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                                                                     EXHIBIT 4.1

                                     FORM OF

                          SUPPLEMENTAL INDENTURE NO. 7

                                 by and between

                          HOSPITALITY PROPERTIES TRUST

                                       and

                         U.S. BANK NATIONAL ASSOCIATION

                                   as Trustee

                             as of January 24, 2003

           SUPPLEMENTAL TO THE INDENTURE DATED AS OF FEBRUARY 25, 1998

                      ------------------------------------

                          HOSPITALITY PROPERTIES TRUST

                          6 3/4% Senior Notes due 2013

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     This SUPPLEMENTAL INDENTURE NO. 7 (this "Supplemental Indenture") made and
entered into as of January 24, 2003 between HOSPITALITY PROPERTIES TRUST, a
Maryland real estate investment trust (the "Company"), and U.S. BANK NATIONAL
ASSOCIATION, a national banking association (and successor to State Street Bank
and Trust Company ("State Street") in its capacity as Trustee), as Trustee (the
"Trustee").

                                WITNESSETH THAT:

     WHEREAS, the Company and State Street have executed and delivered an
Indenture, dated as of February 25, 1998 (the "Indenture"), relating to the
Company's issuance, from time to time, of various series of debt securities; and

     WHEREAS, U.S. Bank National Association has acquired and succeeded to
substantially all of the corporate trust business of State Street, and, being
eligible to serve as trustee under the Indenture, has succeeded to State Street
as Trustee under the Indenture; and

     WHEREAS, the Company has determined to issue debt securities known as its 6
3/4% Senior Notes due 2013; and

     WHEREAS, the Indenture provides that certain terms and conditions for each
series of debt securities issued by the Company thereunder may be set forth in
an indenture supplemental to the Indenture;

     NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH:

                                    ARTICLE 1

                                  DEFINED TERMS

     Section 1.1 The following definitions supplement, and, to the extent
inconsistent with, replace the definitions in Section 101 of the Indenture:

     "Acquired Debt" means Debt of a Person (i) existing at the time such Person
becomes a Subsidiary or (ii) assumed in connection with the acquisition of
assets from such Person, in each case, other than Debt incurred in connection
with, or in contemplation of, such Person becoming a Subsidiary or such
acquisition. Acquired Debt shall be deemed to be incurred on the date of the
related acquisition of assets from any Person or the date the acquired Person
becomes a Subsidiary.

     "Annual Debt Service" as of any date means the maximum amount which is
expensed in any 12-month period for interest on Debt of the Company and its
Subsidiaries.

     "Business Day" means any day other than a Saturday or Sunday or a day on
which banking institutions in the City of New York or in the city in which the
Corporate Trust Office of the Trustee is located, are required or authorized to
close.

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     "Capital Stock" means, with respect to any Person, any capital stock
(including preferred stock), shares, interests, participation or other ownership
interests (however designated) of such Person and any rights (other than debt
securities convertible into or exchangeable for capital stock), warrants or
options to purchase any thereof.

     "Consolidated Income Available for Debt Service" for any period means
Earnings from Operations of the Company and its Subsidiaries plus amounts which
have been deducted, and minus amounts which have been added, for the following
(without duplication): (i) interest on Debt of the Company and its Subsidiaries,
(ii) cash reserves made by lessees as required by the Company's leases for
periodic replacement and refurbishment of the Company's assets, (iii) provision
for taxes of the Company and its Subsidiaries based on income, (iv) amortization
of debt discount and deferred financing costs, (v) provisions for gains and
losses on properties and property depreciation and amortization, (vi) the effect
of any noncash charge resulting from a change in accounting principles in
determining Earnings from Operations for such period and (vii) amortization of
deferred charges.

     "Debt" of the Company or any Subsidiary means, without duplication, any
indebtedness of the Company or any Subsidiary, whether or not contingent, in
respect of (i) borrowed money or evidenced by bonds, notes, debentures or
similar instruments, (ii) indebtedness for borrowed money secured by any
Encumbrance existing on property owned by the Company or any Subsidiary, to the
extent of the lesser of (x) the amount of indebtedness so secured and (y) the
fair market value of the property subject to such Encumbrance, (iii) the
reimbursement obligations, contingent or otherwise, in connection with any
letters of credit actually issued (other than letters of credit issued to
provide credit enhancement or support with respect to other indebtedness of the
Company or any Subsidiary otherwise reflected as Debt hereunder) or amounts
representing the balance deferred and unpaid of the purchase price of any
property or services, except any such balance that constitutes an accrued
expense or trade payable, or all conditional sale obligations or obligations
under any title retention agreement, (iv) the principal amount of all
obligations of the Company or any Subsidiary with respect to redemption,
repayment or other repurchase of any Disqualified Stock, or (v) any lease of
property by the Company or any Subsidiary as lessee which is reflected on the
Company's consolidated balance sheet as a capitalized lease in accordance with
GAAP, to the extent, in the case of items of indebtedness under (i) through
(iii) above, that any such items (other than letters of credit) would appear as
a liability on the Company's consolidated balance sheet in accordance with GAAP,
and also includes, to the extent not otherwise included, any obligation by the
Company or any Subsidiary to be liable for, or to pay, as obligor, guarantor or
otherwise (other than for purposes of collection in the ordinary course of
business), Debt of another Person (other than the Company or any Subsidiary) (it
being understood that Debt shall be deemed to be incurred by the Company or any
Subsidiary whenever the Company or such Subsidiary shall create, assume,
guarantee or otherwise become liable in respect thereof).

     "Disqualified Stock" means, with respect to any Person, any Capital Stock
of such Person which by the terms of such Capital Stock (or by the terms of any
security into which it is convertible or for which it is exchangeable or
exercisable), upon the happening of any event or otherwise (i) matures or is
mandatorily redeemable, pursuant to a sinking fund obligation or

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otherwise (other than Capital Stock which is redeemable solely in exchange for
common stock or shares), (ii) is convertible into or exchangeable or exercisable
for Debt or Disqualified Stock, or (iii) is redeemable at the option of the
holder thereof, in whole or in part (other than Capital Stock which is
redeemable solely in exchange for common stock or shares), in each case on or
prior to the stated maturity of the Notes.

     "Earnings from Operations" for any period means net earnings excluding
gains and losses on sales of investments, extraordinary items, losses from early
extinguishment of debt and property valuation losses, as reflected in the
financial statements of the Company and its Subsidiaries for such period,
determined on a consolidated basis in accordance with GAAP.

     "Encumbrance" means any mortgage, lien, charge, pledge or security interest
of any kind.

     "Make-Whole Amount" means, in connection with any optional redemption or
accelerated payment of any Notes prior to August 15, 2012, the excess, if any,
of (i) the aggregate present value as of the date of such redemption or
accelerated payment of each dollar of principal being redeemed or paid and the
amount of interest (exclusive of interest accrued to the date of redemption or
accelerated payment) that would have been payable in respect of such dollar if
such redemption or accelerated payment had been made on August 15, 2012,
determined by discounting, on a semiannual basis, such principal and interest at
the Reinvestment Rate (determined on the third Business Day preceding the date
such notice of redemption is given or declaration of acceleration is made) from
the respective dates on which such principal and interest would have been
payable if such redemption or accelerated payment had been made on August 15,
2012, over (ii) the aggregate principal amount of the Notes being redeemed or
paid. In the case of any redemption or accelerated payment of notes on or after
August 15, 2012, the Make-Whole Amount means zero. For purposes of this
Supplemental Indenture and the Notes, references in the Indenture to the payment
of the principal (and premium, if any) and interest on the Notes shall be deemed
to include the payment of the Make-Whole Amount, if any, due upon redemption
with respect to the Notes. The Make-Whole Amount shall be calculated by the
Company and set forth in an Officer's Certificate delivered to the Trustee, and
the Trustee shall be entitled to rely on said Officer's Certificate.

     "Notes" means the Company's 6 3/4% Senior Notes, due 2013, issued under
this Supplemental Indenture and the Indenture, as amended or supplemented from
time to time.

     "Reinvestment Rate" means a rate per annum equal to the sum of 0.50% (fifty
one hundredths of one percent) plus the yield on treasury securities at constant
maturity under the heading "Week Ending" published in the Statistical Release
under the caption "Treasury Constant Maturities" for the maturity (rounded to
the nearest month) corresponding to the remaining life to maturity (which, the
case of maturities corresponding to the principal and interest due on the notes
at their maturity, shall be deemed to be August 15, 2012), as of the payment
date of the principal being redeemed or paid. If no maturity exactly corresponds
to such maturity, yields for the two published maturities most closely
corresponding to such maturity shall be calculated pursuant to the immediately
preceding sentence and the Reinvestment Rate shall be interpolated or
extrapolated from such yields on a straight-line basis,

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rounding in each of such relevant periods to the nearest month. For purposes of
calculating the Reinvestment Rate, the most recent Statistical Release published
prior to the date of determination of the Make-Whole Amount shall be used.

     "Secured Debt" means Debt secured by any mortgage, lien, charge, pledge or
security interest of any kind.

     "Statistical Release" means the statistical release designated "H.15(519)"
or any successor publication which is published weekly by the Federal Reserve
System and which establishes yields on actively traded United States government
securities adjusted to constant maturities or, if such statistical release is
not published at the time of any determination under this Supplemental
Indenture, then any publicly available source of similar market data which shall
be designated by the Company.

     "Subsidiary" means any corporation or other entity of which a majority of
(i) the voting power of the voting equity securities or (ii) the outstanding
equity interests of which are owned, directly or indirectly, by the Company or
one or more other Subsidiaries of the Company. For the purposes of this
definition, "voting equity securities" means equity securities having voting
power for the election of directors, whether at all times or only so long as no
senior class of security has such voting power by reason of any contingency.

     "Total Assets" as of any date means the sum of (i) the Undepreciated Real
Estate Assets and (ii) all other assets of the Company and its Subsidiaries
determined in accordance with GAAP (but excluding accounts receivable and
intangibles).

     "Total Unencumbered Assets" means the sum of (i) those Undepreciated Real
Estate Assets not subject to an Encumbrance for borrowed money and (ii) all
other assets of the Company and its Subsidiaries not subject to an Encumbrance
for borrowed money determined in accordance with GAAP (but excluding accounts
receivable and intangibles).

     "Undepreciated Real Estate Assets" as of any date means the cost (original
cost plus capital improvements) of real estate assets of the Company and its
Subsidiaries on such date, before depreciation and amortization determined on a
consolidated basis in accordance with GAAP.

     "Unsecured Debt" means Debt which is not secured by any of the properties
of the Company or any Subsidiary.

                                    ARTICLE 2

                               TERMS OF THE NOTES

     Section 2.1 Pursuant to Section 301 of the Indenture, the Notes shall have
the following terms and conditions:

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     (a) TITLE; LIMITATION ON AGGREGATE PRINCIPAL AMOUNT; FORM OF NOTES. The
Notes shall be Registered Securities under the Indenture and shall be known as
the Company's "6 3/4% Senior Notes due 2013." The aggregate principal amount of
Notes which may be authenticated and delivered under this Indenture Supplement
shall not, except as permitted by the provisions of the Indenture, exceed
$175,000,000 provided that the Company may, without the consent of the holders
of the Notes, reopen this series and issue additional Notes under the Indenture
and this Indenture Supplement in addition to the $175,000,000 of Notes
authorized as of the date hereof. The Notes (together with the Trustee's
certificate of authentication) shall be substantially in the form of Exhibit A
hereto, which is hereby incorporated in and made a part of this Supplemental
Indenture.

     The Notes will be issued in the form of one or more registered global
securities without coupons ("Global Notes") which will be deposited with, or on
behalf of, The Depository Trust Company ("DTC"), and registered in the name of
DTC's nominee, Cede & Co. Except under the circumstance described below, the
Notes will not be issuable in definitive form. Unless and until it is exchanged
in whole or in part for the individual notes represented thereby, a Global Note
may not be transferred except as a whole by DTC to a nominee of DTC or by a
nominee of DTC to DTC or another nominee of DTC or by DTC or any nominee of DTC
to a successor depositary or any nominee of such successor.

     So long as DTC or its nominee is the registered owner of a Global Note, DTC
or such nominee, as the case may be, will be considered the sole owner or holder
of the Notes represented by such Global Note for all purposes under this
Supplemental Indenture. Except as described below, owners of beneficial interest
in Notes evidenced by a Global Note will not be entitled to have any of the
individual Notes represented by such Global Note registered in their names, will
not receive or be entitled to receive physical delivery of any such Notes in
definitive form and will not be considered the owners or holders thereof under
the Indenture or this Supplemental Indenture.

     If DTC is at any time unwilling, unable or ineligible to continue as
depositary and a successor depositary is not appointed by the Company within 90
days, the Company will issue individual Notes in exchange for the Global Note or
Global Notes representing such Notes. In addition, the Company may at any time
and in its sole discretion, subject to certain limitations set forth in the
Indenture, determine not to have any of such Notes represented by one or more
Global Notes and, in such event, will issue individual Notes in exchange for the
Global Note or Global Notes representing the Notes. Individual Notes so issued
will be issued in denominations of $1,000 and integral multiples thereof.

     (b) INTEREST AND INTEREST RATE. The Notes will bear interest at a rate
of 6 3/4% per annum, from January 24, 2003 (or, in the case of Notes issued
upon the reopening of this series of Notes, from the date designated by the
Company in connection with such reopening) or from the immediately preceding
Interest Payment Date to which interest has been paid or duly provided for,
payable semi-annually in arrears on February 15 and August 15 of each year,
commencing August 15, 2003 or if such day is not a Business Day (as defined
in the Indenture), on the next succeeding Business Day (each of which shall
be an "Interest Payment Date"), to the Persons in

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whose names the Notes are registered in the Security Register at the close of
business on the day falling 14 calendar days immediately preceding the
applicable interest payment date (whether or not a Business Day), as the case
may be (each, a "Regular Record Date").

     (c) PRINCIPAL REPAYMENT; CURRENCY. The stated maturity of the Notes is
February 15, 2013, provided, however, the Notes may be earlier redeemed at the
option of the Company as provided in paragraph (d) below. The principal of each
Note payable on its maturity date shall be paid against presentation and
surrender thereof at the Corporate Trust Office of the Trustee, located
initially at Two Avenue de Lafayette, Boston, Massachusetts 02111, in such coin
or currency of the United States of America as at the time of payment is legal
tender for the payment of public or private debts. The Company will not pay
Additional Amounts (as defined in the Indenture) on the Notes.

     (d) REDEMPTION AT THE OPTION OF THE COMPANY. The Notes will be subject to
redemption at any time at the option of the Company, in whole or in part, upon
not less than 30 nor more than 60 days' notice to each Holder of Notes to be
redeemed at its address appearing in the Security Register, at a price equal to
the sum of (i) the principal amount of the Notes being redeemed, plus accrued
and unpaid interest to but excluding the applicable Redemption Date, plus (ii)
the Make-Whole Amount, if any. If the notes are redeemed on or after August 15,
2012, the redemption price will not include the Make-Whole Amount.

     (e) NOTICES. All notices and other communications hereunder shall be in
writing and shall be deemed to have been duly given if mailed or transmitted by
any standard form of telecommunication. Notices to the Company shall be directed
to it at 400 Centre Street, Newton, Massachusetts 02458, Attention: President;
notices to the Trustee shall be directed to it at Two Avenue de Lafayette,
Boston, Massachusetts 02111, Attention: Corporate Trust Department, Re:
Hospitality Properties Trust 6 3/4% Senior Notes due 2013, or as to either
party, at such other address as shall be designated by such party in a written
notice to the other party.

     (f) GLOBAL NOTE LEGEND. Each Global Note shall bear the following legend on
the face thereof:

     UNLESS THIS CERTIFICATE 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 CERTIFICATE
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 AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

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     (g) APPLICABILITY OF DISCHARGE, DEFEASANCE AND COVENANT DEFEASANCE
PROVISIONS. The Discharge, Defeasance and Covenant Defeasance provisions in
Article Fourteen of the Indenture will apply to the Notes.

                                    ARTICLE 3

                              ADDITIONAL COVENANTS

     Section 3.1 In addition to the covenants of the Company set forth in
Article Ten of the Indenture, for the benefit of the holders of the Notes:

     (a) LIMITATIONS ON INCURRENCE OF DEBT.

     (i) The Company will not, and will not permit any Subsidiary to, incur any
Debt if, immediately after giving effect to the incurrence of such additional
Debt and the application of the proceeds thereof, the aggregate principal amount
of all outstanding Debt of the Company and its Subsidiaries on a consolidated
basis determined in accordance with GAAP is greater than 60% of the sum
("Adjusted Total Assets") of (without duplication) (i) the Total Assets of the
Company and its Subsidiaries as of the end of the calendar quarter covered in
the Company's Annual Report on Form 10-K, or the Quarterly Report on Form 10-Q,
as the case may be, most recently filed with the Securities and Exchange
Commission (or, if such filing is not permitted under the Securities Exchange
Act of 1934, as amended (the "Exchange Act"), with the Trustee) prior to the
incurrence of such additional Debt and (ii) the purchase price of any real
estate assets or mortgages receivable acquired, and the amount of any securities
offering proceeds received (to the extent that such proceeds were not used to
acquire real estate assets or mortgages receivable or used to reduce Debt), by
the Company or any Subsidiary since the end of such calendar quarter, including
those proceeds obtained in connection with the incurrence of such additional
Debt.

     (ii) In addition to the foregoing limitations on the incurrence of Debt,
the Company will not, and will not permit any Subsidiary to, incur any Secured
Debt if, immediately after giving effect to the incurrence of such additional
Secured Debt and the application of the proceeds thereof, the aggregate
principal amount of all outstanding Secured Debt of the Company and its
Subsidiaries on a consolidated basis is greater than 40% of Adjusted Total
Assets.

     (iii) In addition to the foregoing limitations on the incurrence of Debt,
the Company will not, and will not permit any Subsidiary to, incur any Debt if
the ratio of Consolidated Income Available for Debt Service to the Annual Debt
Service for the four consecutive fiscal quarters most recently ended prior to
the date on which such additional Debt is to be incurred shall have been less
than 1.5x, on a pro forma basis after giving effect thereto and to the
application of the proceeds therefrom, and calculated on the assumption that (i)
such Debt and any other Debt incurred by the Company and its Subsidiaries since
the first day of such four-quarter period and the application of the proceeds
therefrom, including to refinance other Debt, had occurred at the beginning of
such period; (ii) the repayment or retirement of any other Debt by the Company
and its Subsidiaries since the first date of such four-quarter period had been
repaid or retired at the

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beginning of such period (except that, in making such computation, the amount of
Debt under any revolving credit facility shall be computed based upon the
average daily balance of such Debt during such period); (iii) in the case of
Acquired Debt or Debt incurred in connection with any acquisition since the
first day of such four-quarter period, the related acquisition had occurred as
of the first day of such period with appropriate adjustments with respect to
such acquisition being included in such pro forma calculation; and (iv) in the
case of any acquisition or disposition by the Company or its Subsidiaries of any
asset or group of assets since the first day of such four-quarter period,
whether by merger, stock purchase or sale, or asset purchase or sale, such
acquisition or disposition or any related repayment of Debt had occurred as of
the first day of such period with the appropriate adjustments with respect to
such acquisition or disposition being included in such pro forma calculation. If
the Debt giving rise to the need to make the foregoing calculation or any other
Debt incurred after the first day of the relevant four-quarter period bears
interest at a floating rate then, for purposes of calculating the Annual Debt
Service, the interest rate on such Debt shall be computed on a pro forma basis
as if the average interest rate which would have been in effect during the
entire such four-quarter period had been the applicable rate for the entire such
period.

     (b) MAINTENANCE OF TOTAL UNENCUMBERED ASSETS. The Company and its
Subsidiaries will maintain at all times Total Unencumbered Assets of not less
than 200% of the aggregate outstanding principal amount of the Unsecured Debt of
the Company and its Subsidiaries on a consolidated basis.

                                    ARTICLE 4

                          ADDITIONAL EVENTS OF DEFAULT

     Section 4.1 For purposes of this Supplemental Indenture and the Notes, in
addition to the Events of Default set forth in Section 501 of the Indenture, it
shall also constitute an "Event of Default" if a default under any bond,
debenture, note or other evidence of indebtedness of the Company (including a
default with respect to any other series of securities), or under any mortgage,
indenture or other instrument of the Company under which there may be issued or
by which there may be secured or evidenced any indebtedness for money borrowed
by the Company (or by any Subsidiary, the repayment of which the Company has
guaranteed or for which the Company is directly responsible or liable as obligor
or guarantor) having an aggregate principal amount outstanding of at least
$20,000,000, whether such indebtedness now exists or shall hereafter be incurred
or created, which default shall have resulted in such indebtedness becoming or
being declared due and payable prior to the date on which it would otherwise
have become due and payable, without such indebtedness having been discharged or
such acceleration having been rescinded or annulled within a period of ten days
after there shall have been given, by registered or certified mail, to the
Company by the Trustee or to the Company and the Trustee by the Holders of at
least 25% in principal amount of the outstanding Notes, a written notice
specifying such default and requiring the Company to cause such indebtedness to
be discharged or cause such acceleration to be rescinded or annulled and stating
that such notice is a "Notice of Default" hereunder.

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     Section 4.2 Notwithstanding any provisions to the contrary in the
Indenture, upon any acceleration of the Notes under Section 502 of the
Indenture, the amount immediately due and payable in respect of the Notes shall
equal the Outstanding principal amount thereof, plus accrued interest, plus, if
such acceleration occurs prior to August 15, 2012, the Make-Whole Amount.

                                    ARTICLE 5

                                  EFFECTIVENESS

     This Supplemental Indenture shall be effective for all purposes as of the
date and time this Supplemental Indenture has been executed and delivered by the
Company and the Trustee in accordance with Article Nine of the Indenture. As
supplemented hereby, the Indenture is hereby confirmed as being in full force
and effect.

                                    ARTICLE 6

                                  MISCELLANEOUS

     Section 6.1 In the event any provision of this Supplemental Indenture shall
be held invalid or unenforceable by any court of competent jurisdiction, such
holding shall not invalidate or render unenforceable any other provision hereof
or any provision of the Indenture.

     Section 6.2 To the extent that any terms of this Supplemental Indenture or
the Notes are inconsistent with the terms of the Indenture, the terms of this
Supplemental Indenture or the Notes shall govern and supersede such inconsistent
terms.

     Section 6.3 This Supplemental Indenture shall be governed by and construed
in accordance with the laws of The Commonwealth of Massachusetts.

     Section 6.4 This Supplemental Indenture may be executed in several
counterparts, each of which shall be an original and all of which shall
constitute but one and the same instrument.

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     IN WITNESS WHEREOF, the Company and the Trustee have caused this
Supplemental Indenture to be executed as an instrument under seal in their
respective corporate names as of the date first above written.

                             HOSPITALITY PROPERTIES TRUST

                             By:
                                ----------------------------------------
                                Name: John G. Murray
                                Title: President

                             U.S. BANK NATIONAL ASSOCIATION, as Trustee

                             By:
                                ----------------------------------------
                                Name:
                                Title:

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                                                                       EXHIBIT A

                                 (Face of Note)

                          6 3/4% Senior Notes due 2013

No.                                                                 $__________

                          HOSPITALITY PROPERTIES TRUST

promises to pay to _______________________________________ or registered
assigns, the principal sum of __________ ($_______) on February 15, 2013,
subject to the terms set forth on the reverse of this Note and the terms of the
Indenture referred to therein.

Interest Payment Dates: February 15 and August 15, commencing August 15, 2003.
Record Dates: the day falling 14 calendar days prior to any Interest Payment
Date.

CUSIP No:  _____________

                                  HOSPITALITY PROPERTIES TRUST

                                  By:
                                     --------------------------------------
                                      Name:
                                      Title:

Dated:

This is one of the Notes referred to in the within-mentioned Indenture:

U.S. BANK NATIONAL ASSOCIATION, as Trustee

By:
   ----------------------------------
    Authorized Officer

                                      A-1

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             [THE FOLLOWING CONSTITUTES THE REVERSE OF THE SECURITY]

                          HOSPITALITY PROPERTIES TRUST

                          6 3/4% Senior Notes due 2013

     Capitalized terms used herein have the meanings assigned to them in the
Indenture (as defined below) unless otherwise indicated.

     1. INTEREST. Hospitality Properties Trust, a Maryland real estate
investment trust (the "Company"), promises to pay interest on the principal
amount of this Note at the rate and in the manner specified below.

     The Company shall pay in cash interest on the principal amount of this Note
at the rate per annum of 6 3/4%. The Company will pay interest semi-annually in
arrears on February 15 and August 15 of each year, commencing on August 15, 2003
or if any such day is not a Business Day (as defined in the Indenture), on the
next succeeding Business Day (each an "Interest Payment Date"), to Holders of
record on the day falling 14 calendar days immediately preceding such Interest
Payment Date (whether or not a Business Day).

     Interest will be computed on the basis of a 360-day year consisting of
twelve 30-day months. Interest shall accrue from the most recent date to which
interest has been paid or, if no interest has been paid, from the date of the
original issuance of the Notes.

     2. METHOD OF PAYMENT. The Company will pay interest on the Notes (except
defaulted interest) to the Persons who are registered Holders of Notes at the
close of business on the record date next preceding the Interest Payment Date,
even if such Notes are canceled after such record date and on or before such
Interest Payment Date. The Company will pay principal and interest in money of
the United States that at the time of payment is legal tender for payment of
public and private debts. The Company, however, may pay principal, premium, if
any, and interest by check payable in such money. It may mail an interest check
to a Holder's registered address.

     3. INDENTURE. The Company issued the Notes under an Indenture dated as of
February 25, 1998 and Supplemental Indenture No. 7 dated as of January 24, 2003
(collectively, the "Indenture") between the Company and the Trustee. The terms
of the Notes include those stated in the Indenture and those made part of the
Indenture by reference to the Trust Indenture Act of 1939 (15 U.S. Code secs.
77aaa-77bbbb) as in effect on the date of the Indenture. The Notes are subject
to all such terms, and Holders of the Notes are referred to the Indenture and
such Act for a statement of such terms. The terms of the Indenture shall govern
any inconsistencies between the Indenture and the Notes. The Notes are unsecured
general obligations of the Company initially issued in an aggregate principal
amount of $175,000,000.

     4. OPTIONAL REDEMPTION. The Notes will be subject to redemption at any time
at the option of the Company, in whole or in part, upon not less than 30 nor
more than 60 days' notice, at a redemption price equal to the sum of (i) the
principal amount of the Notes being redeemed,

                                      A-2

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plus accrued and unpaid interest to but excluding the applicable Redemption Date
and (ii) the Make-Whole Amount.

     As used herein the term "Make-Whole Amount" means, in connection with any
optional redemption or accelerated payment of any notes prior to August 15,
2012, the excess, if any, of (i) the aggregate present value as of the date of
such redemption or accelerated payment of each dollar of principal being
redeemed or paid and the amount of interest (exclusive of interest accrued to
the date of redemption or accelerated payment) that would have been payable in
respect of such dollar if such redemption or accelerated payment had been made
on August 15, 2012, determined by discounting, on a semiannual basis, such
principal and interest at the Reinvestment Rate (determined on the third
Business Day preceding the date such notice of redemption is given or
declaration of acceleration is made) from the respective dates on which such
principal and interest would have been payable if such redemption or accelerated
payment had been made on August 15, 2012, over (ii) the aggregate principal
amount of the Notes being redeemed or paid. In the case of any redemption or
accelerated payment of notes on or after August 15, 2012, the Make-Whole Amount
means zero. For purposes of the Indenture and the Notes, references in the
Indenture to the payment of the principal (and premium, if any) and interest on
the Notes shall be deemed to include the payment of the Make-Whole Amount, if
any, due upon redemption with respect to the Notes. The Make-Whole Amount shall
be calculated by the Company and set forth in an Officer's Certificate delivered
to the Trustee, and the Trustee shall be entitled to rely on said Officer's
Certificate.

     As used herein the term "Reinvestment Rate" means a rate per annum equal to
the sum of 0.50% (fifty one hundredths of one percent) plus the yield on
treasury securities at constant maturity under the heading "Week Ending"
published in the Statistical Release (as defined herein) under the caption
"Treasury Constant Maturities" for the maturity (rounded to the nearest month)
corresponding to the remaining life to maturity (which, in the case of
maturities corresponding to the principal and interest due on the notes at their
maturity, shall be deemed to be August 15, 2012), as of the payment date of the
principal being redeemed or paid. If no maturity exactly corresponds to such
maturity, yields for the two published maturities most closely corresponding to
such maturity shall be calculated pursuant to the immediately preceding sentence
and the Reinvestment Rate shall be interpolated or extrapolated from such yields
on a straight-line basis, rounding in each of such relevant periods to the
nearest month. For purposes of calculating the Reinvestment Rate, the most
recent Statistical Release published prior to the date of determination of the
Make-Whole Amount shall be used.

     As used herein the term "Statistical Release" means the statistical release
designated "H.15(519)" or any successor publication which is published weekly by
the Federal Reserve System and which establishes yields on actively traded
United States government securities adjusted to constant maturities or, if such
statistical release is not published at the time of any determination under the
Supplemental Indenture, then any publicly available source of similar market
data which shall be designated by the Company.

     5. MANDATORY REDEMPTION. The Company shall not be required to make sinking
fund or redemption payments with respect to the Notes.

                                      A-3

<Page>

     6. NOTICE OF REDEMPTION. Notice of redemption shall be mailed at least 30
days but not more than 60 days before the Redemption Date to each Holder of
Notes to be redeemed at its registered address. Notes may be redeemed in part
but only in whole multiples of $1,000, unless all of the Notes held by a Holder
are to be redeemed. On and after the redemption date, interest ceases to accrue
on Notes or portions of them called for redemption.

     7. DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered form
without coupons in denominations of $1,000 and integral multiples of $1,000 in
excess thereof. The transfer of Notes may be registered and Notes may be
exchanged as provided in the Indenture. The Security Registrar and the Trustee
may require a Holder, among other things, to furnish appropriate endorsements
and transfer documents and to pay any taxes and fees required by law or
permitted by the Indenture. The Security Registrar need not exchange or register
the transfer of any Note or portion of a Note selected for redemption. Also, it
need not exchange or register the transfer of any Notes for a period of 15 days
before the mailing of a notice of redemption of Notes, or during the period
between a record date and the corresponding Interest Payment Date.

     8. DEFAULTS AND REMEDIES. In case an Event of Default (as defined in the
Indenture) with respect to the Notes shall have occurred and be continuing, the
principal hereof may be declared, and upon such declaration shall become, due
and payable, in the manner, with the effect and subject to the provisions
provided in the Indenture.

     9. ACTIONS OF HOLDERS. The Indenture contains provisions permitting the
holders of not less than a majority of the aggregate principal amount of the
outstanding Notes, subject to certain exceptions as provided in the Indenture,
on behalf of the holders of all such Notes at a meeting duly called and held as
provided in the Indenture, to make, give or take any request, demand,
authorization, direction, notice, consent, waiver or other action provided in
the Indenture to be made, given or taken by the holders of the Notes, including
without limitation, waiving (a) compliance by the Company with certain
provisions of the Indenture, and (b) certain past defaults under the Indenture
and their consequences. Any resolution passed or decision taken at any meeting
of the holders of the Notes in accordance with the provisions of the Indenture
shall be conclusive and binding upon such holders and upon all future holders of
this Note and other Notes issued upon the registration of transfer hereof or in
exchange heretofore or in lieu hereof.

     10. PERSONS DEEMED OWNERS. The Company, the Trustee, and any agent of the
Company or the Trustee may deem and treat the Person in whose name this Note is
registered on the Security Register as its absolute owner for all purposes.

     11. AUTHENTICATION. This Note shall not be valid until authenticated by the
manual signature of the Trustee or an authenticating agent.

     12. GOVERNING LAW. THE INTERNAL LAW OF THE COMMONWEALTH OF MASSACHUSETTS
SHALL GOVERN AND BE USED TO CONSTRUE THE INDENTURE AND THE NOTES.

                                      A-4

<Page>

     13. NO PERSONAL LIABILITY. THE DECLARATION OF TRUST OF THE COMPANY, AMENDED
AND RESTATED ON AUGUST 21, 1995, A COPY OF WHICH, TOGETHER WITH ALL AMENDMENTS
THERETO (THE "DECLARATION"), IS DULY FILED IN THE OFFICE OF THE DEPARTMENT OF
ASSESSMENTS AND TAXATION OF THE STATE OF MARYLAND, PROVIDES THAT THE NAME
"HOSPITALITY PROPERTIES TRUST" REFERS TO THE TRUSTEES UNDER THE DECLARATION
COLLECTIVELY AS TRUSTEES, BUT NOT INDIVIDUALLY OR PERSONALLY, AND THAT NO
TRUSTEE, OFFICER, SHAREHOLDER, EMPLOYEE OR AGENT OF THE COMPANY SHALL BE HELD TO
ANY PERSONAL LIABILITY, JOINTLY OR SEVERALLY, FOR ANY OBLIGATION OF, OR CLAIM
AGAINST, THE COMPANY. ALL PERSONS DEALING WITH THE COMPANY, IN ANY WAY, SHALL
LOOK ONLY TO THE ASSETS OF THE COMPANY FOR THE PAYMENT OF ANY SUM OR THE
PERFORMANCE OF ANY OBLIGATION.

     The Company will furnish to any Holder upon written request and without
charge a copy of the Indenture. Request may be made to:

                             Hospitality Properties Trust
                             400 Centre Street
                             Newton, MA 02458
                             Telecopier No.: (617) 964-8389
                             Attention: President

                                      A-5

<Page>

                                 ASSIGNMENT FORM

     To assign this Note, fill in the form below: (I) or (we) assign and
transfer this Note to

                  (Insert assignee's soc. sec. or tax I.D. no.)

              (Print or type assignee's name, address and zip code)

and irrevocably appoint to transfer this Note on the books of the Company. The
agent may substitute another to act for him.

Date:

                                     Your Signature:

                                     (Sign exactly as your name appears on the
                                     face of this Note)

Signature Guarantee:<PAGE>

                                                                     EXHIBIT 4.1

                               LABRANCHE & CO INC.
                              EQUITY INCENTIVE PLAN

                          (As amended December 6, 2002)

         1 PURPOSE. The purpose of the LaBranche & Co Inc. Equity Incentive Plan
(the "Plan") is to establish a flexible vehicle through which LaBranche & Co
Inc., a Delaware corporation (the "Company"), can offer equity-based
compensation incentives to eligible personnel of the Company and its
subsidiaries and affiliates (collectively, the "Firm") in order to attract,
retain and motivate such personnel and to further align the interests of such
personnel with those of the stockholders of the Company.

         2 TYPES OF AWARDS. Awards under the Plan may be in the form of (a)
options to purchase shares of the Company's common stock, $0.01 par value
("Common Stock"), including options intended to qualify as "incentive stock
options" ("ISOs") within the meaning of Section 422 of the Internal Revenue Code
of 1986, as amended (the "Code") and options which do not qualify as ISOs
("NQSOs"), (b) restricted shares of Common Stock, (c) restricted stock units
tied to shares of Common Stock, (d) automatic awards of unrestricted shares of
Common Stock to members of the Board of Directors of the Company (the "Board")
who are not employees of, or consultants to, the Firm ("Non-Employee Directors")
pursuant to Section 9 hereof, and (e) other equity-based awards related to
shares of Common Stock, including stock appreciation rights and dividend
equivalents, which the Committee determines to be consistent with the purposes
of the Plan.

         3 ADMINISTRATION.

           (a) COMMITTEE. The Plan shall be administered by the Compensation
Committee of the Board or such other committee or subcommittee appointed by the
Board for such purpose (the "Committee"). Unless the Board determines otherwise,
the members of the Committee shall consist solely of individuals who qualify as
"non-employee directors" under Rule 16b-3 promulgated under Section 16 of the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), and as
"outside directors" under Section 162(m) of the Code. If for any reason the
Committee does not satisfy the "non-employee director" requirements of Rule
16b-3 or the "outside director" requirements of Section 162(m) of the Code, such
non-compliance shall not affect the validity of the awards, interpretations or
other actions of the Committee.

           (b) AUTHORITY OF COMMITTEE. Subject to the limitations of the Plan,
the Committee, acting in its sole and absolute discretion, shall have full power
and authority to (i) select the persons to whom awards shall be made under the
Plan, (ii) make awards to such persons and prescribe the terms and conditions of
such awards, (iii) construe, interpret and apply the provisions of the Plan and
of any agreement or other document evidencing an award made under the Plan, (iv)
prescribe, amend and rescind rules and regulations relating to the Plan,
including rules governing its own operations, (v) correct any defect, supply any
omission and reconcile any inconsistency in the Plan, (vi) subject to the
provisions of Sections 6(c), 6(g) and 7(b) hereof, amend any outstanding awards
in any respect, (vii) carry out any responsibility or duty specifically reserved
to the Committee under the Plan, and (viii) make any and all

<PAGE>

determinations and interpretations and take such other actions as may be
necessary or desirable in order to carry out the provisions, intent and purposes
of the Plan. A majority of the members of the Committee shall constitute a
quorum. The Committee may act by the vote of a majority of its members present
at a meeting at which there is a quorum or by unanimous written consent.

           (c) INDEMNIFICATION. The Company shall indemnify and hold harmless
each member of the Committee and any employee or director of the Firm to whom
any duty or power relating to the administration or interpretation of the Plan
is delegated from and against any loss, cost, liability (including any sum paid
in settlement of a claim with the approval of the Board), damage and expense
(including legal and other expenses incident thereto) arising out of or incurred
in connection with the Plan, unless and except to the extent attributable to
such person's fraud or willful misconduct.

         4 SHARE LIMITATIONS. Subject to adjustment pursuant to Section 14
hereof, the maximum number of shares of Common Stock that may be issued under
the Plan is 7,687,500. For this purpose, the following shares shall be deemed
not to have been issued and shall be deemed to remain available for issuance:
(a) shares covered by the unexercised portion of an option or stock appreciation
right that terminates, expires or is canceled, (b) shares of restricted stock
that are forfeited or repurchased in accordance with the terms of the award, (c)
shares represented by restricted stock units or other-equity based awards that
are forfeited, canceled or otherwise terminated, and (d) shares that are
withheld in order to pay the purchase price for shares covered by any award or
to satisfy the tax withholding obligations associated with any award under the
Plan. Shares of Common Stock available for issuance under the Plan may be
authorized and unissued, held by the Company in its treasury or otherwise
acquired for purposes of the Plan. No fractional shares of Common Stock shall be
issued under the Plan. The maximum number of shares of Common Stock with respect
to which awards (including options and stock appreciation rights) may be granted
under the Plan to any employee in any calendar year shall be 500,000 shares.

         5 ELIGIBILITY.

           (a) DISCRETIONARY AWARDS. Awards under the Plan may be made to such
officers, directors, employees (including prospective employees), consultants
and other individuals who may perform services for the Firm, as the Committee
may select. In making awards under the Plan, the Committee shall give
consideration to the functions and responsibilities of a potential recipient,
the potential recipient's previous and/or expected future contributions to the
business of the Firm and such other factors as the Committee deems relevant
under the circumstances.

           (b) AUTOMATIC AWARDS. Non-Employee Directors shall automatically
receive awards of unrestricted shares of Common Stock pursuant to Section 9
hereof.

         6 STOCK OPTIONS. Subject to the provisions of the Plan, the Committee
may grant options to eligible personnel upon such terms and conditions as the
Committee deems appropriate. The terms and conditions of any option shall be
evidenced by a written option agreement or other instrument approved for this
purpose by the Committee.

<PAGE>

           (a) EXERCISE PRICE. The exercise price per share of Common Stock
covered by an option granted under the Plan may not be less than the fair market
value per share on the date of grant (or, in the case of an ISO granted to an
optionee who, at the time the option is granted, owns stock possessing more than
10% of the total combined voting power of all classes of stock of the Company or
a "subsidiary" of the Company within the meaning of Section 424 of the Code,
110% of fair market value).

           (b) OPTION TERM. No option granted under the Plan may be exercisable
(if at all) more than ten years after the date the option is granted (or, in the
case of an ISO granted to a ten percent stockholder described in Section 422 of
the Code, five years).

           (c) VESTING. The Committee may establish such vesting conditions and
restrictions on the exercise of an option and/or upon the issuance of Common
Stock in connection with the exercise of an option as it deems appropriate,
including, without limitation, conditions and restrictions based upon continued
employment or service, the attainment of specified performance goals and/or
other factors and criteria deemed relevant for this purpose. Once granted, the
Committee may waive or otherwise accelerate the conditions or restrictions on
vesting applicable to any outstanding options only if such waiver or
acceleration does not constitute a "Prohibited Modification." For purposes of
the Plan, a "Prohibited Modification" shall be deemed to refer to:

             (i) a waiver or acceleration of the conditions or restrictions on
vesting applicable to any outstanding options, shares of restricted stock or
restricted stock units pursuant to this Section 6(c) or Section 7(b) hereof;

             (ii) a "Repricing" (as hereinafter defined) pursuant to Section
6(g) hereof without the approval of the Company's stockholders;

             (iii) a grant of shares of restricted stock or restricted stock
units which vests at a rate more rapid than the rates set forth in the second
sentence of Section 7(b) hereof; or

             (iv) a grant or offer for sale to an officer or director of the
Company of unrestricted shares of Common Stock which is not in lieu of salary or
cash bonuses pursuant to Section 8 hereof

         (each of (i) through (iv) above being hereinafter referred to as a
"Modification") which, when combined cumulatively with all previous
Modifications, results in the aggregate number of shares of Common Stock with
respect to which Modifications have occurred exceeding 10% of the maximum number
of shares of Common Stock that may be issued under the Plan (subject to
adjustment pursuant to Section 14 hereof).

           (d) EXERCISE OF OPTIONS. Subject to satisfaction of applicable
withholding requirements, once vested and exercisable, an option may be
exercised by transmitting to the Company (i) a notice specifying the number of
shares to be purchased and (ii) payment of the exercise price. The exercise
price of an option may be paid in cash and/or such other form of payment as the
Company may approve and as is permitted by applicable law.

<PAGE>

           (e) RIGHTS AS A STOCKHOLDER. No shares of Common Stock shall be
issued in respect of the exercise of an option until full payment of the
exercise price and the applicable tax withholding obligation with respect to
such exercise has been made or provided for. The holder of an option shall have
no rights as a stockholder with respect to any shares covered by an option until
the date such shares are issued. Except as otherwise provided herein, no
adjustments shall be made for dividend distributions or other rights for which
the record date is prior to the date such shares are issued.

           (f) BUY OUT AND SETTLEMENT. The Committee, on behalf of the Company,
may at any time offer to buy out any outstanding option on such terms and
conditions as the Committee shall establish.

           (g) LIMITATION ON REPRICING OF OPTIONS. Unless and to the extent
otherwise approved by the Company's stockholders, under no circumstances may the
Board or the Committee authorize a Repricing (as hereinafter defined) of any
outstanding options. Notwithstanding the preceding sentence, the Committee may,
in its sole discretion, authorize a Repricing of outstanding options which have
declined in value as a result of extreme financial circumstances that are beyond
the control of the Company's management, but solely to the extent that such
Repricing does not constitute a Prohibited Modification. For these purposes, a
"Repricing" means any of the following (or any other action that has the same
effect as any of the following): (i) amending the terms of an option to lower
its exercise price, (ii) any other action that is treated as a repricing under
generally accepted accounting principles, or (iii) cancelling an option at a
time when its exercise price is equal to or greater than the fair market value
of the underlying Common Stock, in exchange for another option, restricted
stock, or other equity award, unless the cancellation and exchange occurs in
connection with a merger, acquisition, spin-off or other similar corporate
transaction. A cancellation and exchange described in clause (iii) of the
preceding sentence will be considered a Repricing regardless of whether the
option, restricted stock or other equity is delivered simultaneously with the
cancellation, regardless of whether it is treated as a repricing under generally
accepted accounting principles, and regardless of whether it is voluntary on the
part of the participant.

         7 RESTRICTED STOCK AND RESTRICTED STOCK UNITS. Subject to the
provisions of the Plan, the Committee may award restricted shares of Common
Stock and/or restricted stock units tied to shares of Common Stock to eligible
personnel upon such terms and subject to such conditions and restrictions as the
Committee deems appropriate. The terms and conditions of any restricted stock or
restricted stock unit award shall be evidenced by a written agreement or other
instrument approved for this purpose by the Committee.

           (a) PURCHASE PRICE. The purchase price payable for shares of
restricted stock and for shares issued pursuant to the settlement of a
restricted stock unit may be as low as zero, provided, however, that to the
extent required by applicable law, the purchase price per share shall be no less
than the par value of a share of Common Stock.

           (b) VESTING. The Committee may establish such conditions and
restrictions on the vesting of restricted stock and restricted stock units and
on the issuance of shares of restricted stock as it deems appropriate,
including, without limitation, conditions and restrictions based upon continued
employment or service, the attainment of specified performance goals and/or

<PAGE>

other factors and criteria deemed relevant for this purpose. During a
participant's employment or service with the Firm, shares of restricted stock
and restricted stock units shall become vested (on a monthly, quarterly, annual
or other periodic basis) over a period of not less than three years, unless and
to the extent the vesting of such an award is conditioned upon the attainment of
specified performance goals, in which case such award shall become vested over a
period of not less than one year, provided that in no event shall the foregoing
limitations be construed as limiting the Committee's power and authority to
award shares of restricted stock and restricted stock units which automatically
become vested, in whole or in part, upon the termination of a participant's
employment or service with the Firm or upon the occurrence of a "change in
control." The Committee may not waive or otherwise accelerate the conditions or
restrictions on vesting applicable to previously granted shares of restricted
stock or restricted stock units. Notwithstanding the foregoing provisions of
this Section 7(b), the Committee may, in its sole and absolute discretion, (i)
grant shares of restricted stock or restricted stock units that vest at a rate
that is more rapid than the applicable vesting rates set forth in the second
sentence of this Section 7(b), and (ii) waive or otherwise accelerate, in whole
or in part, the conditions or restrictions on vesting applicable to previously
granted shares of restricted stock or restricted stock units, in either case to
the extent, but only to the extent, that such grant, waiver or acceleration does
not constitute a Prohibited Modification.

           (c) RIGHTS AS A STOCKHOLDER. The holder of restricted stock units
awarded under the Plan shall have only the rights of a general unsecured
creditor of the Company and shall have no rights as a stockholder with respect
to the shares of Common Stock referenced by such units until such shares are
issued in the name of the holder following the satisfaction or expiration of the
vesting and other conditions and restrictions applicable to such units. The
recipient of restricted stock shall have the rights of a stockholder with
respect to the restricted stock, subject to any restrictions and conditions as
the Committee may impose.

           (d) STOCK CERTIFICATES FOR RESTRICTED STOCK. Unless the Committee
elects otherwise, shares of restricted stock shall be evidenced by book entries
on the Company's stock transfer records pending the expiration of restrictions
thereon. If a stock certificate for shares of restricted stock is issued, it
shall bear an appropriate legend to reflect the nature of the restrictions
applicable to the shares represented by the certificate, and the Committee may
require that any or all such stock certificates be held in custody by the
Company until the applicable restrictions have lapsed. The Committee may
establish such other conditions as it deems appropriate in connection with the
issuance of certificates for shares of restricted stock, including, without
limitation, a requirement that the grantee deliver a duly signed stock power,
endorsed in blank, for the shares covered by the award.

           (e) LAPSE OF RESTRICTIONS. If and when the vesting conditions and
other restrictions applicable to a restricted stock or restricted stock unit
award are satisfied or expire, a certificate for the shares covered or
referenced by the award, to the extent vested and free of restrictions, shall be
delivered to the holder. All legends shall be removed from said certificates at
the time of delivery except as otherwise required by applicable law.

         8 OTHER EQUITY-BASED AWARDS. The Committee may grant other types of
equity-based awards, including, without limitation, the grant or offer for sale
of unrestricted shares of Common Stock and/or the grant of stock appreciation
rights or dividend equivalents, in such

<PAGE>

amounts and subject to such terms and conditions as the Committee shall
determine, provided that any grant or offer for sale of unrestricted shares of
Common Stock pursuant to the Plan to officers or directors of the Company shall,
in all instances, be reasonable in amount, as determined by the Committee in its
sole discretion, and be granted in lieu of salary or cash bonuses that would
otherwise become payable to such persons. Notwithstanding the foregoing
sentence, the Committee may grant or offer for sale to officers or directors of
the Company unrestricted shares of Common Stock that are not in lieu of salary
or cash bonuses to the extent that such grant or offer for sale does not
constitute a Prohibited Modification, in which case, any such grant or offer
shall be deemed to be reasonable for purposes of the Plan. Awards pursuant to
this Section 8 may entail the transfer of actual shares of Common Stock to Plan
participants, or payment in cash or otherwise of amounts based on the value of
shares of Common Stock and may include, without limitation, awards designed to
comply with or take advantage of the applicable local laws or jurisdictions
other than the United States.

         9 AUTOMATIC AWARDS OF UNRESTRICTED SHARES TO NON-EMPLOYEE DIRECTORS.
Each Non-Employee Director shall, in lieu of receiving cash payment of any
attendance fees payable for Board or committee meetings attended by such
director during each calendar year, be entitled to receive, promptly following
the completion of such calendar year, the number of unrestricted shares of
Common Stock (rounded up to the nearest whole number) determined by dividing the
aggregate amount of attendance fees otherwise payable to him or her for such
calendar year by the fair market value of a share of Common Stock on the first
trading day of the following calendar year.

         10 TERMINATION OF EMPLOYMENT OR SERVICE.

           (a) STOCK OPTIONS AND STOCK APPRECIATION RIGHTS. Unless otherwise
determined by the Committee at grant or, if no rights of the participant are
thereby reduced, thereafter, and subject to earlier termination in accordance
with the provisions hereof, the following rules shall apply with regard to
options and stock appreciation rights held by a participant at the time of his
or her termination of employment or other service with the Firm:

             (i) TERMINATION BY REASON OF DEATH. If a participant's employment
or service terminates by reason of his or her death, then any option or stock
appreciation right held by the deceased participant shall thereupon become fully
vested and may be exercised by the deceased participant's beneficiary at any
time within one year from the date of death but in no event after expiration of
the stated term and, to the extent not exercised within such time period, will
be canceled.

             (ii) TERMINATION BY REASON OF DISABILITY. If a participant's
employment or service is terminated by the Firm due to his or her Disability (as
hereinafter defined), then any option or stock appreciation right held by the
participant, to the extent exercisable on the date his or her employment or
service terminates, may be exercised by the participant at any time within one
year from the date his or her employment or service terminates but in no event
after expiration of the stated term, and, to the extent not exercised within
such time period, will be canceled. If the participant dies during such one-year
period, then the deceased participant's beneficiary may exercise the option or
stock appreciation right, to the extent exercisable by the deceased participant
immediately prior to his or her death, for a period

<PAGE>

of one year following the date of death but in no event after expiration of the
stated term. "Disability" means, unless otherwise determined by the Committee at
the time of grant, a participant's absence from employment for at least 180 days
in any twelve month period as a result of his or her incapacity due to physical
or mental illness, as determined by the Committee.

             (iii) TERMINATION FOR CAUSE. If a participant's employment or
service is terminated by the Firm for Cause (as hereinafter defined) or if, at
the time of a participant's termination, a ground for termination for Cause
exists, then, notwithstanding anything to the contrary contained herein, any
option or stock appreciation right held by the participant (whether or not
otherwise vested) shall immediately terminate and cease to be exercisable. A
termination for "Cause" means (A) in the case where there is no employment or
consulting agreement between the participant and the Firm or where such an
agreement exists but does not define "Cause" (or words of like import), a
termination classified by the Firm as a termination due to the participant's
dishonesty, fraud, insubordination, willful misconduct, refusal to perform
services or materially unsatisfactory performance of his or her duties, or (B)
in the case where there is an employment or consulting agreement between the
participant and the Firm, a termination that is or would be deemed for "cause"
(or words of like import) under such agreement.

             (iv) OTHER TERMINATION. If a participant's employment or service
terminates for any reason (other than death, Disability or Cause or at a time
when Cause exists) or no reason, then (A) any option or stock appreciation right
held by the participant, to the extent not then exercisable, shall thereupon
terminate, and (B) any option or stock appreciation right held by the
participant which is exercisable at the time of such termination of employment
or service shall remain exercisable during the thirty-day period following such
termination of employment or service or, if sooner, until the expiration of the
stated term of the option or stock appreciation right and, to the extent not
exercised within such period, shall thereupon terminate.

           (b) RESTRICTED STOCK, RESTRICTED STOCK UNITS AND OTHER-EQUITY BASED
AWARDS. Unless otherwise determined by the Committee in accordance with the
provisions hereof, upon the termination of a recipient's employment or service
for any reason (including, without limitation, death or Disability) or no
reason, any shares of restricted stock, restricted stock units or other
equity-based awards (other than stock options and stock appreciation rights
covered by Section 10(a) hereof) which have not yet become fully vested shall be
forfeited, and any certificate therefor or book entry with respect thereto or
other evidence thereof shall be canceled.

         11 FAIR MARKET VALUE. For purposes of the Plan, the fair market value
of a share of Common Stock, as of any date, shall be determined in good faith by
the Board in a uniform and consistent manner.

         12 NON-TRANSFERABILITY. No stock option or stock appreciation right
granted under the Plan shall be transferable by the recipient other than upon
the recipient's death to a beneficiary designated by the recipient in a manner
acceptable to the Committee, or, if no designated beneficiary shall survive the
recipient, pursuant to the recipient's will or by the laws of descent and
distribution. All stock options and stock appreciation rights shall be
exercisable during the recipient's lifetime only by the recipient. Shares of
restricted stock and restricted stock units may not be transferred prior to the
date on which shares are issued or, if later, the date

<PAGE>

on which such shares have vested and are free of any applicable restriction
imposed hereunder. Except as otherwise specifically provided by law or the
provisions hereof or the applicable award agreement or instrument, no award
received under the Plan may be transferred in any manner, and any attempt to
transfer any such award shall be void, and no such award shall in any manner be
liable for or subject to the debts, contracts, liabilities, engagements or torts
of any person who shall be entitled to such award, nor shall it be subject to
attachment or legal process for or against such person. Notwithstanding the
foregoing, the Committee may determine at the time of grant or thereafter that
an NQSO is transferable in whole or part to such persons, under such
circumstances, and subject to such conditions as the Committee may prescribe.

         13 OTHER CONDITIONS. The Committee may impose such other conditions
with respect to the grant of awards or the issuance of shares of Common Stock
pursuant to the Plan, including, without limitation, conditions relating to the
application of federal or state securities laws or exchange requirements as it
deems necessary or advisable.

         14 CAPITAL CHANGES; CHANGE IN CONTROL; MERGER.

           (a) ADJUSTMENTS UPON CHANGES IN CAPITALIZATION. The aggregate number
and class of shares for which awards may be granted under the Plan, the maximum
number of shares that may be covered by individual awards in any year, the
number and class of shares covered by each outstanding award and, if applicable,
the exercise price per share shall all be adjusted proportionately or as
otherwise appropriate to reflect any increase or decrease in the number of
issued shares of Common Stock resulting from a split-up or consolidation of
shares or any like capital adjustment, or the payment of any stock dividend,
and/or to reflect a change in the character or class of shares covered by the
Plan arising from a readjustment or recapitalization of the Company's capital
stock.

           (b) CHANGE IN CONTROL. The Committee may provide in any award
agreement for the effect on the award of a "change in control" of the Company or
any of its subsidiaries or affiliates (as such term is defined by the Committee
in any such award agreement), including, without limitation, the acceleration of
the exercisability of, or the lapse of restrictions or deemed satisfaction of
goals with respect to, any outstanding awards.

           (c) MERGER; CONSOLIDATION. Unless otherwise provided in the
applicable award agreement, in the event of a merger, consolidation, mandatory
share exchange or other similar business combination of the Company with or into
any other entity ("Successor Entity") or any transaction in which another person
or entity acquires all the issued and outstanding Common Stock, or all or
substantially all the assets of the Company, outstanding awards may be assumed
or an equivalent award may be substituted by the Successor Entity or a parent or
subsidiary of the Successor Entity.

           (d) FRACTIONAL SHARES. In the event of any adjustment in the number
of shares covered by any option pursuant to the provisions hereof, any
fractional shares resulting from such adjustment shall be disregarded, and each
such option shall cover only the number of full shares resulting from the
adjustment.

<PAGE>

           (e) DETERMINATIONS FINAL. All adjustments under this Section 14 shall
be made by the Committee, and its determination as to what adjustments shall be
made, and the extent thereof, shall be final, binding and conclusive.

         15 TAX WITHHOLDING. As a condition to the exercise of any award or
the delivery of any shares of Common Stock pursuant to any award or the lapse of
restrictions on any award, or in connection with any other event that gives rise
to a federal or other governmental tax withholding obligation on the part of the
Firm relating to an award, (a) the Firm may deduct or withhold (or cause to be
deducted or withheld) from any payment or distribution to a grantee whether or
not pursuant to the Plan or (b) the Firm shall be entitled to require that the
grantee remit cash to the Firm (through payroll deduction or otherwise), in each
case in an amount sufficient in the opinion of the Company to satisfy such
withholding obligation. If the event giving rise to the withholding obligation
involves a transfer of shares of Common Stock, then, unless the applicable award
agreement provides otherwise, at the discretion of the Committee, the grantee
may satisfy the withholding obligation described under this Section 15 by
electing to have the Company withhold shares of Common Stock (which withholding
will be at a rate not in excess of the statutory minimum rate) or by tendering
previously owned shares of Common Stock, in each case having a fair market value
equal to the amount of tax to be withheld (or by any other mechanism as may be
required or appropriate to conform with local tax and other rules).

         16 AMENDMENT AND TERMINATION. The Board may amend or terminate the
Plan, provided, however, that no such action may affect adversely the accrued
rights of the holder of any outstanding award without the consent of the holder.
Except as otherwise provided in Section 14, any amendment which would increase
the number of shares of Common Stock for which awards may be granted under the
Plan (in the aggregate or on an individual basis), modify the class of
individuals eligible to receive awards under the Plan or materially increases
the benefits accruing to participants under the Plan shall be subject to the
approval of the Company's stockholders. The Committee may amend the terms of any
agreement or certificate made or issued hereunder at any time and from time to
time, provided, however, that any amendment which would adversely affect the
accrued rights of the holder may not be made without his or her consent.

         17 NO RIGHTS CONFERRED. Nothing contained herein shall be deemed to
give any individual any right to receive an award under the Plan or to be
retained in the employ or service of the Firm.

         18 DECISIONS AND DETERMINATIONS TO BE FINAL. All decisions and
determinations made by the Board pursuant to the provisions hereof and, except
to the extent rights or powers under the Plan are reserved specifically to the
discretion of the Board, all decisions and determinations of the Committee shall
be final, binding and conclusive.

         19 GOVERNING LAW. All rights and obligations under the Plan and each
award agreement or instrument shall be governed by and construed in accordance
with the laws of the State of New York, without regard to its principles of
conflict of laws.

<PAGE>

         20 TERM OF THE PLAN. The Plan shall become effective on the date of
its adoption by the Board. Unless sooner terminated by the Board, the Plan shall
terminate on the tenth anniversary of the date of its adoption by the Board. The
rights of any person with respect to an award made under the Plan that is
outstanding at the time of the termination of the Plan shall not be affected
solely by reason of the termination of the Plan and shall continue in accordance
with the terms of the award (as then in effect or thereafter amended) and the
Plan.

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