior to such replacement. 
 SECTION 8.09. Successor Trustee by Merger, Etc. Subject to Section 8.10, if the Trustee consolidates with, merges or converts into, or transfers all or substantially all of its corporate trust business to,
another corporation or national banking association, the successor entity without any further act shall be the successor Trustee. In case any Securities have been authenticated, but not delivered, by the Trustee then in office, any successor by
merger, conversion or consolidation of 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 8.10. Eligibility; Disqualification. There shall at all times be a Trustee hereunder which shall be a corporation organized and doing
business under the laws of the United States of America or of any state thereof or the District of Columbia authorized under such laws to exercise corporate trust powers, shall be subject to supervision or examination by Federal or state authority
or a District of Columbia authority and shall have combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report of condition. 
 Subject to the preceding paragraph, this Indenture shall always have a Trustee who satisfies the requirements of TIA § 310(a)(l) and (5). The
Trustee is subject to TIA § 310(b) . 
 SECTION 8.11. Preferential Collection of Claims Against the Corporation. The Trustee is
subject to TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b). A trustee who has resigned or been removed shall be subject to TIA § 311(a) to the extent indicated therein. 
  

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 ARTICLE IX 
 Discharge of Indenture; Defeasance 
 SECTION 9.01. Discharge of Liability on Securities;
Defeasance. (a) When (i) the Corporation delivers to the Trustee all outstanding Securities for cancellation or (ii) all outstanding Securities have become due and payable or will become due and payable at their Stated Maturity
within one year and the Corporation irrevocably deposits with the Trustee funds sufficient to pay at maturity or upon redemption all outstanding Securities, including interest thereon, and if in either case the Corporation pays all other sums
payable hereunder by the Corporation, then this Indenture shall, subject to Sections 9.0l(c), 9.02 and 9.06, cease to be of further effect. The Trustee shall acknowledge satisfaction and discharge of this Indenture on demand of the Corporation
accompanied by an Officers’ Certificate and an Opinion of Counsel and at the cost and expense of the
Corporation. 
 (b) Subject to Sections 9.01(c), 9.02 and 9.06, the Corporation at any time may terminate (i) all its obligations under
the Securities and this Indenture (“legal defeasance option”) or (ii) its obligations under Sections 3.03, 3.04, 3.05, 3.06, 3.07, 3.08, 3.09, 3.10, 5.01, 7.01(4), 7.01(5), 7.01(6) and 7.01(7) (with respect to Restricted
Subsidiaries), and 6.01(a)(iv) and 6.01(a)(vi) (“covenant defeasance option”). The Corporation may exercise its legal defeasance option notwithstanding its prior exercise of its covenant defeasance option. 
 If the Corporation exercises its legal defeasance option, payment of the Securities may not be accelerated because of an Event of Default. If the
Corporation exercises its covenant defeasance option, payment of the Securities may not be accelerated because of an Event of Default specified in Sections 7.01(3) (other than with respect to Section 6.01), 7.01(4), 7.01(5), 7.01(6) or

7.01(7) (only with respect to Restricted Subsidiaries) or because of the failure of the Corporation to comply with Sections 6.01(a)(iv) or 6.01(a)(vi). 
 Upon satisfaction of the conditions set forth herein and upon request of the Corporation, the Trustee shall acknowledge in writing the discharge of those obligations that the Corporation terminates. 
  

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 (c) Notwithstanding clauses (a) and (b) above, the Corporation’s obligations in Sections
2.03, 2.04, 2.05, 2.06, 2.07, 8.07, 8.08, 9.04, 9.05 and 9.06 shall survive until the Securities have been paid in full. Thereafter, the Corporation’s obligations in Sections 8.07, 9.04 and 9.05 shall survive. 
 SECTION 9,02. Conditions to Defeasance. The Corporation may exercise its legal defeasance option or its covenant defeasance option only if:

 (1) the Corporation irrevocably deposits in trust with the Trustee money or U.S. Government Obligations for the payment of
principal and interest on the Securities to maturity or an earlier redemption in accordance with the terms of this Indenture; 
 (2) the Corporation delivers to the Trustee a certificate from a nationally recognized firm of independent accountants expressing their opinion that the payments of principal and interest when due and without reinvestment on the deposited
U.S. Government Obligations plus any deposited money without investment will provide cash at such times and in such amounts as will be sufficient to pay principal and interest when due on all the Securities to maturity; 
 (3) 90 days pass after the deposit is made and during the 90-day period no Default specified in Section 7.01(6) or (7) with
respect to the Corporation occurs which is continuing at the end of the period; 
 (4) the deposit does not constitute a
default under any other material agreement to which the Corporation is a party; 
 (5) the Corporation delivers to the Trustee
an Opinion of Counsel to the effect that the trust resulting from the deposit does not constitute, or is qualified as, a regulated investment company under the Investment Corporation Act of 1940; 
 (6) in the case of the legal defeasance option, the Corporation shall have delivered to the Trustee an Opinion of Counsel stating that
(i) the Corporation has received from the Internal Revenue Service or Revenue Canada a ruling, or (ii) since the date of this Indenture there has been a change in the applicable 

  

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U.S. Federal income tax law, in either case to the effect that, and based thereon such Opinion of Counsel shall confirm that, the Holders will not recognize
income, gain or loss for U.S. Federal income tax, Canadian Federal or provincial income tax, or certain other tax purposes as a result of such deposit and defeasance and will be subject to U.S. Federal income tax, Canadian Federal or provincial
income tax and other taxes on the same amount, in the same manner and at the same times as would have been the case if such deposit and defeasance had not occurred; 
 (7) in the case of the covenant defeasance option, the Corporation shall have delivered to the Trustee an Opinion of Counsel to the effect
that the Holders will not recognize income, gain or loss for U.S. Federal income tax, Canadian Federal or provincial income tax or certain other tax purposes as a result of such deposit and covenant defeasance and will be subject to U.S. Federal
income tax, Canadian Federal or provincial income tax and other taxes on the same amount, in the same manner and at the same times as would have been the case if such deposit and covenant defeasance had not occurred; and 
 (8) the Corporation delivers to the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that all conditions
precedent to the defeasance and discharge of the Securities as contemplated by this Article IX have been complied with. 
 SECTION 9.03.
Application of Trust Money. The Trustee shall hold in trust money or U.S. Government Obligations deposited with it pursuant to this Article IX. It shall apply the deposited money and the money from U.S. Government Obligations through the
Paying Agent and in accordance with this Indenture to the payment of principal of and interest on the Securities. 
 SECTION 9.04.
Repayment to Corporation. The Trustee and the Paying Agent shall promptly turn over to the Corporation upon request any excess money or securities held by them at any time. 
 Subject to any applicable abandoned property law, the Trustee and the Paying Agent shall pay to the Corporation upon written request any money held by
them for the payment of principal, premium (if any) or interest that 

  

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remains unclaimed for two years, and, thereafter, Holders entitled to the money must look to the Corporation for payment as general creditors. 
 SECTION 9.05. Indemnity for Government Obligations. The Corporation shall pay and shall indemnify the Trustee against any tax, fee or other charge
imposed on or assessed against deposited U.S. Government Obligations or the principal and interest received on such U.S. Government Obligations. 
 SECTION 9.06. Reinstatement. If the Trustee or Paying Agent is unable to apply any money or U.S. Government Obligations in accordance with this Article IX by reason of any legal proceeding or by reason of any order or judgment of any
court or governmental authority enjoining, restraining or otherwise prohibiting such application, the Corporation’s obligations under this Indenture and the Securities shall be revived and reinstated as though no deposit had occurred pursuant
to this Article IX until such time as the Trustee or Paying Agent is permitted to apply all such money or U.S. Government Obligations in accordance with this Article IX. 
 ARTICLE X 
 Amendments 
 SECTION 10.01. Without Consent of Holders. The Corporation and the Trustee may amend this Indenture or the Securities without prior notice to or consent of any Holder: 
 (1) to cure any ambiguity, omission, defect or inconsistency; 
 (2) to provide for the assumption by a successor of the obligations of the Corporation under this Indenture; 
 (3) to provide for uncertificated Securities in addition to or in place of certificated Securities; provided, however, that
the uncertificated Securities are issued in registered form for purposes of Section 163(f) of the Code or in a manner such that the uncertificated Securities are described in Section 163(f)(2)(B) of the Code; 
  

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 (4) to add Guarantees with respect to the Securities or to secure the Securities;

 (5) to add to the covenants of the Corporation for the benefit of the Holders or to surrender any right or power herein
conferred upon the Corporation; 
 (6) to comply with any requirement of the SEC in connection with qualifying this Indenture
under the TIA; or 
 (7) to make any change that does not adversely affect the rights of any Holder in any material respect.

 After an amendment under this Section becomes effective, the Corporation shall mail to Holders a notice briefly describing such amendment.
The failure to give such notice to all Holders, or any defect therein, shall not impair or affect the validity of an amendment under this Section. 
 SECTION 10.02. With Consent of Holders. The Corporation and the Trustee may amend this Indenture or the Securities without prior notice to any Holder but with the written consent of the Holders of at least a majority in principal
amount of the Securities then outstanding (including consents obtained in connection with a tender offer or exchange for the Securities). However, without the consent of each Holder affected, an amendment may not: 
 (1) reduce the amount of Securities whose Holders must consent to an amendment; 
 (2) reduce the rate of or extend the time for payment of interest on any Security; 
 (3) reduce the principal of or extend the Stated Maturity of any Security; 
 (4) make any Security payable in money other than that stated in the Security; 
 (5) impair the right of any Holder to receive payment of principal of and interest on such Holder’s Securities on or after the due
dates therefor or to institute suit for the enforcement of any payment on or with respect to such Holder’s Securities; 
  

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 (6) subordinate in right of payment, or otherwise subordinate, the Securities to any
other obligations of the Corporation; 
 (7) make any change in the second sentence of this Section; 
 (8) reduce the premium payable upon the redemption of any Security or change the time of which any Security may or shall be redeemed under
Article IV; or 
 (9) make any change in Section 3.11 that adversely affects the rights of any Holder or amend the terms
of the Securities or this Indenture in a way that would result in the loss of an exemption from any of the Taxes described thereunder. 
 It
shall not be necessary for the consent of the Holders under this Section to approve the particular form of any proposed amendment, but it shall be sufficient if such consent approves the substance thereof. 
 After an amendment under this Section becomes effective, the Corporation shall mail to Holders a notice briefly describing such amendment. The failure to
give such notice to all Holders, or any defect therein, shall not impair or affect the validity of an amendment under this Section. 
 SECTION 10.03. Compliance with Trust Indenture Act. Every amendment to this Indenture or the Securities shall comply with the TIA as then in effect. 
 SECTION 10.04. Revocation and Effect of Consents and Waivers. A consent to an amendment or a waiver by a Holder of a Security shall bind the Holder and every subsequent Holder of that Security or portion of the
Security that evidences the same debt as the consenting Holder’s Security, even if notation of the consent or waiver is not made on the Security. However, any such Holder or subsequent Holder may revoke the consent or waiver as to such
Holder’s Security or portion of the Security if the Trustee receives the notice of revocation before the date the amendment or waiver becomes effective. After an amendment or waiver becomes effective, it shall bind every Holder. 
  

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 The Corporation may, but shall not be obligated to, fix a record date for the purpose of determining the
Holders entitled to give their consent or take any other action described above or required or permitted to be taken pursuant to this Indenture. If a record date is fixed, then notwithstanding the immediately preceding paragraph, those Persons who
were Holders at such record date (or their duly designated proxies), and only those Persons, shall be entitled to give such consent or to revoke any consent previously given or to take any such action, whether or not such Persons continue to be
Holders after such record date. No such consent shall be valid or effective for more than 120 days after such record date. 
 SECTION 10.05.
Notation on or Exchange of Securities. If an amendment changes the terms of a Security, the Trustee may require the Holder of the Security to deliver it to the Trustee. The Trustee may place an appropriate notation on the Security regarding
the changed terms and return it to the Holder. Alternatively, if the Corporation or the Trustee so determines, the Corporation in exchange for the Security shall issue and the Trustee shall authenticate a new Security that reflects the changed
terms. Failure to make the appropriate notation or to issue a new Security shall not affect the validity of such amendment. The term “Security” as used in this Section 10.05 shall be deemed to include the Global Security or Global
Securities. 
 SECTION 10.06. Trustee To Sign Amendments. The Trustee shall sign any amendment authorized pursuant to this Article X
if the amendment does not adversely affect the rights, duties, liabilities or immunities of the Trustee. If it does, the Trustee may but need not sign it. In signing such amendment the Trustee shall be entitled to receive indemnity reasonably
satisfactory to it and to receive, and (subject to Section 8.01) shall be fully protected in relying upon, an Officers’ Certificate and an Opinion of Counsel stating that (i) such amendment is authorized or permitted by this Indenture
and that all conditions precedent to the execution, delivery and performance of such amendment have been satisfied; (ii) the Corporation has all necessary corporate power and authority to execute and deliver the amendment and that the
execution, delivery and performance of such amendment has been duly authorized by all necessary corporate action; (iii) the execution, delivery and performance of the amendment do not conflict with, or result in the breach of or constitute a
default under any of the terms, conditions or provisions of (a) the 

  

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Indenture, (b) the Certificate of Incorporation or By-Laws of the Corporation, (c) any law or regulation applicable to the Corporation,
(d) any material order, writ, injunction or decree of any court or governmental instrumentality having jurisdiction over the Corporation or (e) any material agreement or instrument to which the Corporation is subject; (iv) such
amendment has been duly and validly executed and delivered by the Corporation, and the Indenture together with such amendment constitutes a legal, valid and binding obligation of the Corporation enforceable against the Corporation in accordance with
its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally and general equitable principles; and (v) the Indenture together with
such amendment complies with the TIA. 
 SECTION 10.07. Payment for Consent. Neither the Corporation nor any Affiliate of the
Corporation shall, directly or indirectly, pay or cause to be paid any consideration, whether by way of interest, fee or otherwise, to any Holder for or as an inducement to any consent, waiver or amendment of any of the terms or provisions of this
Indenture or the Securities unless such consideration is offered to be paid to all Holders that so consent, waive or agree to amend in the time frame set forth in solicitation documents relating to such consent, waiver or agreement. 
 ARTICLE XI 
 Miscellaneous 

SECTION 11.01. Trust Indenture Act Controls. If and to the extent that any provision of this Indenture limits, qualifies or conflicts with the
duties imposed by, or with a provision (an “incorporated provision”) included in this Indenture by operation of Sections 310 to 318, inclusive, of the TIA, such imposed duties or incorporated provision shall control. 
 SECTION 11.02. Notices. Any notice or communication to the Corporation or the Trustee is duly given if in writing and delivered in person or
mailed by first-class mail, or sent by facsimile transmission 

  

 87 

 
confirmed in writing, in each case to the address set forth below: 
 If to the Corporation: 
 Domtar Inc. 
 395 de Maisonneuve Blvd. West 
 Montreal,
Québec H3A 1L6 
 Tel. No. 514-848-5400 
 Fax No. 514-848-6850 
 Attention of General Counsel 
 If to the Trustee: 
 The Bank of New York

 101 Barclay Street 
 New York,
NY 10286 
 Tel. No. 212-815-5359 
 Fax No. 212-815-5915 
 Attention of Corporate Trust Department 
 The Corporation or the Trustee by notice to the other may designate additional or different addresses for subsequent notices or communications. 
 Any notice or communication to a Holder shall be mailed by first-class mail to his address shown on the register kept by the 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, whether or not the addressee receives it, except that notice to the Trustee shall only be effective upon receipt
thereof by the Trustee. 
 If the Corporation mails a notice or communication to Holders, it shall mail a copy to the Trustee and each Agent
at the same time. 
  

 88 

 SECTION 11.03. Communication by Holders with Other Holders. Holders may communicate pursuant to
TIA § 312(b) with other Holders with respect to their rights under this Indenture or the Securities. The Corporation, the Trustee, the Registrar and anyone else shall have the protection of TIA § 312(c). 
 SECTION 11.04. Certificate and Opinion as to Conditions Precedent. Upon any request or application by the Corporation to the Trustee to take any
action under this Indenture, the Corporation shall furnish to the Trustee: (i) an Officers’ Certificate (which shall include the statements set forth in Section 11.05) stating that, in the opinion of the signers, all conditions
precedent and covenants, if any, provided for in this Indenture relating to the proposed action have been complied with; and (ii) an Opinion of Counsel reasonably satisfactory to the Trustee (which shall include the statements set forth in
Section 11.05) stating that, in the opinion of such counsel, all such conditions precedent and covenants have been complied with. 
 SECTION 11.05. Statements Required in Certificate or Opinion. Each certificate or opinion with respect to compliance with a condition or covenant provided for in this Indenture shall include: (i) a statement that the person
making such certificate or opinion has read and understands such covenant or condition; (ii) 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; (iii) 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 (iv) a statement as to whether or not, in the opinion of such person, such condition or covenant has been complied with. 
 SECTION 11.06. Rules by Trustee and Agents. The Trustee may make reasonable rules for action by or for a meeting of Holders. The Registrar or Paying Agent may make reasonable rules and set reasonable requirements for its functions.

 SECTION 11.07. No Recourse Against Others. All liability described in Section 17 of the Securities or the Indenture of any
incorporator, director, officer, employee 

  

 89 

 
or stockholder, as such, of the Corporation is waived and released. 
 SECTION 11.08. Duplicate Originals. The parties may sign any number of copies of this Indenture. One signed copy is enough to prove this Indenture. 
 SECTION 11.09. Governing Law. This Indenture and the Securities shall be governed by and construed in accordance with the internal laws of the
State of New York applicable to contracts made and to be performed entirely within such State without reference to principles of conflicts of laws. 
 SECTION 11.10. Successors. All agreements of the Corporation in this Indenture and the Securities shall bind its successors. All agreements of the Trustee in this Indenture shall bind its successors. 
 SECTION 11.11. Severability. In case any provision in this Indenture or in the Securities shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
 SECTION 11.12.
Consent to Jurisdiction and Service. The Corporation irrevocably submits to the jurisdiction of any Federal court (or, if such court refuses to take jurisdiction, any New York State Court) located in the Borough of Manhattan in The City of
New York over any suit, action or proceeding arising out of or relating to this Indenture or any Security. The Corporation irrevocably waives, to the fullest extent permitted by law, any objection which it may have to the laying of the venue of any
such suit, action or proceeding brought in such a court and any claim that any suit, action or proceeding brought in such a court has been brought in any inconvenient forum. The Corporation agrees that final judgment in any such suit, action or
proceeding brought in such a court shall be conclusive and binding upon the Corporation and may be enforced in the courts of Canada (or any other courts to the jurisdiction of which the Corporation is subject) by a suit upon such judgment,
provided that service of process is effected upon the Corporation in the manner specified in the following paragraph or as otherwise permitted by law; provided, however, that the Corporation does not waive, and the foregoing
provisions of this sentence shall not constitute or be deemed to constitute a waiver of, (i) any 

  

 90 

 
right to appeal any such judgment, to seek any stay or otherwise to seek reconsideration or review of any such judgment in each case before the trial court
of a U.S. Federal or State court having appellate jurisdiction over such trial court or (ii) any stay of execution or levy pending an appeal from, or a suit, action or proceeding for reconsideration or review of, any such judgment. 

As long as any of the Securities remain outstanding, the Corporation will at all times have an authorized agent in the Borough of Manhattan, The City
of New York upon whom process may be served in any legal action or proceeding arising out of or relating to the Indenture or any Security. Service of process upon such agent and written notice of such service mailed or delivered to the Corporation
shall to the extent permitted by law be deemed in every respect effective service of process upon the Corporation in any such legal action or proceeding. The Corporation hereby irrevocably appoints CT Corporation System, whose address is, as of the
date hereof, 1633 Broadway, New York, New York 10019, as its agent for such purpose until August 1, 2018, and covenants and agrees that service of process in any such legal action or proceeding may be made upon it at the office of such agent at
said address (or at such other address in the Borough of Manhattan, The City of New York, as the Corporation may designate by written notice to the Trustee). 
 The Corporation hereby consents to process being served in any suit, action or proceeding of the nature referred to in the preceding paragraphs by service upon such agent together with the mailing of a copy thereof by
registered or certified mail, postage prepaid, return receipt requested, to the address of the Corporation set forth in the first paragraph of this instrument or to any other address of which the Corporation shall have given written notice to the
Trustee. The Corporation irrevocably waives, to the fullest extent permitted by law, all claim of error by reason of any such service (but does not waive any right to assert lack of subject matter jurisdiction) and agrees that such service and
mailing (i) shall be deemed in every respect effective service of process upon the Corporation in any such suit, action or proceeding and (ii) shall, to the fullest extent permitted by law, be taken and held to be valid personal service.

 Nothing in this Section shall affect the right of the Trustee or any Holder to serve process in any manner 

  

 91 

 
permitted by law or limit the right of the Trustee to bring proceedings against the Corporation in the courts of any jurisdiction or jurisdictions.

 SECTION 11.13. Counterpart Originals. This Indenture may be signed in one or more counterparts. Each signed copy shall be an
original, but all of them together represent the same agreement. 
 SECTION 11.14. Benefits of Indenture. Nothing in this Indenture or
in the Securities, express or implied, shall give to any Person (other than the parties hereto and their successors hereunder, any Paying Agent, any Registrar or co-registrar and the Holders) any benefit or any legal or equitable right, remedy or
claim under this Indenture. 
  

 92 

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

			
	DOMTAR INC., as issuer,
		
	by	 	 /s/ Pierre Fitzgibbon

	Name:	 	Pierre Fitzgibbon
	Title:	 	Senior Vice-President and Chief Financial Officer
		
	by	 	 /s/ Christian Dube

	Name:	 	Christian Dube
	Title:	 	Vice-President and Treasurer

 [Seal] 
 Attest: 
  

			
	 /s/ Nathalie Roussin

	Name:	 	Nathalie Roussin
	Title:	 	Legal Assistant

  

			
	THE BANK OF NEW YORK, Trustee,
		
	by	 	  

	Name:	 	
	Title:	 	

 [Seal] 
 Attest: 
  

			
	  

	Name:	 	
	Title:	 	

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

			
	DOMTAR INC., as issuer, by
		
	by	 	  

	Name:	 	
	Title:	 	

 [Seal] 
 Attest: 
  

	
	  

	Name:
	Title:

  

			
	THE BANK OF NEW YORK, Trustee,
		
	by	 	 /s/ MARY JANE MORRISSEY

	Name:	 	MARY JANE MORRISSEY
	Title:	 	VICE PRESIDENT

 [Seal] 
 Attest: 
  

			
	 /s/ PAUL J. SCHMALZEL

	Name:	 	PAUL J. SCHMALZEL
	Title:	 	Assistant Treasurer

 EXHIBIT A 
 FORM OF FACE OF 2016 DEBENTURE 
 DOMTAR INC. 
  

			
	 R - 1
	  	CUSIP No. 257561AT7

 THIS SECURITY IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO. 
 UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY TO DOMTAR INC. OR THE REGISTRAR FOR REGISTRATION OF TRANSFER OR
EXCHANGE AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER ENTITY AS HAS BEEN REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO
SUCH OTHER ENTITY AS HAS BEEN REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF,
CEDE & CO., HAS AN INTEREST HEREIN. 
 UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR THE INDIVIDUAL SECURITIES REPRESENTED HEREBY, THIS
GLOBAL SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR BY A DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCCESSOR
DEPOSITARY AND TRANSFERS OF INTERESTS IN THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN SECTION 2.06 OF THE INDENTURE, DATED AS OF JULY 31, 1996, BETWEEN DOMTAR INC. AND THE TRUSTEE NAMED
THEREIN, PURSUANT TO WHICH THIS SECURITY WAS ISSUED. 

 GLOBAL SECURITY 
 REPRESENTING 9 1/2% DEBENTURES DUE 2016 
 Domtar Inc., a corporation incorporated under the Canada Business Corporations Act (such corporation, and its successors and assigns under
the Indenture hereinafter referred to, being herein called the “Corporation”), for value received, hereby promises to pay to CEDE & CO., or its registered assigns, the principal sum indicated on Schedule A hereof, on
August 1, 2016. 
 Reference is hereby made to the further provisions of this Security set forth on the reverse hereof, which further
provisions shall for all purposes have the same effect as if set forth at this place. 
 Unless the certificate of authentication hereon has
been duly executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any benefit under the Indenture or be valid or obligatory for any purposes. 
  

 A-2 

 IN WITNESS WHEREOF, the Corporation has caused this Security to be duly executed under its corporate
seal. 
  

			
	DOMTAR INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
		
	By:	 	  

	Name:	 	
	Title:	 	

 [Corporate Seal] 
  

	
	 Attest:
  

	
	Dated:

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 
 THE BANK OF NEW YORK, 
 as Trustee, certifies
that this 
 is one of the Securities referred 
 to in the Indenture. 
  

			
	By:	 	  

	Name:	 	
	Title:	 	

  

 A-3 

 FORM OF REVERSE SIDE OF 2016 DEBENTURE  
 DOMTAR INC. 
 GLOBAL SECURITY 
 REPRESENTING 9 1/2% DEBENTURES DUE 2016 

1. Indenture. 
 This Security is
one of a duly authorized issue of debt securities of the Corporation designated as its “9 1/2% Debentures
due 2016” (herein called the “Securities”) limited in aggregate principal amount at Stated Maturity to $125,000,000 issued under an indenture dated as of July 31, 1996 (as amended from time to time, the “Indenture”)
between the Corporation and The Bank of New York, as trustee (the “Trustee,” which term includes any successor Trustee under the Indenture), to which Indenture reference is hereby made for a statement of the respective rights, limitations
of rights, duties and immunities thereunder of the Corporation, the Trustee and each Holder of Securities and of the terms upon which the Securities are, and are to be, authenticated and delivered. The summary of the terms of this Security contained
herein does not purport to be complete and is qualified by reference to the Indenture. All terms used in this Security which are not defined herein shall have the meanings assigned to them in the Indenture. 
 The Indenture imposes certain limitations on the ability of the Corporation and its Restricted Subsidiaries to, among other things, make certain
Restricted Payments, incur Indebtedness, enter into consensual restrictions upon the payment of certain dividends and distributions by such Restricted Subsidiaries, enter into or permit certain transactions with Affiliates, enter into certain Sale
and Leaseback Transactions, create or incur Liens and make Asset Sales. The Indenture also imposes limitations on the ability of the Corporation to amalgamate, consolidate or merge with or into any other Person, or sell, convey, assign, transfer,
lease or otherwise dispose of all or substantially all of the Property of the Corporation to any other Person. 
 After the Corporation has
reached Investment Grade Status, and notwithstanding that the rating assigned to the Corporation may later cease to be an Investment Grade Rating by either of the Rating Agencies or both, the Corporation and its Restricted Subsidiaries will be
released from their 

  

 A-4 

 
obligations to comply with certain of the limitations referred to above. However, the Corporation and its Restricted Subsidiaries will remain obligated to
comply with certain other of such limitations upon reaching Investment Grade Status. 
 2 . Principal and Interest. 
 The Corporation promises to pay the principal amount set forth on Schedule A of this Security to the Holder hereof on August 1, 2016.

 The Corporation shall pay interest at a rate of 9 1/2% per annum, semiannually on February 1 and August 1 of each year (each, an “Interest Payment Date”), commencing on February 1, 1997, in cash to
the Holder hereof until the principal amount hereof is paid or made available for payment. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, subject to certain exceptions provided in the Indenture,
be paid to the Person in whose name this Security (or the Security in exchange or substitution for which this Security was issued) is registered at the close of business on the record date for interest payable on such Interest Payment Date (the
“Record Date”). The Record Date for any interest payment is the close of business on the preceding January 15 or July 15, as the case may be, whether or not a Business Day, immediately preceding the Interest Payment Date on which
such interest is payable. Any such interest not so punctually paid or duly provided for (“Defaulted Interest”) shall forthwith cease to be payable to the Holder on such Record Date and shall be paid as provided in Section 2.12 of the
Indenture. Interest will be computed on the basis of a 360-day year of twelve 30-day months. For disclosure purposes under the Interest Act (Canada), whenever in the Indenture or the Securities interest at a specified rate is to be calculated
on the basis of a period less than a calendar year, the yearly rate of interest to which such rate is equivalent is such rate multiplied by the actual number of days in the relevant calendar year and divided by the number of days in such period.

 Each payment of interest in respect of an Interest Payment Date will include interest accrued through the day before such Interest
Payment Date. If an Interest Payment Date falls on a day that is not a Business Day, the interest payment to be made on such Interest Payment Date will be made on the next succeeding Business Day with the same force 

  

 A-5 

 
and effect as if made on such Interest Payment Date, and no additional interest will accrue as a result of such delayed payment. 
 To the extent lawful, the Corporation shall pay interest on (i) any overdue principal of (and premium, if any, on) this Security, at the interest
rate borne on this Security, and (ii) Defaulted Interest (without regard to any applicable grace period), at the same rate. The Corporation’s obligation pursuant to the previous sentence shall apply whether such overdue amount is due at
its Stated Maturity, as a result of the Corporation’s obligations pursuant to Section 3.07 or Section 5.01 of the Indenture, or otherwise. 
 3. Method of Payment. 
 The Corporation, through the Paying Agent, shall pay interest on this Security
to the registered Holder of this Security, as provided above. The Holder must surrender this Security to a Paying Agent to collect principal payments. The Corporation will pay principal and interest in money of the United States of America that at
the time of payment is legal tender for payment of all debts public and private. Principal and interest will be payable in immediately available funds at the office of the Paying Agent but, at the option of the Corporation, interest may be paid by
check mailed to the registered Holders at their registered addresses. 
 4. Payment Agent and Registrar. 
 Initially, the Trustee will act as Paying Agent and Registrar under the Indenture and Montreal Trust Company will act as co-registrar. The Corporation
may, upon written notice to the Trustee, appoint and change any Paying Agent or Registrar. The Corporation or any of its subsidiaries may act as Paying Agent or Registrar. 
 5. Optional Redemption. 
 The
Securities will be subject to redemption, in whole or in part, at any time or from time to time, at the option of the Corporation on at least 30 days’ prior notice by mail at a redemption price equal to the greater of (i) 100% of the
principal amount of the Securities to be redeemed or (ii) the sum of the present values of the remaining scheduled payments of principal and interest 

  

 A-6 

 
thereon discounted to the date of redemption on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus
62.5 basis points of the Securities, plus in each case accrued and unpaid interest to the date of redemption. On and after the date of redemption, interest will cease to accrue on the Securities or portions of Securities called for redemption on
such date. The Securities may be redeemed in part but only in integral multiples of US$1,000. 
 The Securities may be redeemed, at the
option of the Corporation, at any time as a whole but not in part, on not less than 30 nor more than 60 days’ notice, at 100% of the principal amount thereof, plus accrued and unpaid interest (if any) to the date of redemption (subject to the
right of Holders of record on the relevant record date to receive interest due on the relevant interest payment date), in the event the Corporation has become or would become obligated to pay, on the next date on which any amount would be payable
with respect to the Securities, any Additional Amounts with respect to the Securities as a result of a change in or an amendment to the laws (including any regulations promulgated thereunder) of Canada (or any political subdivision or taxing
authority thereof or therein), or any change in or amendment to any official position regarding the application or interpretation of such laws or regulations, which change or amendment is announced or becomes effective on or after July 26,
1996. 
 Any notice to the Holders of the Securities of such a redemption need not set forth the redemption price of such Securities but need
only set forth the calculation thereof as described in the first paragraph of this section entitled “Optional Redemption”. The redemption price, calculated as aforesaid, shall be set forth in an Officers’ Certificate delivered to the
Trustee no later than two business days prior to the redemption date. 
 6. No Sinking Fund. 
 The Securities are not subject to any mandatory sinking fund. 
 7. Purchase of Securities at the Option of Holders upon a Change of Control. 
 Upon the occurrence of
a Change of Control Triggering Event with respect to the Securities, each Holder 

  

 A-7 

 
of Securities shall have the right to require the Corporation to purchase such Holder’s Securities, in whole, or in part in a principal amount that is
an integral multiple of $1,000, pursuant to a Change of Control Offer, at a purchase price in cash equal to 101% of the principal amount thereof on any Change of Control Payment Date plus accrued and unpaid interest, if any, to the Change of Control
Payment Date (subject to the right of Holders of record on the relevant Record Date to receive interest due on the relevant Interest Payment Date). 
 Within 30 calendar days following any Change of Control Triggering Event, the Corporation shall send, or cause to be sent, by mail, a notice regarding the Change of Control Offer to each Holder of Securities. The Holder of this Security may
elect to have this Security or a portion hereof in an authorized denomination purchased by completing the form entitled “Option of Holder to Elect Purchase” appearing below and tendering this Security pursuant to the Change of Control
Offer. Unless the Corporation defaults in the payment of the Change of Control Payment with respect thereto, all Securities or portions thereof accepted for payment pursuant to the Change of Control Offer will cease to accrue interest from and after
the Change of Control Payment Date. 
 8. Purchase of Securities at the Option of Holders upon an Asset Sale. 
 If at any time the Corporation or any Restricted Subsidiary engages in any Asset Sale, as a result of which the aggregate amount of Excess Proceeds
exceeds US $20 million, the Corporation shall, within five Business Days of the date the amount of Excess Proceeds exceeds US $20 million, make an offer to purchase from all Holders, on a pro rata basis, Securities in an amount equal to the
Allocable Excess Proceeds at a purchase price in cash equal to an amount not less than 100% of the principal amount thereof on any date of purchase plus accrued and unpaid interest thereon, if any, to the date of purchase. If the aggregate principal
amount of all Securities surrendered for purchase by Holders thereof exceeds the amount of Allocable Excess Proceeds, then the Trustee shall select the Securities to be purchased pro rata according to principal amount or by lot with such adjustments
as may be deemed appropriate by the Corporation so that only Securities in denominations of US $1,000, or integral multiples thereof, shall be purchased. Upon completion of a Prepayment Offer 

  

 A-8 

 
(including payment for accepted Securities), the Corporation may use any surplus Allocable Excess Proceeds for general corporate purposes, with any Unoffered
Excess Proceeds constituting Excess Proceeds in respect of the Securities for purposes of the first Prepayment Offer that is made after the Fifth Anniversary. 
 Notwithstanding the preceding paragraph, in no event shall the Corporation be required to repurchase or make a Prepayment Offer or Prepayment Offers to purchase more than 25% of the original aggregate principal amount
of the Securities on or prior to the Fifth Anniversary. If the aggregate Allocable Excess Proceeds (disregarding any resetting to zero pursuant to the preceding paragraph) resulting from Asset Sales occurring on or prior to the Fifth Anniversary
that, but for the first sentence of this paragraph, the Corporation would be required to apply to repurchase or make an offer or offers to purchase Securities, less any Deficiencies resulting from any Prepayment Offer made on or prior to the Fifth
Anniversary, constitute Unoffered Excess Proceeds, then, subject to and in accordance with the procedures set forth in the Indenture, within five Business Days after the Fifth Anniversary the Corporation shall make a Prepayment Offer for the
Securities in an amount equal to the Unoffered Excess Proceeds applicable to the Securities. 
 Within five Business Days of the date the
amount of Excess Proceeds exceeds US $20 million, the Corporation shall, if it is obligated to make a Prepayment Offer, send a written notice, by first-class mail, to each Holder of Securities. The Holder of this Security may elect to have this
Security or a portion hereof in an authorized denomination purchased by completing the form entitled “Option of Holder to Elect Purchase” appearing below and tendering this Security pursuant to the Prepayment Offer. Unless the Corporation
defaults in the payment of the purchase price with respect thereto, all Securities or portions thereof selected for payment pursuant to the Prepayment Offer will cease to accrue interest from and after the date of purchase. 
 9. The Global Security. 
 So long as
this Global Security is registered in the name of the Depositary or its nominee, members of, or participants in, the Depositary (“Agent Members”) shall have no rights under the Indenture with respect to this Global 

  

 A-9 

 
Security held on their behalf by the Depositary or the Trustee as its custodian, and the Depositary may be treated by the Corporation, the Trustee and any
agent of the Corporation or the Trustee as the absolute owner of this Global Security for all purposes. Notwithstanding the foregoing, nothing herein shall (i) prevent the Corporation, the Trustee or any agent of the Corporation or the Trustee,
from giving effect to any written certification, proxy or other authorization furnished by the Depositary or (ii) impair, as between the Depositary and its Agent Members, the operation of customary practices governing the exercise of the rights
of a Holder of Securities. 
 The Holders of this Global Security may grant proxies and otherwise authorize any Person, including Agent
Members and Persons that may hold interests in this Global Security through Agent Members, to take any action which a Holder of Securities is entitled to take under the Indenture or the Securities. 
 Whenever, as a result of optional redemption by the Corporation, a Change of Control Offer, a Prepayment Offer or an exchange for certificated
Securities, this Global Security is redeemed, repurchased or exchanged in part, this Global Security shall be surrendered by the Holder thereof to the Trustee who shall cause an adjustment to be made to Schedule A hereof so that the principal amount
of this Global Security will be equal to the portion not redeemed, repurchased or exchanged and shall thereafter return this Global Security to such Holder; provided that this Global Security shall be in a principal amount of $1,000 or an
integral multiple of $1,000. 
 10. Transfer and Exchange. 
 The Holder of this Global Security shall, by acceptance of this Global Security, agree that transfers of beneficial interests in this Global Security may
be effected only through a book entry system maintained by such Holder (or its agent), and that ownership of a beneficial interest in the Securities represented thereby shall be required to be reflected in book entry form. 
 Transfers of this Global Security shall be limited to transfers in whole, and not in part, to the Depositary, its successors and their respective
nominees. Interests of beneficial owners in this Global Security may be transferred in accordance with the rules and procedures of the Depositary (or its successors). 
  

 A-10 

 11. Denominations. 
 The Securities are issuable only in registered form without coupons in denominations of $1,000 and integral multiples thereof of principal amount. 
 12. Unclaimed Money. 
 If money for
the payment of principal or interest remains unclaimed for two years, the Trustee or Paying Agent shall pay the money back to the Corporation at its written request unless the applicable abandoned property law designates another Person. After any
such payment, Holders entitled to the money must look only to the Corporation and not to the Trustee for payment unless such abandoned property law designates another Person. 
 13. Discharge and Defeasance. 
 Subject to certain conditions, the Corporation at any time may terminate some or all of its obligations under the Securities and the Indenture if the Corporation irrevocably deposits with the Trustee money or U.S. Government Obligations for
the payment of principal and interest on the Securities to maturity. 
 14. Amendment, Waiver. 
 Subject to certain exceptions set forth in the Indenture, (i) the Indenture or the Securities may be amended without prior notice to any Holder but
with the written consent of the Holders of at least a majority in principal amount of the outstanding Securities and (ii) any past Default and its consequences may be waived with the written consent of the Holders of at least a majority in
principal amount of the outstanding Securities. Subject to certain exceptions set forth in the Indenture, without the consent of any Holder of Securities, the Corporation and the Trustee may amend the Indenture or the Securities (i) to add
additional covenants or to surrender rights and powers conferred on the Corporation; (ii) to provide for uncertificated Securities in addition to or in place of certificated Securities; (iii) to add Guarantees with respect to the
Securities or to secure the Securities; (iv) to cure any ambiguity, omission, defect or inconsistency; (v) to make any change that does not adversely affect the rights of any Holder in any material respect; (vi) to comply with the
requirements of the SEC in 

  

 A-11 

 
order to effect or maintain the qualification of the Indenture under the TIA; or (vii) to provide for the assumption by a successor of the obligations
of the Corporation under the Indenture. 
 15. Defaults and Remedies. 
 If an Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in principal amount of the Securities, subject to certain
limitations, may declare the principal amount of all the Securities then outstanding, plus accrued but unpaid interest to the date of acceleration, to be immediately due and payable. Certain events of bankruptcy or insolvency are Events of Default
and shall result in the principal amount of all the Securities then outstanding, plus accrued but unpaid interest to the date of acceleration, being immediately due and payable upon the occurrence of such Events of Default without any further act of
the Trustee or any Holder. 
 Holders of Securities may not enforce the Indenture or the Securities except as provided in the Indenture. The
Trustee may refuse to enforce the Indenture or the Securities unless it receives reasonable indemnity or security. Subject to certain limitations, Holders of a majority in principal amount of the Securities may direct the Trustee in its exercise of
any trust or power under the Indenture. The Holders of a majority in principal amount of the outstanding Securities, by written notice to the Corporation and the Trustee, may rescind any declaration of acceleration and its consequences if the
rescission would not conflict with any judgment or decree, and if all Events of Default have been cured or waived except nonpayment of principal or accrued but unpaid interest that has become due solely because of the acceleration. 
 16. Individual Rights of Trustee. 
 Subject to certain limitations imposed by the TIA, the Trustee or any Paying Agent or Registrar, in its individual or any other capacity, may become the owner or pledgee of Securities and may otherwise deal with the Corporation or its
Affiliates with the same rights it would have if it were not Trustee, Paying Agent or Registrar, as the case may be, under the Indenture. 
  

 A-12 

 17. No Recourse Against Certain Others. 
 No director, officer, employee, incorporator or stockholder of the Corporation, as such, shall have any liability for any obligations of the Corporation
under the Securities or the Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation, solely by reason of its status as a director, officer, employee, incorporator or stockholder of the Corporation. By
accepting a Security, each Holder waives and releases all such liability (but only such liability) as part of the consideration for issuance of such Security to such Holder. 
 18. Governing Law. 
 THE INDENTURE
AND THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE WITHOUT REFERENCE TO PRINCIPLES OF CONFLICTS OF LAWS.

 The Corporation will furnish to any Holder of Securities upon written request and without charge to the Holder a copy of the Indenture
which has in it the text of this Security. Requests may be made to: 
 Domtar Inc. 
 395 de Maisonneuve Blvd. West 
 Montreal, Québec H3A 1L6 
 Attention: General Counsel 
 19. Ranking. 
 The Securities will be
senior unsecured obligations of the Corporation, will rank pari passu in right of payment with all existing and future senior indebtedness of the Corporation, including indebtedness pursuant to the Credit Agreement, and principal,
premium (if any) and interest with respect to the Securities will be senior in right of payment to all future subordinated indebtedness of the Corporation. Holders of secured indebtedness or other obligations of the Corporation, including
indebtedness pursuant to the Credit Agreement, will have a prior claim on the assets of the Corporation securing such indebtedness or obligation to the extent of such indebtedness or obligation. 
  

 A-13 

 SCHEDULE A  
 SCHEDULE OF PRINCIPAL AMOUNT 
 The initial principal amount of this Security shall be $125,000,000. The following
decreases in the principal amount of this Security have been made: 
  

							
	Date of
Decrease	 	Decrease in
Principal
Amount at
Maturity	 	Total Principal
Amount at Maturity
Following such
Decrease	 	Notation
Made by or
on Behalf of
Trustee
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

  

 A-14 

 ASSIGNMENT 
 (To be executed by the registered Holder 
 if such Holder desires to transfer this Security) 
 FOR VALUE RECEIVED
                             hereby sells, assigns and transfers unto 
 PLEASE INSERT SOCIAL SECURITY OR OTHER 
 TAX IDENTIFYING NUMBER OF TRANSFEREE

	
	  
	  
	  
	  
	(Please print name and address of transferee)
	  

			
	this Security, together with all right, title and interest herein, and does hereby irrevocably constitute and appoint	 	  
	Attorney to transfer this Security on the Security Register, with full power of substitution.	 	

  
  

			
	Dated:	 	  

					
			
	  
	 		  	  

	Signature of Holder	 		  	Signature Guaranteed:
		 		  	Member of Securities Transfer Agent
		 		  	Medallion Program

 NOTICE: The signature to the foregoing Assignment must correspond to the name as written upon the face of
this Security in every particular, without alteration or any change whatsoever. 
  

 A-15 

 OPTION OF HOLDER TO ELECT PURCHASE 
 (check as appropriate) 
  

	 ̈	In connection with the Change of Control Offer made pursuant to Section 5.01 of the Indenture, the undersigned hereby elects to have 

  ̈     the entire
principal amount 
  ̈     $             ($1,000 in principal amount or an integral multiple thereof) of this Security 
 purchased by the Corporation. The undersigned hereby directs the Trustee or Paying Agent to pay it or
                             an amount in cash equal to 101% of the principal amount indicated in the
preceding sentences plus accrued and unpaid interest thereon, if any, to the Change of Control Payment Date. 
  

	 ̈	In connection with the Prepayment Offer made pursuant to Section 3.07 of the Indenture, the undersigned hereby elects to have 

  ̈     the entire
principal amount 
  ̈     $             ($1,000 in principal amount or an integral multiple thereof) of this Security 
 purchased by the Corporation. The undersigned hereby directs the Trustee or Paying Agent to pay it or
                             an amount in cash equal to 100% of the principal amount indicated in the
preceding sentence plus accrued and unpaid interest thereon, if any, to the date of purchase. 
 Dated:
                             
  

					
	  
	 		  	  

	Signature of Holder	 		  	Signature Guaranteed:
		 		  	Member of Securities Transfer Agent
		 		  	Medallion Program

 NOTICE: The signature to the foregoing must correspond to the name as written upon the face of this
Security in every particular, without alteration or any change whatsoever. 
  

 A-16

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