Exhibit 4.8
INDENTURE
Dated as of [●], 2014,
by and among
GWG Holdings, Inc., as obligor
GWG Life, LLC, as guarantor,
and
Bank of Utah, as trustee
----------------------------
Debt Securities
TABLE OF CONTENTS
| |
|
Page |
|
|
| Article
1 DEFINITIONS AND INCORPORATION BY REFERENCE |
1 |
| Section
1.1 |
DEFINITIONS |
1 |
| Section
1.2 |
INCORPORATION
BY REFERENCE OF TRUST INDENTURE ACT |
10 |
| Section
1.3 |
RULES
OF CONSTRUCTION |
10 |
| |
|
|
| Article
2 THE SECURITIES |
11 |
| Section
2.1 |
SECURITY
TERMS; ACCOUNTS; INTEREST; MATURITY |
11 |
| Section
2.2 |
WRITTEN
CONFIRMATION OR REJECTION; RESCISSION |
14 |
| Section
2.3 |
REGISTRAR
AND PAYING AGENT |
15 |
| Section
2.4 |
PAYING
AGENT TO HOLD MONEY IN TRUST |
15 |
| Section
2.5 |
LIST
OF HOLDERS |
16 |
| Section
2.6 |
TRANSFER
AND EXCHANGE |
16 |
| Section
2.7 |
PAYMENT
OF PRINCIPAL AND INTEREST; PRINCIPAL AND INTEREST RIGHTS PRESERVED |
17 |
| Section
2.8 |
OUTSTANDING
SECURITIES |
18 |
| Section
2.9 |
TREASURY
SECURITIES |
18 |
| Section
2.10 |
DEFAULTED
INTEREST |
18 |
| Section
2.11 |
TEMPORARY
NOTES |
18 |
| Section
2.12 |
EXECUTION,
AUTHENTICATION AND DELIVERY |
19 |
| Section
2.13 |
BOOK-ENTRY
REGISTRATION |
20 |
| Section
2.14 |
CERTIFICATES |
20 |
| Section
2.15 |
GLOBAL
SECURITIES |
20 |
| Section
2.16 |
INITIAL
AND PERIODIC STATEMENTS |
22 |
| Section
2.17 |
APPOINTMENT
OF AGENTS |
22 |
| Section
2.18 |
CUSIP
NUMBERS |
22 |
| |
|
|
| Article
3 REDEMPTION AND XXXXXXXXXX |
00 |
| Section
3.1 |
REDEMPTION
OF SECURITIES AT THE COMPANY’S ELECTION |
23 |
| Section
3.2 |
REPURCHASE
OF SECURITIES AT THE HOLDER’S REQUEST |
23 |
| |
|
|
| Article
4 COVENANTS |
25 |
| Section
4.1 |
PAYMENT
OF SECURITIES |
25 |
| Section
4.2 |
MAINTENANCE
OF OFFICE OR AGENCY |
25 |
| Section
4.3 |
SEC
REPORTS AND REPORTS TO THE TRUSTEE |
25 |
| Section
4.4 |
COMPLIANCE
CERTIFICATE |
26 |
| Section
4.5 |
STAY,
EXTENSION AND USURY LAWS |
27 |
| Section
4.6 |
LIQUIDATION |
27 |
| Section
4.7 |
DEBT-COVERAGE
RATIO |
27 |
| Section
4.8 |
RESTRICTION
ON DIVIDENDS |
28 |
| Section
4.9 |
FINANCING
TRANSACTIONS AND ADDITIONAL INDEBTEDNESS |
28 |
| |
|
|
| Article
5 SUCCESSORS |
28 |
| Section
5.1 |
WHEN
THE COMPANY MAY MERGE, ETC. |
28 |
| Section
5.2 |
SUCCESSOR
ENTITY SUBSTITUTED |
29 |
| Article
6 DEFAULTS AND REMEDIES |
29 |
| Section
6.1 |
EVENTS
OF DEFAULT |
29 |
| Section
6.2 |
ACCELERATION |
30 |
| Section
6.3 |
OTHER
REMEDIES |
30 |
| Section
6.4 |
WAIVER
OF PAST DEFAULTS |
31 |
| Section
6.5 |
CONTROL
BY MAJORITY |
31 |
| Section
6.6 |
LIMITATION
ON SUITS |
31 |
| Section
6.7 |
RIGHTS
OF HOLDERS TO RECEIVE PAYMENT |
31 |
| Section
6.8 |
COLLECTION
SUIT BY TRUSTEE |
32 |
| Section
6.9 |
TRUSTEE
MAY FILE PROOFS OF CLAIM |
32 |
| Section
6.10 |
PRIORITIES |
32 |
| Section
6.11 |
UNDERTAKING
FOR COSTS |
33 |
| |
|
|
| Article
7 TRUSTEE |
33 |
| Section
7.1 |
DUTIES
OF TRUSTEE |
33 |
| Section
7.2 |
RIGHTS
OF TRUSTEE |
34 |
| Section
7.3 |
INDIVIDUAL
RIGHTS OF TRUSTEE |
35 |
| Section
7.4 |
TRUSTEE’S
DISCLAIMER |
35 |
| Section
7.5 |
NOTICE
OF DEFAULTS |
35 |
| Section
7.6 |
REPORTS
BY TRUSTEE TO HOLDERS |
35 |
| Section
7.7 |
COMPENSATION
AND INDEMNITY |
36 |
| Section
7.8 |
REPLACEMENT
OF TRUSTEE |
37 |
| Section
7.9 |
SUCCESSOR
TRUSTEE BY MERGER, ETC. |
38 |
| Section
7.10 |
ELIGIBILITY;
DISQUALIFICATION |
38 |
| Section
7.11 |
PREFERENTIAL
COLLECTION OF CLAIMS AGAINST COMPANY |
38 |
| |
|
|
| Article
8 DISCHARGE OF INDENTURE |
38 |
| Section
8.1 |
TERMINATION
OF COMPANY’S OBLIGATIONS |
38 |
| Section
8.2 |
APPLICATION
OF TRUST MONEY |
39 |
| Section
8.3 |
REPAYMENT
TO COMPANY |
39 |
| Section
8.4 |
REINSTATEMENT |
40 |
| |
|
|
| Article
9 AMENDMENTS |
40 |
| Section
9.1 |
WITHOUT
CONSENT OF THE HOLDERS |
40 |
| Section
9.2 |
WITH
CONSENT OF THE HOLDERS |
41 |
| Section
9.3 |
COMPLIANCE
WITH TRUST INDENTURE ACT |
42 |
| Section
9.4 |
EFFECT
OF CONSENTS |
42 |
| Section
9.5 |
NOTATION
ON OR EXCHANGE OF SECURITIES |
42 |
| Section
9.6 |
TRUSTEE
TO SIGN AMENDMENTS, ETC. |
42 |
| |
|
|
| Article
10 SUBORDINATION |
43 |
| Section
10.1 |
AGREEMENT
TO SUBORDINATE |
43 |
| Section
10.2 |
LIQUIDATION;
DISSOLUTION; BANKRUPTCY |
43 |
| Section
10.3 |
DEFAULT
ON SENIOR DEBT |
45 |
| Section
10.4 |
WHEN
DISTRIBUTION MUST BE PAID OVER |
00 |
| Xxxxxxx
00.0 |
XXXXXXXXXX
XX ACTION AGAINST COLLATERAL |
46 |
| Section
10.6 |
NOTICE
BY COMPANY |
46 |
| Section
10.7 |
SUBROGATION |
47 |
| Section
10.8 |
RELATIVE
RIGHTS |
47 |
| Section
10.9 |
SUBORDINATION
MAY NOT BE IMPAIRED BY THE COMPANY OR HOLDERS OF SENIOR DEBT |
47 |
| Section
10.10 |
LIMITATIONS
ON PETITIONS IN BANKRUPTCY |
48 |
| Section
10.11 |
DISTRIBUTION
OR NOTICE TO REPRESENTATIVE |
48 |
| Section
10.12 |
RIGHTS
OF TRUSTEE AND PAYING AGENT |
49 |
| Section
10.13 |
AUTHORIZATION
TO EFFECT SUBORDINATION |
49 |
| Section
10.14 |
APPLICABILITY
TO PAYING AGENT |
49 |
| Section
10.15 |
CERTAIN
ACKNOWLEDGMENTS TO AND AGREEMENTS IN FAVOR OF HOLDERS OF SENIOR DEBT |
49 |
| Section
10.16 |
OTHER
SUBORDINATION MATTERS |
51 |
| |
|
|
| Article
11 GUARANTEE |
52 |
| Section
11.1 |
GUARANTEE |
52 |
| Section
11.2 |
LIMITATION
ON GUARANTOR LIABILITY
|
53 |
| Section
11.3 |
EXECUTION
AND DELIVERY OF GUARANTY |
53 |
| Section
11.4 |
RELEASES |
53 |
| |
|
|
| Article
12 COLLATERAL AND SECURITY |
54 |
| Section
12.1 |
COLLATERAL
DOCUMENTS |
54 |
| Section
12.2 |
RECORDING
AND OPINION
|
55 |
| Section
12.3 |
RELEASE
OF COLLATERAL |
55 |
| Section
12.4 |
CERTIFICATES
OF THE COMPANY; OPINION OF COUNSEL |
56 |
| Section
12.5 |
CERTIFICATES
OF THE TRUSTEE |
56 |
| Section
12.6 |
AUTHORIZATION
OF ACTIONS TO BE TAKEN BY THE TRUSTEE UNDER THE
COLLATERAL DOCUMENTS |
56 |
| Section
12.7 |
AUTHORIZATION
OF RECEIPT OF FUNDS BY THE TRUSTEE UNDER THE
COLLATERAL AGREEMENT |
57 |
| Section
12.8 |
TERMINATION
OF SECURITY INTEREST |
57 |
| |
|
|
| Article
13 GENERAL PROVISIONS |
57 |
| Section
13.1 |
TRUST
INDENTURE ACT CONTROLS |
57 |
| Section
13.2 |
NOTICES |
57 |
| Section
13.3 |
COMMUNICATION
AMONG HOLDERS |
58 |
| Section
13.4 |
CERTIFICATE
AND OPINION AS TO CONDITIONS PRECEDENT |
59 |
| Section
13.5 |
STATEMENTS
REQUIRED IN CERTIFICATE OR LEGAL OPINION |
59 |
| Section
13.6 |
RULES
BY TRUSTEE AND AGENTS |
59 |
| Section
13.7 |
NO
RECOURSE AGAINST OTHERS |
59 |
| Section
13.8 |
DUPLICATE
ORIGINALS |
59 |
| Section
13.9 |
GOVERNING
LAW |
60 |
| Section
13.10 |
NO
ADVERSE INTERPRETATION OF OTHER AGREEMENTS |
60 |
| Section
13.11 |
SUCCESSORS |
60 |
| Section
13.12 |
SEVERABILITY |
60 |
| Section
13.13 |
SPECIFIC
PERFORMANCE |
60 |
| Section
13.14 |
COUNTERPART
ORIGINALS |
60 |
| Section
13.15 |
TABLE
OF CONTENTS, HEADINGS, ETC. |
60 |
| Section
13.16 |
Trustee’s
Capacity
|
60 |
EXHIBITS:
A – Form of Security
B – Form of Guarantee Notation
C – Form of Amended and Restated
Pledge and Security Agreement
D – Form of Amended and Restated
Intercreditor Agreement
CROSS-REFERENCE TABLE *
| Trust Indenture Act Section |
|
Indenture Section |
| <S> |
|
|
<C> |
| 310(a)(1) |
|
|
7.10 |
| (a)(2) |
|
|
7.10 |
| (a)(3) |
|
|
N/A |
| (a)(4) |
|
|
N/A |
| (a)(5) |
|
|
N/A |
| (b) |
|
|
7.8; 7.10 |
| (c) |
|
|
N/A |
| 311(a) |
|
|
7.11 |
| (b) |
|
|
7.11 |
| (c) |
|
|
N/A |
| 312(a) |
|
|
2.5 |
| (b) |
|
|
13.3 |
| (c) |
|
|
13.3 |
| 313(a) |
|
|
7.6 |
| (b)(1) |
|
|
N/A |
| (b)(2) |
|
|
13.3; 7.6 |
| (c) |
|
|
7.6; 11.2 |
| (d) |
|
|
7.6 |
| 314(a) |
|
|
4.3 |
| (b) |
|
|
12.2 |
| (c)(1) |
|
|
N/A |
| (c)(2) |
|
|
N/A |
| (c)(3) |
|
|
N/A |
| (d) |
|
|
12.3; 12.4; 12.5 |
| (e) |
|
|
N/A |
| (f) |
|
|
N/A |
| 315(a) |
|
|
N/A |
| (b) |
|
|
N/A |
| (c) |
|
|
N/A |
| (d) |
|
|
N/A |
| (e) |
|
|
N/A |
| 316(a) (last sentence) |
|
|
N/A |
| (a)(1)(A) |
|
|
N/A |
| (a)(1)(B) |
|
|
N/A |
| (a)(2) |
|
|
N/A |
| (b) |
|
|
N/A |
| (c) |
|
|
N/A |
| 317(a)(1) |
|
|
N/A |
| (a)(2) |
|
|
N/A |
| (b) |
|
|
N/A |
| 318(a) |
|
|
13.1 |
N/A means not applicable
* This Cross Reference Table is not
part of the Indenture.
THIS INDENTURE
is hereby entered into as of [●], 2014, by and among GWG Holdings, Inc., a Delaware corporation (the “Company”),
as obligor, GWG Life, LLC, a Delaware limited liability company (the “Guarantor”), as guarantor, and Bank of
Utah, a Utah corporation, as trustee (the “Trustee”). The Company, the Guarantor and the Trustee hereby
agree as follows for the benefit of each other and for the equal and ratable benefit of the Holders of certain debt securities
of the Company issued pursuant hereto:
ARTICLE 1
DEFINITIONS AND INCORPORATION BY REFERENCE
“Account”
means the record of beneficial ownership of a Security maintained by the Registrar.
“Affiliate”
of any specified Person means any other Person directly or indirectly controlling or controlled by or under direct or indirect
common control with such specified Person. For purposes of this definition, “control” (including, with correlative
meanings, the terms “controlling,” “controlled by” and “under common control with”), as used
with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of
the management or policies of such Person, whether through the ownership of voting securities, by agreement or otherwise.
“After-Acquired
Property” shall mean all assets and property, including, to the extent permitted by law, assets and property acquired
by the Company or any Subsidiary or Affiliate, including the Guarantor, after the date of this Indenture.
“Agent”
means any Registrar, Paying Agent, co-registrar, Servicing Agent or any Person appointed and retained by the Company to perform
certain of the duties or obligations, or exercise certain of the rights and discretions, of the Company hereunder pursuant to Section
2.17.
“Bankruptcy”
shall mean, for any Person, the: (i) commencement of a voluntary bankruptcy case by that Person; (ii) consent to the entry of an
order for relief against such Person in an involuntary bankruptcy case; or (iii) consent to the appointment of a custodian of such
Person or for all or substantially all of such Person’s property.
“Bankruptcy
Law” has the meaning set forth in Section 6.1.
“Beneficial
Holder” means the holder of a beneficial interest in any Global Security.
“Board
of Directors” means the Board of Directors of the Company or any authorized committee of the Board of Directors.
“Business
Day” means any day other than a Saturday, a Sunday or a day on which banking institutions in the State of Minnesota,
the State of Utah, or at a place of payment are authorized or obligated by law, regulation or executive order to remain closed.
If a payment date falls on any date other than a Business Day, payment may be made on the next succeeding Business Day and no interest
shall accrue for the intervening period.
“Calculation
Date” means the 15th day of each calendar month (or if such day is not a Business Day, the next succeeding Business
Day).
“Capital
Stock” means any class of capital stock of the Company, including without limitation its common stock and any class
of limited or preferred stock, or any series of any class of common, limited or preferred stock, existing from time to time during
the term of this Indenture.
“Collateral”
shall mean, unless a supplemental indenture relating to a particular class or series of Securities issued under this Indenture
provides otherwise: (i) all the assets of the Company, including without limitation all of its ownership interests in Subsidiaries;
(ii) all the assets of the Guarantor pledged under the Pledge and Security Agreement, including without limitation all of the Guarantor’s
ownership interests in its Subsidiaries; (iii) all Pledged Affiliate Stock; and (iv) any and all other items and property defined
as “Collateral” in any Collateral Document.
“Collateral
Documents” means, unless a supplemental indenture relating to a particular class or series of Securities issued under
this Indenture provides otherwise, the Pledge and Security Agreement, Intercreditor Agreement and the other agreements, documents
or instruments, including any financing statements and amendments or supplements thereto, creating, perfecting or evidencing any
Liens securing the Securities, and any other Obligation under this Indenture or the Collateral Documents.
“Company”
means GWG Holdings, Inc., a Delaware corporation, unless and until replaced by a successor in accordance with this Indenture, in
which case “Company” shall mean such successor.
“Company
Majority Stockholders” shall mean Xxx X. Xxxxx and Xxxxxx X. Sabes.
“Corporate
Trust Office” means the office of the Trustee at which the corporate trust business of the Trustee shall, at any particular
time, be principally administered, which office is, at the date as of which this Indenture is originally dated, located at Bank
of Utah, 000 X. Xxxxx Xxxxxx, Xxxxx 000, Xxxx Xxxx Xxxx, XX 00000, Attention: GWG Holdings, Inc. Administrator.
“Debt Coverage
Ratio” has the meaning set forth in Section 4.7.
“Default”
means any event that is or with the passage of time or the giving of notice, or both, would be, an Event of Default.
“Depositary”
means, with respect to Securities of any series issuable in whole or in part in the form of one or more Global Securities, a clearing
agency registered under the Exchange Act and designated as Depositary by the Company pursuant to Section 2.15(a).
“DTC”
has the meaning set forth in Section 2.15(c).
“Event
of Default” has the meaning set forth in Section 6.1.
“Exchange
Act” means the Securities Exchange Act of 1934.
“Fiscal
Quarter” means the approximately three-month period ending each March 31, June 30, September 30, and December 31.
“Fiscal
Year” means a year ending December 31.
“GAAP”
means, as of any date, United States generally accepted accounting principles set forth in the opinions and pronouncements of
the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of
the Financial Accounting Standards Board or in such other statements by such other entity as approved by a significant segment
of the accounting profession, which are in effect from time to time.
“Global
Security” means a Security that evidences all or part of the Securities of any series and bears the legends set forth
in Section 2.15 (or such other legend as may be specified for such Securities pursuant to Section 2.15), issued to a Depositary
or its nominee, and registered in the name of such Depositary or nominee, with the beneficial interests in such Security being
held by one or more Beneficial Holders.
“Guarantee”
means the guarantee of the Guarantor as described in Article 11 or otherwise endorsed on any Security authenticated and delivered
pursuant to this Indenture.
“Guarantee
Notation” is evidence of the Guarantee to be used as described in Section 11.3, and attached hereto as Exhibit
B.
“Guarantor”
means GWG Life, LLC, a Delaware limited liability company, unless and until replaced by a successor in accordance with this Indenture,
in which case “Guarantor” shall mean such successor. “Guarantor” shall also mean any other Person that
later becomes a guarantor of Obligations under any Securities issued hereunder pursuant to an amendment or supplemental indenture
hereto.
“Guarantor
Secured Notes” means that certain class of secured promissory notes privately offered and sold from time to time by the
Guarantor prior to the date of this Indenture, commonly referred to as “LifeNotes” and referred to in the Company’s
consolidated financial statements as “Series I Secured notes.” The Guarantor Secured Notes constitute Pari Passu Debt
with respect to the Renewable Secured Debentures and the Series L Bonds.
“Holder”
means a Person in whose name a Security is registered in the Securities Register.
“Holder
Redemption Event” has the meaning set forth in Section 3.2(a).
“Indebtedness”
means, with respect to any Person and without duplication, any indebtedness of such Person, whether or not contingent, in respect
of borrowed money or evidenced by bonds, notes, debentures or similar instruments or letters of credit (or reimbursement agreements
in respect thereof) or representing the balance deferred and unpaid of the purchase price of any property (including capital lease
obligations) or the expenditure for any services or representing any hedging obligations, including without limitation, any such
balance that constitutes an accrued expense or an account or trade payable, if and to the extent any of the foregoing indebtedness
(other than letters of credit and hedging obligations) would appear as a liability upon a balance sheet of such Person prepared
in accordance with GAAP, and also includes, to the extent not otherwise included, (a) the guarantee of items that would be included
within this definition, and (b) liability for items that would arise by operation of a Person’s status as a general partner
of a partnership.
“Indenture”
means this Indenture, as amended or supplemented from time to time.
“Insurance
Company” means, with respect to any Life Insurance Policy, the insurance company that is obligated by the terms of such
Life Insurance Policy to pay the related Policy Benefit upon the death of the related Insured (or the successor to such obligation).
“Insured”
means a natural person who is named as the insured on a Life Insurance Policy.
“Intercreditor
Agreement” means that certain Amended and Restated Intercreditor Agreement of even date herewith by and among the Trustee,
Lord Securities Corporation (as trustee under that certain Third Amended and Restated Note Issuance Agreement dated as of November
15, 2010, by and among the Guarantor, Lord Securities Corporation and the GWG LifeNotes Trust, with respect to the Guarantor Secured
Notes and the Renewable Secured Debentures), and Bank of Utah (as trustee under that certain Indenture dated as of October 19,
2011, as amended on December 15, 2011), as such agreement may be amended, modified or supplemented from time to time in accordance
with its terms and with this Indenture (specifically including any future amendments entered into primarily for the purpose of
accommodating additional Securities comprising Pari Passu Debt), which agreement comprises one of the Collateral Documents. The
form of Intercreditor Agreement is attached hereto as Exhibit D.
“Interest
Accrual Period” means, as to each Security, the period from the later of the Issue Date of such Security or the last
Payment Date upon which an interest payment was made, until and including the day before the following Payment Date (or the Maturity
Date, if earlier), during which period interest accrues with respect to any Payment Date.
“Issue
Date” means, with respect to any Security, the date on which such Security is deemed registered on the books and records
of the Registrar, which shall be (i) the date the Company accepts funds for the purchase of the Security if such funds are received
prior to 12:01 p.m. (Central Time) on a Business Day, or if such funds are not so received, on the next Business Day, or (ii) the
date that the Security is renewed as of the Maturity Date pursuant to Section 2.1(h).
“Lien”
means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect
of such asset, whether or not filed, recorded or otherwise perfected under applicable law (including any conditional sale or other
title retention agreement, any lease in the nature thereof, any option or other agreement to sell or give a security interest in
and any filing of or agreement to give any financing statement under the Uniform Commercial Code, or equivalent statutes, of any
jurisdiction).
“Life Expectancy”
means with respect to any Life Insurance Policy (other than a Small Life Insurance Policy), the average of two Life Expectancy
Reports of the related Insured, stated in months, provided by two separate Qualified Actuarial Firm to achieve 50th percentile
cumulative mortalities for such Insured, or, if not so provided, by applying the provided life expectancy in months to the most
recent VBT Select Table to calculate a 50th percentile cumulative mortality schedule for such Insured, in any case as of the Life
Expectancy Report Date and subsequently adjusted in the passage of time. For policies with more than one Insured that pay upon
the death of the second Insured (“Joint Policies”), the “Life Expectancy” with respect to any such
Joint Policies (other than a Small Life Insurance Policy), means the joint Life Expectancy Reports of the related Insureds in months
to achieve a 50th percentile cumulative mortality for such Insureds provided for the two joint life expectancies by the Qualified
Actuarial Firms and, if not provided, by applying the provided life expectancy in months to the most recent VBT Select Table to
calculate a 50th percentile cumulative mortality for such Insureds, in any case as of the Life Expectancy Report Date and subsequently
adjusted in the passage of time. Life Expectancy for a Small Life Insurance Policy shall be stated in months as determined by applying
the most recent VBT Select Table to calculate a 50th percentile cumulative mortality schedule for such Insured, as of
the Life Expectancy Report Date and subsequently adjusted in the passage of time; provided that a Life Expectancy Report may be
used for a Small Life Insurance Policy, if available.
“Life
Expectancy Report” means an assessment by a Qualified Actuarial Firm, contained in a written statement dated within
180 days prior to the date of the purchase by the Company or any of its direct or indirect Subsidiaries of a Life Insurance Policy,
of the life expectancy of one or more Insureds under such Life Insurance Policy.
“Life Expectancy
Report Date” means, with respect to any Life Expectancy Report, the certificate date contained in the Life Expectancy
Report or the date otherwise calculated in the case of a Small Life Insurance Policy.
“Life Insurance
Policy” means any life insurance policy owned the Company, the Guarantor or any of their direct or indirect Subsidiaries
or Affiliates.
“Master
Trust” means (i) GWG DLP Master Trust II, a Delaware statutory trust, and (ii) any future master trust that may be created,
or wholly or partially owned, by the Guarantor and its Subsidiaries, the primary purpose of which is to segregate collateral granted
in favor of the holder or holders of Senior Debt.
“Maturity
Date” means, with respect to any Security, the date on which the principal of such Security becomes due and payable as
therein provided.
“Maturity
Record Date” means, with respect to any Security, the close of business on the first Business Day that is at least 46
days prior to the Maturity Date or Redemption Date for such Security.
“Net Present
Asset Value of Life Insurance Policies” means an amount equal to the net present value of the expected cash flows to
be derived from Life Insurance Policies, as determined by applying the Pricing Model and a discount rate equal to the Weighted-Average
Cost of Capital of the Company (including its direct and indirect Subsidiaries and Affiliates) for the calendar month immediately
preceding the Calculation Date.
“Net Proceeds”
shall mean the aggregate cash proceeds and cash equivalents received by the Company or the Guarantor in respect of any merger,
sale of all or substantially all of the assets of the Company or Guarantor, as applicable, net of the direct costs relating to
such merger or sale, including without limitation legal, accounting and investment banking fees, and sales commissions, and any
relocation expenses incurred as a result of the merger or asset sale, in each case taking into account, without duplication, (1)
any available tax credits or deductions and any tax-sharing arrangements, and amounts required to be applied to the repayment of
Indebtedness secured by a Permitted Lien on the asset or assets that were the subject of such merger or asset sale and any reserve
for adjustment in respect of the sale price of such asset or assets established in accordance with GAAP, (2) any reserve or payment
with respect to liabilities associated with such asset or assets and retained by the Company or the Guarantor after such sale or
other disposition thereof, including without limitation severance costs pension and other post-employment benefit liabilities and
any indemnification obligations associated with such transaction, and (3) any cash escrows in connection with the purchase price
adjustments, reserves or indemnities (until released).
“Notice
of Maturity” means a notice from the Company to a Holder, as further described in Section 2.1(f), that the Holder’s
Securities will be maturing on the related Maturity Date, which notice shall be sent by the Company at least 45 days prior to such
Maturity Date.
“Obligations”
means any principal, interest (including Post-Petition Interest), penalties, fees, indemnifications, reimbursements, damages and
other liabilities payable under the documentation governing any Indebtedness, specifically including any such obligations under
a Guarantee.
“Officer”
means the Chairman of the Board or principal executive officer of the Company, the President or principal operating officer of
the Company, the Chief Financial Officer or principal financial officer of the Company, the Treasurer, Controller or principal
accounting officer of the Company, Secretary or any Executive or Senior Vice President of the Company.
“Officers’
Certificate” means a certificate signed by two Officers, at least one of whom must be the principal executive officer,
principal operating officer, principal financial officer or principal accounting officer of the Company; provided, however, that
if the opinion of an accountant is required pursuant to TIA §314(c)(3), the certificate must be signed by an Officer who is
an accountant.
“Opinion
of Counsel” means an opinion from legal counsel reasonably acceptable to the Trustee. The counsel may be an employee
of or counsel to the Company.
“Pari Passu
Debt” means any Indebtedness of the Company that is payable, or that has secured collateral that is shared, on a pari
passu basis with the Securities, including without limitation all Guarantor Secured Notes and all Renewable Secured Debentures.
“Paying
Agent” has the meaning set forth in Section 2.3.
“Payment
Account” means a bank account designated by the Holder to receive payments of interest or principal due on such Holder’s
Securities, as may be amended by the Holder by written notice to the Registrar from time to time.
“Payment
Blockage Period” has the meaning set forth in Section 10.3.
“Payment
Date” means (i) with respect to any Security for which quarterly interest payments are required to be made, the 15th
day of the calendar month immediately following such Fiscal Quarter, (ii) with respect to any Security for which interest payments
are required to be made annually, the 15th day of the calendar month next following the anniversary of the Issue Date of such Security,
and (iii) with respect to each Security, the date specified in Section 2.1(f) for the payment upon maturity of all principal of
and accrued but unpaid interest on such Security, and any Repurchase Date or Redemption Date of such Security, if applicable; provided,
however, that if any such day in the preceding clauses (i) through (iii) is not a Business Day, then the Payment Date shall be
the Business Day immediately following such day.
“Permitted
Liens” means Liens on assets of the Company or any of its direct or indirect Subsidiaries or Affiliates, including
the Guarantor, securing Indebtedness and other Obligations under (i) the Guarantor Secured Notes, (ii) the Renewable Secured Debentures,
(iii) any Qualified Sales and Financing Transaction (whether now existing or arising or acquired in the future), which Liens may
be Senior Debt having higher priority to the Liens securing Obligations under the Securities issued under this Indenture, (iv)
any Senior Debt, and (v) any purchase-money security interests.
“Payment
Notice” has the meaning set forth in Section 10.3.
“Person”
means any individual, corporation, partnership, limited liability company, joint venture, association, joint stock company, trust,
unincorporated organization or government or any agency or political subdivision thereof.
“Pledge
and Security Agreement” means that certain Amended and Restated Pledge and Security Agreement of even date herewith
by and among the Company, the Guarantor, the Company Majority Stockholders and the Trustee (in its capacity as trustee under that
Indenture dated as of October 19, 2011, as amended on December 15, 2011, and its capacity as trustee under this Indenture), as
such agreement may be amended, modified or supplemented from time to time in accordance with its terms and with this Indenture
(specifically including any future amendments entered into primarily for the purpose of accommodating additional Securities comprising
Pari Passu Debt), which agreement comprises one of the Collateral Documents. The form of Pledge and Security Agreement is attached
hereto as Exhibit C.
“Pledged
Affiliate Stock” means the common stock of the Company beneficially owned (as such term is defined under Section 13d
of the Exchange Act), as of the date of this Indenture, by the Company Majority Stockholders, the number of shares of which is
identified with particularity in the Pledge and Security Agreement.
“Policy
Benefit” means, with respect to a Life Insurance Policy, the amount to be paid by the writing Insurance Company upon
the mortality of the Insured.
“Post-Petition
Interest” means interest accruing after the commencement of any Bankruptcy or insolvency case or proceeding with respect
to the Company or any receivership, liquidation, reorganization or other similar case or proceeding in connection therewith, at
the rate applicable to the related Indebtedness, whether or not such interest is an allowable claim in any such proceeding.
“Pricing
Model” means the latest version of the life insurance policy pricing model owned by Modeling Actuarial Pricing Systems,
Inc. and licensed by the Company (or a substantially similar model commonly supported by the actuarial profession), which model
calculates expected cash flows from Life Insurance Policies utilizing the probabilistic methodology, the Life Expectancy of Insureds,
and the VBT Select Table.
“Property”
has the meaning set forth in Section 10.15(b).
“Qualified
Actuarial Firm” means any of: (a) 21st Services; (b) Xxxxxx & Associates; (c) AVS Underwriting; (d) EMSI;
(e) ISC Services; or (e) any other independent third-party medical actuarial firm, consulting physician or group of consulting
physicians commonly recognized within the industry as providing reputable Life Expectancy estimates that are approved by the Company.
“Qualified
Sales and Financing Transaction” means any transaction or series of transactions (including without limitation the performance
and liquidation or termination of such transactions) that may be entered into, sponsored, conducted or coordinated by or with the
involvement of the Company and pursuant to which the Company, or its Subsidiaries or Affiliates, may (a) issue Senior Debt by selling,
conveying, financing, pledging or otherwise transferring Collateral to (i) a special purpose entity (in the case of a transfer
by the Company or any of its Affiliates) or (ii) any other Person (in the case of a transfer by the Company or a special purpose
entity), or may (b) grant a security interest in or pledge any Life Insurance Policies, any securities backed by or any interests
in Life Insurance Policies (whether now existing or arising or acquired in the future), and any assets related thereto, which are
customarily sold, transferred or pledged as security in connection with asset securitization, secured financing or similar transaction
involving receivables, including the ability to finance and sell the residual interests retained from all such transactions, or
securities backed by or representing interests in such residual interests.
“Redemption
Date” has the meaning set forth in Section 2.1(i).
“Redemption
Notice” means a written notice from the Company to the Holders, as further described in Section 2.1(i), stating that
the Company is redeeming all or a specified portion of Securities pursuant to Section 3.1, with a copy to the Registrar and the
Trustee.
“Redemption
Price” means, with respect to any Security to be redeemed, the principal amount of such Security plus the interest accrued
but unpaid during the Interest Accrual Period up to but not including the Redemption Date for such Security.
“Registrar”
has the meaning set forth in Section 2.3.
“Registration
Statement” is a registration statement filed with the SEC pursuant to the Securities Act, as amended from time to time
including through pre-effective and post-effective amendments, that permits the Company to publicly offer and, upon and during
effectiveness, sell Securities issuable under this Indenture.
“Regular
Record Date” means, with respect to each Payment Date, as of 11:59 p.m. of the date 15 days prior to such Payment Date.
“Renewable
Secured Debentures” means those securities offered and sold from time to time by the Company pursuant to a Registration
Statement of the Company and the Guarantor filed with the SEC (SEC File No. 333-195505, including any subsequent filings made for
the purpose of registering additional sales or renewals of such securities), as amended from time to time, and that certain Indenture
dated October 11, 2011, as amended on December 15, 2011, and as thereafter amended from time to time. The Renewable Secured Debentures
constitute Pari Passu Debt with respect to the Guarantor Secured Notes and the Series L Bonds.
“Repurchase
Date” shall have the meaning set forth in Section 3.2(c).
“Repayment
Election” means a written notice from a Holder to the Company, as further described in Section 2.1(f), stating that repayment
of all or a portion of the Holder’s Securities is required in connection with the maturity of such Securities.
“Repurchase
Penalty” shall have the meaning set forth in Section 3.2(b).
“Repurchase
Price” means, with respect to any Security to be repurchased, the principal amount of such Security plus the interest
accrued but unpaid during the Interest Accrual Period up to but not including the Repurchase Date for such Security, minus the
Repurchase Penalty, if any.
“Repurchase
Request” means a written notice from a Holder to the Company, as further described in Section 2.1(j), stating that such
Holder is making an irrevocable request for the Company to repurchase such Holder’s Securities pursuant to Section 3.2.
“Responsible
Officer” when used with respect to the Trustee, means any officer in its Corporate Trust Office, or any other assistant
officer of the Trustee in its Corporate Trust Office customarily performing functions similar to those performed by the Persons
who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because of his or her knowledge
of and familiarity with the particular subject.
“SEC”
means the U.S. Securities and Exchange Commission.
“Securities
Act” means the Securities Act of 1933.
“Security”
or “Securities” means any debt security authorized, authenticated and delivered under this Indenture, including
without limitation the Series L Bonds, together with all classes, sub-classes, series and sub-series of any such Securities.
“Securities
Register” has the meaning set forth in Section 2.3.
“Senior
Debt” means any Indebtedness, other than the Securities and Pari Passu Debt (whether outstanding on the date hereof
or thereafter created), incurred by the Company (including its direct or indirect Subsidiaries or Affiliates) that is senior in
rank to Securities as to the right to receive payments from the Company, or senior as to the right to receive payments on or from
(or otherwise with respect to) any Collateral, whether such Indebtedness is or is not specifically designated by the Company as
being “Senior Debt” in its defining instruments. In this regard, Senior Debt shall include, without limitation, any
and all Indebtedness and Obligations owed by the Company or its direct or indirect Subsidiaries to Autobahn Funding Company LLC
(or its affiliates, including without limitation DZ Bank AG Deutsche Zentral-Genossenschaftsbank and any future senior lender)
as of the date of this Indenture and, unless specifically designated to the contrary in its defining instruments, thereafter existing,
including all amendments, restatements, alternations, substitutions, replacements and renewals thereof, and extensions thereto
(which shall be understood to specifically include replacements or substitutions involving a different lender).
“Senior
Debt Default” has the meaning set forth in Section 10.3(a).
“Senior
Debt Payout Date” means the date on which (i) all Senior Debt and related Obligations shall be paid in full, in cash,
and (ii) the related transaction documents to which such Senior Debt relates shall terminate in accordance with their terms.
“Series
L Bonds” are a class of Security authorized for authentication and delivery as of the date of this Indenture. The terms
and conditions of the Series L Bonds are set forth in this Indenture, as the same may be amended and supplemented from time to
time pursuant hereto.
“Servicing
Agent” means an Agent designated by the Company and the Trustee, if any, as agent for service of notices and demands
to and from the Holders, and other communications to and from the Holders, in connection with any Securities.
“Small
Life Insurance Policy” means a Life Insurance Policy having a Policy Benefit equal to or less than $1,000,000.
“SPV Collateral”
means all assets and property in which either the SPV Entity or Master Trust has acquired, or purports to have acquired, an interest
(including without limitation all assets and property which the Company or the Guarantor has transferred, or purports to have transferred,
to any such Person) pursuant to the “Transaction Documents,” as defined in that certain Third Amended and Restated
Note Issuance and Security Agreement dated as of November 15, 2010, by and among the Guarantor, the holders of Guarantor Secured
Notes, Lord Securities Corporation (as trustee), and GWG LifeNotes Trust, as the same may be amended from time to time.
“SPV Entity”
means: (i) GWG DLP Funding II, LLC, a Delaware limited liability company and wholly owned Subsidiary of the Guarantor; and (ii)
any other Subsidiary entity of the Guarantor whose limited purpose is to purchase and/or own Life Insurance Policies.
“Subsidiary”
or “Subsidiaries” means, with respect to any Person, any corporation or other entity in which such Person directly
owns securities or other ownership interests, regardless of whether such ownership constitutes a controlling or non-controlling
interest. Specific references to indirect Subsidiaries means, with respect to any Person, any corporation or other entity in which
such Person indirectly owns, through one or more other corporations or entities, securities or other ownership interests, regardless
of whether such ownership constitutes a controlling or non-controlling interest. In the case of any Subsidiary that is not wholly
owned, calculations with respect to any financial covenants shall be made in proportion to the Company’s interest, direct
and indirect, in such Subsidiary.
“TIA”
means the Trust Indenture Act of 1939, as in effect on the date on which this Indenture is qualified under the TIA.
“Total
Permanent Disability” means a determination by a physician approved by the Company that the Holder of a Security who
is a natural person, and who was gainfully employed on a full-time basis at the Issue Date of such Security, is unable to work
on a full-time basis during the a period of 24 consecutive months. For purposes of this definition, “working on a full time
basis” shall mean working at least 40 hours per week.
“Trustee”
means Bank of Utah, a Utah corporation, until a successor replaces it in accordance with the applicable provisions of this Indenture
and thereafter means the successor serving hereunder. “Trustee” also means a different trustee engaged under this Indenture
(e.g., pursuant to a supplement indenture) to serve as trustee with respect to any Securities, or series of Securities, other than
the Series L Bonds.
“UCC”
means the Uniform Commercial Code as in effect in the State of Delaware or any other applicable jurisdiction.
“U.S. Government
Obligations” means direct obligations of the United States of America, or any agency or instrumentality thereof for the
payment of which the full faith and credit of the United States of America is pledged.
“VBT Select
Table” means the most recent actuarial tables published by The Society of Actuaries, or such other actuarial table providing
mortality probabilities for Insureds deemed appropriate by the Company.
“Weighted-Average
Cost of Capital” means a percentage equal to the weighted-average interest rate paid by the Company and its direct and
indirect Subsidiaries on outstanding Indebtedness for the month immediately preceding the Calculation Date.
“Written
Confirmation” means a written confirmation of the acceptance of a subscription for, or the transfer or pledge of, a Security
or Securities in the form of a transaction statement executed or issued by the Company or its duly authorized Agent and delivered
to the Holder of such Security or Securities with a copy to the Registrar and the Trustee.
| Section 1.2 | INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT |
Whenever this Indenture
refers to a provision of the TIA, such provision is incorporated by reference into and made a part of this Indenture. All other
terms used in this Indenture that are defined by the TIA, defined by reference in the TIA to another statute, or defined by an
SEC rule under the TIA, have the meanings so assigned to them.
| Section 1.3 | RULES OF CONSTRUCTION |
Unless the context
otherwise requires: (a) a term has the meaning assigned to it; (b) an accounting term not otherwise defined has the meaning assigned
to it in accordance with GAAP; (c) references to GAAP, as of any date, shall mean GAAP in effect in the United States as
of such date; (d) “or” is not exclusive; (e) words in the singular include the plural, and words in the plural
shall include the singular; and (f) provisions apply to successive events and transactions.
Article
2
THE SECURITIES
| Section 2.1 | SECURITY TERMS; ACCOUNTS; INTEREST; MATURITY |
| (a) | The outstanding aggregate principal amount of Securities to be issued hereunder is unlimited. Except
as may be otherwise provided in an amendment or supplemental indenture respecting all Securities or a particular class or series
of Securities, the Securities are secured obligations of the Company and shall be senior in right to assets of the Company, provided
that such rights may be subordinate in right of payment to the Senior Debt as further described in Article 10. The Securities are
an obligation and liability of the Company, and not of any other Person, including without limitation any stockholder, director,
Officer, employee, Affiliate or Agent of the Company. The Securities are not certificates of deposit or similar obligations of,
and are not guaranteed or insured by, any depository institution, the Federal Deposit Insurance Corporation, any other governmental
or private fund, any securities insurer or any other Person, other than as set forth in Article 11. |
| (b) | In the event issued in certificated form pursuant to Section 2.14 or in a certificated Global Security
form pursuant to Section 2.15: (i) the Securities, together with the Trustee’s certificate of authentication, shall be in
substantially the form set forth as Exhibit A to this Indenture (or such other form as may be required by a Depositary),
with any appropriate insertions, omissions, substitutions and other variations as are required or permitted by this Indenture and
may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may be required
to comply with the rules of any securities exchange or as may be otherwise determined, consistently herewith, by the officers executing
such Securities to be appropriate, as evidenced by their execution of the Securities; (ii) any portion of the text of any Securities
may be set forth on the reverse thereof, with an appropriate reference thereto on the face of the Securities; and (iii) the Securities
may be subject to notations, legends or endorsements required by law, stock exchange rule, rules or custom of a Depositary, or
agreements to which the Company is subject or reasonably required by usage. Upon the creation of other Securities issuable under
this Indenture, or the creation of different classes or series of any Securities issuable under this Indenture, a new Exhibit
A, successively numbered in cardinal fashion (e.g., Exhibit X-0, Xxxxxxx X-0, etc.), will be
attached to and thereupon become a part of this Indenture. If a Security is to be issued or issuable in a certificated Global Security
form pursuant to Section 2.15, such form shall likewise be attached to and thereupon become a part of this Indenture. As of the
initial date of this Indenture, Exhibit A-1 collectively sets forth the form of Series L Bond and the form of Series
L Bond Global Security. |
| (c) | Except as provided in Section 2.14 or Section 2.15, no Security shall be issued as, nor evidenced
by, a certificated security, but rather each Security shall be issued in book-entry or uncertificated form in which the record
of beneficial ownership of each such Security shall be established and maintained as Accounts by the Registrar pursuant to Section
2.13. For each Security issued in book-entry form in accordance with Section 2.13, the same terms and provisions as those set forth
in the form of Security attached as the relevant Exhibit A shall be deemed to be incorporated into the terms and
provision of such book-entry Securities. |
| (d) | Each Security shall be in such denominations as provided by this Indenture and as may be designated
from time to time by the Company, but in no event in an original denomination less than $25,000, unless otherwise authorized by
the Company. Separate purchases may not be cumulated to satisfy the minimum denomination requirements. Each Security shall have
a term of six months, or one, two, three, four, five, seven, or ten years as designated by the Holder at the time of purchase,
subject to the Company’s acceptance thereof, unless otherwise determined by the Company. |
| (e) | Each Security shall bear interest from and commencing on its Issue Date at such rate of interest
as the Company shall determine from time to time; provided, however, that the interest rate of each Security will be fixed for
the term of such Security upon issuance, subject to change upon any renewal of the Security at maturity. Simple interest on the
Securities will accrue based on a calendar year consisting of twelve 30-day months (or 360 days) and the Holder thereof may
elect to have interest paid quarterly or annually (or at such other times or frequencies from which the Company may permit a Holder
to choose upon purchase of a Security), which payments shall be made on the applicable Payment Date, except that (i) no interest
shall be paid to a Holder until the expiration of the Holder’s rescission right under Section 2.2(b), if applicable, and
(ii) in the case of a Holder who elects interest to be paid only upon maturity (if and when such an option is offered by the Company),
such interest will compound annually. If a Holder does not elect an interest-payment option, interest will be paid annually unless
otherwise determined by the Company. The Holder of a Security paying interest upon maturity (if and when such an option is offered
by the Company) by virtue of such Holder not having made an affirmative election for the payment of interest may, once during the
term of the Security but only with the approval of the Company (which the Company may grant or withhold in its discretion), change
the manner in which interest is paid. Any such change shall be effective upon the first Business Day of the Fiscal Quarter next
following the calendar month in which the Company shall have both (x) received written notice from the Holder requesting such change
and (y) approved such change, as evidenced in a writing delivered to such Holder. |
| (f) | At least 45 days prior to a Maturity Date for any Security, the Company will send to each Holder
of such a Security as of its Maturity Record Date a Notice of Maturity (via first class U.S. mail, facsimile or electronic transmission).
The Notice of Maturity will notify the Holder of the Security’s pending maturity and that the automatic-renewal provision
described in subsection (h) will take effect, unless: |
| (i) | the Company states in the Notice of Maturity that it will not allow the Holder to renew the Security,
in which case the Company shall pay the Holder all outstanding principal and accrued but unpaid interest with regard to the Security
on the applicable Payment Date; or |
| (ii) | the Holder sends to the Company, at least 15 days prior to the Maturity Date, a Repayment Election
for the payment of all outstanding principal and accrued but unpaid interest due on the Security as of the Maturity Date; provided,
however, that the Holder of a Global Security may elect to receive payment of outstanding principal and accrued but unpaid interest
due on such Security respecting less than all principal represented by such Global Security. |
A Notice of Maturity shall also
contain the statements and disclosures described in subsection (g) below. If a Notice of Maturity permits the Holder to renew the
Security, then the Company shall also include the then-current Offering Documentation together with a statement urging the Holder
to review such documentation prior to any renewal. Upon receipt of a Notice of Maturity, the Holder of a maturing Security may
in its discretion send to the Company a Repayment Election; provided, however, that such Repayment Election must be sent to the
Company no later than 15 days prior to the Maturity Date. If the Company receives a Repayment Election on or prior to the 15th
day before the Maturity Date, the Company will pay all outstanding principal and accrued but unpaid interest on the Security (through
the Maturity Date) no later than the Payment Date next following the Maturity Date; provided, however, that if the Company shall
have previously paid interest to the Holder for any period after the Maturity Date, then such interest shall be deducted
from such payment.
| (g) | The Notice of Maturity also shall state that the Holder may submit a Repayment Election for the
repayment of the maturing Security and use all or a portion of the proceeds thereof to purchase a new Security with a different
term. To exercise this option, the Holder shall send to the Company such Holder’s Repayment Election to the Company together
with such other documentation as is required to effect such transaction. The Issue Date of the new Security shall be the Maturity
Date of the maturing Security. Any proceeds from the maturing Security that are not applied to the purchase of the new Security
shall be sent to the Holder thereof. If a Security pays interest only on the Maturity Date, then the Notice of Maturity also shall
state that the Holder may submit an “interest-only” Repayment Election in which the Holder requires the payment of
the accrued and unpaid interest that such Holder has earned on the maturing Security (through the Maturity Date) and allows the
principal amount of such maturing Security to renew in the manner provided in subsection (h) below. |
| (h) | If a Holder of a maturing Security has not delivered a Repayment Election for repayment of the
Security on or prior to the 15th day before the Maturity Date, and the Company did not notify the Holder of its intention to repay
the Security in the Notice of Maturity, then such maturing Security shall be extended automatically for an additional term equal
to the original term, and shall be deemed to be renewed by the Holder and the Company as of the Maturity Date of such maturing
Security. A maturing Security will thereafter continue to renew as described herein absent a subsequent Redemption Notice by the
Company, a Repurchase Request by the Holder, or an indication by the Company that it will repay and not allow the Security to be
renewed in any subsequent Notice of Maturity. Interest on the renewed Security shall accrue from the Issue Date thereof, which
shall be the Maturity Date of the maturing Security. Such renewed Security will be deemed to have the identical terms and provisions
of the maturing Security, including provisions relating to payment, except that the interest rate payable during the term of the
renewed Security shall be the interest rate which is then being offered by the Company on other Securities having the same term
as of the Issue Date of such renewal. If other Securities having the same term are not then being offered on such date, then the
interest rate upon renewal will be the rate specified by the Company on or before the Maturity Date of such Security, or the then-existing
rate of the Security being renewed if no such rate is specified. If the maturing Security pays interest only on the Maturity Date,
then, except as provided in subsection (g) above, upon renewal all accrued interest thereon shall be added to the principal amount
of the renewed Security. |
Notwithstanding the foregoing or
anything in subsection (f) to the contrary, if a Repayment Election is given or is due at a time when the Company has determined
that a post-effective amendment to a Registration Statement was required but not yet effective, then the Company will provide notice
to the Holder, and the Holder will be entitled to rescind his or her Repayment Election, if made, or to make a Repayment Election
if not previously made, by delivering a written rescission of the earlier Repayment Election, or written Repayment Election, as
the case may be, to the Company no later than ten days after the postmark date on a notice from the Company to the Holder stating
that the post-effective amendment to such Registration Statement has been declared effective. If a Repayment Election is made as
described above, then outstanding principal and accrued but unpaid interest (through the Maturity Date) shall be paid on the Payment
Date next following the Company’s receipt of such Repayment Election; and if an earlier made Repayment Election is rescinded,
the Issue Date for the renewed security shall be a date reasonably selected by the Company (but no earlier than the next Business
Day after the date on which the Company shall have received any funds earlier transmitted to the Holder in connection with the
rescinded Repayment Election).
| (i) | Pursuant to Section 3.1, each Security shall be redeemable by the Company at any time, without
penalty, upon delivery by the Company of a Redemption Notice to the Holder of such Security. Such Redemption Notice shall set forth
a date for the redemption of such Security (the “Redemption Date”) that is at least 30 days after the date on
which such Redemption Notice shall have been sent by the Company to the Holder. |
| (j) | Pursuant to and subject to the limitations set forth in Section 3.2, each Security shall be subject
to repurchase at the request of the Holder upon the delivery of a Repurchase Request to the Company. |
| (k) | The terms and provisions contained in the Securities shall constitute, and are hereby expressly
made, a part of this Indenture and to the extent applicable, the Company and the Trustee, by their execution and delivery of this
Indenture, and the Holders by accepting the Securities, expressly agree to such terms and provisions and to be bound hereby and
thereby. In case of any direct conflict with any other agreement (other than the Intercreditor Agreement), the provisions of this
Indenture shall control. |
| Section 2.2 | WRITTEN CONFIRMATION
OR REJECTION; RESCISSION |
| (a) | Except with respect to an automatically renewed Security pursuant to Section 2.1(h), a Security
shall not be validly issued to a Person until the following have occurred: (i) such Person has remitted to the Company or
a duly authorized Agent good and available funds for the full principal amount of such Security; (ii) a Written Confirmation of
the acceptance of the purchase of the Security is sent by the Company or a duly authorized Agent to such Person; and (iii) an Account
is established by the Registrar in the name of such Person as the Holder of such Security in the Securities Register. The Company
or a duly authorized Agent, in their sole discretion, may reject any subscription for the purchase of Securities, in which event
any funds received in relation to such subscription shall be promptly returned to the subscriber. No interest shall be paid on
any funds returned from a rejected subscription. |
| (b) | For a period of ten Business Days following the mailing by the Company of notice that a Holder’s
purchase of a Security occurred at a time when a post-effective amendment to a Registration Statement was required but not yet
effective (which notice shall be accompanied by a copy of the final prospectus comprising a part of the post-effective amendment
to the Registration Statement as declared effective, together with any related prospectus supplement), such Holder shall have the
right to rescind its purchase of the Security and receive repayment of the principal by presenting a written request for such rescission
to the Company. Such written request for rescission (A) if personally delivered or delivered via facsimile or electronic transmission,
must be received by the Company on or prior to the tenth Business Day following the mailing of such Written Confirmation or post-effective
amendment notice by the Company or (B) if mailed, must be postmarked on or before the tenth Business Day following the mailing
by the Company of such Written Confirmation or post-effective amendment notice. Repayment of the principal shall be made within
ten days of the Company’s receipt of such request from the Holder. No interest shall be paid on any such rescinded purchase
of a Security. |
Section 2.3 REGISTRAR AND PAYING AGENT
| (a) | The Company shall maintain (i) an office or agency where Securities may be presented for registration
of transfer or for exchange (“Registrar”) and (ii) an office or agency where Securities may be presented for
payment (“Paying Agent”). The Registrar shall keep a register of the Securities and of their transfer and exchange,
which shall include the name, address for notices and Payment Account of the Holder and the payment election information, principal
amount, term and interest rate for each Security, and which shall also include an indication as to which Securities are book-entry,
certificated or represented by a Global Security (the “Securities Register”). The Company 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 Company may change any Paying Agent or Registrar
without prior notice to any Holder; provided that the Company shall promptly notify the Holders and the Trustee of the name and
address of any Agent not a party to this Indenture. The Company itself may act as Paying Agent and/or Registrar. In the event the
Company uses any Agent other than the Company or the Trustee, the Company shall enter into an appropriate agency agreement with
such Agent, which agreement shall incorporate the provisions of the TIA or provide that the duties performed thereunder are subject
to and governed by the provisions of this Indenture. Any such agreement shall implement or be subject to the provisions of this
Indenture that relate to such Agent. The Company shall notify the Trustee of the name and address of any such Agent. If the Company
fails to maintain a Registrar or Paying Agent, or fails to give the foregoing notice, the Trustee shall act as such, and shall
be entitled to appropriate compensation in accordance with Section 7.7. In no event shall the Trustee be liable for the acts or
omissions of any predecessor Paying Agent or Registrar. |
| (b) | Pursuant to Section 2.17, the Company shall serve as the initial Registrar and Paying Agent and
as agent for service of notices and demands in connection with the Securities until such time as the Company gives the Trustee
written notice to the contrary. |
| Section 2.4 | PAYING AGENT TO HOLD MONEY IN TRUST |
Prior to each Payment
Date on any Security, the Company shall deposit with the Paying Agent sufficient funds to pay principal and interest then so becoming
due and payable in cash. The Company 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
or interest on the Securities, and will notify the Trustee promptly in writing of any default by the Company in making any such
payment. While any such default continues, the Trustee shall require a Paying Agent (if other than the Company) to pay all money
held by it to the Trustee. The Company 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 Company) shall have no further liability for the money delivered
to the Trustee. If the Company acts as Paying Agent, then the Company shall segregate and hold in a separate trust fund for the
benefit of the Holders all money held by it as Paying Agent. The Company shall notify the Trustee in writing at least five days
before the Payment Date of the name and address of the Paying Agent if a Person other than the Trustee (or the Company) is named
Paying Agent at any time or from time to time.
| Section 2.5 | LIST OF HOLDERS |
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 and shall otherwise comply with TIA §312(a). If the Trustee is not the Registrar, the Registrar shall furnish to the
Trustee within ten days after the end of each Fiscal Quarter during the term of this Indenture, and at such other times as the
Trustee may request in writing, a copy of the current Securities Register as of such date as the Trustee may reasonably require
and the Company shall otherwise comply with TIA §312(a).
| Section 2.6 | TRANSFER AND EXCHANGE |
| (a) | The Securities may be transferred so long as they shall have been offered and sold by the Company
pursuant to an effective Registration Statement. |
| (i) | Upon surrender to the Registrar of such a Security for registration of transfer that is certificated,
accompanied by a written instrument of conveyance in form and substance satisfactory to the Company (and the Registrar, if the
Company is not the Registrar) executed by the Holder thereof or such Holder’s attorney duly authorized in writing, the Company
will execute and the Trustee will authenticate and deliver, in the name of the designated transferee or transferees, one or more
new Securities denominated as authorized by this Indenture and of a like aggregate principal amount and containing identical terms
and provisions. |
| (ii) | In the case of such Securities that are book-entry only and not certificated, transfers shall be
effected on the book-entry system maintained in accordance with Section 2.13 upon receipt by the Company (and the Registrar, if
the Company is not the Registrar) of a written instrument of transfer in form and substance satisfactory to the Company, duly executed
by the Holder thereof or such Holder’s attorney duly authorized in writing. |
| (iii) | In the case of such Securities that are represented by a Global Security, transfers of such Global
Security itself shall only be effected in accordance with Section 2.15(b). |
| (iv) | No Beneficial Holder of an interest in a Global Security will be able to transfer that interest
except in accordance with the applicable procedures of the Depositary and any other procedures specified herein. |
| (b) | In cases where Securities shall not have been offered and sold by the Company pursuant to an effective
Registration Statement (“Restricted Indenture Securities”), such Securities may be transferred only with the
prior written consent of the Company. Any such requests shall be: |
| (i) | made to the Registrar in writing on a form supplied by the Registrar; |
| (ii) | duly executed by the Holder of the Restricted Indenture Security, as reflected on the Registrar’s
records as of the date of receipt of such transfer request, or such Holder’s attorney duly authorized in writing; |
| (iii) | accompanied by the written consent of the Company to the transfer (which consent may not be unreasonably
withheld), unless the Company is then serving as Registrar; and |
| (iv) | if requested by the Company or the Registrar, be accompanied by (A) an opinion of Holder’s
counsel (which counsel shall be reasonably acceptable to the requesting party) that the transfer does not violate any applicable
securities laws, and (B) a signature guarantee. |
Upon transfer of a Security, the
Company, or the Registrar on behalf of the Company, will provide the new registered owner of the Security with a Written Confirmation
that will evidence the transfer of the Security in the Securities Register and will establish a corresponding Account.
The Company or the Registrar may
assess reasonable service charges to a Holder for any registration of transfer or exchange, and the Company may require payment
of a sum sufficient to cover any transfer tax or similar governmental charge payable in connection therewith (other than any such
transfer taxes or similar governmental charge payable upon exchange pursuant to Section 9.5).
| (c) | With respect to the relevant Regular Record Date, the Company shall treat the Person listed as
a “Holder” on each Account maintained by the Registrar as the absolute owner of the Security represented thereby for
purposes of receiving payments thereon and for all other purposes whatsoever. |
| Section 2.7 | PAYMENT OF PRINCIPAL AND INTEREST; PRINCIPAL AND INTEREST RIGHTS PRESERVED |
| (a) | Each Security shall accrue interest at the rate specified for such Security in the Securities Register
and such interest shall be payable on each Payment Date following the Issue Date for such Security, until the principal thereof
becomes due and payable. Any installment of interest payable on a Security that is caused to be punctually paid or duly provided
for by the Company on the applicable Payment Date shall be paid to the Holder in whose name such Security is registered in the
Securities Register on the applicable Regular Record Date with respect to the Securities outstanding, by electronic deposit to
such Holder’s Payment Account as it appears in the Securities Register on such Regular Record Date. The payment of any interest
payable in connection with the payment of any principal payable with respect to such Security upon maturity shall be payable as
provided below. In the event any payments made by electronic deposit are not accepted into the Holder’s Payment Account for
any reason, such funds shall be held in accordance with Section 2.4 and Section 8.3. Any installment of interest not punctually
paid or duly provided for shall be payable in the manner and to the Holders as specified in Section 2.10. |
| (b) | Each of the Securities shall have stated maturities of principal as shall be indicated on such
Securities or in the Written Confirmation and as set forth in the Securities Register. The principal of each Security shall be
paid in full pursuant to Section 2.1(f), unless the term of such Security is renewed pursuant to Section 2.1(h) or such Security
becomes due and payable at an earlier date by acceleration, redemption, repurchase or otherwise. Interest on each Security shall
be due and payable on each Payment Date at the interest rate applicable to such Security for the Interest Accrual Period related
to such Security and such Payment Date. Notwithstanding any of the foregoing provisions with respect to payments of principal of
and interest on the Securities, if the Securities have become or been declared due and payable following an Event of Default, then
payments of principal of and interest on the Securities shall be made in accordance with Article 6. If certificated securities
are issued, then the principal payment made on any Security upon its maturity (or the Redemption Price or the Repurchase Price
of any Security required to be redeemed or repurchased, respectively), and any accrued interest thereon, shall be payable on the
applicable Payment Date therefor at the office or agency of the Company maintained by it for such purpose pursuant to Section 2.3
or at the office of any Paying Agent for such Security. |
| Section 2.8 | OUTSTANDING SECURITIES |
| (a) | The Securities outstanding at any time are the outstanding principal balances of all Accounts owning
Securities maintained by the Registrar. |
| (b) | If the principal amount of any Security is considered paid under Section 4.1, it ceases to be outstanding
and interest on it ceases to accrue. |
| (c) | Subject to Section 2.9, a Security does not cease to be outstanding because the Company or an Affiliate
of the Company holds the Security. |
| Section 2.9 | 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 Company or any Affiliate of the Company shall be considered as though not outstanding except that, for purposes of determining
whether the Trustee shall be protected in relying on any such direction, waiver or consent, only Securities that a Responsible
Officer of the Trustee actually knows to be so owned shall be so disregarded.
| Section 2.10 | DEFAULTED INTEREST |
If the Company defaults
in a payment of interest on any Security, it shall pay such defaulted interest and, to the extent lawful, any interest payable
on the defaulted interest, to the Holder of such Security on a subsequent special Payment Date, which date shall be at the earliest
practicable date, but in all events within 21 days following the scheduled Payment Date for the defaulted interest, in each case
at the rate provided in the Security. The Regular Record Date for the scheduled Payment Date shall be the record date for the special
Payment Date. Prior to any such special Payment Date, the Company (or the Trustee, in the name of and at the expense of the Company)
shall mail to Holder(s) a notice identifying the special Payment Date and the amount of such interest to be paid.
| Section 2.11 | TEMPORARY NOTES |
If Securities are
issued in certificated form in the circumstances contemplated under Section 2.14, then, pending the preparation of definitive
Securities, the Company may execute, and direct that the Trustee authenticate and deliver, temporary Securities which are printed,
lithographed, typewritten, mimeographed or otherwise produced, in any authorized denomination, substantially of the tenor of the
definitive Securities, in lieu of which they are issued and with such appropriate insertions, omissions, substitutions and other
variations as the officers executing such Securities may determine, as evidenced by their execution of such Securities.
If temporary
Securities are issued, the Company will cause definitive Securities to be prepared without unreasonable delay. After the preparation
of definitive Securities, the temporary Securities shall be exchangeable for definitive Securities upon surrender of the temporary
Securities at any office or agency of the Registrar without charge to the Holder.
Upon surrender for
cancellation of any one or more temporary Securities, the Company shall execute and the Trustee shall authenticate and deliver
in exchange therefore a like principal amount of definitive Securities of authorized denominations. Until so exchanged the temporary
Securities shall in all respects be entitled to the same benefits under this Indenture as definitive Securities.
| Section 2.12 | EXECUTION, AUTHENTICATION AND DELIVERY |
| (a) | Subject to subsection (b) below, the Securities shall be executed on behalf of the Company by an
Officer and attested by its Secretary or Assistant Secretary. The signature of any of these officers on the Securities may be manual,
facsimile or electronic (.pdf). Securities bearing the manual, facsimile or electronic signatures of individuals who were at any
time the proper Officers of the Company shall bind the Company, notwithstanding that such individuals or any of them have ceased
to hold such offices prior to the authentication and delivery of such Securities or did not hold such offices at the date of such
Securities. |
At the time of and from time to
time after the execution and delivery of this Indenture, the Company will deliver definitive or certificated forms of Securities,
if any, executed by the Company to the Trustee for authentication, together with a direction from the Company for the authentication
and delivery of such Securities. The Trustee in accordance with such direction from the Company shall authenticate and deliver
such Securities as in this Indenture provided and not otherwise. Securities issued hereunder shall be dated as of their Issue Date.
No Security shall be entitled to
any benefit under this Indenture or be valid or obligatory for any purpose unless there appears on such Security an authentication
executed by or on behalf of the Trustee by manual signature, and such authentication upon any Security shall be conclusive evidence,
and the only evidence, that such Security has been duly authenticated and delivered hereunder and is entitled to the benefits of
the Indenture.
| (b) | Notwithstanding the preceding subsection (a) of this Section, in connection with the issuance of
each Security in book-entry form pursuant to Section 2.13, each Security shall be deemed to be executed and attested to by the
Company and authenticated and delivered by the Trustee, in the same manner as provided in the preceding subsection (a), upon the
delivery by the Company (or the Company’s duly authorized Agent) to the Holder of such Security of a Written Confirmation,
with a copy of such Written Confirmation delivered to the Trustee, and the establishment by the Registrar of an Account for such
Security in the name of the Holder in the Securities Register. |
Section 2.13
BOOK-ENTRY REGISTRATION
Except as set forth
in Section 2.14 or Section 2.15, the Registrar shall maintain a book-entry registration and transfer system through the establishment
and maintenance of Accounts for the benefit of Holders of Securities as the sole method of recording the ownership and transfer
of ownership interests in such Securities. The registered owners of the Accounts established by the Registrar in connection with
the purchase or transfer of the Securities shall be deemed to be the Holders of the Securities outstanding for all purposes under
this Indenture. The Company (or its duly authorized Agent) shall promptly notify the Registrar of the acceptance of a subscriber’s
purchase of a Security by providing a copy of the related Written Confirmation, and, upon receipt of such notices, the Registrar
shall establish an Account for such Security by recording a credit to its book-entry registration and transfer system to the Account
of the related Holder of such Security for the principal amount of such Security owned by such Holder and issue a Written Confirmation
to the Holder, with a copy being delivered to the Trustee, on behalf of the Company. The Registrar shall make appropriate credit
and debit entries within each Account to record all of the applicable actions under this Indenture that relate to the ownership
of the related Security and issue Written Confirmations to the related Holders as set forth herein, with copies being delivered
to the Trustee, on behalf of the Company. For example, the total amount of any principal or interest due and payable to the Holders
of the Accounts maintained by the Registrar as provided in this Indenture shall be credited to such Accounts by the Registrar within
the time frames provided in this Indenture, and the amount of any payments of principal and/or interest distributed to the Holders
of the Accounts as provided in this Indenture shall be debited to such Accounts by the Registrar. The Trustee may review the book-entry
registration and transfer system as it deems necessary to ensure the Registrar’s compliance with the terms of the Indenture.
Book-entry Accounts
evidencing ownership of the Securities may, at the request of a Holder, be exchanged at the end of each Fiscal Quarter for a certificated
form of Securities. In addition, at the election of the Company, upon written notice to the Trustee the Company may elect to terminate
the book-entry system. Finally, promptly after the occurrence of any Event of Default, the Trustee shall notify all Holders of
the Securities of such event and the availability of certificated forms of Securities pursuant to exchange, and the Company shall
effect such exchange at the end of a Fiscal Quarter for all Holders if the Holders of a majority of the aggregate outstanding principal
amount of the Securities (as determined based upon the latest quarterly statement provided to the Trustee pursuant to Section 2.5)
advise the Trustee in writing that the continuation of the book-entry system is no longer in the best interests of such Holders.
| Section 2.15 | GLOBAL SECURITIES |
| (a) | A resolution of the Board of Directors of the Company, a supplemental indenture hereto or an Officers’
Certificate shall establish whether the Securities shall be issued in whole or in part in the form of one or more Global Securities
and identify the Depositary for such Global Security or Securities. |
| (b) | Notwithstanding any provisions to the contrary contained in Section 2.6 of the Indenture and in
addition thereto, any Global Security shall be exchangeable pursuant to Section 2.6 of the Indenture for Securities registered
in the names of Holders other than the Depositary for such Security or its nominee only if (i) such Depositary notifies the Company
that it is unwilling or unable to continue as Depositary for such Global Security or if at any time such Depositary ceases to be
a clearing agency registered under the Exchange Act, and, in either case, the Company fails to appoint a successor Depositary registered
as a clearing agency under the Exchange Act within 90 days of such event or (ii) the Company executes and delivers to the Trustee
an Officers’ Certificate to the effect that such Global Security shall be so exchangeable. Any Global Security that is exchangeable
pursuant to the preceding sentence shall be exchangeable for Securities registered in such names as the Depositary shall direct
in writing in an aggregate principal amount equal to the principal amount of the Global Security with like tenor and terms. |
Except as provided in this paragraph
(b), a Global Security may not be transferred except as a whole by the Depositary with respect to such Global Security to a nominee
of such Depositary, by a nominee of such Depositary to such Depositary or another nominee of such Depositary, or by the Depositary
or any such nominee to a successor Depositary or a nominee of such a successor Depositary.
| (c) | Any Global Security issued hereunder shall bear a legend in substantially the following form: |
THIS SECURITY
IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITARY
OR A NOMINEE OF THE DEPOSITARY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE
DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND MAY NOT BE TRANSFERRED EXCEPT AS A
WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY, BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF
THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH A SUCCESSOR DEPOSITARY.
In addition, so
long as the Depository Trust Company (“DTC”) is the Depositary, each Global Security registered in the name
of DTC or its nominee shall bear a legend in substantially the following form:
UNLESS THIS GLOBAL NOTE IS PRESENTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS
AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY GLOBAL NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO.
OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL INASMUCH THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.
Such legends may be modified or
added to in order to satisfy the requirements, customs or reasonable requests of a Depositary.
| (d) | The Depositary, as a Holder, may appoint agents and otherwise authorize participants to give or
take any request, demand, authorization, direction, notice, consent, waiver or other action which a Holder is entitled to give
or take under the Indenture. |
| (e) | Notwithstanding the other provisions of this Indenture, unless otherwise specified as contemplated
by Section 2.2, payment of the principal of and interest, if any, on any Global Security shall be made to the Holder thereof. |
| (f) | The Company, the Trustee and any Agent shall treat a person as the Holder of such principal amount
of outstanding Securities represented by a Global Security as shall be specified in a written statement of the Depositary or by
the applicable procedures of such Depositary with respect to such Global Security, for purposes of obtaining any consents, declarations,
waivers or directions required to be given by the Holders pursuant to this Indenture. |
| Section 2.16 | INITIAL AND PERIODIC STATEMENTS |
| (a) | The Registrar shall send Written Confirmations to initial purchasers, registered owners, registered
pledgees, and former registered owners and former registered pledgees, within ten Business Days of its receipt of proper notice
regarding the purchase, transfer or pledge of a Security, with copies of such Written Confirmations being delivered to the Trustee,
on behalf of the Company. |
| (b) | The Registrar shall send each Holder of a Security (and each registered pledgee) written notice
(via first class U.S. mail, facsimile or electronic transmission) not later than ten Business Days after each quarter end in which
such Holder had an outstanding balance in such Holder’s Account, a statement indicating as of the quarter end preceding the
mailing: (i) the balance of such Account; (ii) interest credited for the period; (iii) repayments, redemptions or repurchases,
if any, during the period; and (iv) the interest rates paid on the Securities in such Account during the period. The Registrar
shall provide additional statements as the Holders or registered pledgees of the Securities may reasonably request from time to
time. The Registrar may charge such Holders or pledgees requesting such statements a fee to cover the charges incurred by the Registrar
in providing such additional statements. If a Holder refuses to accept or fails to provide the Company with information or consent
to receive statements hereunder, and any additional information, electronically, the Registrar may also charge Holders or pledgees
a fee to cover the expense incurred in providing such statements or additional information under this Section via facsimile or
U.S. mail. |
| Section 2.17 | APPOINTMENT
OF AGENTS |
The Company may
from time to time engage Agents to perform its obligations and exercise its rights and discretion under the terms of this Indenture.
In each such case, the Company will provide the Trustee with a copy of each agreement under which any such Agent is engaged and
the name, address, telephone number and capacity of the Agent appointed. If any such Agent shall resign or be terminated by the
Company, the Company shall promptly notify the Trustee of such resignation or termination, along with the name, address, telephone
number and capacity of any successor Agent. Notwithstanding any engagement of an Agent hereunder, the Company shall remain obligated
to fulfill each of its obligations under this Indenture.
| Section 2.18 | CUSIP Numbers |
The Company may
obtain and use one or more CUSIP numbers for the Securities (if then generally in use), and may also obtain and use different
CUSIP numbers for Securities of the same class or series that have different Issue Dates, Maturity Dates or interest rates. If
CUSIP numbers are so obtained, the Trustee shall use CUSIP numbers in notices of redemption or purchase as a convenience to Holders;
provided, however, that any such notice may state that no representation is made as to the correctness of such numbers either
as printed on the Securities or as contained in any notice of a redemption or purchase, and any such redemption or purchase shall
not be affected by any defect in or omission of such numbers. The Company will promptly notify the Trustee of any change in the
CUSIP numbers.
Article
3
REDEMPTION AND REPURCHASE
| Section 3.1 | REDEMPTION OF SECURITIES AT THE COMPANY’S ELECTION |
| (a) | The Company may redeem, in whole or in part, any Security prior to its scheduled Maturity Date
by providing, pursuant to Section 2.1(i), a Redemption Notice to the Holder thereof listed on the Securities Register, which notice
shall include the Redemption Date and the Redemption Price to be paid to the Holder on the Redemption Date. No interest shall accrue
on a Security to be redeemed under this Section 3.1 for any period of time after the Redemption Date for such Security, provided
that the Company or the Paying Agent has timely tendered the Redemption Price to the Holder. |
| (b) | The Company shall have no mandatory-redemption or sinking-fund obligations with respect to any
of the Securities. |
| (c) | In its sole discretion, the Company may offer certain Holders the ability to extend the maturity
of an existing Security through the redemption of such Security and the issuance of a new Security. This redemption option shall
not be subject to the 30-day notice of redemption described in Section 2.1(i). |
| Section 3.2 | REPURCHASE OF SECURITIES AT THE HOLDER’S REQUEST |
| (a) | Subject to subsection (c) below, within 45 days of the death, Total Permanent Disability or Bankruptcy
of a Holder or Beneficial Holder who is a natural person (a “Holder Redemption Event”), the estate of such Holder
or Beneficial Holder (in the event of death) or such Holder, Beneficial Holder or legal representative of such Holder or Beneficial
Holder (in the event of Total Permanent Disability or Bankruptcy) may require the Company to repurchase, in whole but not in part,
without penalty, the Securities held by such Holder (including Securities of the Holder held in his or her individual retirement
accounts) or such Holder’s beneficial interest in a Global Security (including the beneficial interests of the Beneficial
Holder held through his or her individual retirement accounts), as the case may be, by delivering to the Company a Repurchase Request;
provided, however, that in the case of a Repurchase Request by a Beneficial Holder, such Repurchase Request shall be valid only
if delivered through the Depositary, in its capacity as the registered Holder of the Global Security with respect to which such
Beneficial Holder holds his or her beneficial interest in a Security. Any such Repurchase Request shall specifically set forth
the particular Holder Redemption Event giving rise to the right of the Holder or Beneficial Holder to have his or her Securities
or beneficial interest in a Global Security repurchased by the Company. If a Security or beneficial interest in a Global Security
is held jointly by natural persons who are legally married, then a Repurchase Request may be made by the surviving Holder or Beneficial
Holder upon the occurrence of a Holder Redemption Event arising by virtue of a death, or by the disabled or bankrupt Holder or
Beneficial Holder (or a legal representative) upon the occurrence of a Holder Redemption Event arising by virtue of a Total Permanent
Disability or Bankruptcy. In the event a Security or beneficial interest in a Global Security is held together by two or more natural
persons that are not legally married (regardless of whether held as joint tenants, co-tenants or otherwise), neither of these persons
shall have the right to request that the Company repurchase such Security or beneficial interest in a Global Security unless a
Holder Redemption Event has occurred for all such co-Holders or co-Beneficial Holders of such Security. A Holder or Beneficial
Holder that is not an individual natural person does not have the right to request repurchase under this Section. |
| (b) | Subject to subsection (c) below, a Holder or Beneficial Holder may request (but not require, other
than under circumstances described in subsection (a) above) the Company to repurchase, in whole but not in part, the Security held
by a Holder, or the beneficial interest in a Global Security held by a Beneficial Holder, by delivering a Repurchase Request to
the Company; provided, however, that in the case of a Repurchase Request by a Beneficial Holder, such Repurchase Request shall
be valid only if delivered through the Depositary, in its capacity as the registered Holder of the Global Security with respect
to which such Beneficial Holder holds his or her beneficial interest in a Security. Any such requested repurchase shall be made
only at the Company’s discretion and, if made, will be subject to an early Repurchase Penalty to be deducted from the payment
of such Holder’s or Beneficial Holder’s Repurchase Price on the Repurchase Date. The early repurchase penalty (the
“Repurchase Penalty”) shall equal to six percent (6.00%) of the amount of the principal amount of the Security
repurchased. |
| (c) | Upon receipt of a Repurchase Request under subsection (a) above, or a Repurchase Request under
subsection (b) above that the Company elects in its sole discretion to accept, the Company shall designate a date for the repurchase
of such Security (the “Repurchase Date”), which date shall not be later than the 15th day of the month
next following the end of the calendar quarter in which the Company receives facts or certifications establishing to the reasonable
satisfaction of the Company the occurrence of a Holder Redemption Event or, in the case of a Repurchase Request granted pursuant
to subsection (b) above, no later than the 15th day of the month next following the end of the calendar quarter in which the Company
accepts the Repurchase Request. On the Repurchase Date, the Company shall pay the Repurchase Price to the Holder, or the estate
of the Holder, in accordance with Section 2.7. No interest shall accrue on a Security to be repurchased under this Section for
any period of time on or after the Repurchase Date for such Security, provided that the Company or the Paying Agent has timely
tendered the Repurchase Price to the Holder or the estate of the Holder, as the case may be. |
| (d) | The Company may waive or reduce any early Repurchase Penalty in its sole discretion, and may at
any time eliminate or modify its policy regarding the repurchase of Securities at the request of Holders or Beneficial Holders,
including requests made by Holders or Beneficial Holders in connection with any Holder Redemption Event; provided, however, that
no such elimination or modification shall adversely affect the rights of Holders or Beneficial Holders whose Securities the Company
is then obligated to repurchase pursuant to pending repurchases under paragraphs (a) and (b) of this Section 3.2. |
Article
4
COVENANTS
Section 4.1 PAYMENT OF SECURITIES
| (a) | The Company shall duly pay the principal of and interest on each Security on the dates and in the
manner provided under this Indenture. Principal and interest (to the extent such interest is paid in cash) shall be considered
paid on the date due if the Paying Agent, if other than the Company, holds, at least one Business Day before that date, money deposited
by the Company in immediately available funds and designated for and sufficient to pay all principal and interest then due; provided,
that principal and interest shall not be considered paid within the meaning of this Section if money is instead held by the Paying
Agent for the benefit of the holders of Senior Debt pursuant to the provisions of Article 10. Such Paying Agent shall return to
the Company, no later than five days following the date of payment, any money (including accrued interest, if any) that exceeds
such amount of principal and interest paid on the Securities in accordance with this Section. |
| (b) | To the extent lawful, the Company shall pay interest (including Post-Petition Interest in any proceeding
under any Bankruptcy Law) on overdue principal at the rate borne by the Securities, compounded annually. |
| Section 4.2 | MAINTENANCE
OF OFFICE OR AGENCY |
| (a) | The Company will maintain an office or agency (which may be an office of the Trustee, Registrar
or co-registrar) where Securities may be surrendered for registration of transfer or exchange and where notices and demands to
or upon the Company in respect of the Securities and this Indenture may be served. The Company will give prompt written notice
to the Trustee of the location, and any change in the location, of such office or agency. If at any time the Company shall fail
to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee. |
| (b) | The Company may also from time to time designate one or more other offices or agencies where the
Securities may be presented or surrendered for any or all such purposes and may from time to time rescind such designations. The
Company will give prompt written notice to the Trustee of any such designation or rescission and of any change in the location
of any such other office or agency. |
| (c) | The Company hereby designates its office at 000 Xxxxx Xxxxx Xxxxxx, Xxxxx 0000, Xxxxxxxxxxx, XX
00000, as one such office or agency of the Company in accordance with Section 2.3. |
| Section 4.3 | SEC REPORTS AND REPORTS TO THE TRUSTEE |
| (a) | The Company shall provide to the Trustee: |
| (i) | within 45 days after filing with the SEC, paper copies or, if such documents are readily available
on the SEC’s website, notification of the availability of, the annual reports and of the information, documents, and other
reports (or copies of such portions of any of the foregoing as the SEC may by rules and regulations prescribe) that the Company
is required to file with the SEC pursuant to Section 13 or 15(d) of the Exchange Act; and |
| (ii) | so long as not contrary to the then-current recommendations of the American Institute of Certified
Public Accountants, annual financial statements delivered pursuant to clause (i) above shall be accompanied by a written statement
of the Company’s independent public accountants to the effect that, in making the examination necessary for certification
of such financial statements, nothing has come to their attention which would lead them to believe that the Company has violated
the provisions of Section 4.1 of this Indenture or, if any such violation has occurred, specifying the nature and period of existence
thereof, it being understood that such accountants shall not be liable directly or indirectly to any Person for any failure to
obtain knowledge of any such violation. |
The Company shall otherwise comply
with the periodic reporting requirements as set forth in TIA §314(a), and the Company shall file with the Trustee and the
SEC, in accordance with the rules and regulations prescribed by the SEC, such additional information, documents and reports with
respect to compliance by the Company with the conditions and covenants of this Indenture as may be required from time to time by
such rules and regulations. Notwithstanding anything to the contrary herein, the Trustee shall have no duty to review such documents
for purposes of determining compliance with any provisions of the Indenture.
| (b) | The Company, or such other entity as the Company shall designate as Registrar, shall provide the
Trustee at intervals of not more than six months with management reports providing the Trustee with such information regarding
the Accounts maintained by the Company for the benefit of the Holders of the Securities as the Trustee may reasonably request,
which information shall include at least the following for the relevant time interval from the date of the immediately preceding
report: (i) the outstanding balance of each Account at the end of the period; (ii) interest credited for the period; (iii) repayments,
repurchases and redemptions, if any, made during the period; and (iv) the interest rate paid on each Security in such Account
maintained by the Registrar during the period. |
| (c) | Notwithstanding any provision of this Indenture to the contrary, the Company shall not have any
obligation to maintain the registration of any of its securities (including any Securities hereunder and further including its
common stock), under the Exchange Act or the Securities Act, or as securities listed and publicly traded on any national securities
exchange. |
| Section 4.4 | COMPLIANCE CERTIFICATE |
| (a) | The Company shall deliver to the Trustee, within 45 days after the end of each Fiscal Quarter,
commencing with the Fiscal Quarter ending after the first Issue Date of any Security hereunder, an Officers’ Certificate: |
| (i) | stating that a review of the activities of the Company during the preceding Fiscal Quarter has
been made under the supervision of the signing Officers with a view to determining whether the Company has kept, observed, performed
and fulfilled its obligations under this Indenture, and further stating, as to each such Officer signing such certificate, that
to the best of their knowledge the Company has kept, observed, performed and fulfilled each and every covenant contained in this
Indenture and is not in default in the 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 or she may have
knowledge and what action the Company is taking or proposes to take with respect thereto), and that to the best of their knowledge
no event has occurred and remains in existence by reason of which payments on account of the principal of or interest, if any,
on the Securities are prohibited or, if such event has occurred, a description of such event and what action the Company is taking
or proposes to take with respect thereto; and |
| (ii) | attaching thereto calculations with respect to the Company’s compliance with the financial
covenant set forth in Section 4.7. |
| (b) | The Company will, so long as any of the Securities are outstanding, deliver to the Trustee, forthwith
upon any Officer becoming aware of any Default or Event of Default, an Officers’ Certificate specifying such Default or Event
of Default and what action the Company is taking or proposes to take with respect thereto. |
| Section 4.5 | STAY, EXTENSION AND USURY LAWS |
The Company covenants
(to the extent that it may lawfully do so) that it will not at any time insist upon, plead, or in any manner whatsoever claim or
take the benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time hereafter in force, which
may affect the covenants or the performance of this Indenture; and the Company (to the extent that it may lawfully do so) hereby
expressly waives all beneficial advantage of any such law, and covenants that it will not, by resort to any such law, hinder, delay
or impede the execution of any power herein granted to the Trustee, but will suffer and permit the execution of every such power
as though no such law has been enacted.
Neither the Board
of Directors nor the stockholders of the Company shall adopt a plan of liquidation that provides for, contemplates, or the effectuation
of which is preceded by, both (a) the merger, sale, lease, conveyance or other disposition of all or substantially all of the assets
of the Company, otherwise than (i) substantially as an entirety (Section 5.1 of this Indenture being the Section hereof which governs
any such merger, sale, lease, conveyance or other disposition substantially as an entirety), or (ii) any Qualified Sales and Financing
Transaction, and (b) the distribution of all or substantially all of the proceeds of such sale, lease, conveyance or other disposition,
and of the remaining assets of the Company, to the holders of Capital Stock, unless the Company, prior to making any liquidating
distribution pursuant to such plan, makes provision for the satisfaction of the Company’s Obligations hereunder and under
the Securities as to the payment of principal and interest.
| Section 4.7 | DEBT-COVERAGE
RATIO |
The Company covenants
that, so long as any of the Securities are outstanding, the aggregate principal amount of all the Company’s Indebtedness
from time to time outstanding hereunder shall not cause the Debt Coverage Ratio to exceed 90%. The “Debt Coverage Ratio”
is a ratio, expressed as percentage, of (A) the aggregate sum of all Indebtedness of the Company and its direct or indirect Subsidiaries
(including the Securities issued in this Indenture); over (B) the sum of (i) Net Present Asset Value of all Life Insurance Policies
owned by the Company and its direct or indirect Subsidiaries or Affiliates plus (ii) all cash held by the Company and its direct
or indirect Subsidiaries or Affiliates.
| Section 4.8 | RESTRICTION ON DIVIDENDS |
The Company covenants
that, so long as any of the Securities are outstanding, it shall not declare or pay any dividends or other payments of cash or
other property solely on account of the Capital Stock to its stockholders (other than any dividend payable in shares of or rights
to acquire shares of Capital Stock on a pro rata basis to all stockholders), unless no Default or Event of Default then exists
or would exist immediately following the declaration or payment of such dividend or other payment.
| Section 4.9 | FINANCING TRANSACTIONS AND ADDITIONAL INDEBTEDNESS |
Notwithstanding
any provision to the contrary within this Indenture, the Company shall not be prohibited, restricted or otherwise limited under
this Indenture from entering into, sponsoring or conducting any Qualified Sales and Financing Transaction that provides for the
issuance of Senior Debt. Except for Senior Debt and as otherwise provided for herein or permitted hereunder, the Company shall
not, without the approval of the Holders of a majority in principal amount of the then-outstanding Securities, incur Indebtedness
subsequent to the date hereof which is senior in right to payment on or from the Collateral; provided, however, that the Company
may incur Indebtedness, including secured Indebtedness, which is Pari Passu Debt.
Article
5
SUCCESSORS
| Section 5.1 | WHEN THE COMPANY MAY MERGE, ETC. |
| (a) | The Company may not consolidate or merge with or into (whether or not the Company is the surviving
corporation), or sell, assign, transfer, lease, convey or otherwise dispose of all or substantially all of its properties or assets
in one or more related transactions to another Person unless: |
| (i) | the Company is the surviving corporation or the entity, or the Person formed by or surviving any
such consolidation or merger (if other than the Company), or the Person to which such sale, assignment, transfer, lease, conveyance
or other disposition shall have been made, is a corporation, limited liability company or limited partnership organized or existing
under the laws of the United States, any state thereof or the District of Columbia; |
| (ii) | the Person formed by or surviving any such consolidation or merger (if other than the Company),
or the Person to which such sale, assignment, transfer, lease, conveyance or other disposition will have been made, assumes all
the obligations of the Company, pursuant to a supplemental indenture in a form reasonably satisfactory to the Trustee, under the
Securities and this Indenture; and |
| (iii) | immediately after such transaction, and after giving effect to such transaction, no Default or
Event of Default exists. |
| (b) | The Company shall deliver to the Trustee, prior to the consummation of the proposed transaction,
an Officers’ Certificate to the foregoing effect and an Opinion of Counsel stating that the proposed transaction and such
supplemental indenture comply with this Indenture. The Trustee shall be entitled to conclusively rely upon such Officers’
Certificate and Opinion of Counsel. |
| Section 5.2 | SUCCESSOR ENTITY SUBSTITUTED |
Upon any consolidation
or merger, or any sale, lease, conveyance or other disposition of all or substantially all of the assets of the Company in accordance
with Section 5.1, the successor Person formed by such consolidation, or the Person into or with which the Company is merged or
to which such sale, lease, conveyance or other disposition is made, shall succeed to, and be substituted for, and may exercise
every right and power of, the Company under this Indenture with the same effect as if such successor Person has been named as the
Company herein. Upon such succession and substitution, the Company shall be released from all of its obligations and liabilities
under this Indenture and the Securities.
Article
6
DEFAULTS AND REMEDIES
Section 6.1 EVENTS OF DEFAULT
An “Event
of Default” occurs if:
| (a) | the Company fails to pay interest on a Security when the same becomes due and payable and such
failure continues for a period of 30 days, whether or not such payment is prohibited by the provisions of Article 10; |
| (b) | the Company fails to pay the principal amount of any Security when the same becomes due and payable
after maturity, on a Repurchase Date, Redemption Date or Payment Date (that relates to a Maturity Date) or otherwise, and such
failure continues for a period of 30 days, whether or not prohibited by the provisions of Article 10; |
| (c) | the Company fails to observe or perform any material covenant, condition or agreement on the part
of the Company under this Indenture or the Company breaches any material representation or warranty of the Company under this Indenture
(other than the covenants referenced in paragraph (d) below), and such failure or breach continues unremedied for a period of 60
days after the Company’s receipt of written notice of such failure or breach; |
| (d) | the Debt Coverage Ratio exceeds 90% for a period of 30 consecutive days, and such circumstance
continues unremedied for a period of 60 days after the Company’s receipt of written notice of such failure or breach; |
| (e) | the Company defaults in any other material financial obligation of the Company under the documents
or agreements relating to any Pari Passu Debt, subject, however, to any applicable cure periods contained in such documents and
agreements and further subject to any waivers, forbearances or consents by the holders of such Pari Passu Debt; |
| (f) | the Company, pursuant to or within the meaning of any Bankruptcy Law: (i) commences a voluntary
case; (ii) consents to the entry of an order for relief against it in an involuntary case; (iii) consents to the appointment of
a custodian of it or for all or substantially all of its property; (iv) makes a general assignment for the benefit of its creditors;
or (v) admits in writing its inability to pay debts as the same become due; |
| (g) | a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: (i)
is for relief against the Company in an involuntary case; (ii) appoints a custodian of the Company or for all or substantially
all of its property; (iii) orders the liquidation of the Company, and in each case the order or decree remains unstayed and in
effect for 120 consecutive days; or |
| (h) | the Company ceases conducting its business (including, for this purpose, the business conducted
by or through any direct or indirect Subsidiaries) or liquidates all or substantially all of its assets (meaning, for this purpose,
all or substantially all of the combined assets of the Company and its direct and indirect Subsidiaries). |
The term “Bankruptcy
Law” means Title 11 of the U.S. Code or any similar federal or state law for the relief of debtors. The term “custodian”
means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law.
A Default under
clauses (c) or (d) of this Section 6.1 (except for a Default with respect to Section 4.6 or Section 5.1) is not an Event of Default
hereunder until the Trustee or the Holders of at least 25% in principal amount of the then-outstanding Securities provide the Company
with written notice of the Default, and the Company does not cure the Default (or such Default is not waived pursuant to Section
6.4 within 60 days after receipt of the notice). A written notice under this Section must specify the Default, demand that it be
remedied, and state that the notice is a “Notice of Default.”
If an Event of Default
(other than an Event of Default specified in Section 6.1(f) or Section 6.1(g)) occurs and is continuing, the Trustee by notice
to the Company, or the Holders of at least 25% in principal amount of the then-outstanding Securities by written notice to the
Company and the Trustee, may declare the unpaid principal of and any accrued but unpaid interest on Securities to be due and payable.
Upon such declaration, all unpaid principal of and accrued interest on such Securities shall be due and payable immediately; provided,
however, that if any Indebtedness or Obligation constituting Senior Debt is then outstanding, such a declaration of acceleration
shall not become effective until the earlier of (i) the day which is five Business Days after the receipt by each of the Company
and the holders of Senior Debt of such written notice of acceleration or (ii) the date of acceleration of any Indebtedness under
any Senior Debt. If an Event of Default specified in Section 6.1(f) or Section 6.1(g) occurs, then all unpaid principal of and
accrued interest on Securities shall be immediately due and payable without any declaration or other act on the part of the Trustee
or any Holder.
| Section 6.3 | OTHER REMEDIES |
If an Event of
Default occurs and is continuing, the Trustee may, after a declaration of acceleration under Section 6.2, pursue any available
remedy to collect the payment of principal or interest on the Securities or to enforce the performance of any provision of the
Securities or this Indenture as directed in writing to the Trustee by the Holders of at least 25% in principal amount of the then-outstanding
Securities, subject, however, to the provisions of Article 10. 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. All remedies are cumulative to the extent permitted by law.
| Section 6.4 | WAIVER OF PAST DEFAULTS |
Holders of a majority
in principal amount of the then-outstanding Securities by notice to the Trustee may, on behalf of the Holders of all Securities,
waive any existing Default or Event of Default and its consequences under this Indenture, including without limitation a rescission
of an acceleration pursuant to Section 6.2, except for (i) a continuing Default or Event of Default in the payment of interest
on or the principal of any Security held by a non-consenting Holder, or (ii) any waiver that would conflict with an applicable
judgment or decree. Upon actual receipt of any such notice of waiver by a Responsible Officer of the Trustee, such Default shall
cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured for every purpose of this Indenture;
provided, however, that no such waiver shall extend to any subsequent or other Default or Event of Default or impair any right
consequent thereon.
| Section 6.5 | CONTROL BY MAJORITY |
The Holders of a
majority in principal amount of the then-outstanding Securities 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, on the condition that indemnification
for the Trustee’s fees and expenses, in a form reasonably satisfactory to the Trustee shall have been provided. Nevertheless,
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 6.6 | LIMITATION ON SUITS |
A Holder may pursue
a remedy with respect to this Indenture only if:
| (a) | the Holder gives to the Trustee written notice of a continuing Event of Default; |
| (b) | the Holders of at least a majority in principal amount of the then-outstanding Securities make
a written request to the Trustee to pursue the remedy; |
| (c) | such Holder or Holders offer and, if requested, provide to the Trustee indemnity satisfactory to
the Trustee against any loss, liability or expense; |
| (d) | the Trustee does not comply with the request within 60 days after receipt of the request and the
offer and, if requested, the provision of indemnity; and |
| (e) | during such 60-day period the Holders of a majority in principal amount of the then-outstanding
Securities do not give the Trustee a direction inconsistent with the request. |
Notwithstanding
the foregoing, 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 6.7 | RIGHTS OF HOLDERS TO RECEIVE PAYMENT |
Except as set forth
in this Indenture, including but not limited to Article 10, the right of any Holder of a Security to receive payment of principal
and interest on the Security, on or after the respective due dates expressed in the 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 the Holder.
| Section 6.8 | COLLECTION SUIT BY TRUSTEE |
If an Event of Default
specified in Section 6.1(a) or Section 6.1(b) occurs and is continuing, subject to Article 10, the Trustee is authorized to recover
judgment in its own name and as trustee of an express trust against the Company for the whole amount of principal and interest
remaining unpaid on the Securities and interest on overdue principal and, to the extent lawful, interest and such further amount
as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel.
| Section 6.9 | TRUSTEE MAY FILE PROOFS OF CLAIM |
| (a) | The Trustee is authorized, subject to Article 10, to 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 (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and the Holders allowed in any judicial
proceedings relative to the Company (or any other obligor upon the Securities), its creditors or its property and shall be entitled
and empowered to collect, receive and distribute any money or other property payable or deliverable on any such claims, and any
custodian in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee, and in the
event that the Trustee shall consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due
to it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel, and any other
amounts due the Trustee under Section 7.7. To the extent that the payment of any such compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.7 out of the estate in any
such proceeding, shall be denied for any reason, payment of the same shall be secured by a lien on, and shall be paid out of, any
and all distributions, dividends, money, securities and other properties which the Holders of the Securities may be entitled to
receive in such proceeding whether in liquidation or under any plan of reorganization or arrangement or otherwise. 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. |
| (b) | If the Trustee does not file a proper claim or proof of debt in the form required in any such proceeding
prior to 30 days before the expiration of the time to file such claims or proofs, then any holder of Senior Debt shall have the
right to demand, xxx for, collect and receive the payments and distributions in respect of the Securities which are required to
be paid or delivered to the holders of Senior Debt as provided in Article 10 and to file and prove all claims therefor and to take
all such other action in the name of the Holders or otherwise, as such holder of Senior Debt may determine to be necessary or appropriate
for the enforcement of the provisions of Article 10. |
If the Trustee collects
any money pursuant to this Article, it shall, subject to the provisions of Article 10, pay out the money in the following order:
| (a) | FIRST: to the Trustee, its agents and attorneys for amounts due under Section 7.7, including payment
of all compensation, expenses and liabilities incurred, and all advances made, if any, by the Trustee and the costs and expenses
of collection; |
| (b) | SECOND: to holders of Senior Debt to the extent required by Article 10; |
| (c) | THIRD: to Holders for amounts due and unpaid on the Securities and Pari Passu Debt for principal
and interest, ratably, without preference or priority of any kind, according to the amounts due and payable on the Securities and
Pari Passu Debt for principal and interest, respectively; and |
| (d) | FOURTH: to the Company or to such party as a court of competent jurisdiction shall direct. |
The Trustee may
fix a record date and payment date for any payment to Holders.
| Section 6.11 | UNDERTAKING
FOR COSTS |
In any suit for
the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken or omitted
by it as 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 does not apply to a suit by the Trustee, a suit by a Holder pursuant to Section 6.7, or a suit by Holders
of more than 10% in principal amount of the then-outstanding Securities.
Article
7
TRUSTEE
| Section 7.1 | 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 his or her own affairs. |
| (b) | Except during the continuance of an Event of Default: |
| (i) | The duties of the Trustee shall be determined solely by the express provisions of this Indenture
and the Trustee need perform only those duties that are specifically set forth in this Indenture and no others, and no implied
covenants or obligations shall be read into this Indenture against the Trustee. |
| (ii) | 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 opinions expressed therein, upon resolutions, statements, reports, documents, orders,
certificates, opinions or other instruments furnished to the Trustee and conforming to the requirements of this Indenture. Nevertheless,
in the case of any of the above that are specifically required to be furnished to the Trustee pursuant to this Indenture, the Trustee
shall examine them to determine whether they substantially conform to the requirements of this Indenture. |
| (c) | The Trustee may not be relieved from liabilities for its own grossly negligent action, its own
grossly negligent failure to act, or its own willful misconduct, except that: |
| (i) | this paragraph does not limit the effect of paragraph (b)(i) and (b)(ii) of this Section; |
| (ii) | the Trustee shall not be liable for any error of judgment made in good faith by a Responsible Officer,
unless it is proven that the Trustee was grossly negligent in ascertaining the pertinent facts; and |
| (iii) | the Trustee shall not be liable to the Holders 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 6.5. |
| (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. |
| (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 or expense. |
| (f) | The Trustee shall not be liable for interest on any money received by it, except (i) as the Trustee
may agree in writing with the Company or, (ii) with respect to any money held by the Trustee over a holiday or weekend, in which
event the Trustee shall remit to the Company the interest earnings on such money at a rate equal to the then-current rate for money
market funds invested by the Trustee; provided, however, that the Company shall have directed the Trustee to invest such money.
Money held in trust by the Trustee need not be segregated from other funds except to the extent required by law. |
| Section 7.2 | RIGHTS OF TRUSTEE |
| (a) | The Trustee may conclusively rely upon any document reasonably believed by it to be genuine and
to have been signed or presented to it by the proper Person. The Trustee need not investigate any fact or matter stated in a document.
The Trustee shall have no duty to inquire as to the performance of the Company’s covenants in Article 4. In addition, the
Trustee shall not be deemed to have knowledge of any Default or any Event of Default except any Default or Event of Default of
which the Trustee shall have received written notification or obtained actual knowledge. Delivery of reports, information and documents
to the Trustee under Sections Section 4.3(a), Section 4.3(b), and Section 4.4(a) is for informational purposes only and the Trustee’s
receipt of the foregoing shall not constitute constructive notice of any information contained therein or determinable from information
contained therein, including the Company’s compliance with any of their covenants hereunder (as to which the Trustee is entitled
to rely conclusively on Officers’ Certificates). |
| (b) | Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate,
an 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 such Officers’ Certificate or Opinion of Counsel. The Trustee may consult with counsel at the Company’s expense
and the written advice of such counsel or any Opinion of Counsel shall be full and complete authorization and protection from liability
in respect of any action taken, suffered or omitted by it hereunder in good faith and in reliance thereon. |
| (c) | The Trustee may act through agents, attorneys, custodians or nominees and shall not be responsible
for the misconduct or negligence or the supervision of any agents, attorneys, custodians or nominees appointed by it 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 Company shall be sufficient if signed by an Officer of the Company. |
| (f) | The Trustee shall not be deemed to have notice of an Event of Default for any purpose under this
Indenture unless notified of such Event of Default by the Company, the Paying Agent (if other than the Company) or a Holder of
the Securities. |
| Section 7.3 | 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 Company or an Affiliate
of the Company with the same rights it would have if it were not Trustee. Any Agent may do the same with like rights.
| Section 7.4 | TRUSTEE’S DISCLAIMER |
The Trustee shall
not be responsible for and makes no representation as to the validity or adequacy of this Indenture or the Securities, it shall
not be accountable for the Company’s use of the proceeds from the Securities or any money paid to the Company or upon the
Company’s direction under any provision hereof, it shall not be responsible for the use or application of any money received
by any Paying Agent other than the Trustee, and it shall not be responsible for any statement or recital herein or any statement
in the Securities or any other document in connection with the sale of the Securities or pursuant to this Indenture other than
its certificate of authentication.
| Section 7.5 | NOTICE OF DEFAULTS |
If a Default or
Event of Default occurs and is continuing and if it is known to a Responsible Officer of the Trustee, the Trustee shall mail to
Holders a notice of the Default or Event of Default within 90 days after it occurs. At least five Business Days prior to the mailing
of any notice to Holders under this Section 7.5, the Trustee shall provide the Company with notice of its intent to mail such notice.
Except in the case of a Default or Event of Default in payment on any Security, the Trustee may withhold the notice if and so long
as the Responsible Officer of the Trustee in good faith determines that withholding the notice is in the interests of the Holders.
| Section 7.6 | REPORTS BY TRUSTEE TO HOLDERS |
| (a) | Within 60 days of the end of each Fiscal Year, the Trustee shall mail to Holders (with a copy to
the Company) a brief report dated as of such reporting date that complies with TIA §313(a); provided, however, that if no
event described in TIA §313(a) has occurred within the 12 months preceding the reporting date, no report need be prepared
or transmitted. The Trustee also shall comply with TIA §313(b), and transmit by mail all reports as required by TIA §313(c). |
| (b) | Commencing at the time this Indenture is qualified under the TIA, a copy of each report mailed
to Holders under this Section 7.6 (at the time of its mailing to Holders) shall be filed with the SEC and each stock exchange,
if any, on which the Securities are listed. The Company shall promptly notify the Trustee if and when the Securities are listed
on any stock exchange. |
Section 7.7 COMPENSATION AND INDEMNITY
| (a) | The Company shall pay to the Trustee from time to time reasonable compensation for its acceptance
of this Indenture and its performance of the duties and services required hereunder. The Trustee’s compensation shall not
be limited by any law on compensation of a trustee of an express trust. The Company shall reimburse the Trustee promptly upon request
for all reasonable disbursements, advances and expenses incurred or made by it in addition to the compensation for its services.
Such expenses shall include the reasonable compensation, disbursements and expenses of the Trustee’s agents and counsel. |
| (b) | The Company shall indemnify the Trustee against any and all losses, liabilities or expenses incurred
by it arising out of or in connection with the acceptance or administration of its duties under this Indenture, except as set forth
in paragraph (d) below. The Trustee shall notify the Company promptly of any claim for which it may seek indemnity. Failure by
the Trustee to so notify the Company shall not relieve the Company of its obligations hereunder, except to the extent the Company
is prejudiced thereby. The Company shall defend the claim and the Trustee shall reasonably cooperate in such defense. The Trustee
may have separate counsel and the Company shall pay the reasonable fees and expenses of one such counsel. The Company need not
pay for any settlement made without its consent, which consent shall not be unreasonably withheld. |
| (c) | The obligations of the Company to pay compensation under paragraph (a) above through the date of
termination, and for indemnification under paragraph (b) above, shall survive the satisfaction and discharge of this Indenture. |
| (d) | The Company need not reimburse any expense or indemnify against any loss or liability incurred
by the Trustee through its own gross negligence, bad faith, willful misconduct or simple negligence in the handling and disbursement
of funds. |
| (e) | To secure the Company’s payment obligations in this Section, the Trustee shall have a lien
prior to the Holders on all money or property held or collected by the Trustee, except that held in trust to pay principal and
interest on the Securities or to pay Senior Debt. Such lien shall survive the satisfaction and discharge of this Indenture. |
| (f) | When the Trustee incurs expenses or renders services after the occurrence of an Event of Default
specified in Section 6.1(f) or Section 6.1(g), the expenses and the compensation for the services are intended to constitute expenses
of administration under any Bankruptcy Law. |
| Section 7.8 | REPLACEMENT OF TRUSTEE |
| (a) | A 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. |
| (b) | The Trustee may resign at any time and be discharged from the trust hereby created by so notifying
the Company. The Holders of a majority of the aggregate principal amount of the then-outstanding Securities may remove the Trustee
(including any successor Trustee) at any time by so notifying the Trustee and the Company in writing. The Company may remove the
Trustee if: |
| (i) | the Trustee fails to comply with Section 7.10; |
| (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 takes charge of the Trustee or its property; |
| (iv) | the Trustee becomes incapable of acting as Trustee under this Indenture; or |
| (v) | the Company so elects, provided such replacement Trustee is qualified. |
| (c) | If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any reason,
the Company shall promptly appoint a successor Trustee. |
| (d) | If a successor Trustee does not take office within 30 days after notice that the Trustee has resigned
or has been removed, the Company or the Trustee or the Holders of at least a majority in principal amount of the then-outstanding
Securities may petition any court of competent jurisdiction for the appointment of a successor Trustee. |
| (e) | If the Trustee, after written request by any Holder who has been a Holder for at least six months,
fails to comply with Section 7.10, such Holder may petition any court of competent jurisdiction for the removal of the Trustee
and the appointment of a successor Trustee. |
| (f) | A successor Trustee shall deliver a written acceptance of its appointment to the retiring Trustee
and to the Company. 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 successor Trustee shall mail a notice of
its succession to all Holders. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor
Trustee, provided all sums owing to the Trustee hereunder have been paid and subject to the lien provided for in Section 7.7. Notwithstanding
replacement of the Trustee pursuant to this Section, the Company’s obligations to pay compensation under Section 7.7(a) through
the date of termination, and for indemnification under Section 7.7(b) shall continue for the benefit of the retiring Trustee. |
| Section 7.9 | SUCCESSOR TRUSTEE BY MERGER, ETC. |
If the Trustee consolidates,
merges or converts into, or transfers all or substantially all of its corporate trust business to, another corporation, the successor
corporation without any further act shall be the successor Trustee.
| Section 7.10 | ELIGIBILITY; DISQUALIFICATION |
| (a) | 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 or territory thereof or of the District of Columbia authorized
under such laws to exercise corporate trustee power, shall be subject to supervision or examination by federal, state, territorial
or District of Columbia authority and shall have a combined capital and surplus of at least $5,000,000 as set forth in its most
recent published annual report of condition. |
| (b) | This Indenture shall always have a Trustee satisfying the requirements of TIA §310(a)(1) and
(2). The Trustee shall be subject to TIA §310(b). |
| Section 7.11 | PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY |
The Trustee shall
be 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.
Article
8
DISCHARGE OF INDENTURE
| Section 8.1 | TERMINATION OF COMPANY’S OBLIGATIONS |
| (a) | This Indenture shall cease to be of further effect (except that the Company’s obligations
to pay compensation under Section 7.7(a) through the date of termination, and for indemnification under Section 7.7(b) and its
obligations under Section 8.4, and the Company’s, Trustee’s and Paying Agent’s obligations under Section 8.3
shall survive) when, without violating Article 10, all outstanding Securities have been paid in full and the Company has paid all
sums payable by the Company hereunder. In addition, the Company may terminate all of its obligations under this Indenture if, without
violating Article 10: |
| (i) | the Company irrevocably deposits in trust with the Trustee or, at the option of the Trustee, with
a trustee reasonably satisfactory to the Trustee and the Company under the terms of an irrevocable trust agreement in form and
substance satisfactory to the Trustee, money or U.S. Government Obligations sufficient (as certified by an independent public accountant
designated by the Company) to pay principal and interest on the Securities to maturity or redemption, as the case may be, and to
pay all other sums payable by it hereunder, provided that (A) the trustee of the irrevocable trust shall have been irrevocably
instructed to pay such money or the proceeds of such U.S. Government Obligations to the Trustee and (B) the Trustee shall have
been irrevocably instructed to apply such money or the proceeds of such U.S. Government Obligations to the payment of said principal
and interest with respect to the Securities; |
| (ii) | the Company delivers to the Trustee an Officers’ Certificate stating that all conditions
precedent to satisfaction and discharge of this Indenture have been complied with; and |
| (iii) | no Default or Event of Default with respect to the Securities shall have occurred and be continuing
on the date of such deposit. |
Then, this Indenture shall cease
to be of further effect (except as provided in this paragraph), and the Trustee, on demand of the Company, shall execute proper
instruments acknowledging confirmation of and discharge under this Indenture. The Company may make the deposit only if Article
10 does not prohibit such payment. Nevertheless, the Company’s obligations in Section 2.3 through Section 2.7, Section 4.2,
Section 7.7(c), Section 7.8, Section 8.3 and Section 8.4, and the Trustee’s and Paying Agent’s obligations in Section
8.3, shall survive until no Securities are outstanding. Thereafter, only the Company’s obligations to pay compensation under
Section 7.7(a) through the date of termination, and for indemnification under Section 7.7(b), its obligations under Section 8.4
and the Company’s, Trustee’s and Paying Agent’s obligations in Section 8.3 shall survive.
| (b) | After such irrevocable deposit made pursuant to this Section and satisfaction of the other conditions
set forth herein, the Trustee upon written request shall acknowledge in writing the discharge of the Company’s obligations
under this Indenture except for those surviving obligations specified above. |
| (c) | In order to have money available on a payment date to pay principal or interest on the Securities,
U.S. Government Obligations shall be payable as to principal or interest at least one Business Day before such payment date in
such amounts as will provide the necessary money. U.S. Government Obligations shall not be callable at the issuer’s option. |
| Section 8.2 | APPLICATION OF TRUST MONEY |
The Trustee or a
trustee satisfactory to the Trustee and the Company shall hold in trust money or U.S. Government Obligations deposited with it
pursuant to Section 8.1. 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 and interest on the Securities.
| Section 8.3 | REPAYMENT TO COMPANY |
| (a) | The Trustee and the Paying Agent shall promptly pay to the Company upon written request any excess
money or securities held by them at any time. |
| (b) | The Trustee and the Paying Agent shall pay to the Company upon written request any money held by
them for the payment of principal or interest on the Securities that remains unclaimed for two years after the date upon which
such payment shall have become due; provided, however, that the Company shall have either caused notice of such payment to be mailed
to each Holder entitled thereto no less than 30 days prior to such repayment or within such period shall have published such notice
in a newspaper of widespread circulation published in Hennepin County, Minnesota. After payment to the Company, Holders entitled
to the money must look to the Company for payment as general creditors unless an applicable abandoned property law designates another
Person, and all liability of the Trustee and such Paying Agent with respect to such money shall cease. |
| Section 8.4 | REINSTATEMENT |
If the Trustee or
Paying Agent is unable to apply any money or U.S. Government Obligations in accordance with Section 8.2 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 Company’s obligations under this Indenture and the Securities shall be revived and reinstated as though
no deposit had occurred pursuant to Section 8.1 until such time as the Trustee or Paying Agent is permitted to apply all such money
or U.S. Government Obligations in accordance with Section 8.2; provided, however, that if the Company has made any payment of interest
on or principal of any Securities because of the reinstatement of its obligations, the Company shall be subrogated to the rights
of the Holders of such Securities to receive such payment, as long as no money is owed to the Trustee by the Company, from the
money or U.S. Government Obligations held by the Trustee or Paying Agent.
Article
9
AMENDMENTS
Amendments to this
Indenture may be effected as described in this Article 9, whether pursuant to the execution and delivery of a document entitled
“amendment” or pursuant to the execution and delivery of a “supplemental indenture,” including a supplemental
indenture for the purpose of establishing a different class or series of Securities under this Indenture.
| Section 9.1 | WITHOUT CONSENT OF THE HOLDERS |
The Company and
the Trustee may amend this Indenture or any Securities without the consent of any Holder:
| (a) | to cure any ambiguity, defect or inconsistency; |
| (b) | to comply with Section 5.1; |
| (c) | to provide for the issuance of additional Securities or classes or series of Securities in conformity
with this Indenture (including, for purposes of clarity, additional Securities or classes or series of Securities having rights,
preferences or privileges different from those set forth herein); |
| (d) | to make any change that does not materially and adversely affect the legal rights hereunder of
any Holder, including but not limited to an increase in the aggregate dollar amount of Securities which may be outstanding under
this Indenture and limited in amount hereunder; |
| (e) | to make any change permitted under Section 3.2; |
| (f) | to comply with any requirements of the SEC in connection with the qualification of this Indenture
under the TIA; |
| (g) | to comply with the rules or policies of a Depositary of Securities; or |
| (h) | in connection with an amendment, extension, replacement, renewal or substitution of Senior Debt,
to amend the subordination provisions of this Indenture to conform to the reasonable requirements of the holder or holders of such
Senior Debt. |
| Section 9.2 | WITH CONSENT OF THE HOLDERS |
| (a) | Other than as set forth in Section 9.1, the Company and the Trustee may amend this Indenture or
the Securities with the consent of the Holders of at least a majority in principal amount of the then-outstanding Securities; provided,
however, that if an amendment would affect fewer than all classes or series of Securities under this Indenture, then only the written
consent of the Holders of a majority in principal amount of the then-outstanding classes or series of Securities so affected shall
be required. The Holders of a majority in principal of the then-outstanding Securities may also waive on behalf of all Holders
any existing Default or Event of Default or compliance with any provision of this Indenture or the Securities (or class or series
of Securities, as applicable). Nevertheless, without the consent of the Holder of each Security affected, an amendment or waiver
under this Section may not (with respect to any Security held by a non-consenting Holder): |
| (i) | reduce the aggregate principal amount of Securities whose Holders must consent to an amendment,
supplement or waiver; |
| (ii) | reduce the rate of or change the time for payment of interest, including default interest, on any
outstanding Security; |
| (iii) | reduce the principal of or change the fixed maturity of any Security; |
| (iv) | make any change in Section 6.4 or Section 6.7; |
| (v) | make any change in Article 10 that materially adversely affects the rights of any Holders, or adversely
affects the holders of Senior Debt; or |
| (vi) | waive a Default or Event of Default in the payment of principal of or interest on any Security
(except a rescission of acceleration of the Securities by the Holders of at least a majority in aggregate principal amount of the
then-outstanding Securities, and a waiver of any payment default resulting from such acceleration). |
| (b) | It shall not be necessary for the consent of the Holders under this Section to approve the particular
form of any proposed amendment or waiver, but it shall be sufficient if such consent approves the substance thereof. |
| (c) | Any required consent of the Holders need not be affirmative. Consent of a Holder will be presumed
if a Holder does not object within 30 days of a written request for consent so long as such written request specifically states
in prominent type that the consent of the Holder will be presumed if no objection is made within the applicable 30-day period. |
| (d) | After an amendment or waiver under this Section becomes effective, the Company shall mail to the
Holders of each Security affected thereby a notice briefly describing the amendment or waiver. Any failure of the Company to mail
such notice, or any defect therein, shall not, however, in any way impair or affect the validity of any such supplemental indenture
or waiver. Subject to Section 6.4 and Section 6.7 and clauses (i) through (vi) of paragraph (a) above, the Holders of a majority
in principal amount of the Securities then outstanding may waive compliance in a particular instance by the Company with any provision
of this Indenture or the Securities. |
| Section 9.3 | COMPLIANCE WITH TRUST INDENTURE ACT |
Every amendment
to this Indenture shall be set forth in an amendment or a supplemental indenture that complies with the TIA as then in effect if,
at the time this Indenture is so amended, this Indenture is qualified under the TIA.
| Section 9.4 | EFFECT OF CONSENTS |
| (a) | Until an amendment or waiver becomes effective, a consent to it by a Holder of a Security is a
continuing consent by the Holder and every subsequent Holder of a Security or portion of a Security that evidences the same debt
as the consenting Holder’s Security, even if notation of the consent is not made on any Security. An amendment or waiver
becomes effective in accordance with its terms and thereafter binds every Holder. |
| (b) | The Company may fix a record date for determining which Holders must consent to such amendment
or waivers. If the Company fixes a record date, the record date shall be fixed at (i) the later of 30 days prior to the first solicitation
of such consent or the date of the most recent list of Holders furnished to the Trustee pursuant to Section 2.5 prior to such solicitation,
or (ii) such other date as the Company shall designate. |
| Section 9.5 | NOTATION ON OR EXCHANGE OF SECURITIES |
The Trustee may
place an appropriate notation about an amendment or waiver on any Security, if certificated, or any Account statement. Failure
to make any notation or issue a new Security shall not affect the validity and effect of such amendment or waiver.
| Section 9.6 | TRUSTEE TO SIGN AMENDMENTS, ETC. |
The Trustee shall
sign any amendment or supplemental indenture authorized pursuant to this Article 9 if, in the Trustee’s reasonable discretion,
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 or refusing to sign such amendment or supplemental indenture, the Trustee shall be entitled to
receive, if requested, an indemnity reasonably satisfactory to it and to receive and, subject to Section 7.1, shall be fully protected
in relying upon, an Officers’ Certificate and an Opinion of Counsel (or written advice of counsel) as conclusive evidence
that such amendment or supplemental indenture is authorized or permitted by this Indenture, that it is not inconsistent herewith,
and that it will be valid and binding upon the Company in accordance with its terms. The Company may not sign an amendment or supplemental
indenture until approved by the Board of Directors.
Article
10
SUBORDINATION
| Section 10.1 | AGREEMENT TO SUBORDINATE |
| (a) | The Company agrees, and each Holder by accepting a Security consents and agrees, that the Indebtedness
evidenced by the Securities and the payment of the principal of and interest on the Securities is subordinated in right of payment,
to the extent and in the manner provided in this Article, to the prior payment in full, in cash, cash equivalents or otherwise
in a manner satisfactory to the holders of Senior Debt, of all Obligations due in respect of Senior Debt whether outstanding on
the date hereof or hereafter incurred, and that the subordination herein is for the benefit of the holders of Senior Debt. |
| (b) | For purposes of this Article 10, a payment or distribution on account of the Securities may consist
of cash, property or securities, by set-off or otherwise, and a payment or distribution on account of any of the Securities shall
include, without limitation, any redemption, purchase or other acquisition of the Securities. |
| (c) | The agreement to subordinate set forth herein includes, for all purposes under this Article, the
agreement of the Company, the Guarantor and the Holders of Securities that the Obligations of the Guarantor under the Guarantee,
and the Obligations of the Company and the Guarantor under the Collateral Documents, are also subordinated in right of payment,
to the extent and in the manner provided in this Article, to the prior payment in full, in cash, cash equivalents or otherwise
in a manner satisfactory to the holders of Senior Debt, of all Obligations due in respect of Senior Debt whether outstanding on
the date hereof or hereafter incurred, and that the subordination herein is for the benefit of the holders of Senior Debt. This
agreement to subordinate set forth herein also includes, for all purposes under this Article, the application of available cash
proceeds upon an Event of Default in the manner set forth in the Intercreditor Agreement. |
| (d) | The priorities of the liens, claims, encumbrances, security interests or other interests established,
altered or specified in this Indenture are applicable irrespective of the time or order of attachment or perfection (or the lack
of attachment or perfection) thereof, the method of perfection, the time or order of filing of financing statements or the taking
of possession, or the giving of or failure to give notice of the acquisition or expected acquisition of purchase-money or other
security interests or otherwise and irrespective of any other law, decision, fact, circumstance, act or occurrence that might otherwise
affect the priorities established under this Indenture. For all purposes of this Indenture, the provisions of this Article that
apply to the Company and its Obligations under the Securities shall similarly apply to the Obligations of the Company and the Guarantor
under the Collateral Documents and the Obligations of the Guarantor under the Guarantee. |
| Section 10.2 | LIQUIDATION; DISSOLUTION; BANKRUPTCY |
| (a) | Upon any payment or distribution of assets of the Company of any kind or character, whether in
cash, property or securities, to creditors upon: |
| (i) | any dissolution or winding-up or total or partial liquidation or reorganization of the Company
whether voluntary or involuntary and whether or not involving insolvency or Bankruptcy; |
| (ii) | any Bankruptcy or insolvency case or proceeding or any receivership, liquidation, reorganization
or other similar case or proceeding in connection therewith, relative to the Company or to its assets; or |
| (iii) | any assignment for the benefit of creditors or any other marshaling of assets of the Company; |
then, (A) all Obligations due, or
to become due, in respect of Senior Debt, including without limitation both pre-petition interest, Post-Petition Interest, and
any other interest, fees and other charges payable after the commencement of any such proceeding at the rate specified in the applicable
Senior Debt (regardless of whether any such interest, fees and other charges are allowable claims in any Bankruptcy proceeding),
shall first indefeasibly be paid in full, or provision shall have been made for such payment, in cash, cash equivalents or otherwise
in a manner satisfactory to the holders of Senior Debt, and (B) all related transaction documents to which the Senior Debt relates
shall have been terminated in accordance with their respective terms, before any payment is made on account of the principal
of or interest on the Securities, except that Holders may receive securities that are subordinated to at least the same extent
as the Securities are to (x) Senior Debt and (y) any securities issued in exchange for Senior Debt.
Upon any such dissolution, winding-up,
liquidation or reorganization, any payment or distribution of assets of the Company of any kind or character, whether in cash,
property or securities, to which the Holders of the Securities or the Trustee under this Indenture would be entitled, except for
the provisions hereof, shall be paid by the Company or by any receiver, trustee in Bankruptcy, liquidating trustee, agent or other
Person making such payment or distribution, or by the Holders of the Securities or by the Trustee under this Indenture if received
by them, directly to the holders of Senior Debt (in order of priority, and when of equal priority, pro rata to such holders of
equal priority on the basis of the amounts of Senior Debt held by such holders) or their representative or representatives, or
to the trustee or trustees under any indenture or other instrument or agreement pursuant to which any of such Senior Debt may have
been issued, as their interests may appear, for application to the payment of Senior Debt remaining unpaid until all such Senior
Debt has been indefeasibly paid in full, or provisions shall have been made for such payment, in cash, cash equivalents or otherwise
in a manner satisfactory to the holders of Senior Debt, after giving effect to any concurrent payment, distribution or provision
therefor to or for the holders of Senior Debt.
| (b) | For purposes of this Article 10, the words “cash, property or securities” shall not
be deemed to include securities of the Company or any other corporation provided for by a plan of reorganization or readjustment
which are subordinated, to at least the same extent as the Securities, to the payment of all Senior Debt then outstanding or to
the payment of all securities issued in exchange therefor to the holders of Senior Debt at the time outstanding. The consolidation
of the Company with, or the merger of the Company with or into, another Person or the liquidation or dissolution of the Company
following the conveyance or transfer of its property as an entirety, or substantially as an entirety, to another Person upon the
terms and conditions provided in Article 5 shall not be deemed a dissolution, winding-up, liquidation or reorganization for the
purposes of this Section if such other Person shall, as part of such consolidation, merger, conveyance or transfer, comply with
the conditions stated in Article 5. |
| (c) | The provisions of paragraphs (a) and (b) above shall not prohibit, restrict or otherwise limit
the Company from entering into, sponsoring or conducting any Qualified Sales and Financing Transaction. |
| Section 10.3 | DEFAULT ON SENIOR DEBT |
| (a) | In the event and during the continuation of: |
| (i) | any default (or any event which, with the passage of time or the giving of notice, or both, would
constitute an event of default) in the payment of principal of (or premium, if any) or interest on any Senior Debt or any amount
owing from time to time under or in respect of Senior Debt, or in the event that any nonpayment event of default with respect to
any Senior Debt shall have occurred and be continuing and shall have resulted in such Senior Debt becoming or being declared due
and payable prior to the date on which it would otherwise have become due and payable; or |
| (ii) | in the event that any other nonpayment event of default (or any event which, with the passage of
time or the giving of notice, or both, would constitute a nonpayment default) with respect to any Senior Debt shall have occurred
and be continuing permitting the holders of such Senior Debt (or a trustee on behalf of the holders thereof) to declare
such Senior Debt due and payable prior to the date on which it would otherwise have become due and payable (the circumstances described
in clauses (i) and (ii) above being referred to as a “Senior Debt Default”); |
then, in any such case, the Company
shall make no payment, direct or indirect, in respect of the Securities, including but not limited to any payment which may be
payable by reason of the payment of any other Indebtedness of the Company being subordinated to the payment of the Securities (other
than securities that are subordinated to at least the same extent as the Securities are to (x) Senior Debt and (y) any securities
issued in exchange for Senior Debt), unless and until (A) such default or potential event of default specified in clause (i) above
shall have been cured or such event of default shall have been waived or shall have ceased to exist or such acceleration shall
have been rescinded or annulled, or (B) in case of any other nonpayment event of default specified in clause (ii) above, during
the period (a “Payment Blockage Period”) commencing on the date the Company and the Trustee receive written
notice (a “Payment Notice”) of such a nonpayment event of default (which notice shall be binding on the
Trustee and the Holders as to the occurrence of such an event of default) from a holder of the Senior Debt to which such default
relates, and ending on the earlier of (I) the date, if any, on which such Senior Debt to which such default relates is discharged
or such default is waived by the holders of such Senior Debt or otherwise cured and (II) the date on which the Trustee receives
written notice from the holder of such Senior Debt to which such default relates terminating the Payment Blockage Period. Notwithstanding
the foregoing, during any Payment Blockage Period, the Company shall make payments for rescinded subscriptions under Section 2.2(b).
| (b) | Subject to the provisions of Section 6.9 and Section 10.8, neither the Trustee nor the Holders
may take any action to assert, demand, xxx for, collect, enforce or realize upon the Securities or the related Obligations or any
part thereof in any period during which the Company is not permitted to make payment on account of the Securities pursuant to this
Section, unless and only to the extent that the commencement of a legal action may be required to toll the running of any applicable
statute of limitations. Notwithstanding the foregoing, if, after 179 days have passed since the commencement of any Payment Blockage
Period, and an Event of Default exists under this Indenture, the Trustee may bring suit to enforce all Obligations under the Indenture;
provided, however, that the provisions of Section 10.4 and Section 10.5 are complied with. |
| Section 10.4 | WHEN DISTRIBUTION MUST BE PAID OVER |
| (a) | If the Trustee or any Holder receives any payment with respect to the Securities, whether in cash,
property or securities (other than with securities that are subordinated to at least the same extent as the Securities are to the
Senior Debt), then, if there exists and during the continuation of any Senior Debt Default, such payment shall be held by the Trustee
or such Holder, in trust for the benefit of, and shall be paid forthwith over and delivered to, the holders of Senior Debt (in
order of their priority, and when of equal priority, pro rata to such holders of equal priority on the basis of the amounts of
Senior Debt held by such holders) for application to the payment of all Obligations with respect to Senior Debt remaining unpaid
to the extent necessary to pay such Obligations in full, in cash, cash equivalents or otherwise in a manner satisfactory to the
holders of Senior Debt, in accordance with the terms of such Senior Debt, after giving effect to any concurrent payment or distribution
to or for the holders of Senior Debt. |
| (b) | With respect to the holders of Senior Debt, the Trustee undertakes to perform only such obligations
on the part of the Trustee as are specifically set forth in this Article, and no implied covenants or obligations with respect
to the holders of Senior Debt shall be read into this Indenture against the Trustee. The Trustee shall not be deemed to owe any
fiduciary duty to the holders of Senior Debt, and shall not be liable to any such holders if the Trustee shall pay over or distribute
to or on behalf of Holders or the Company or any other Person money or assets to which any holders of Senior Debt shall be entitled
by virtue of this Article, except if such payment is made as a result of the willful misconduct or negligence of the Trustee. |
| Section 10.5 | LIMITATION ON ACTION AGAINST COLLATERAL |
The Trustee and
each Holder by accepting a Security hereunder hereby waives the right to enforce any rights respecting the grant of collateral
security effected pursuant to Article 12 (including without limitation the right to foreclose, engage in strict foreclosure, or
exercise any other rights under the Collateral Documents or applicable law) until the earlier of (i) the Senior Debt Payout Date
or (ii) 180 days following the date of an uncured Event of Default under this Indenture (unless such Event of Default shall have
been waived in accordance with Section 6.4 prior to the expiration of the 180-day period), or an event of default under or with
respect to Obligations that are junior to Securities; provided, however, that if prior to the expiration of such 180-day period,
the holders of Senior Debt have commenced a judicial proceeding or non-judicial action to collect or enforce any rights or claims
against the Company, the Guarantor or any other direct or indirect Subsidiary or Affiliate of the Company, or foreclose on any
collateral securing the Senior Debt, or a case or proceeding by or against the Company, Borrower the Guarantor or any other direct
or indirect Subsidiary or Affiliate of the Company is commenced under any Bankruptcy Law or any other insolvency law, then such
180-day period shall be extended until the Senior Debt Payout Date, or the dismissal of such proceedings, whichever event comes
first.
| Section 10.6 | NOTICE BY COMPANY |
The Company shall
promptly notify the Trustee and the Paying Agent in writing of any facts known to the Company that would cause a payment of any
Obligations with respect to the Company to violate this Article, but failure to give such notice shall not affect the subordination
of the Securities to the Senior Debt as provided in this Article.
After all Senior
Debt is paid in full, in cash, cash equivalents or otherwise in a manner satisfactory to the holders of such Senior Debt, and until
the Securities are paid in full, Holders shall be subrogated (equally and ratably with all other Indebtedness that is Pari Passu
Debt) to the rights of holders of Senior Debt to receive distributions applicable to Senior Debt to the extent that distributions
otherwise payable to the Holders have been applied to the payment of Senior Debt.
| Section 10.8 | RELATIVE RIGHTS |
| (a) | This Article defines the relative rights of and between the Holders and holders of Senior Debt.
Nothing in this Indenture shall: |
| (i) | impair, as between the Company and the Holders, the obligations of the Company, which are absolute
and unconditional, to pay principal of and interest on the Securities in accordance with their terms; |
| (ii) | affect the relative rights of the Holders and creditors of the Company other than their rights
in relation to holders of Senior Debt; or |
| (iii) | prevent the Trustee or any Holder from exercising its available remedies upon a Default or Event
of Default, subject to the rights of holders and owners of Senior Debt to receive distributions and payments otherwise payable
to the Holders as described herein. |
| (b) | If the Company fails because of this Article to pay principal of or interest on a Security on the
due date, the failure is still a Default or Event of Default. |
| Section 10.9 | SUBORDINATION MAY NOT BE IMPAIRED BY THE COMPANY OR HOLDERS OF SENIOR DEBT |
| (a) | No right of any present or future holder of Senior Debt to enforce the subordination of the Indebtedness
evidenced by the Securities and the Obligations related thereto shall be prejudiced or impaired by any act or failure to act by
any such holder of Senior Debt or by the Company, the Trustee or any Agent or by the failure of the Company to comply with this
Indenture, regardless of any knowledge thereof with which any such holder may have or otherwise be charged. |
| (b) | Without limiting the effect of the preceding paragraph, any holder of Senior Debt may at any time
and from time to time without the consent of or notice to any other holder or to the Trustee, without impairing or releasing any
of the rights of any holder of Senior Debt under this Indenture, upon or without any terms or conditions and in whole or in part: |
| (i) | change the manner, place or term of payment, or change or extend the time of payment of, renew
or alter any Senior Debt or any other liability of the Company to such holder, any security therefor, or any liability incurred
directly or indirectly in respect thereof, and the provisions of this Article 10 shall apply to the Senior Debt as so changed,
extended, renewed or altered; |
| (ii) | notwithstanding the provisions of Section 5.1, sell, exchange, release, surrender, realize upon
or otherwise deal with in any manner and in any order any property by whomsoever at any time pledged or mortgaged to secure, or
howsoever securing, any Senior Debt or any other liability of the Company to such holder or any other liabilities incurred directly
or indirectly in respect thereof or hereof or any offset thereagainst; |
| (iii) | exercise or refrain from exercising any rights or remedies against the Company or others or otherwise
act or refrain from acting or, for any reason, fail to file, record or otherwise perfect any security interest in or lien on any
property of the Company or any other Person; and |
| (iv) | settle or compromise any Senior Debt or any other liability of the Company to such holder, or any
security therefor, or any liability incurred directly or indirectly in respect thereof. |
| (c) | All rights and interests under this Indenture of any holder of Senior Debt and all agreements and
obligations of the Trustee, the Holders, and the Company under Article 6 and under this Article 10 shall remain in full force and
effect irrespective of (i) any lack of validity or enforceability of any agreement or instrument relating to any Senior Debt or
(ii) any other circumstance that might otherwise constitute a defense available to, or a discharge of, the Trustee, any Holder,
or the Company. |
| (d) | Any holder of Senior Debt is hereby authorized to demand specific performance of the provisions
of this Article 10, whether or not the Company shall have complied with any of the provisions of this Article 10 applicable to
it, at any time when the Trustee or any Holder shall have failed to comply with any of these provisions. The Trustee and the Holders
irrevocably waive any defense based on the adequacy of a remedy at law that might be asserted as a bar to such remedy of specific
performance. |
| (e) | Each Holder by accepting a Security hereby agrees that the subordination provisions contained in
this Indenture are for the benefit of the holders of Senior Debt and, as such, these subordination provisions shall not impose
any obligations on the holders of any Senior Debt with respect to either the transaction documents to which the Senior Debt relates
or to the Senior Debt itself. |
| Section 10.10 | LIMITATIONS
ON PETITIONS IN BANKRUPTCY |
Notwithstanding
anything to the contrary herein including in this Article 10, the Company, the Trustee, and each Holder by accepting a Security,
hereby agrees that they shall not take any actions to file a petition in Bankruptcy against the Company, any Subsidiary or Affiliate
without the prior written consent of the holders of the Senior Debt or unless one year and one day shall have elapsed after the
Senior Debt have been indefeasibly paid in full, in cash, and the related transaction documents to which the holders of Senior
Debt are a party have been terminated.
| Section 10.11 | DISTRIBUTION
OR NOTICE TO REPRESENTATIVE |
| (a) | Whenever a distribution is to be made or a notice given to holders of Senior Debt, the distribution
may be made and the notice given to their representatives. |
| (b) | Upon any payment or distribution of assets of the Company referred to in this Article 10, the Trustee
and the Holders shall be entitled to rely upon any order or decree made by any court of competent jurisdiction in which bankruptcy,
dissolution, winding-up, liquidation or reorganization proceedings are pending or upon any certificate of any representative of
any holder of Senior Debt or of the liquidating trustee or agent or other Person making any distribution, delivered to the Trustee
or to the Holders, for the purpose of ascertaining the Persons entitled to participate in such distribution, the holders of the
Senior Debt and other Indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts paid or distributed
thereon and all other facts pertinent thereto or to this Article 10. |
| Section 10.12 | RIGHTS OF
TRUSTEE AND PAYING AGENT |
| (a) | Notwithstanding the provisions of this Article 10 or any other provision of this Indenture, the
Trustee shall not be charged with knowledge of the existence of any facts which would prohibit the making of any payment or distribution
by the Trustee, or the taking of any action by the Trustee, and the Trustee or Paying Agent may continue to make payments on the
Securities unless it shall have received at its Corporate Trust Office at least five Business Days prior to the date of such payment
written notice of facts that would cause the payment of any Obligations with respect to the Securities to violate this Article,
which notice, unless specified by a holder of Senior Debt as such, shall not be deemed to be a Payment Notice. The Trustee may
conclusively rely on such notice. Only the Company or a holder of Senior Debt may give the notice. Nothing in this Article 10 shall
apply to amounts due to, or impair the claims of, or payments to, the Trustee under or pursuant to Section 7.7. |
| (b) | The Trustee in its individual or any other capacity may hold Senior Debt with the same rights it
would have if it were not Trustee. Any Agent may do the same with like rights. |
| Section 10.13 | AUTHORIZATION
TO EFFECT SUBORDINATION |
Each Holder of a
Security by his, her or its acceptance thereof authorizes and directs the Trustee on behalf of such Holder to take such action
as may be necessary or appropriate to effectuate, as between the holders of Senior Debt and the Holders, the subordination as provided
in this Article 10, and appoints the Trustee his attorney-in-fact for any and all such purposes.
| Section 10.14 | APPLICABILITY
TO PAYING AGENT |
In case at any time
any Paying Agent (other than the Trustee or the Company) shall have been appointed by the Company and be then acting hereunder,
the term “Trustee” as used in this Article 10 shall in such case (unless the context otherwise requires) be construed
as extending to and including such Paying Agent within its meaning as fully for all intents and purposes as if such Paying Agent
were named in this Article 10 in addition to or in place of the Trustee.
| Section 10.15 | CERTAIN
ACKNOWLEDGMENTS TO AND AGREEMENTS IN FAVOR OF HOLDERS OF SENIOR DEBT |
| (a) | Until the Senior Debt Payout Date, the Trustee and each Holder agrees as follows: |
| (i) | It will not challenge, avoid, subordinate or contest or directly or indirectly support any other
Person in challenging, avoiding, subordinating or contesting in any judicial or other proceeding, including without limitation
any Bankruptcy proceeding, the priority, attachment, validity, extent, perfection or enforceability of any Lien or other adverse
claim held by any holder of Senior Debt. |
| (ii) | It will not interfere with any state law collection or foreclosure action brought by or on behalf
of any holder of Senior Debt with respect to any collateral securing Obligations owed to any such holder, including without limitation
any judicial or non-judicial foreclosure action. |
| (iii) | It will not object to or oppose a sale or other disposition of any collateral securing Obligations
owed to any holder of Senior Debt, free and clear of Liens or other claims of the Holders under this Indenture, under Section 363
of the U.S. Bankruptcy Code or any other applicable law if the holders of Senior Debt have consented to such sale or disposition. |
| (iv) | It agrees to turn over to the holders of Senior Debt any “adequate protection” of its
interest in any Collateral that it receives in any case or proceeding relating to any Bankruptcy, to the extent necessary to make
the holders of Senior Debt whole, and agrees that it will not seek to have the automatic stay lifted with respect to any Collateral,
appoint a Chapter 11 trustee under Section 1104 of the U.S. Bankruptcy Code or convert or dismiss such case or proceeding under
Section 1112 of the U.S. Bankruptcy Code, in each case without the prior written consent of the holders of Senior Debt. |
| (v) | In the event any proceeds of Collateral are received by a Holder or the Trustee for application
to Obligations under this Indenture other than as expressly permitted by the terms of this Indenture, such proceeds shall be received
by the Holder or Trustee, as the case may be, in trust for the benefit of the holders of Senior Debt, and the Holder or the Trustee,
as the case may be, shall promptly turn over such proceeds to the holders of Senior Debt (or the trustee(s) for the Senior Debt,
if any) in the same form as received, with any necessary endorsement. Upon the Senior Debt Payout Date, any remaining proceeds
of the Collateral shall be delivered to the Trustee and applied to the Obligations hereunder, except as otherwise required pursuant
to applicable law. In the event any proceeds of collateral securing any Senior Debt and related Obligations are received by a Holder
or the Trustee, such Person will hold such proceeds in trust for the benefit of the holders of Senior Debt and shall promptly turn
over such proceeds to the holders of Senior Debt for application in accordance with the terms of the transaction documents to which
such Senior Debt relates. |
| (b) | The holders of Senior Debt have permitted the incurrence of the Obligations under this Indenture
in reliance on this Agreement. Accordingly, each of the Trustee and each Holder expressly waives: (i) notice of acceptance by the
holders of Senior Debt of the covenants contained in this Indenture; (ii) notice of the existence or fact of non-payment of all
or any part of any Senior Debt and related Obligations; (iii) all diligence in collection or protection of or realization upon
all or any part of any collateral or any other guaranty or security and any requirement that any holder of Senior Debt protect,
secure, perfect or insure any Lien or any Property (as defined below) subject thereto or exhaust any right or take any action against
the obligor or any other Person or any such Property; (iv) promptness, diligence, notice of acceptance and any other notice with
respect to any Senior Debt and related Obligations; and (v) to the fullest extent permitted by applicable law, and except as otherwise
expressly provided hereunder for the benefit of the holders of Senior Debt, all of its rights as a secured creditor (other than
the right to receive notice of the sale or other disposition of the Collateral and the right to receive, in accordance with Section
9-615 of the UCC, proceeds of such sale or other disposition, if any, remaining after the application of such proceeds to pay in
full, in cash, the Senior Debt and related Obligations and the occurrence of the Senior Debt Payout Date) in connection with any
dealing in the Collateral (or other collateral) by a holder of Senior Debt. For the purposes hereof, “Property”
means, with respect to any Person, all property and interests in property of such Person, whether real, personal or mixed, whether
now owned or existing or hereafter acquired or arising and wheresoever located. |
| (c) | The Trustee and each Holder hereby waives, to the fullest extent permitted by applicable law, any
rights it may have under applicable law to assert the doctrine of marshaling or otherwise to require a holder of Senior Debt to
marshal any property of the Company, the Guarantor or any other direct or indirect Subsidiary or Affiliate of the Company for the
benefit of the Trustee or any Holder and any valuation, stay or appraisement laws. |
| (d) | The Company, Guarantor, Trustee and each Holder acknowledge and agree that (i) all SPV Collateral
constitutes property of the relevant SPV Entity and/or the relevant Master Trust and, in either case, is subject to the first priority
perfected security interest of the applicable holder of Senior Debt (or an agent or other intermediary on behalf of such holder)
pursuant to the transaction documents to which such Senior Debt relates, (ii) none of the Company, the Guarantor, the Trustee
or any Holder has any lien, claim, encumbrance, security interest or other interest in any of such SPV Collateral (it being
acknowledged and agreed that the Guarantor’s membership interest in GWG DLP Funding II, LLC does not constitute SPV Collateral),
(iii) if an asset or other item of Property hereafter becomes included in the SPV Collateral or the Company or the Guarantor (or
any other Person) otherwise transfers (or purports to transfer) any asset or other item of Property to an SPV Entity or the Master
Trust, then any lien, claim, encumbrance, security interest or other interest the Company, the Guarantor, the Trustee or any Holder
(or such other Person) or any Holder may have in such asset or other Property shall be automatically and irrevocably released without
any further action by any Person, and (iv) if for any reason the Company, the Guarantor, the Trustee or any Holder is determined
to have retained or to hold any interest in any such asset or Property, then any lien, claim, encumbrance, security interest or
other interest that the Company, the Guarantor, the Trustee or any Holder, as the case may be, may have in such asset or Property
shall in all respects be junior and subordinate to the security interest of the holder of Senior Debt (or its agent, as the case
may be) for the benefit of itself and the other related holders of Senior Debt that are the beneficiaries of such security interest
under the transaction documents to which such Senior Debt relates. |
| Section 10.16 | OTHER SUBORDINATION
MATTERS |
| (a) | The agreements contained in this Article 10 shall continue to be effective or be reinstated, as
the case may be, if at any time any payment of any of the Senior Debt is rescinded or must otherwise be returned by any holder
of Senior Debt upon the insolvency, bankruptcy or reorganization of the Company or otherwise, all as though such payment had not
been made. |
| (b) | The Trustee shall notify all holders of Senior Debt (of whose identity the Trustee has received
reasonable advance written notice) of the existence of any Default or Event of Default under Section 6.1 promptly after a Responsible
Officer of the Trustee actually becomes aware thereof; provided, however, that at least five Business Days prior to the notification
of any holder of Senior Debt under this Section, the Trustee shall provide the Company with notice of its intent to provide such
notification; provided further, that no defect in the form or delivery of the Trustee’s notice to the Company shall preclude
the timely notice by the Trustee to the holders of Senior Debt. |
| (c) | The holders of Senior Debt may assign any or all of their respective rights under this Article
10 to any other Person and without the consent of any other party or Person. |
Article
11
GUARANTEE
| (a) | Subject to this Article 11, the Guarantor unconditionally guarantees to each Holder of the Securities
that: |
| (i) | the principal of and interest on the Securities will be promptly paid in full when due, whether
upon maturity, by acceleration, redemption or otherwise, and interest on the overdue principal of and interest on the Securities,
if any, if lawful, and all other Obligations of the Company to the Holders or the Trustee hereunder, will be promptly paid in full
or performed, all in accordance with the terms hereof and thereof; and |
| (ii) | in the case of any extension of time of or for the payment or renewal of any Securities or any
such other Obligations of the Company to the Holders or the Trustee hereunder, that the same will be promptly paid in full when
due or performed in accordance with the terms of the extension or renewal, whether upon stated maturity, by acceleration or otherwise. |
| (b) | Failing payment when due of any amount so guaranteed for whatever reason, the Guarantor will be
obligated to pay the same immediately. The Guarantor agrees that this is a guarantee of payment and not a guarantee of collection
nor a guarantee of performance. |
| (c) | The Guarantor hereby agrees that its obligations hereunder are unconditional, irrespective of the
validity, regularity or enforceability of the Securities or this Indenture, the absence of any action to enforce the same, any
waiver or consent by any Holder of the Securities with respect to any provisions hereof, the recovery of any judgment against the
Company, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge
or defense of a Guarantor. The Guarantor hereby waives diligence, presentment, demand of payment, filing of claims with a court
in the event of insolvency or bankruptcy of the Company, any right to require a proceeding first against the Company, protest,
notice and all demands whatsoever and covenant that this Guarantee will not be discharged except by complete performance of the
obligations contained in the Securities and this Indenture. |
| (d) | If any Holder or the Trustee is required by any court or otherwise to return to the Company, the
Guarantor or any custodian, trustee, liquidator or other similar official acting in relation to either the Company or the Guarantor,
any amount paid either to the Trustee or such Holder, then this Guarantee, to the extent theretofore discharged, will be reinstated
in full force and effect. |
| (e) | The Guarantor agrees that it will not be entitled to any right of subrogation in relation to the
Holders in respect of any Obligations guaranteed hereby until payment in full of all Obligations guaranteed hereby. The Guarantor
further agrees that, as between the Guarantor, on the one hand, and the Holders and the Trustee, on the other hand, (i) the maturity
of the Obligations guaranteed hereby may be accelerated as provided in Article 6 for the purposes of this Guarantee, notwithstanding
any stay, injunction or other prohibition preventing such acceleration in respect of the Obligations guaranteed hereby, and (ii)
in the event of any declaration of acceleration of such Obligations as provided in Article 6, such Obligations (whether or not
due and payable) will forthwith become due and payable by the Guarantor for the purpose of this Guarantee. |
| Section 11.2 | Limitation on Guarantor Liability |
The
Guarantor, and by its acceptance of the Securities, each Holder, hereby confirms that it is the intention of all such parties that
the Guarantee of such Guarantor not constitute a fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform
Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent applicable to
the Guarantee. To effectuate the foregoing intention, the Trustee, the Holders and the Guarantor hereby irrevocably agree that
the Obligations of the Guarantor will be limited to the maximum amount that will, after giving effect to such maximum amount and
all other contingent and fixed liabilities of such Guarantor that are relevant under such laws, and after giving effect to any
collections from, rights to receive contribution from or payments made by or on behalf of any other guarantor in respect of the
obligations of such other guarantor hereunder, result in the obligations of such Guarantor under its Guarantee not constituting
a fraudulent transfer or conveyance.
| Section 11.3 | EXECUTION AND DELIVERY OF GUARANTY |
To
evidence its Guarantee set forth in this Article 11, the Guarantor (including, for clarity, any other Person that becomes a Guarantor
of Obligations relating to Securities under this Indenture) hereby agrees that a notation of such Guarantee substantially in the
form attached hereto as Exhibit B will be endorsed by an Officer of such Guarantor on each Security authenticated
and delivered by the Trustee or the Company, and that this Indenture will be executed on behalf of such Guarantor by one of its
Officers. The Guarantor hereby agrees that its Guarantee set forth in Article 11Section 11.1 will remain in full force and effect
notwithstanding any failure to endorse on each Security a notation of such Guarantee. If an Officer whose signature is on this
Indenture or on the Guarantee no longer holds that office at the time the Trustee authenticates the Security on which a Guarantee
is endorsed, the Guarantee will be valid nevertheless. The delivery of any Security by the Trustee, after the authentication thereof
hereunder, will constitute due delivery of the Guarantee set forth in this Indenture on behalf of the Guarantor.
| (a) | In the event of any sale or other disposition of all or substantially all of the assets of the
Guarantor, by way of merger, consolidation or otherwise, or a sale or other disposition of all of the membership interests in the
Guarantor, in each case to a Person that is not (either before or after giving effect to such transactions) the Company or an Affiliate
of the Company, then the Guarantor (in the event of a sale or other disposition, by way of merger, consolidation or otherwise,
of all of the membership interests in the Guarantor) or the Person acquiring the property (in the event of a sale or other disposition
of all or substantially all of the assets of the Guarantor) will be released and relieved of any Obligations under the Guarantee
and the Lien on the Collateral of such Guarantor under the Pledge and Security Agreement; provided, however, that the Net
Proceeds of such sale or other disposition are applied in accordance with the applicable provisions of this Indenture, and the
Guarantor ceases to be a majority-owned Subsidiary of the Company or any affiliate thereof, as a result of the sale or other disposition.
In any other case, there shall be no release of the Guarantor under this Section 11.4. |
| (b) | Upon satisfaction and discharge of this Indenture in accordance with Article 8, the Guarantor will
be released and relieved of any Obligations under its Guarantee. |
Article
12
COLLATERAL AND SECURITY
| Section 12.1 | COLLATERAL DOCUMENTS |
| (a) | The due and punctual payment of the principal of and interest, if any, on the Securities when and
as the same shall be due and payable on any Payment Date (whether upon maturity, by acceleration, repurchase, redemption or otherwise),
and interest on the overdue principal of and defaulted interest (to the extent permitted by law), if any, on the Securities and
performance of all other Obligations of the Company and the Guarantor to the Holders of Securities or the Trustee under this Indenture
and the Securities, according to the terms hereunder or thereunder, shall be secured as provided in the Collateral Documents. Each
Holder of Securities, by its acceptance thereof, consents and agrees to the terms of the Collateral Documents (including without
limitation the provisions respecting the foreclosure on and release of the Collateral) as the same may be in effect or may be amended
from time to time in accordance with their terms and authorizes and directs the Trustee to enter into the Collateral Documents
and to perform its obligations and exercise its rights thereunder in accordance therewith. |
| (b) | The Company and the Guarantor shall do or cause to be done all such acts and things as may be necessary
or proper, or as may be required by the provisions of any Collateral Document, to assure and confirm to the Trustee the security
interest in the Collateral contemplated hereby, by any Collateral Document or any part thereof, as from time to time constituted,
so as to render the same available for the security and benefit of the Holders of Securities under this Indenture, according to
the intent and purposes herein expressed. The Company shall take, or shall cause its Subsidiaries to take, upon request of the
Trustee, any and all actions reasonably required to cause the Collateral Documents to create and maintain, as security for the
Obligations of the Company and Guarantor hereunder, a valid and enforceable perfected Lien in and on all of the Collateral, in
favor of the Trustee for the benefit of the Holders of Securities under this Indenture, which security interest is superior to
and prior to the rights of all third Persons and subject to no other Liens other than Permitted Liens. |
| (c) | The Company and the Guarantor shall pledge as additional Collateral all After-Acquired Property,
subject to Permitted Liens. The Company and the Guarantor shall also use all commercially reasonable efforts to ensure that any
material contract or agreement relating to After-Acquired Property will not contain provisions that would impair or prevent the
creation of a security interest therein or result in such contract or After-Acquired Property being excluded from the Collateral. |
| (d) | The Company, the Guarantor and the Trustee are also party to (i) the Intercreditor Agreement, which
agreement is a Collateral Document, the purpose of which is to ensure ratable and pari passu rights with respect to payment and
certain Collateral as among the Holders of the Securities, the holders of Guarantor Secured Notes and the holders of Renewable
Secured Debentures (together with any Pari Passu Debt created in the future), and (ii) the Pledge and Security Agreement, which
agreement is a Collateral Document, the purpose of which is to effect the grant of security interests in certain Collateral shared
among the holders of the above-referenced Pari Passu Debt. The terms and conditions of the Intercreditor Agreement and the Pledge
and Security Agreement are incorporated herein by this reference. |
| Section 12.2 | Recording and Opinion |
| (a) | The Company shall furnish to the Trustee contemporaneously with the execution and delivery of this
Indenture and the Collateral Documents an Opinion of Counsel stating that in the opinion of such counsel the Collateral Documents
are effective to create a Lien in the collateral described therein to the extent that the Company has rights in or the power to
transfer such collateral. |
| (b) | The Company shall otherwise comply with the provisions of TIA §314(b). |
| Section 12.3 | RELEASE OF COLLATERAL |
| (a) | Subject to paragraphs (b), (c) and (d) below, Collateral shall automatically be released from the
Lien and security interest created by the Collateral Documents at any time or from time to time in accordance with the provisions
of the Collateral Documents or as provided in this Indenture. In addition, upon the request of the Company pursuant to an Officers’
Certificate certifying that all conditions precedent hereunder have been met and stating whether or not such release is in connection
with an asset sale by the Company or the Guarantor (at the sole cost and expense of the Company and without any recourse, representation
or warranty), the Trustee shall release Collateral that is sold, conveyed or disposed of in compliance with the provisions of this
Indenture; provided, however, that if such sale, conveyance or disposition constitutes a sale of assets, the Net Proceeds of such
asset sale must be applied in accordance with the applicable provisions of this Indenture as a condition precedent for the release
of Collateral. Upon receipt of such Officers’ Certificate, the Trustee shall, at the sole cost and expense of the Company
and without recourse, representation or warranty, execute, deliver or acknowledge any necessary or proper instruments of termination,
satisfaction or release to evidence the release of any Collateral permitted to be released pursuant to this Indenture or the Collateral
Documents. |
| (b) | No Collateral shall be released from the Liens and security interest created by the Collateral
Documents pursuant to the provisions of the Collateral Documents unless there shall have been delivered to the Trustee the Officers
Certificate required by this Section. |
| (c) | At any time when a Default or Event of Default shall have occurred and be continuing, the maturity
of the Securities shall have been accelerated (whether by declaration or otherwise), and the Trustee shall have delivered a notice
of acceleration to the Company, no release of Collateral pursuant to the provisions of the Collateral Documents shall be effective
as against the Holders of Securities. |
| (d) | The release of any Collateral from the terms of this Indenture and the Collateral Documents shall
not be deemed to impair the security under this Indenture in contravention of the provisions hereof if and to the extent the Collateral
is released pursuant to the terms hereof. To the extent applicable, the Company shall cause TIA §313(b), relating to reports,
and TIA §314(d), relating to the release of property or securities from the Lien and security interest of the Collateral Documents
and relating to the substitution therefor of any property or securities to be subjected to the Lien and security interest of the
Collateral Documents, to be complied with. Any certificate or opinion required by TIA §314(d) may be made by an Officer of
the Company except in cases where TIA §314(d) requires that such certificate or opinion be made by an independent Person,
which Person shall be an independent engineer, appraiser or other expert selected or approved by the Trustee in the exercise of
reasonable care. |
| Section 12.4 | CERTIFICATES OF THE COMPANY; OPINION OF COUNSEL |
The Company or the
Guarantor, as applicable, shall furnish to the Trustee, prior to each proposed release of Collateral pursuant to any Collateral
Document, (i) all documents required by TIA §314(d) and (ii) an Opinion of Counsel to the effect that such accompanying documents
constitute all documents required by TIA §314(d). The Trustee may, to the extent permitted by Section 7.2 and Section 7.3,
accept as conclusive evidence of compliance with the foregoing provisions the appropriate statements contained in such documents
and such Opinion of Counsel.
| Section 12.5 | CERTIFICATES OF THE
TRUSTEE |
In the event that
the Company or the Guarantor wishes to release Collateral in accordance with the Collateral Documents and has delivered the certificates
and documents required by the Collateral Documents and Section 12.3 and Section 12.4, the Trustee shall determine whether it has
received all documentation required by TIA §314(d) in connection with such release and, based on such determination and the
Opinion of Counsel delivered pursuant to Section 12.4, shall deliver a certificate to the collateral agent, if any, setting forth
such determination (or retain the above-described certificates and documents in the event the Trustee itself serves as or fulfills
the function of a collateral agent).
| Section 12.6 | AUTHORIZATION OF
ACTIONS TO BE TAKEN BY THE TRUSTEE UNDER THE COLLATERAL DOCUMENTS |
Subject to the provisions
of Section 7.2 and Section 7.3, the Trustee may, on behalf of the Holders of Securities, take all actions it deems necessary or
appropriate in order to (a) enforce any of the terms of the Collateral Documents and (b) collect and receive any and all amounts
payable in respect of the Obligations of the Company or Guarantor hereunder. The Trustee shall have power to institute and maintain
such suits and proceedings as it may deem expedient to prevent any impairment of the Collateral by any acts that may be unlawful
or in violation of the Collateral Documents or this Indenture, and such suits and proceedings as the Trustee may deem expedient
to preserve or protect its interests and the interests of the Holders of Securities in the Collateral (including power to institute
and maintain suits or proceedings to restrain the enforcement of or compliance with any legislative or other governmental enactment,
rule or order that may be unconstitutional or otherwise invalid if the enforcement of, or compliance with, such enactment, rule
or order would impair the security interest hereunder or be prejudicial to the interests of the Holders of Securities or of the
Trustee). Notwithstanding the foregoing, the Trustee shall be entitled to seek direction from the Holders regarding those actions
to be taken and a majority in principal amount of the then-outstanding Securities shall have the right to direct those actions
to be taken by the Trustee, on the condition that indemnification for the Trustee’s fees and expenses, in a form reasonably
satisfactory to the Trustee, shall have been provided. Nevertheless, 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 12.7 | AUTHORIZATION OF
RECEIPT OF FUNDS BY THE TRUSTEE UNDER THE COLLATERAL AGREEMENT |
The Trustee is authorized
to receive any funds for the benefit of the Holders of Securities distributed under the Collateral Documents, and to make further
distributions of such funds to the Holders of Securities according to the provisions of this Indenture and the Collateral Documents.
| Section 12.8 | TERMINATION OF SECURITY INTEREST |
Upon the payment
in full of all Obligations of the Company and the Guarantor under this Indenture and the Securities, or upon legal defeasance,
the Trustee shall, at the request and sole cost and expense of the Company, deliver a certificate to the Company stating that such
Obligations have been paid in full, and release the Liens pursuant to this Indenture and the Collateral Documents.
Article
13
GENERAL PROVISIONS
| Section 13.1 | TRUST INDENTURE ACT CONTROLS |
If any provision
of this Indenture limits, qualifies or conflicts with the duties imposed by TIA §318(c), the imposed duties shall control.
| (a) | Any notice, instruction, direction, request or other communication by the Company, the Trustee
or any holder of Senior Debt to the others is duly given if in writing and delivered in person or mailed by first-class mail (registered
or certified, return-receipt requested), facsimile or overnight air courier guaranteeing next day delivery, to the other’s
address: |
If to the Company:
GWG Holdings, Inc.
000 Xxxxx Xxxxx Xxxxxx, Xxxxx 0000
Xxxxxxxxxxx, XX 00000
Attention: Chief Executive Officer
and Chief Financial Officer
Facsimile: (000) 000-0000
With a copy to:
Xxxxxx Xxxxxxx Xxxxxx and Brand, LLP
3300 Xxxxx Fargo Center
00 Xxxxx Xxxxxxx Xxxxxx
Xxxxxxxxxxx, XX 00000
Attention: Xxxx Xxxxxxxxxx
Facsimile: (000) 000-0000
If to the Trustee:
Bank of Utah
000 X. Xxxxx Xxxxxx, Xxxxx 000
Xxxx Xxxx Xxxx, XX 00000
Attention: GWG Holdings, Inc., Administrator
Facsimile: (000) 000-0000
If to a holder of
Senior Debt, such address as such holder of Senior Debt shall have provided in writing to the Company and the Trustee.
| (b) | The Company, the Trustee or a holder of Senior Debt by notice to the Company and the Trustee may
designate additional or different addresses for subsequent notices or communications. |
| (c) | All notices and communications (other than those sent to Holders) shall be deemed to have been
duly given: (i) at the time delivered by hand, if personally delivered; (ii) on the date mailed if deposited in the mail, postage
prepaid and certified; (iii) three Business Days after deposit in the mail, postage prepaid, first class but not certified; (iv)
when receipt is acknowledged, if faxed; (v) on the next Business Day after having been sent by electronic communication to a pre-designated
e-mail address; (vi) the next Business Day after timely delivery to the courier, if sent by overnight air courier guaranteeing
next day delivery; or (vii) when actually received by the recipient, if sent in some other manner not specified above. |
| (d) | Any notice or communication to a Holder shall be mailed by certified first-class mail to his address
shown on the register kept by the Registrar or sent by electronic communication to a pre-designated e-mail address. Notices mailed
or sent by electronic communication as described in the preceding sentence shall be deemed to have been duly given (i) on the date
mailed if deposited in the mail, postage prepaid and certified, or (ii) on the next Business Day after having been sent by electronic
communication. Failure to mail a notice or communication to a Holder or any defect in it shall not affect its sufficiency with
respect to other Holders. |
| (e) | If a notice or communication is mailed in the manner provided in subparagraphs (c) or (d) above
within the time prescribed, it is duly given, whether or not the addressee receives it. |
| (f) | If the Company mails a notice or communication to Holders, it shall mail a copy to the Trustee
and each Agent at the same time. |
Notwithstanding
any other provision of this Indenture or any Security, where this Indenture or any Security provides for notice of any event (including
any notice of redemption) to a Holder of a Global Security (whether by mail or otherwise), such notice shall be sufficiently given
to the Depositary for such Security (or its designee) pursuant to the customary procedures of such Depositary.
| Section 13.3 | COMMUNICATION AMONG HOLDERS |
Holders may communicate,
pursuant to TIA §312(b), with other Holders with respect to their rights under this Indenture or the Securities. The Trustee
shall be subject to §312(b). The Company, the Trustee, the Registrar and anyone else shall have the protection of TIA §312(c).
| Section 13.4 | CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT |
Upon any request
or application by the Company to the Trustee to take any action under this Indenture, the Company shall furnish to the Trustee,
if so requested:
| (a) | an Officers’ Certificate in form and substance reasonably satisfactory to the Trustee (which
shall include the statements set forth in Section 13.5) 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 |
| (b) | an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee (which shall
include the statements set forth in Section 13.5) stating that, in the opinion of such counsel, all such conditions precedent and
covenants have been complied with. |
| Section 13.5 | STATEMENTS REQUIRED IN CERTIFICATE OR LEGAL OPINION |
Each certificate
or opinion with respect to compliance with a condition or covenant provided for in this Indenture (other than a certificate provided
pursuant to TIA §314(a)(4)) shall include:
| (a) | a statement that the Person making such certificate or opinion has read such covenant or condition; |
| (b) | 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; |
| (c) | 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 whether such covenant or condition has been complied with; and |
| (d) | a statement whether, in the opinion of such Person, such condition or covenant has been complied
with. |
| Section 13.6 | RULES BY TRUSTEE AND AGENTS |
The Trustee may
make reasonable rules for action by or at a meeting of Holders. The Registrar or Paying Agent may make reasonable rules and set
reasonable requirements for its functions.
| Section 13.7 | NO RECOURSE AGAINST OTHERS |
No director, Officer,
employee, agent, manager or stockholder of the Company as such, shall have any liability for any Obligations of the Company under
the Securities or this Indenture or for any claim based on, in respect of or by reason of such Obligations or their creation. Each
Holder by accepting a Security waives and releases all such liability.
| Section 13.8 | DUPLICATE ORIGINALS |
The parties may
sign any number of copies of this Indenture. One signed copy is enough to prove this Indenture.
| Section 13.9 | GOVERNING LAW |
THE INTERNAL LAW
OF THE STATE OF DELAWARE SHALL GOVERN THIS INDENTURE AND THE SECURITIES, WITHOUT REGARD TO THE CONFLICTS-OF-LAW PROVISIONS THEREOF.
| Section 13.10 | NO ADVERSE INTERPRETATION
OF OTHER AGREEMENTS |
This Indenture may
not be used to interpret another indenture, loan or debt agreement of the Company. Any such indenture, loan or debt agreement may
not be used to interpret this Indenture.
All agreements of
the Company in this Indenture and the Securities shall bind its successors. All agreements of the Trustee in this Indenture shall
bind its successors.
| Section 13.12 | 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 13.13 | SPECIFIC
PERFORMANCE |
The holders of Senior
Debt shall be entitled to specific performance of those provisions of this Indenture set forth in Article 10 and Article 12, and
the Trustee and each Holder by accepting a Security hereby waives any rights to contest the entitlement of any holders of Senior
Debt to the same.
| Section 13.14 | COUNTERPART
ORIGINALS |
The parties may
sign any number of copies of this Indenture. Each signed copy shall be an original, but all of them together represent the same
agreement.
| Section 13.15 | TABLE OF CONTENTS,
HEADINGS, ETC. |
The Table of Contents,
Cross-Reference Table and Headings of the Articles and Sections of this Indenture have been inserted for convenience of reference
only, are not to be considered a part hereof and shall in no way modify or restrict any of the terms or provisions thereof.
| Section 13.16 | Trustee’s
Capacity |
Bank of Utah is
executing this Agreement solely in its capacity as Trustee and not in its individual capacity (except as expressly stated herein)
and in no case shall Bank of Utah (or any entity acting as Trustee hereunder) be personally liable for or on account of any of
the statements, representations, warranties, covenants or obligations stated to be those of the Trustee hereunder, all such liability,
if any, being expressly waived by the parties hereto and any Person claiming by, through, or under such party; provided, however,
that Bank of Utah (or any such successor trustee) shall be personally liable hereunder for its own gross negligence or willful
misconduct or for its breach of its covenants, representations and warranties contained herein, to the extent covenanted or made
in its individual capacity.
IN WITNESS WHEREOF,
the parties hereto have caused this Indenture to be duly executed as of the date first written above.
OBLIGOR:
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GWG HOLDINGS, INC.
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| By: |
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| Name: |
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| Title: |
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GUARANTOR:
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GWG LIFE, LLC
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| By: |
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| Name: |
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| Title: |
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TRUSTEE:
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BANK OF UTAH, not in its individual capacity but solely as Trustee
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| By: |
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| Name: |
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| Title: |
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Signature Page –
Indenture
dated as of [●], 2014
Exhibit
A
FORM OF SECURITY
[each Security or class or series of
Security, is to be attached hereto with successive series’
of a particular Security to be successively numbered]
Exhibit
B
FORM OF GUARANTEE NOTATION
FOR VALUE RECEIVED,
the Guarantor (which term includes any successor Person under the Indenture) has unconditionally guaranteed, to the extent set
forth in the Indenture and subject to the provisions in the Indenture dated as of ____________, 2014 (the “Indenture”),
by and among GWG Holdings, Inc. (the “Company”), the Guarantor party thereto and Bank of Utah, as trustee (the “Trustee”),
(i) the due and punctual payment of the principal of, premium and interest on, these Securities, whether at maturity, by acceleration,
redemption or otherwise, the due and punctual payment of interest on overdue principal of and interest on these Securities, if
any, if lawful, and the due and punctual performance of all other obligations of the Company to the Holders or the Trustee all
in accordance with the terms of the Indenture, and (ii) in case of any extension of time of payment or renewal of these Securities
or any of such other obligations, that the same will be promptly paid in full when due or performed in accordance with the terms
of the extension or renewal, whether at stated maturity, by acceleration or otherwise.
The obligations
of the Guarantor to the Holders of Securities and to the Trustee pursuant to the Guarantee and the Indenture are expressly set
forth in Article 11 of the Indenture and reference is hereby made to the Indenture for the precise terms of the Guarantee.
Capitalized terms
used but not defined herein have the meanings given to them in the Indenture.
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GWG
Life, LLC
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By: |
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Name: |
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Title: |
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EXHIBIT C
FORM OF PLEDGE AND SECURITY AGREEMENT
EXHIBIT D
FORM OF INTERCREDITOR AGREEMENT
