Common use of Subsidiary Shares Clause in Contracts

Subsidiary Shares. All of the issued and outstanding shares or equity interests of each of the Algonquin Companies, the Algonquin Partnerships and the Algonquin Trusts have been duly authorized and validly issued, are fully paid and non-assessable and, except as otherwise disclosed in the Registration Statement, the Prospectuses and the Disclosure Package, if any, or any amendment to the Registration Statement or amendment to the Prospectuses, are owned by the Corporation, directly or through subsidiaries, free and clear of any security interest, mortgage, pledge, lien, encumbrance or claim, except for any such security interests, mortgages, pledges, liens, encumbrances or claims that do not, individually or in the aggregate, have a Material Adverse Effect.