The Company conducts a significant proportion of its operating activities through subsidiaries. Although the Guarantee Obligations (as defined herein) are senior obligations of the Company, they are effectively subordinated to all existing and future liabilities of the Company's consolidated subsidiaries and operating companies, other than BFI, to the extent of any of its indebtedness that is guaranteed by the Company on parity with the Company's guarantee of the notes offered hereby. The Indenture does not restrict the ability of the Company's subsidiaries to incur additional indebtedness. As the Company conducts a significant proportion of its operating activities through subsidiaries, the Company's ability to service its indebtedness is dependent on dividends and other payments made on its investments. Certain of the instruments governing the indebtedness of the companies in which the Company has an investment may restrict the ability of such companies to pay dividends or make other payments on investments under certain circumstances. Dividends paid in kind are excluded so long as they are retained in the same form as received and are legally and beneficially owned by the Company and/or one or more designated Affiliates of the Company.