Document:

Exhibit 10.33

 

LEASE

THIS LEASE (the “Lease”) is executed this 16th day of March 2007, by and between MERIDIAN-HUDSON McINTOSH LLC, a Delaware limited liability company, having an office at 17757 US Highway 19 North, Suite 200, Clearwater, Florida 33764 (“Landlord”), and United Natural Foods, Inc., a Delaware corporation having an office at 260 Lake Road, Dayville, CT 06241 (“Tenant”).

ARTICLE 1 - LEASE OF PREMISES

Section 1.01. Basic Lease Provisions and Definitions.

(a)    “Leased Premises” (shown outlined on Exhibit “A” attached hereto): Suite 1 of that certain building known as the Meridian Distribution Center, a 907,237 square foot warehouse, (the “Building”), located at 6100 McIntosh Road, Sarasota, Florida. The Building is located on approximately 43.51 acres of land (“Land”) (shown outlined on Exhibit “A”). The Land is adjacent to a 17.53 acre parcel of land (“Future Development Land”) (shown outlined on Exhibit “A”), known as the Meridian Business Center. The Land and the Future Development Land shall be subject to a Uniform Control Agreement and Declaration of Covenants, Conditions and Restrictions (the
“Control Agreement”). The Control Agreement will be recorded after the full execution of this Lease, however, this Lease is subordinate to the Control Agreement. Notwithstanding the forgoing, the Control Agreement is not intended to change the limitation of Operating Expenses set forth in Section 3.02. The Meridian Distribution Center and the Meridian Business Center shall together be known as the “Park”.

(b)          “Rentable Area”: approximately 393,580 square feet, to be certified by Landlord’s architect according to BOMA standards and confirmed by Tenant’s architect.

(c)           “Tenant’s Proportionate Share”: 393,580/907,237 = .43.38%, however, in Year 1 Tenant’s Proportionate Share shall be 352,970/907,237 = 38.91%.

	
             
 	
            (d)
 	
            “Minimum Annual Rent”:
 

	
             
	
            Year 1 
 	
            $ 1,389,819.40 
 
	
             
	
            Year 2 
 	
            $ 1,815,387.80 
 
	
             
	
            Year 3 
 	
            $ 1,860,772.40 
 
	
             
	
            Year 4 
 	
            $ 1,907,291.80 
 
	
             
	
            Year 5 
 	
            $ 1,954,974.00 
 
	
             
	
            Year 6 
 	
            $ 2,003,848.40 
 
	
             
	
            Year 7 
 	
            $ 2,053,944.60 
 
	
             
	
            Year 8 
 	
            $ 2,105,293.20 
 
	
             
	
            Year 9 
 	
            $ 2,157,925.60 
 
	
             
	
            Year 10 
 	
            $ 2,211,873.70 
 
						

            

 

(Note: Minimum Annual Rent does not include applicable Florida State Sales Tax, or Additional Rent, which sums shall be the sole responsibility of Tenant.)

	
             
 	
            (e)
 	
            “Monthly Rental Installments”:
 

	
            Months 1-3
 	
            $66,181.88
 
	
            Months 4 – 12
 	
            $132,363.75
 
	
            Months 13 – 24
 	
            $151,282.32
 

 

 

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            Months 25 – 36
 	
            $155,064.37
 
	
            Months 37 – 48
 	
            $158,940.98
 
	
            Months 49 – 60
 	
            $162,914.51
 
	
            Months 61- 72
 	
            $166,987.37
 
	
            Months 73 – 84
 	
            $171,162.05
 
	
            Months 85 – 96
 	
            $175,441.10
 
	
            Months 97 – 108
 	
            $179,827.13
 
	
            Months 109 – 120
 	
            $184,322.81
 

 

(Note: Monthly Rental Installments do not include applicable Florida State Sales Tax, or Additional Rent, which sums shall be the sole responsibility of Tenant.)

	
             
 	
            (f)
 	
            [Intentionally Omitted].
 

	
             
 	
            (g)
 	
            [Intentionally Omitted].
 

	
             
 	
            (h)
 	
            “Lease Term”: 10 years and 0 months or as extended pursuant to Section 16.15.
 

	
             
 	
            (i)
 	
            “Security Deposit”: 0
 

(j)           “Broker(s)”: TRAMMELL CROW SERVICES, INC., a Delaware Corporation representing Landlord and NAI Realvest and NAI Brannen/Goddard, LLC representing Tenant.

	
             
 	
            (k)
 	
            “Permitted Use”: General office, warehousing, distribution and no other.
 

	
             
 	
            (l)
 	
            Address for notices and payments are as follows:
 

 

	
            Landlord:
 	
            Meridian-Hudson McIntosh, LLC
 
	
             
 	
            Attn: Steven Kossoff
 
	
             
 	
            17757 US Hwy 19 North, Suite 200
 
	
             
 	
            Clearwater, Florida 33764
 
	
             
 	
             
 
	
            With Payments to:
 	
            Meridian-Hudson McIntosh, LLC
 
	
             
 	
            Attn: Steven Kossoff
 
	
             
 	
            17757 US Hwy 19 North, Suite 200
 
	
             
 	
            Clearwater, Florida 33764
 
	
             
 	
             
 
	
            With a copy to:
 	
            Icard, Merrill, Cullis, Timm, Furen & Ginsburg, P.A.
 
	
             
 	
            Attn: Michael J. Furen
 
	
             
 	
            2033 Main Street, Suite 600
 
	
             
 	
            Sarasota, FL 34237
 
	
             
 	
             
 
	
            Tenant:
 	
            United Natural Foods, Inc.
 
	
             
 	
            Attn: Thomas Dziki
 
	
             
 	
            260 Lake Road
 
	
             
 	
            Dayville, CT 06241
 

 

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            With a copy to:
 	
            Cameron & Mittleman LLP
 	
             

	
             
 	
            56 Exchange Terrace
 	
             

	
             
 	
            Providence, RI 02903
 	
             

	
             
 	
            Attn: Joseph A. Anesta
 	
             

				

            

EXHIBITS

Exhibit A – Leased Premises

Exhibit B – Tenant Improvements

Exhibit B-1 – Scope of Work

Exhibit B-2 – Final Space Plan

Exhibit C – Letter of Understanding

Exhibit D – Intentionally Omitted

Exhibit E – Rules and Regulations

Exhibit F – Offer Space

Exhibit G – Move Out Standards

Exhibit H – Truck Parking Area

Exhibit I – Form Indemnity Agreement

 

Section 1.02. Lease of Premises. Landlord hereby leases to Tenant and Tenant hereby leases from Landlord the Leased Premises, under the terms and conditions herein, together with a non-exclusive right, in common with others, to use the following: the areas of the Building and the underlying land and improvements thereto that are designed for use in common by all tenants of the Building and their respective employees, agents, customers, invitees and others (collectively, the “Common Areas”).

ARTICLE 2 - TERM AND POSSESSION

Section 2.01. Term. The Lease Term shall commence the later of the date that Substantial Completion (as defined in Exhibit “B” hereto) of the Tenant Improvements (as defined in Section 2.02 below) occurs or July 1, 2007 (the “Commencement Date”).

Section 2.02. Construction of Tenant Improvements. Tenant has personally inspected the Leased Premises and, except as expressly set forth herein, accepts the same “As Is” without representation or warranty by Landlord of any kind and with the understanding that Landlord shall have no responsibility with respect thereto except to construct in a good workmanlike manner the leasehold improvements to the Leased Premises (collectively, the “Tenant Improvements”) in accordance with Exhibit “B” attached hereto and made a part hereof. Notwithstanding anything to the contrary herein, Tenant’s acceptance of the Building is conditioned upon Landlord’s completion of the items set forth in Exhibit B. The Tenant document entitled
“CSI Detailed Estimate” will be incorporated into Exhibit B.

Section 2.03. Surrender of the Premises. Upon the expiration or earlier termination of this Lease, Tenant shall, at its sole cost and expense, immediately (a) surrender the Leased Premises to Landlord in broom-clean condition and in good order, condition and repair, casualty, condemnation and reasonable wear and tear excepted, (b) remove from the Leased Premises (i) Tenant’s Property (as defined in Section 8.01 below), and (c) repair any damage caused by any such removal and restore the Leased Premises to the condition existing upon the Commencement Date and pursuant to the move out standards attached hereto as Exhibit “G”, reasonable wear and tear excepted. All of Tenant’s Property that is not removed within ten (10) days following
Landlord’s written demand therefore shall be conclusively deemed to have been abandoned and Landlord shall be entitled to dispose of such property at Tenant’s cost without incurring any liability to Tenant. This Section 2.03 shall survive the expiration or any earlier termination of this Lease.

 

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Section 2.04. Holding Over. If Tenant retains possession of the Leased Premises after the expiration or earlier termination of this Lease, Tenant shall be a tenant at sufferance at one hundred fifty percent (150%) of the then Monthly Rental Installments and Annual Rental Adjustment (as hereinafter defined) for the Leased Premises in effect upon the date of such expiration or earlier termination, and otherwise upon the terms, covenants and conditions herein specified, so far as applicable. Acceptance by Landlord of rent after such expiration or earlier termination shall not result in a renewal of this Lease, nor shall such acceptance create a month-to-month tenancy. In the event a month-to-month tenancy is created by operation of law, either party shall have the right to terminate such month-to-month tenancy upon thirty (30) days’ prior written notice to
the other, whether or not said notice is given on the rent paying date. This Section 2.04 shall in no way constitute a consent by Landlord to any holding over by Tenant upon the expiration or earlier termination of this Lease, nor limit Landlord’s remedies in such event.

ARTICLE 3 - RENT

Section 3.01. Base Rent. Tenant shall pay to Landlord the Minimum Annual Rent in the Monthly Rental Installments, plus Florida State Sales Tax, in advance, without demand, deduction or offset, on the Commencement Date and on or before the first day of each and every calendar month thereafter during the Lease Term. The Monthly Rental Installments for partial calendar months shall be prorated. Tenant shall deposit with Landlord, upon delivery of this Lease Agreement, an amount equal to $66,181.88, which is to be applied toward the Monthly Rental Installment, Additional Rent, and the applicable Florida State Sales Tax commencing as of the first month of the Lease Term.

Section 3.02. Annual Rental Adjustment Definitions.

(a)           “Annual Rental Adjustment” shall mean the amount of Tenant’s Proportionate Share of Operating Expenses for a particular calendar year.

(b)          “Operating Expenses” shall mean the amount of all of Landlord’s costs and expenses paid or incurred in operating, repairing, replacing and maintaining the Building and the Common Areas in good condition and repair for a particular calendar year including by way of illustration and not limitation, the following: all Real Estate Taxes (as hereinafter defined), insurance premiums and deductibles, water, sewer, electrical and other utility charges other than the separately billed electrical and other charges paid by Tenant as provided in this Lease (or other tenants in the Building); painting; stormwater discharge fees; tools and supplies; repair costs; landscape maintenance costs; access patrols; license, permit and inspection fees; management
fees; administrative fees; supplies, costs, wages and related employee benefits payable for the management, maintenance and operation of the Building; maintenance, repair and replacement of the driveways, curbs and sidewalk areas, landscaped areas, drainage strips, above slab and above grade sewer lines, structural frame, gutters and lighting; and maintenance and repair costs, dues, fees and assessments incurred under any covenants or charged by any owners association. Notwithstanding anything to the contrary, insurance deductible amounts will be limited to $100,000.00 per occurrence. The cost of any Operating Expenses that are capital in nature shall be amortized over the useful life of the improvement (as reasonably determined by Landlord), and only the amortized portion shall be included in Operating Expenses. Notwithstanding anything in the Lease to the contrary, with the exception of the costs for insurances and Real Estate Taxes (which shall pass through
to Tenant for Tenant to pay Tenant’s Proportionate Share) Operating Expenses shall be capped to 8% increases annually over the previous year’s Operating Expense. Furthermore, the parties agree that Operating Expenses in the first year, excluding insurance and Real Estate Taxes, are as follows: Landscaping $.02 psf; Management (including on site manager) $.27; Security $.06 for a total of .$35 psf. Thus, for example, year two Operating Expenses excluding insurance and Real Estate Taxes (which shall pass through to Tenant for Tenant to pay Tenant’s Proportionate Share) shall be capped at 1.08 x .$35 psf or $.38 psf.

 

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Notwithstanding anything to the contrary stated herein, Landlord shall maintain and operate the refrigeration equipment in the engine room and bill back the Tenant as set forth in Article 6 herein such costs of maintenance and operation together with the cost of maintaining and operating the refrigeration units specifically in Tenant’s Leased Premises until such time as (i) other tenants occupy portions of the refrigerated area after which time Tenant shall pay its proportionate share of costs based on the square footage of refrigeration space Tenant occupies or (ii) the non-Tenant refrigeration space is converted to non-refrigeration space after which the Tenant shall be responsible for 100% of the electric costs to run the refrigeration equipment. Should the non-Tenant refrigeration space be converted to non-refrigeration space and be occupied be a new third party tenant (herein
known as a “New Tenant”), Landlord shall install a separate electrical meter to insure Tenant is not being charged for the electrical usage of the New Tenant. It is Landlord’s intention to valve off any non-Tenant space until it is rented by third party tenants. Landlord shall provide Tenant actual invoices to substantiate the above expenses.

(c)           “Tenant’s Proportionate Share of Operating Expenses” shall mean an amount equal to the product of Tenant’s Proportionate Share times the Operating Expenses. Tenant agrees to reimburse Landlord for the actual Annual Rental Adjustment under the Lease in accordance with this Section 3.02.

(d)          “Real Estate Taxes” shall mean any form of real estate tax or assessment or service payments in lieu thereof (ad valorem, non-ad valorem, real and personal), and any license fee, commercial rental tax, improvement bond or other similar charge or tax (other than inheritance, personal income or estate taxes) imposed upon the Building and land or Common Areas, or against Landlord’s business of leasing the Building, by any authority having the power to so charge or tax, together with costs and expenses of contesting the validity or amount of the Real Estate Taxes. Landlord covenants that the land on which the Building is located, the parking areas, ingress and egress, is approximately 43.51 acres, and is a separate parcel from other contiguous land
owned by the Landlord.

Section 3.03. Payment of Additional Rent.

(a)           Any amount required to be paid by Tenant hereunder (in addition to Minimum Annual Rent) and any charges or expenses incurred by Landlord on behalf of Tenant under the terms of this Lease shall be considered “Additional Rent” payable in the same manner and upon the same terms and conditions as the Minimum Annual Rent reserved hereunder, except as set forth herein to the contrary. Any failure on the part of Tenant to pay such Additional Rent when and as the same shall become due shall entitle Landlord to the remedies available to it for non-payment of Minimum Annual Rent.

(b)          In addition to the Minimum Annual Rent specified in this Lease, commencing as of the Commencement Date, Tenant shall pay to Landlord as Additional Rent for the Leased Premises, in each calendar year or partial calendar year during the Lease Term, an amount equal to the Annual Rental Adjustment for such calendar year. Landlord shall estimate the Annual Rental Adjustment annually, and written notice thereof shall be given to Tenant prior to the beginning of each calendar year. Tenant shall pay to Landlord each month, at the same time the Monthly Rental Installment is due, an amount equal to one-twelfth (1/12) of the estimated Annual Rental Adjustment. If Operating Expenses increase during a calendar year, Landlord may increase the estimated Annual Rental Adjustment during such year by giving Tenant written
notice to that effect, and thereafter Tenant shall pay to Landlord, in each of the remaining months of such year, an amount equal to the amount of such increase in the estimated Annual Rental Adjustment divided by the number of months remaining in such year. Within a reasonable time after the end of each calendar year but no later than sixty (60) days after the end of each calendar year, Landlord shall prepare and deliver to Tenant a statement showing the actual Annual Rental Adjustment. Within thirty (30) days after receipt of the aforementioned statement, Tenant shall pay to Landlord, or Landlord shall credit against the next rent payment or payments due from Tenant (or pay to Tenant if Tenant requests such payment in writing or if such

 

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credit falls due in the last year of the Lease Term), as the case may be, the difference between the actual Annual Rental Adjustment for the preceding calendar year and the estimated amount paid by Tenant during such year. This Section 3.03 shall survive the expiration or any earlier termination of this Lease.

Section 3.04. Late Charges. Tenant acknowledges that Landlord shall incur certain additional unanticipated administrative and legal costs and expenses if Tenant fails to pay timely any payment required hereunder. Therefore, in addition to the other remedies available to Landlord hereunder, if any payment required to be paid by Tenant to Landlord hereunder shall become overdue for a period of five (5) days after the due date, such unpaid amount shall bear interest from the due date thereof to the date of payment at the prime rate of interest, as reported in the Wall Street Journal New York Edition (the “Prime Rate”) plus six percent (6%) per annum.

Section 3.05. Inspection and Audit Rights.

(a)           Tenant shall have the right to inspect, at reasonable times and in a reasonable manner, during the one hundred twenty (120) day period following the delivery of Landlord’s statement of the actual amount of the Annual Rental Adjustment (the “Inspection Period”), such of Landlord’s books of account and records as pertain to and contain information concerning the Annual Rental Adjustment for the prior calendar year in order to verify the amounts thereof. Such inspection shall take place at Landlord’s office upon at least fifteen (15) days prior written notice from Tenant to Landlord. Only Tenant or a certified public accountant that is not being compensated for its services on a contingency fee basis shall conduct such inspection.
Landlord and Tenant shall act reasonably in assessing the other party’s calculation of the Annual Rental Adjustment. Tenant shall provide Landlord with a copy of its findings within thirty (30) days after completion of the audit. Tenant’s failure to exercise its rights hereunder within the Inspection Period shall be deemed a waiver of its right to inspect or contest the method, accuracy or amount of such Annual Rental Adjustment. Anything herein to the contrary notwithstanding, Tenant shall not delay or withhold payment of any balance shown to be due pursuant to a statement rendered by Landlord to Tenant, pursuant to the terms hereof because of any objection which Tenant may raise with respect thereto.

(b)          If Landlord and Tenant agree that Landlord’s calculation of the Annual Rental Adjustment for the inspected calendar year was incorrect, the parties shall enter into a written agreement confirming such undisputed error and then Landlord shall make a correcting payment in full to Tenant within thirty (30) days after the determination of the amount of such error or credit such amount against future Additional Rent if Tenant overpaid such amount, and Tenant shall pay Landlord within thirty (30) days after the determination of such error if Tenant underpaid such amount. In the event of any errors on the part of Landlord costing Tenant in excess of three percent (3%) of Tenant’s actual operating expense liability for any calendar year, Landlord will also reimburse Tenant for the costs of an audit
reasonably incurred by Tenant within the above thirty (30) day period not to exceed Five Thousand Dollars ($5,000.00).

(c)           All of the information obtained through Tenant’s inspection with respect to financial matters (including, without limitation, costs, expenses and income) and any other matters pertaining to Landlord, the Leased Premises, the Building and/or the Park as well as any compromise, settlement or adjustment reached between Landlord and Tenant relative to the results of the inspection shall be held in strict confidence by Tenant and its officers, agents, and employees; and Tenant shall cause its independent professionals to be similarly bound. The obligations within the preceding sentence shall survive the expiration or earlier termination of the Lease.

ARTICLE 4 - SECURITY DEPOSIT

Section 4.01 Security Deposit. Tenant is not required to make a Security Deposit.

 

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ARTICLE 5 - OCCUPANCY AND USE

Section 5.01. Use. Tenant shall use the Leased Premises for the Permitted Use and for no other purpose without the prior written consent of Landlord. Landlord represents and warrants that at Substantial Completion Tenant may use the Leased Premises for its Permitted Use and that the alteration made to Leased Premises are allowed under all applicable laws and regulations.

Section 5.02. Covenants of Tenant Regarding Use.

(a)           Tenant shall (i) use and maintain the Leased Premises and conduct its business thereon in a lawful manner, (ii) comply with all covenants that encumber the Building (and of which Tenant has received reasonable prior written notice) and all laws, rules, regulations, orders, ordinances, directions and requirements of any governmental authority or agency, now in force or which may hereafter be in force, including, without limitation, those which shall impose upon Landlord or Tenant any duty with respect to or triggered by a change in the use or occupation of, or any improvement or alteration to, the Leased Premises, and (iii) comply with and obey all reasonable directions, rules and regulations of Landlord, including the Building Rules and Regulations attached hereto as Exhibit
“E” and made a part hereof, as may be modified from time to time by Landlord on reasonable notice to Tenant, provided such modifications do not materially increase Tenant’s obligations or liabilities under this lease and do not materially and adversely impair Tenant’s access to or use of the Leased Premises or the Common Areas. Notwithstanding anything to the contrary contained in this Lease, Tenant shall not be required to make any capital or structural improvements to the Leased Premises except to the extent required because of any alterations to the Leased Premises made by Tenant or because of Tenant’s specific and unique use of the Leased Premises.

(b)          Tenant shall not do or permit anything to be done in or about the Leased Premises that will in any way unreasonably cause a nuisance, obstruct or interfere with the rights of other tenants or occupants of the Building or injure them. Landlord shall not be responsible to Tenant for the non-performance by any other tenant or occupant of the Building of any of Landlord’s directions, rules and regulations, but agrees that any enforcement thereof shall be done uniformly. Tenant shall not overload the floors of the Leased Premises. All damage to the floor structure or foundation of the Building due to improper positioning or storage of items or materials, and not due to defective construction of the floor structure or foundation, shall be repaired by Landlord without mark-up or profit to Landlord at the
sole expense of Tenant, who shall reimburse Landlord immediately therefore upon demand. The construction drawings for the building state the floors are 6” concrete and are rated at 400 psf. Tenant shall not use the Leased Premises, nor allow the Leased Premises to be used, for any purpose or in any manner that would (i) invalidate any policy of insurance now or hereafter carried by Landlord on the Building, or (ii) increase the rate of premiums payable on any such insurance policy unless Tenant reimburses Landlord for any increase in premium charged as a direct result of such use by Tenant.

(c)          Tenant shall be provided exclusive use of the existing fueling station, the adjacent truck scale and above ground storage tanks. Tenant may operate the same at Tenant’s sole cost and expense. Tenant shall operate the fueling station and storage of fuels within regulatory guideline and according to all laws, rules and ordinances. Tenant shall comply with all requirements of Florida Statutes Chapter 376, as implemented by Florida Administrative Code Section 62-762 Aboveground Storage Tank Systems, including but not limited to the registration, operation and monitoring thereof. Tenant shall provide Landlord at Tenant’s sole cost and expense environmental insurance as set forth in Section 8. The fueling station shall be monitored (which may include cameras) and alarmed to notify both the Tenant and Landlord (or Landlord’s property manager

) in case of spills. Tenant will
report to the Landlord quarterly as to usage, maintenance and operations and to any other reportable information Landlord may reasonably request. Should the costs of Landlord’s insurance increase because of Tenant’s use of the fueling station, truck scales and above ground

 

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storage tanks, Tenant shall pay said increase. Landlord acknowledges and agrees that the fueling station shall be operated by an entity from which Tenant leases its trucks. Prior to operation said operating entity shall execute an indemnity agreement with Landlord, which form is attached as Exhibit I. Operating entity shall add Landlord and Landlord’s property manager as additional insureds on their insurance policy. Operating entity shall provide Landlord an insurance certificate evidencing the same and a financial statement from last two years

Section 5.03. Landlord’s Rights Regarding Use. Without limiting any of Landlord’s rights specified elsewhere in this Lease (a) Landlord shall have the right at reasonable times upon reasonable notice (except in the event of an emergency where no notice shall be required) to control, change or otherwise alter the Common Areas in such manner as it deems necessary or proper, and (b) Landlord, its agents, employees and contractors and any mortgagee of the Building shall have the right to enter any part of the Leased Premises at reasonable times upon reasonable notice (except in the event of an emergency where no notice shall be required) for the purposes of examining or inspecting the same (including, without limitation, testing to confirm Tenant’s compliance with this Lease), showing the same to prospective purchasers, mortgagees or tenants, and
making such repairs, alterations or improvements to the Leased Premises or the Building as Landlord may deem necessary or desirable. Landlord shall incur no liability to Tenant for such entry, nor shall such entry constitute an eviction of Tenant or a termination of this Lease, or entitle Tenant to any abatement of rent therefore. Landlord agrees to use commercially reasonable efforts to ensure that such entry into the Leased Premises or alteration of the Common Areas does not materially and adversely interfere with the use or occupancy by Tenant of the Leased Premises or the ability to conduct its business therein.

ARTICLE 6 – UTILITIES

Tenant shall obtain in its own name and pay directly to the appropriate supplier the cost of all utilities and services serving the Leased Premises. However, if any services or utilities are jointly metered with other property (excluding electrical service to the Leased Premises, which Landlord shall cause to be separately metered to the Leased Premises at Landlord’s sole cost), Landlord shall make a reasonable determination of Tenant’s proportionate share of the cost of such utilities and services and Tenant shall pay such share to Landlord within thirty (30) days after receipt of Landlord’s written statement. Notwithstanding anything to the contrary herein, the costs for running the refrigeration equipment shall be controlled by section 3.02 (b) and Tenant shall pay 100% of the cost of electricity to operate the refrigeration equipment minus the average cost per square
foot over the last twelve months for any non-Tenant rented space which is Ten Thousand Dollars ($10,000.00) per month. Once a new tenant leases any portion of this un- occupied space, the new tenant shall pay its proportionate share of these costs. Conceptually, if Tenant uses 52% of the combined refrigerated and frozen warehouse space and the electric costs to run the equipment is Thirty Thousand Dollars ($30,000.00) for a given month then Landlord’s contribution shall be 48% of the historic cost of $10,000.00 or $4,800.00 and Tenant shall contribute $25,200.00 for that month. Notwithstanding anything to the contrary herein, should the non-Tenant refrigeration space be converted to non-refrigeration space, the Tenant shall be responsible for 100% of the electric costs to run the refrigeration equipment.

Landlord represents and warrants that any lease it enters into with a tenant leasing all or a portion of the non-Tenant refrigeration space shall stipulate (i) that all overhead doors shall remained closed except for loading and unloading trucks and (ii) that Landlord may enforce any and all commercially reasonable rules to reduce the cost of operating the refrigeration system.

Landlord shall not be liable in damages or otherwise for any failure or interruption of any utility or other Building service (but excluding the exception for refrigeration equipment set forth herein) and no such failure or interruption shall entitle Tenant to terminate this Lease or withhold sums due hereunder. Notwithstanding the foregoing, in the event that (i) an interruption of utility service to the Leased Premises is due to Landlord’s gross negligence or intentional wrongful acts, and (ii) the restoration of such utility service

 

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is entirely within Landlord’s control, and (iii) such interruption renders all or a portion of the Leased Premises untenantable (meaning that Tenant is unable to use, and does not use, such space in the normal course of its business for the Permitted Use) for more than three (3) business days after Landlord receives written notice from Tenant of such interruption of service, then Minimum Annual Rent shall abate proportionately with respect to the portion of the Leased Premises rendered untenantable on a per diem basis for each day after such three (3) business-day period during which such portion of the Leased Premises remains untenantable. Such abatement shall be Tenant’s sole remedy for Landlord’s failure to restore service as set forth above, and Tenant shall not be entitled to damages (consequential or otherwise) as a result thereof.

ARTICLE 7 - REPAIRS, MAINTENANCE AND ALTERATIONS

Section 7.01. Repair and Maintenance of Building. Landlord, at Landlord’s cost, shall make all necessary repairs, replacements and maintenance to the roof, roof structure, floor slab, foundation, walls, below slab and below grade plumbing, the capital costs of the truck court and parking lot replacement and capital cost for the refrigeration equipment; provided however, to the extent any such repairs, replacements or maintenance are required because of the negligence, misuse or default of Tenant, its employees, agents, contractors, customers or invitees, Landlord shall make such repairs at Tenant’s sole expense.

Section 7.02. Repair and Maintenance of Leased Premises. Tenant shall, at its own cost and expense, maintain the Leased Premises in good condition, regularly servicing and promptly making all repairs and replacements thereto, including but not limited to the electrical systems, heating and air conditioning systems, plate glass, floors, windows and doors, and sprinkler and plumbing systems. Landlord shall enter into a preventative maintenance contract, upon commercially reasonable terms, on the heating, ventilating and air-conditioning systems and a separate preventative maintenance contract for the refrigeration equipment which shall not exceed the cost of $3,500.00 per month in the first year and thereafter may be subject to reasonable increase, which cost will be shared pro-rata should another refrigeration tenant occupy the non-Tenant refrigeration space, to
be approved and paid for by Tenant. The preventive maintenance contract shall provide for the inspection and maintenance of the heating, ventilating and air conditioning system. The refrigeration preventative maintenance contract shall include but not be limited to monthly inspections, cleaning evaporator coils, changing filters and valves. Tenant shall have the right to observe all work done with respect to such contract and to receive all reports generated as a result of such contract. If Tenant, in its commercially reasonable determination, is not satisfied with the work of such contractor(s), Tenant shall notify Landlord in writing with specific deficiencies. Landlord shall investigate the deficiencies noted and if they cannot be corrected to Tenant’s reasonable satisfaction, Landlord shall terminate such contract and thereafter enter into a new contractor with a contractor reasonable acceptable to Tenant. Landlord shall have thirty (30) days after receipt of such notice in
which to resolve any resolve any deficiencies identified by Tenant. Tenant’s exercise of its rights hereunder shall not affect Landlord’s responsibility for the operation and maintenance of the refrigeration system as set forth in this Lease.

Should Tenant hire contractors to perform work at or upon the Leased Premises, Tenant must (i) provide Landlord with an indemnity agreement (“Indemnity Agreement”) attached hereto as Exhibit “I” executed by the contractor and the Landlord and (ii) contractor must provide Landlord insurance certificates naming Landlord and Property Manager as additional insureds on contractor’s insurance policies with limits as stated in the Indemnity Agreement. Landlord must approve said Tenant’s contractor in writing prior to allowing contractor to perform work on or at the Leased Premises.

Section 7.03. Alterations.

(a)           Tenant shall not permit alterations in or to the Leased Premises unless and until Landlord has approved the plans therefore in writing. All such alterations shall become a part of the realty and the property

 

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of Landlord, and shall not be removed by Tenant. Tenant shall ensure that all alterations shall be made in accordance with all applicable laws, regulations and building codes, in a good and workmanlike manner and of quality equal to or better than the original construction of the Leased Premises. Tenant shall reimburse Landlord for any reasonable costs of plan review. No person shall be entitled to any lien derived through or under Tenant for any labor or material furnished to the Leased Premises, and nothing in this Lease shall be construed to constitute Landlord’s consent to the creation of any lien. If any lien is filed against the Leased Premises for work claimed to have been done for or material claimed to have been furnished to Tenant, Tenant shall cause such lien to be discharged of record within thirty (30) days after receipt of notice of such filing. Tenant shall indemnify Landlord from all
costs, losses, expenses and attorneys’ fees in connection with any construction or alteration and any related lien.

ARTICLE 8 - INDEMNITY AND INSURANCE

Section 8.01. Release. All of Tenant’s trade fixtures, merchandise, inventory and all other personal property in or about the Leased Premises, the Building or the Common Areas, which is deemed to include the trade fixtures, merchandise, inventory and personal property of others located in or about the Leased Premises or Common Areas at the invitation, direction or acquiescence (express or implied) of Tenant (all of which property shall be referred to herein, collectively, as “Tenant’s Property”), shall be and remain at Tenant’s sole risk. Landlord shall not be liable to Tenant or to any other person for, and Tenant hereby releases Landlord from (a) any and all liability for theft or damage to Tenant’s Property, and (b) any and all liability for any injury to Tenant or its employees,
agents, contractors, guests and invitees in or about the Leased Premises, the Building or the Common Areas, except to the extent of personal injury (but not property loss or damage) caused directly by the negligence or willful misconduct of Landlord, its agents, employees or contractors. Nothing contained in this Section 8.01 shall limit (or be deemed to limit) the waivers contained in Section 8.06 below. In the event of any conflict between the provisions of Section 8.06 below and this Section 8.01, the provisions of Section 8.06 shall prevail. This Section 8.01 shall survive the expiration or earlier termination of this Lease. Notwithstanding anything contained in this Lease to the contrary, Landlord shall
be responsible for damage (including, without limitation, lost inventory) suffered by Tenant in an amount not to exceed Five Hundred Thousand Dollars ($500,000.00) as a result of the full or partial failure of the refrigeration system for any reason other than Tenant’s gross negligence or willful misconduct.

Section 8.02. Indemnification by Tenant. Tenant shall protect, defend, indemnify and hold Landlord, its agents, employees and contractors harmless from and against any and all claims, damages, demands, penalties, costs, liabilities, losses, and expenses (including reasonable attorneys’ fees and expenses at the trial and appellate levels) to the extent (a) arising out of or relating to any act, omission, negligence, or willful misconduct of Tenant or Tenant’s agents, employees, contractors, customers or invitees in or about the Leased Premises, the Building or the Common Areas, (b) arising out of or relating to any of Tenant’s Property, or (c) arising out of any other act or occurrence within the Leased Premises, in all such cases except to the extent of personal injury (but not property loss or damage) caused directly by the gross negligence or
willful misconduct of Landlord, its agents, employees or contractors. Nothing contained in this Section 8.02 shall limit (or be deemed to limit) the waivers contained in Section 8.06 below. In the event of any conflict between the provisions of Section 8.06 below and this Section 8.02, the provisions of Section 8.06 shall prevail. This Section 8.02 shall survive the expiration or earlier termination of this Lease.

Section 8.03. Indemnification by Landlord. Landlord shall protect, defend, indemnify and hold Tenant, its agents, employees and contractors harmless from and against any and all claims, damages, demands, penalties, costs, liabilities, losses and expenses (including reasonable attorneys’ fees and expenses at the trial and appellate levels) to the extent arising out of or relating to any intentional act, gross negligence or willful misconduct of Landlord or Landlord’s agents, employees or contractors. Nothing contained in this Section 8.03 shall limit (or be deemed to limit) the waivers contained in Section 8.06 below. In the event of any conflict between the provisions of Section 8.06 below and this
Section 8.03, the provisions of Section

 

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8.06 shall prevail. This Section 8.03 shall survive the expiration or earlier termination of this Lease.

Section 8.04. Tenant’s Insurance.

(a)           During the Lease Term (and any period of early entry or occupancy or holding over by Tenant, if applicable), Tenant shall maintain the following types of insurance, in the amounts specified below:

(i)           Liability Insurance. Commercial General Liability Insurance (which insurance shall not exclude blanket contractual liability, broad form property damage, personal injury, or fire damage coverage) covering the Leased Premises and Tenant’s use thereof against claims for bodily injury or death and property damage, which insurance shall provide coverage on an occurrence basis with a per occurrence limit of not less than $1,000,000, and with a per location general aggregate limits of not less than $5,000,000 for each policy year, which limits may be satisfied by any combination of primary and excess or umbrella per occurrence policies.

(ii)          Casualty Insurance. Special Form Insurance (which insurance shall not exclude flood or earthquake) in the amount of the full replacement cost of Tenant’s Property and betterments (including alterations or additions performed by Tenant pursuant hereto, but excluding those improvements, if any, made pursuant to Section 2.02 above), which insurance shall include an agreed amount endorsement waiving coinsurance limitations. If, as a result of any act or omission by Tenant or violation of this Lease, the rate of fire insurance applicable to the Building or Landlord’s Property or any other insurance carried by Landlord is increased to an amount higher than it otherwise would have been, Tenant shall reimburse Landlord for the
increased cost of Landlord’s insurance premiums. Such reimbursement shall be Additional Rent payable upon the first day of the month following Landlord’s delivery to Tenant of a statement showing evidence of such increased insurance premiums. In any action or proceeding in which Landlord and Tenant are parties, a schedule or “make up” of rates for the Building or Landlord’s Property issued by the body making fire insurance rates for the Leased Premises shall be presumptive evidence of the facts stated herein and of the several items and charges in the fire insurance rate then applicable to Landlord’s Property or any part thereof.

(iii)         Worker’s Compensation Insurance. Worker’s Compensation insurance as required by applicable laws of the State of Florida; provided, however, that (a) Tenant may, in lieu of purchasing such insurance, comply with any workers’ compensation self-insurance option that may be available under applicable law, subject to subsection (c) below; and (b) the provisions of Section 8.04(b) below shall not apply to any Workers’ Compensation Insurance that may be maintained by Tenant.

(iv)         Business Interruption Insurance. Business Interruption Insurance as currently maintained by Tenant with limits not less than an amount equal to 12 months rent hereunder. .

(v)          Environmental Insurance. Tenant shall be provided use of the existing fueling station and above ground storage tanks and may operate the same at Tenant’s sole cost and expense. Tenant shall provide Landlord at Tenant’s sole cost and expense environmental insurance with a per occurrence limit of $1,500,000.00. Tenant shall provide Landlord its environmental insurance policy for Landlord’s commercially reasonable written approval. The policy shall include “First and Third Party” cleanup. Notwithstanding anything to the contrary stated herein, Tenant shall pay the costs for any increases to property or liability insurance for the Property because of the operation of the fueling station.

(b)          All insurance required by Tenant hereunder shall (i) be issued by one or more insurance companies reasonably acceptable to Landlord, licensed to do business in the State in which the Leased Premises is located and having an AM Best’s rating of A VII or better, (ii) be written as primary policies, not contributing with and not supplemental to the coverage that Landlord may carry subject to a maximum deductible of $100,000.00 for all insurance except flood insurance which is subject to a $500,000.00

 

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deductible and (iii) provide that said insurance shall not be materially changed, canceled or permitted to lapse on less than thirty (30) days’ prior written notice to Landlord. In addition, Tenant’s insurance shall protect Tenant and Landlord as their interests may appear, naming Landlord, Landlord’s property manager, and any mortgagee requested by Landlord, as additional insureds, including waiver of subrogation, under its commercial general liability policies. On or before the Commencement Date (or the date of any earlier entry or occupancy by Tenant), and thereafter, within thirty (30) days prior to the expiration of each such policy, Tenant shall furnish Landlord with certificates of insurance in the form of ACORD 25 or ACORD 25-S (or other evidence of insurance reasonably acceptable to Landlord), evidencing all required coverages, together with a copy of the endorsement(s) to
Tenant’s commercial general liability policy evidencing primary and non-contributory coverage and waiver of subrogation afforded to the appropriate additional insureds, Tenant shall provide Landlord with certificates of insurance, including all endorsements, evidencing the coverages required hereunder. Tenant shall be charged $25.00 per day for each day it is late in delivering said certificates. If Tenant fails to carry such insurance and furnish Landlord with such certificates of insurance, Landlord may, after written notice to Tenant and a thirty (30) day opportunity to cure, obtain such insurance on Tenant’s behalf and Tenant shall reimburse Landlord upon demand for the cost thereof as Additional Rent.

(c)           Tenant may, in lieu of purchasing workers’ compensation insurance, as required above, elect to “self-insure” against such risks provided that (i) Tenant or its parent corporation has in effect a program of “self insurance” insuring Tenant as a named insured against such risks, which program complies with any and all applicable laws with respect to self insurance in the State of Florida; (ii) Tenant or its parent corporation has and maintains a net worth sufficient to sustain a self insurance program in compliance with all applicable laws with respect to self insurance in the State of Florida; (iii) the failure to carry such insurance does not violate any law, statute, code, act, ordinance, order, judgment, decree, injunction, rule, regulation, permit, license, authorization
or other requirement which is issued by any government or governmental agency with jurisdiction over the Building and the Leased Premises or which is applicable to Tenant in the conduct of its business and (iv) Tenant provides Landlord with proof of both Tenant’s self-insurance coverage and excess workers’ compensation coverage as reasonably required by Landlord, which proof shall be deemed sufficient if it shows compliance with applicable laws with respect to self insurance in the State of Florida. In the event Tenant elects to self-insure, Tenant shall be deemed to have waived any rights it may have against Landlord and its insurers in the same manner and to the same extent as set forth in Article 8 hereof as if Tenant had not elected to self-insure.

(d)          Adequacy of Coverage. Landlord, its agents and employees make no representation that the limits of liability specified to be carried by Tenant pursuant to this Article 8 are adequate to protect Tenant. If Tenant believes that any of such insurance coverage is inadequate, Tenant shall obtain, at Tenant’s sole expense, such additional insurance coverage as Tenant deems adequate.

Section 8.05. Landlord’s Insurance. During the Lease Term, Landlord shall maintain the following types of insurance, in the amounts specified below (the cost of which shall be included in Operating Expenses):

(a)          Liability Insurance. Commercial General Liability Insurance (which insurance shall not exclude blanket, contractual liability, broad form property damage, personal injury, or fire damage coverage) covering the Common Areas against claims for bodily injury or death and property damage, which insurance shall provide coverage on an occurrence basis with a per occurrence limit of not less than $1,000,000, and with general aggregate limits of not less than $4,000,000 for each policy year, which limits may be satisfied by any combination of primary and excess or umbrella per occurrence policies.

(b)          Casualty Insurance. Special Form Insurance in the amount of the full replacement cost of the Building, including, without limitation, any improvements, if any, made pursuant to Section 2.02 above, but excluding Tenant’s Property and any other items required to be insured by Tenant pursuant to Section 8.04

 

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above.

(c)           Comprehensive Boiler and Machinery Insurance in the amount of full replacement cost of the machinery.

Section 8.06. Waiver of Subrogation. Notwithstanding anything contained in this Lease to the contrary, each party hereby waives any rights it may have against the other party on account of any loss of or damage to its property, the Leased Premises, its contents, or other portions of the Building or Common Areas arising from any risk which is insured by the party suffering damage. The special form coverage insurance policies maintained by Landlord and Tenant as provided in this Lease shall include an endorsement containing an express waiver of any rights of subrogation by the insurance company against the other party. The foregoing notwithstanding, this waiver of subrogation shall not apply to any claim of Tenant with respect to the refrigeration system, up to the $500,000.00 limit set forth in Section 8.01.

Landlord hereby waives any rights it may have against the Tenant on account of any loss of or damage to its property, the Leased Premises, its contents, or other portions of the Building or Common Areas arising from any risk which is required to be insured against by Sections 8.04(a)(ii) and 8.05(b) above. Notwithstanding anything contained in this Lease to the contrary, Landlord shall be responsible for damage suffered by Tenant in an amount not to exceed Five Hundred Thousand Dollars ($500,000.00) as a result of the failure of the refrigeration system, except if it is caused by Tenant’s negligence or willful misconduct.

ARTICLE 9 - CASUALTY

In the event of total or partial destruction of the Building or the Leased Premises by fire or other casualty, Landlord agrees promptly to restore and repair same. Rent shall proportionately abate during the time that the Leased Premises or part thereof are unusable because of any such damage. Notwithstanding the foregoing, if the Leased Premises are so destroyed that they cannot be repaired or rebuilt within two hundred ten (210) days from the casualty date either Landlord or Tenant may, upon thirty (30) days’ written notice to the other party, terminate this Lease with respect to matters thereafter accruing. Tenant waives any right under applicable laws inconsistent with the terms of this paragraph.

ARTICLE 10 - EMINENT DOMAIN

If all or any substantial part of the Building or Common Areas shall be acquired by the exercise of eminent domain, Landlord may terminate this Lease by giving written notice to Tenant on or before the date possession thereof is so taken, provided Landlord terminates the leases of all tenants of the Building which are similarly affected. If all or any part of the Leased Premises or Common Areas shall be acquired by the exercise of eminent domain so that a material portion of the Leased Premises shall become impractical for Tenant to use for the Permitted Use, Tenant may terminate this Lease by giving written notice to Landlord as of the date possession thereof is so taken. All damages awarded shall belong to Landlord; provided, however, that Tenant may claim dislocation and all other lawful damages if such amount is not subtracted from Landlord’s award. Landlord shall give notice to
Tenant within five (5) business days after Landlord’s receipt of notice of any taking.

 

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ARTICLE 11 - ASSIGNMENT AND SUBLEASE

Section 11.01. Assignment and Sublease.

(a)           Tenant shall not assign this Lease or sublet the Leased Premises in whole or in part without Landlord’s prior written consent, which consent shall not be unreasonably withheld, delayed or conditioned. In the event of any permitted assignment or subletting, Tenant shall remain primarily liable hereunder, and any extension, expansion, rights of first offer, rights of first refusal or other options granted to Tenant under this Lease shall be rendered void and of no further force or effect. The acceptance of rent from any other person shall not be deemed to be a waiver of any of the provisions of this Lease or to be a consent to the assignment of this Lease or the subletting of the Leased Premises. Any assignment or sublease consented to by Landlord shall not relieve Tenant (or its assignee) from
obtaining Landlord’s consent to any subsequent assignment or sublease.

(b)          By way of example and not limitation, Landlord shall be deemed to have reasonably withheld consent to a proposed assignment or sublease if in Landlord’s reasonable opinion (i) the Leased Premises are or may be in any way adversely affected in any material way; (ii) the business reputation of the proposed assignee or subtenant is such that Landlord has reason to believe, in Landlord’s commercially reasonable opinion, that such Tenant would have an adverse effect on the Building or the other tenants in the Building or in the Park; or (iii) the prospective assignee or subtenant is a current tenant in a building owned by Landlord at the Park or is a bona-fide third-party prospective tenant with which Landlord is in negotiations to provide space and Landlord has space available which could timely be
made available to such tenant.

(c)           Except with respect to the Subtenant defined in Section 11.02 below, if Tenant shall make any assignment or sublease, with Landlord’s consent, for a rental in excess of the rent payable under this Lease, Tenant shall pay to Landlord eighty five percent (85%) of any such net excess rental upon receipt after Tenant first recaptures all of its costs incurred in effecting such assignment or subletting, including, without limitation, concessions, improvement costs, brokerage commissions and legal fees. Tenant agrees to pay Landlord $500.00 upon demand by Landlord for reasonable accounting and attorneys’ fees incurred in conjunction with the processing and documentation of any requested assignment, subletting or any other hypothecation of this Lease
or Tenant’s interest in and to the Leased Premises as consideration for Landlord’s consent.

Section 11.02. Permitted Transfer. Notwithstanding anything to the contrary contained in Section 11.01 above, Tenant shall have the right, without Landlord’s consent, but upon ten (10) days’ prior notice to Landlord, to (a) sublet all or part of the Leased Premises to any related corporation or other entity which controls Tenant, is controlled by Tenant or is under common control with Tenant; (any such entity hereinafter referred to as a “Permitted Transferee”). For the purpose of this Article 11, “control” shall mean ownership of not less than fifty percent (50%) of all voting stock or legal and equitable interest in such corporation or entity. Any such transfer shall not relieve Tenant of its obligations under this Lease. Nothing in this
paragraph is intended to nor shall permit Tenant to transfer its interest under this Lease as part of a fraud or subterfuge to intentionally avoid its obligations under this Lease (for example, transferring its interest to a shell corporation that subsequently files a bankruptcy), and any such transfer shall constitute a Default hereunder. Any change in control of Tenant resulting from a merger, consolidation, or a transfer of partnership or membership interests, a stock transfer, or any sale of substantially all of the assets of Tenant that do not meet the requirements of this Section 11.02 shall be deemed an assignment or transfer that requires Landlord’s prior written consent pursuant to Section 11.01 above.

 

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ARTICLE 12 - TRANSFERS BY LANDLORD

Section 12.01. Sale of the Building. Landlord shall have the right to sell the Building at any time during the Lease Term, subject only to the rights of Tenant hereunder; and such sale shall operate to release Landlord from liability hereunder after the date of such conveyance.

Section 12.02. Estoppel Certificate. Within ten (10) business days following receipt of a written request from Landlord, Tenant shall execute and deliver to Landlord, without cost to Landlord, an estoppel certificate in such form as Landlord may reasonably request certifying (a) that this Lease is in full force and effect and unmodified or stating the nature of any modification, (b) the date to which rent has been paid, (c) that there are not, to Tenant’s knowledge, any uncured defaults or specifying such defaults if any are claimed, and (d) any other matters or state of facts reasonably required respecting the Lease. Such estoppel may be relied upon by Landlord and by any purchaser or mortgagee of the Building.

Section 12.03. Subordination. Landlord shall have the right to subordinate this Lease to any mortgage, deed to secure debt, deed of trust or other instrument in the nature thereof, and any amendments or modifications thereto (collectively, a “Mortgage”) presently existing or hereafter encumbering the Building by so declaring in such Mortgage. Within ten (10) business days following receipt of a written request from Landlord, Tenant shall execute and deliver to Landlord, without cost, any commercially reasonable instrument (“subordination and non-disturbance agreement”) necessary or desirable to confirm the subordination of this Lease. Notwithstanding the foregoing, if the holder of the Mortgage shall take title to the Leased Premises through foreclosure or deed in lieu of foreclosure, Tenant
shall be allowed to continue in possession of the Leased Premises as provided for in this Lease so long as Tenant is not in Default. Landlord warrants that as of the date of this Lease, there is no financing affecting the Building. Landlord agrees that it shall use commercially reasonable efforts, upon written request by Tenant and at Tenant’s sole expense, to provide Tenant with a commercially reasonable non-disturbance, subordination and attornment agreement in favor of Tenant from any ground lessors, mortgage holders or lien holders then in existence, in a form reasonably satisfactory to Tenant.

ARTICLE 13 - DEFAULT AND REMEDY

Section 13.01. Default. The occurrence of any of the following shall be a “Default”:

(a)           Tenant fails to pay any Monthly Rental Installments or Additional Rent within five (5) days after the same is due. Tenant hereby expressly waives any additional notice required under §83.20 of the Florida Statutes. Notwithstanding the foregoing, before exercising any of the default remedies of Landlord set forth in this Article 13, Landlord shall provide Tenant with a written courtesy notice of default and Tenant shall have an additional three (3) days to cure such default; provided, however, that Landlord shall not be required to give such courtesy notice more than one (1) time with respect to any particular default, nor more than one (1) time in any consecutive twelve (12) month period with respect to any payment defaults in the aggregate.

(b)          Tenant fails to perform or observe any other term, condition, covenant or obligation required under this Lease for a period of thirty (30) days after written notice thereof from Landlord; provided, however, that if the nature of Tenant’s default is such that more than thirty (30) days are reasonably required to cure, then such default shall be deemed to have been cured if Tenant commences such performance within said thirty (30) day period and thereafter diligently completes the required action within a reasonable time.

	
             
 	
            (c)
 	
            [Intentionally Omitted]
 

	
             
 	
            (d)
 	
            Tenant shall assign or sublet all or a portion of the Leased Premises in contravention of the
 

 

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provisions of Article 11 of this Lease, and Tenant shall not cure such default within thirty (30) days after written notice from Landlord to Tenant.

(e)           All or substantially all of Tenant’s assets in the Leased Premises or Tenant’s interest in this Lease are attached or levied under execution (and Tenant does not discharge the same within sixty (60) days thereafter); a petition in bankruptcy, insolvency or for reorganization or arrangement is filed by or against Tenant (and Tenant fails to secure a stay or discharge thereof within sixty (60) days thereafter); Tenant is insolvent and unable to pay its debts as they become due; Tenant makes a general assignment for the benefit of creditors; Tenant takes the benefit of any insolvency action or law; the appointment of a receiver or trustee in bankruptcy for Tenant or its assets if such receivership has not been vacated or set aside within sixty (60) days thereafter; or, dissolution or other
termination of Tenant’s corporate charter if Tenant is a corporation and same is not reinstated within thirty (30) days after termination.

Section 13.02. Remedies. Upon the occurrence of any Default, Landlord shall have the following rights and remedies, in addition to those stated elsewhere in this Lease and those allowed by law or in equity, any one or more of which may be exercised without further notice to Tenant:

(a)          Landlord may apply the Security Deposit or re-enter the Leased Premises and cure any default of Tenant, and Tenant shall reimburse Landlord as Additional Rent for any costs and expenses which Landlord thereby reasonably incurs; and Landlord shall not be liable to Tenant for any loss or damage which Tenant may sustain by reason of Landlord’s action.

(b)          Landlord may terminate this Lease or, without terminating this Lease, terminate Tenant’s right to possession of the Leased Premises as of the date of such Default, and thereafter (i) neither Tenant nor any person claiming under or through Tenant shall be entitled to possession of the Leased Premises, and Tenant shall immediately surrender the Leased Premises to Landlord; and (ii) Landlord may re-enter the Leased Premises and dispossess Tenant and any other occupants of the Leased Premises by any lawful means and may remove their effects, without prejudice to any other remedy which Landlord may have. Tenant shall be obligated to pay to Landlord (i) a one time payment of Five Hundred Thousand Dollars $500,000.00 and (ii) the cost of returning the Leased Premises to the condition required upon surrender
(which shall not involve the cost of removal of any Tenant alterations), and reasonable brokers’ commissions and reasonable attorneys’ fees to the extent such commissions and fees are directly attributable to Tenant’s default under the Lease, it being expressly understood and agreed that the liabilities and remedies specified in this subsection (b) shall survive the termination of this Lease. Tenant shall also be obligated on a monthly basis to pay to Landlord the difference between the rent provided for herein and that provided for in any lease covering a subsequent re-letting of the Leased Premises, for the period which would otherwise have constituted the balance of the Lease Term, together with all of Landlord’s Default Damages.

(c)          Landlord may sue for injunctive relief or to recover damages for any loss resulting from the Default.

(d)          Notwithstanding anything to the contrary contained herein, Landlord shall use reasonable efforts to mitigate its damages, which shall not exceed those required by applicable law or such efforts as landlords generally use to lease other space in the Building.

(f)           Landlord does hereby agree to subordinate any statutory lien on Tenant’s Property granted to Landlord to the lien of any lender providing financing to Tenant that is secured by Tenant’s trade fixtures, equipment, inventory or other personal property located at the Leased Premises, all pursuant to a landlord lien subordination agreement in form and substance reasonably satisfactory to Landlord.

Section 13.03. Landlord’s Default and Tenant’s Remedies. Landlord shall be in default if it fails to

 

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perform any term, condition, covenant or obligation required under this Lease for a period of thirty (30) days after written notice thereof from Tenant to Landlord; provided, however, that if the term, condition, covenant or obligation to be performed by Landlord is such that it cannot reasonably be performed within thirty (30) days, such default shall be deemed to have been cured if Landlord commences such performance within said thirty-day period and thereafter diligently undertakes to complete the same. Upon the occurrence of any such default, Tenant may sue for injunctive relief or to recover damages for any loss directly resulting from the breach, but Tenant shall not be entitled to terminate this Lease or withhold, offset or abate any sums due hereunder unless such default has effectively prevented Tenant from use of the Leased Premises. Notwithstanding the foregoing to the contrary, if Landlord has
failed to perform any of its maintenance or repair functions and, as a result, Tenant, in good faith, believes that there is an imminent danger to persons or property in or about the Leased Premises Tenant may, after 24 hours prior notice to Landlord (which notice may be given verbally to a representative of Landlord), and Landlord’s failure to respond within such 24-hour period, take such action as may be reasonably necessary in order to prevent or minimize such danger and/or damage. Tenant shall, prior to commencement of said work, provide to Landlord a specific description of the work to be performed by Tenant and the name of Tenant’s contractor. Any materials used shall be of equal or better quality than currently exists in the Building and Tenant’s contractor shall be adequately insured and of good reputation. Prior to commencing any work under this Section 13.03, Tenant agrees to deliver to Landlord evidence of such
insurance and an Indemnity Agreement, in commercially reasonable amounts. Landlord agrees to reimburse Tenant on demand for all reasonable, third party out-of-pocket expenses incurred by Tenant in connection therewith, provided that Tenant delivers to Landlord adequate bills or other supporting evidence substantiating said cost.

Section 13.04. Limitation of Landlord’s Liability. If Landlord shall fail to perform any term, condition, covenant or obligation required to be performed by it under this Lease (excluding, however, Landlord’s obligations with respect to environmental compliance and/or maintenance of the refrigeration system) and if Tenant shall, as a consequence thereof, recover a money judgment against Landlord, Tenant agrees that it shall look solely to Landlord’s right, title and interest in value of the Building for the collection of such judgment; and Tenant further agrees that no other assets of Landlord shall be subject to levy, execution or other process for the satisfaction of Tenant’s judgment.

Section 13.05. Nonwaiver of Defaults. Neither party’s failure nor delay in exercising any of its rights or remedies or other provisions of this Lease shall constitute a waiver thereof or affect its right thereafter to exercise or enforce such right or remedy or other provision. No waiver of any default shall be deemed to be a waiver of any other default. Landlord’s receipt of less than the full rent due shall not be construed to be other than a payment on account of rent then due, nor shall any statement on Tenant’s check or any letter accompanying Tenant’s check be deemed an accord and satisfaction. No act or omission by Landlord or its employees or agents during the Lease Term shall be deemed an acceptance of a surrender of the Leased Premises, and no agreement to accept such a surrender shall be valid unless in writing and signed by Landlord.

Section 13.06. Attorneys’ Fees. If either party defaults in the performance or observance of any of the terms, conditions, covenants or obligations contained in this Lease and the non-defaulting party obtains a judgment against the defaulting party, then the defaulting party agrees to reimburse the non-defaulting party for reasonable attorneys’ fees incurred in connection therewith. In addition, if a monetary Default shall occur and Landlord engages outside counsel to exercise its remedies hereunder, and then Tenant cures such monetary Default, Tenant shall pay to Landlord, on demand, all expenses incurred by Landlord as a result thereof, including reasonable attorneys’ fees, court costs and expenses actually incurred.

ARTICLE 14 - LANDLORD’S RIGHT TO RELOCATE TENANT

[Intentionally Omitted]

 

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ARTICLE 15 - TENANT’S RESPONSIBILITY REGARDING  

ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES

Section 15.01. Environmental Definitions.

(a)           “Environmental Laws” shall mean all present or future federal, state and municipal laws, ordinances, rules and regulations applicable to the environmental and ecological condition of the Leased Premises, and the rules and regulations of the Federal Environmental Protection Agency and any other federal, state or municipal agency or governmental board or entity having jurisdiction over the Leased Premises and applicable to the Leased Premises during the Lease Term.

(b)          “Hazardous Substances” shall mean those substances included within the definitions of “hazardous substances,” “hazardous materials”, “toxic substances”, “solid waste” or “infectious waste” under Environmental Laws and petroleum products.

Section 15.02. Restrictions on Tenant and compliance. Tenant shall not cause or permit the use, generation, release, manufacture, refining, production, processing, storage or disposal of any Hazardous Substances on, under or about the Leased Premises, or the transportation to or from the Leased Premises of any Hazardous Substances, except as necessary and appropriate for its Permitted Use in which case the use, storage or disposal of such Hazardous Substances shall be performed in compliance with the Environmental Laws. Such compliance includes Tenant’s obligation, at its sole expense, to take remedial action when required by applicable laws whether now or hereafter enacted, as and when such requirements are made known to Tenant. If remedial action is required, Tenant shall notify Landlord on a quarterly basis (or more frequently if requested by Landlord)
apprise Landlord of the status of remediation plans and provide Landlord with copies of all correspondence relating to such violation.

Tenant shall immediately notify Landlord should (i) Tenant become aware of any Hazardous Substance at, on, under, emanating from, or migrating to the Property in any quantity or manner, which could reasonably be expected to violate Environmental Laws or (ii) Tenant receives notice from a governmental authority or third party regarding the presence of a Hazardous Substance at, on, under, emanating from, or migrating to the Property in any quantity or manner, which could reasonably be expected to violate Environmental Laws.

If Landlord discovers a Hazardous Substance during or after Tenant vacates the Leased Premises and Tenant did not report the release of a Hazardous Substance during Tenant’s occupancy of the Leased Premises, the Landlord shall bear the burden of proving that this discovered Hazardous Substance was caused by Tenant prior to obligating Tenant to remediate the Hazardous Substance.

Section 15.03. Notices, Affidavits, Etc. Tenant shall immediately (a) notify Landlord of (i) any violation by Tenant, its employees, agents, representatives, customers, invitees or contractors of any Environmental Laws on, under or about the Leased Premises, or (ii) the presence or suspected presence of any Hazardous Substances on, under or about the Leased Premises, and (b) deliver to Landlord any notice received by Tenant relating to (a)(i) and (a)(ii) above from any source. Tenant shall execute affidavits, representations and the like within ten (10) business days of Landlord’s request therefore concerning Tenant’s best knowledge and belief regarding the presence of any Hazardous Substances on, under or about the Leased Premises.

Section 15.04. Tenant’s Indemnification. Tenant shall indemnify Landlord and Landlord’s property manager from any and all claims, losses, liabilities, costs, expenses and damages, including attorneys’ fees, costs of testing and remediation costs, incurred by Landlord in connection with (i) any breach by Tenant of

 

18

its obligations under this Article 15 and also, (ii) specifically, its use of the fueling station and above ground storage tanks. Tenant’s covenants and obligations under this Article 15 shall survive the expiration or earlier termination of this Lease.

Section 15.05. Existing Conditions. Notwithstanding anything contained in this Article 15 to the contrary, Tenant shall not have any liability to Landlord under this Article 15 resulting from any conditions existing, or events occurring, or any Hazardous Substances existing or generated, at, in, on, under or in connection with the Leased Premises prior to the Commencement Date of this Lease (or any earlier occupancy of the Leased Premises by Tenant) except to the extent Tenant exacerbates the same. Landlord hereby represents and warrants to Landlord’s actual knowledge without independent investigation, that as of the date of this Lease, the Leased Premises and the Building are not in violation of any Environmental Laws except for a petroleum spill presently being remediated which
spill occurred under the above ground storage tank. The existing spill conditions and remediation plan is made by Golder Associates. Tenant was provided with the following information:

	
             
 	
            1)
 	
            Phase One environmental site assessment prepared by IVI Int'l dated March 24, 2005;
 

	
             
 	
            2)
 	
            Attorney opinion on the environmental Dated December 29, 2005 prepared by Craig Slater atty with Harter Secrest & Emery;
 

	
             
 	
            3)
 	
            GZA Environmental Opinion on the Remediation action plan dated November 29, 2005;
 

	
             
 	
            4)
 	
            KTR Newmark Consultant opinion Phase One and Two environmental review Summary Dated December 29, 2005;
 

	
             
 	
            5)
 	
            Golder Associates remedial action plan dated November 8, 2005;
 

	
             
 	
            6)
 	
            Golder Associates Site Assessment Report Addendum Number 2 Dated July 14, 2003;
 

	
             
 	
            7)
 	
            Golder Associates Site Assessment Report Addendum Number 2 Dated July 25, 2002;
 

	
             
 	
            8)
 	
            Golder Associates Source Removal Plan Dated August 2000;
 

	
             
 	
            9)
 	
            Golder Associates First Year Forth Quarterly Sampling Event dated May 2005; 
 

	
             
 	
            10)
 	
            Golder Associates Site Assessment Report Addendum Number 2 Dated February 2001; and
 

	
             
 	
            11)
 	
            Addendum number 1 to Remedial Action Plan Dated April 26, 2006 prepared by Anthony Grasso with Golder Associates
 

 

Tenant’s execution of this Lease is an acknowledgment of receiving the same. Golder Associates may modify the plan to include a plan to dig and haul the contaminated petroleum spill off site to landfill.

Section 15.06. Indemnification by Landlord. Landlord shall indemnify Tenant and hold Tenant harmless in the event Landlord disposes of any Hazardous Substances within the Building or Leased Premises in violation of Environmental Laws. Landlord shall remediate same to the extent required by Environmental Laws at Landlord’s sole cost and expense. The obligations of Landlord under this Section 15.06 shall survive the expiration or earlier termination of this Lease.

ARTICLE 16 - MISCELLANEOUS

Section 16.01. Benefit of Landlord and Tenant. This Lease shall inure to the benefit of and be binding upon Landlord and Tenant and their respective successors and assigns.

Section 16.02. Governing Law. This Lease shall be governed in accordance with the laws of the State where the Building is located.

Section 16.03. Force Majeure. Landlord and Tenant (except with respect to the payment of any monetary obligation) shall be excused for the period of any delay in the performance of any obligation hereunder when such delay is occasioned by causes beyond its control, including but not limited to work

 

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stoppages, boycotts, slowdowns or strikes; shortages of materials, equipment, labor or energy; unusual weather conditions; or acts or omissions of governmental or political bodies.

Section 16.04. Examination of Lease. Submission of this instrument by Landlord to Tenant for examination or signature does not constitute an offer by Landlord to lease the Leased Premises. This Lease shall become effective, if at all, only upon the execution by and delivery to both Landlord and Tenant. Execution and delivery of this Lease by Tenant to Landlord constitutes an offer to lease the Leased Premises on the terms contained herein.

Section 16.05. Indemnification for Leasing Commissions. The parties hereby represent and warrant that the only real estate brokers involved in the negotiation and execution of this Lease are the Brokers, who shall be paid by Landlord, and that no other party is entitled, as a result of the actions of the respective party, to a commission or other fee resulting from the execution of this Lease. Each party shall indemnify the other from any and all liability for the breach of this representation and warranty on its part and shall pay any compensation to any other broker or person who may be entitled thereto. Landlord shall pay any commissions due Brokers based on this Lease pursuant to separate agreements between Landlord and Brokers.

Section 16.06. Notices. Any notice required or permitted to be given under this Lease or by law shall be deemed to have been given if it is written and delivered in person or by overnight courier or mailed by certified mail, postage prepaid, to the party who is to receive such notice at the address specified in Section 1.01(l). If sent by overnight courier, the notice shall be deemed to have been given one (1) day after sending. If mailed, the notice shall be deemed to have been given on the date that is three (3) business days following mailing. Either party may change its address by giving written notice thereof to the other party.

Section 16.07. Partial Invalidity; Complete Agreement. If any provision of this Lease shall be held to be invalid, void or unenforceable, the remaining provisions shall remain in full force and effect. This Lease represents the entire agreement between Landlord and Tenant covering everything agreed upon or understood in this transaction. There are no oral promises, conditions, representations, understandings, interpretations or terms of any kind as conditions or inducements to the execution hereof or in effect between the parties. No change or addition shall be made to this Lease except by a written agreement executed by Landlord and Tenant.

Section 16.08. Financial Statements. During the Lease Term and any extensions thereof, Tenant shall provide to Landlord, upon written request therefore, a copy of the most recent financial statements of Tenant’s parent entity prepared as of the end of such parent entity’s fiscal year. Such financial statements shall be signed by Tenant or an officer of Tenant, if applicable, who shall attest to the truth and accuracy of the information set forth in such statements, or if the Minimum Annual Rent hereunder exceeds $100,000.00, said statements shall be certified and audited. All financial statements provided by Tenant to Landlord hereunder shall be prepared in conformity with generally accepted accounting principles, consistently applied. As a condition to the disclosure of such financial statements, Tenant may require, upon written notice that Landlord
execute a confidentiality agreement. The form of such confidentiality agreement shall be mutually agreeable to both Landlord and Tenant.

Section 16.09. Representations and Warranties.

(a)           Tenant hereby represents and warrants that (i) Tenant is duly organized, validly existing and in good standing (if applicable) in accordance with the laws of the State under which it was organized; (ii) Tenant is authorized to do business in the State where the Building is located; and (iii) the individual(s) executing and delivering this Lease on behalf of Tenant has been properly authorized to do so, and such execution and delivery shall bind Tenant to its terms.

 

20

(b)          Landlord hereby represents and warrants that (i) Landlord is duly organized, validly existing and in good standing (if applicable) in accordance with the laws of the State under which it was organized; (ii) Landlord is authorized to do business in the State where the Building is located; and (iii) the individual(s) executing and delivering this Lease on behalf of Landlord has been properly authorized to do so, and such execution and delivery shall bind Landlord to its terms.

Section 16.10. Signage. Landlord shall at Tenant cost erect a sign on the face of the Building concerning the business of Tenant that shall be in keeping with the decor and other signs on the Building. Landlord shall at Landlord’s cost erect a monument sign on the street in keeping with Landlord’s signage program and subject to municipal approvals. All signage (including the signage described in the preceding sentence) in or about the Leased Premises shall be first approved by Landlord and shall be in compliance with the any codes and recorded restrictions applicable to the sign or the Building. The location, size and style of all signs shall be approved by Landlord. Tenant agrees to maintain any sign in good state of repair, and upon expiration of the Lease Term, Tenant agrees to promptly remove such signs and repair any damage to the Leased Premises.

Section 16.11. Parking. Tenant shall be entitled to the non-exclusive use of the parking spaces designated for the Building by Landlord. Landlord agrees to provide Tenant with 210 standard size car and light truck parking spaces on a non-exclusive, unreserved basis in the parking areas established for the Building initially in the existing parking lot as shown on Exhibit J. Upon completion of Tenant’s new parking lot located as shown on Exhibit K Tenant use of it shall be exclusive. Tenant agrees not to overburden the parking facilities and agrees to cooperate with Landlord and other tenants in the use of the parking facilities. Landlord reserves the right in its absolute discretion to determine whether the parking facilities are becoming crowded and, in such event, to allocate parking spaces between Tenant and other tenants; provided, however, that
Landlord agrees that Tenant’s use of the 210 parking spaces referenced herein shall not be considered to be an overburdening of the parking facilities. There will be no assigned parking unless Tenant is assured of its parking rights above and Landlord, in its sole discretion, deems such assigned parking advisable. No vehicle may be repaired or serviced in the parking area and any vehicle brought into the parking area by Tenant, or any of Tenant’s employees, contractors or invitees, and deemed abandoned by Landlord will be towed and all costs thereof shall be borne by the Tenant. All driveways, ingress and egress, and all parking spaces are for the joint use of all tenants. There shall be no parking permitted on any of the streets or roadways located within the Park. In addition, Tenant agrees that its local employees will not park in the spaces designated visitor parking. Notwithstanding anything to the contrary contained herein, Tenant shall be allowed to park its trucks
overnight (up to 32 non-aligned spaces in front of the Leased Premises) on a exclusive, unreserved basis in the approximate area labeled “Truck Parking Area” on Exhibit “H” attached hereto and made a part hereof.

Section 16.12. Consent. Where the consent or approval of a party is required, such consent will not be unreasonably withheld, conditioned or delayed.

Section 16.13. Time. Time is of the essence of each term and provision of this Lease.

Section 16.14. Radon Gas. RADON GAS IS A NATURALLY OCCURRING RADIOACTIVE GAS THAT, WHEN IT HAS ACCUMULATED IN A BUILDING IN SUFFICIENT QUANTITIES, MAY PRESENT HEALTH RISKS TO PERSONS WHO ARE EXPOSED TO IT OVER TIME. LEVELS OF RADON THAT EXCEED FEDERAL AND STATE GUIDELINES HAVE BEEN FOUND IN BUILDINGS IN FLORIDA. ADDITIONAL INFORMATION REGARDING RADON AND RADON TESTING MAY BE OBTAINED FROM YOUR COUNTY PUBLIC HEALTH UNIT.

 

21

Section 16.15. Options to Extend.

(a)           Grant and Exercise of Option. Provided that (i) Tenant is not in default beyond any applicable cure periods at the time of Tenant’s exercise of the option, (ii) the creditworthiness of Tenant is then reasonably acceptable to Landlord, and (iii) Tenant originally named herein (or its Permitted Transferee) and/or the Subtenant remains in possession of and has been continuously operating in not less than one hundred percent (100%) of the Leased Premises throughout the term immediately preceding the Extension Term (as defined below), Tenant shall have the option to extend the Lease Term for three (3) additional periods (the “Extension Term(s)”) of five (5) years each. Each Extension Term shall be upon the same terms and conditions contained in the Lease except
(x) this provision giving three (3) extension options shall be amended to reflect the remaining options to extend, if any, and (y) any improvement allowances or other concessions applicable to the Leased Premises under the Lease shall not apply to the Extension Term, and (z) the Minimum Annual Rent shall be adjusted as set forth below (the “Rent Adjustment”). Tenant shall exercise each option by (i) delivering to Landlord, no later than one hundred eighty (180) days prior to the expiration of the preceding term, written notice of Tenant’s desire to extend the Lease Term. Tenant’s failure to timely exercise such option shall be deemed a waiver of such option and any succeeding option. After proper and timely exercise of an option to extend all references in this Lease to “Term” or “Lease Term” shall be considered to mean the Term as extended, and all
references in this Lease to termination or to the end of the Term shall be considered to mean the termination or end of the Extension Term.

(b)          Rent Adjustment. The Minimum Annual Rent for the applicable Extension Term shall be an amount equal to one hundred three percent (103%) of the Minimum Annual Rent per square foot for the period immediately preceding the applicable Extension Term for the first twelve (12) months of the applicable Extension Term, with an increase of three percent (3%) for each successive twelve (12) month period of the Extension Term. The Monthly Rental Installments shall be an amount equal to one-twelfth (1/12) of the Minimum Annual Rent for the Extension Term and shall be paid at the same time and in the same manner as provided in the Lease.

(c)           Personal. The option to renew provided in subparagraph (a) above is personal to the Tenant executing this Lease and shall automatically terminate and be of no further force and effect upon the occurrence of an assignment of the Lease or sublet of all the Leased Premises, except to a Permitted Transferee or to the Subtenant.

Section 16.16. Right of First Offer.

(a)           Provided that (i) Tenant is not in default beyond any applicable cure periods at the time of Tenant’s exercise of the Right of First Offer, (ii) the creditworthiness of Tenant is then reasonably acceptable to Landlord, and (iii) Tenant originally named herein (or its Permitted Transferee) and/or the Subtenant remains in possession of and has been continuously operating in not less than one hundred percent (100%) of the Leased Premises throughout the Lease Term, and subject to any rights of other tenants to the Offer Space (as defined herein) and Landlord’s right to renew or extend the lease term of any other tenant with respect to the portion of the Offer Space now or hereafter leased by such other tenant, Landlord shall, before entering into a lease with a third party for the space located
in the Building shown on the attached Exhibit “F” (the “Offer Space”), notify Tenant in writing of the availability of the Offer Space for leasing and setting forth the terms and conditions upon which Landlord is willing to lease the Offer Space to Tenant (“Landlord’s Notice”). Tenant shall have ten (10) days from its receipt of Landlord’s Notice to deliver to Landlord a written notice agreeing to lease the Offer Space on the terms and conditions contained in Landlord’s Notice (“Tenant’s Acceptance”). In the event Tenant fails to deliver Tenant’s Acceptance to Landlord within said ten (10) day period, such failure shall be conclusively deemed a rejection of the Offer Space and a waiver by Tenant of this right of first offer,
whereupon Tenant shall have no further rights with respect to the Offer Space under this provision and Landlord shall be free to lease the Offer Space to a third party on no less than

 

22

ninety five percent (95%) of the total economic terms and conditions contained in Landlord’s notice, taking into consideration rent, tenant improvement allowances, and other rent concessions. If Landlord does not consummate such transaction on the terms of Landlord’s notice within two hundred and seventy (270) days of Tenant’s failure to lease the Offer Space, then this Right of First Offer shall be reinstated.

(b)          The term for the Offer Space shall be coterminous with the term for the original Leased Premises; provided, however, that the minimum term for the Offer Space shall be three (3) years and the term for the then existing Leased Premises (“Existing Premises”) shall be extended, if necessary, to be coterminous with the term for the Offer Space. If the Lease Term for the Existing Premises is extended as provided above, the Minimum Annual Rent for such extension term shall be an amount equal to one hundred three percent (103%) of the Minimum Annual Rent per square foot for the period immediately preceding the extension term for the first twelve (12) months of the extension term, with an increase of three percent (3%) for each successive twelve (12) month
period of the extension term. The Monthly Rental Installments shall be an amount equal to one-twelfth (1/12) of the Minimum Annual Rent for the extension term and shall be paid at the same time and in the same manner as provided in the Lease.

(c)          If Tenant properly exercises its Right of First Offer, Landlord and Tenant shall enter into an amendment to this Lease adding the Offer Space to the Leased Premises upon the terms and conditions set forth herein and making such other modifications to this Lease as are appropriate under the circumstances. If Tenant shall fail to enter into such amendment within thirty (30) days following Tenant’s Acceptance, then Landlord may terminate this Right of First Offer by notifying Tenant in writing, in which event Tenant shall have no further rights with respect to the Offer Space and Landlord shall be free to lease the Offer Space to a third party.

(d)          Personal. The Right of First Offer provided in subparagraph (a) above is personal to the Tenant executing this Lease and shall automatically terminate and be of no further force and effect upon the occurrence of an assignment of the Lease or a further sublet of all or part of the Leased Premises, except to a Permitted Transferee or to the Subtenant.

Section 16.17. Waiver of Jury Trial. The parties hereby waive trial by jury in any action, proceeding or counterclaim brought by either party against the other, arising out of this Lease or Tenant’s use or occupancy of the Leased Premises.

Section 16.18. No Construction Against Drafting Party. Landlord and Tenant acknowledge that each of them and their counsel have had an opportunity to review this Lease and that this Lease will not be construed against Landlord merely because Landlord has prepared it.

Section 16.19. Time of the Essence. Time is of the essence of each and every provision of this Lease.

Section 16.20. Severability. If any provision of this Lease is determined to be illegal, invalid or unenforceable, the remainder of this Lease shall not be affected by such finding, and in lieu of each provision of this Lease that is illegal, invalid or unenforceable, a provision shall be added as a part of this Lease as similar in terms to such illegal, invalid or unenforceable.

Section 16.21. Entire Agreement. This Lease, including all Exhibits hereto contain the entire understanding and agreement between Landlord and Tenant and may be amended only by subsequent written agreement in accordance with the terms and conditions of this Lease. No promises, warranties or representations, except as expressly and specifically contained in the Lease, have been made to Tenant respecting the condition of the Leased Premises or the manner of operating the Building or Landlord’s Property or respecting anything else whatsoever.

 

23

        
        

        

Section 16.22. Quiet Enjoyment. Landlord covenants and agrees with Tenant that so long as Tenant pays the Rent and observes and performs all the terms, covenants and conditions of this Lease on Tenant’s part to be observed and performed, Tenant may peaceably and quietly enjoy the Leased Premises for the uses permitted herein, and Tenant’s possession will not be disturbed by anyone claiming by, through or under Landlord subject, nevertheless, to the terms and conditions of this Lease and the Mortgage.

Section 16.23. Economic Incentives. Tenant intends to apply for the Florida Qualified Target Industry Tax Refund Incentive that requires approval of the Executive Office of the Governor’s Office of Tourism, Trade, and Economic Development and the Florida Quick Response Training Incentive Grant that requires the approval of Workforce Florida, Inc. Tenant may cancel its obligations under this Lease Agreement if either of these approval agencies does not award the Tenant sufficient benefits from these incentive programs by June 30, 2007, provided Tenant pays to Landlord 110% of Landlord’s Tenant improvement and commission costs.

 

[SIGNATURES FOLLOW ON NEXT PAGE]

 

24

IN WITNESS WHEREOF, the parties have executed this Lease as of the day and year first above written.

 

	
            WITNESSES:
 	
            LANDLORD:
 
	
             
 	
             
 
	
             
 	
            MERIDIAN-HUDSON MCINTOSH LLC, a
 
	
             
 	
            Delaware limited liability company
 
	
             
 	
             
 
	
            /s/ Travis Williams                                                                                   
 	
            By: /s/ Steven Kossoff                                                                                                           
 
	
            Printed Name: Travis Williams            
 	
            Name: Steven Kossoff                                                                             
 
	
             
 	
            Title: Member                                                                                                                                
 
	
            _________________________
 	
             
 
	
            Printed Name: _____________
 	
             
 
	
             
 	
             
 
	
             
 	
            TENANT
 
	
             
 	
             
 
	
             
 	
            UNITED NATURAL FOODS, INC.,
 
	
             
 	
            a Delaware corporation
 
	
             
 	
             
 
	
            _________________________
 	
             
 
	
            Printed Name: _____________
 	
             
 
	
             
 	
            By: _________________________
 
	
             
 	
            Name: ___________________
 
	
             
 	
            Title: ____________________
 
	
             
 	
             
 
	
             
 	
             
 
	
            _________________________
 	
             
 
	
            Printed Name: _____________
 	
             
 
	
             
 	
             
 
	
             
 	
            Attest: _______________________
 
	
             
 	
            Name: ___________________
 
	
             
 	
            Title: ____________________
 
	
             
 	
             
 
	
             
 	
            [CORPORATE SEAL]
 

 

 

25

 

EXHIBIT “B” 

TENANT IMPROVEMENTS 

Indemnity

1.            Landlord’s Obligations. Tenant’s acceptance of the Building is conditioned upon Landlord’s completion of the items set forth in this Exhibit B. Subject to the foregoing, Tenant has personally inspected the Leased Premises and accepts the same “AS IS” without representation or warranty by Landlord of any kind and with the understanding that Landlord shall have no responsibility with respect thereto except to perform and complete Landlord’s obligations under Section 7.01 of the Lease and to construct and install within the Leased Premises, in a good and workmanlike manner, the Tenant Improvements, in accordance with the Lease and this Exhibit
“B”.

2.            Construction Drawings. Within __ days of the execution of this Lease, Landlord shall prepare and submit to Tenant a set of construction drawings (the “CD’s”) covering all work to be performed by Landlord in constructing and installing the Tenant Improvements, which shall be based on the scope of work attached as Exhibit “B-1” hereto and the final space plan attached as Exhibit “B-2” hereto. The scope of work shall include at no cost to Tenant space planning, design, permitting and construction documents, including without limitation, architectural, civil, structural, mechanical,
plumbing and electrical. Tenant shall have ten (10) days after receipt of the CD’s in which to review the CD’s and to give to Landlord written notice of Tenant’s approval of the CD’s or its requested changes to the CD’s. Tenant shall have no right to request any changes to the CD’s that would increase the scope of work or materially alter the exterior appearance or basic nature of the Building or the Building systems unless Tenant agrees to pay for same. If Tenant fails to approve or request changes to the CD’s within ten (10) days after its receipt thereof, Tenant shall be deemed to have approved the CD’s and the same shall thereupon be final. If Tenant requests any changes to the CD’s, Landlord shall make those changes which are reasonably requested by Tenant and shall within ten (10) days of its receipt of such request submit the revised portion of the CD’s to Tenant. Tenant shall have an additional ten (10) days to review such
revised portion of the CD’s to determine if all such changes have been made. If they have not been made, the revision and review procedures of this Section 2 shall remain in place until they have been approved. Once approved, the CD’s, as modified by said revisions, shall be final. Tenant shall at all times in its review of the CD’s, and of any revisions thereto, act reasonably and in good faith. Without limiting the foregoing, Tenant agrees to confirm Tenant’s consent to the CD’s in writing within three (3) days following Landlord’s written request therefor.

3.            Schedule and Early Occupancy. Landlord shall provide Tenant with a proposed schedule for the construction and installation of the Tenant Improvements when the CD’s are presented (provided that such schedule is subject to extension on a day for day basis if the initial CD’s are changed as provided in Section 2) and shall notify Tenant of any material changes to said schedule. Tenant agrees to coordinate with Landlord regarding the installation of Tenant’s phone and data wiring and any other trade related fixtures that will need to be installed in the Leased Premises prior to Substantial Completion. In addition, if and to the extent permitted by applicable laws, rules and ordinances, Tenant may enter the Leased Premises upon the execution hereof in order
to install fixtures (such as racking) and otherwise prepare the Leased Premises for occupancy, which right shall expressly exclude making any structural modifications. During any entry prior to the Commencement Date (a) Tenant shall comply with all terms and conditions of this Lease other than the obligation to pay rent, (b) Tenant shall not interfere with Landlord’s completion of the Tenant Improvements, (c) Tenant shall cause its personnel and contractors to comply with the terms and conditions of Landlord’s rules of conduct (Exhibit E), and (d) Tenant shall not begin operation of its business. Tenant acknowledges that Tenant shall be responsible for obtaining all applicable permits and inspections relating to any such work by Tenant.

 

Exhibit B

Page 1

4.            Change Orders. Tenant shall have the right to request changes to the CD’s at any time following the date hereof by way of written change order to be made on an AIA form (each, a “Change Order”, and collectively, “Change Orders”). Provided such Change Order is reasonably acceptable to Landlord, Landlord shall prepare and submit promptly to Tenant a memorandum setting forth the impact on cost and schedule resulting from said Change Order (the “Change Order Memorandum of Agreement”). Tenant shall, within five (5) days following Tenant’s receipt of the Change Order Memorandum of Agreement,
either (a) execute and return the Change Order Memorandum of Agreement to Landlord, or (b) retract its request for the Change Order. At Landlord’s option, Tenant shall pay to Landlord (or Landlord’s designee), within ten (10) days following Landlord’s request, any increase in the cost to construct the Tenant Improvements resulting from the Change Order, as set forth in the Change Order Memorandum of Agreement. Landlord shall not be obligated to commence any work set forth in a Change Order until such time as Tenant has delivered to Landlord the Change Order Memorandum of Agreement executed by Tenant. Any additional costs arising from such change order shall be paid on a monthly basis provided Landlord has presented a proper requisition.

5.            Tenant Delay. Notwithstanding anything to the contrary contained in the Lease, if Substantial Completion of the Tenant Improvements is delayed beyond the Target Commencement and Delivery Date as a result of Tenant Delay (as hereinafter defined), then, for purposes of determining the Commencement Date, Substantial Completion of the Tenant Improvements shall be deemed to have occurred on the date that Substantial Completion of the Tenant Improvements would have occurred but for such Tenant Delay. Without limiting the foregoing, Landlord shall use commercially reasonable speed and diligence to Substantially Complete the Tenant Improvements on or before the Target Commencement and Delivery Date.

6.            Letter of Understanding. Promptly following the Commencement Date, Tenant shall execute Landlord’s Letter of Understanding in substantially the form attached hereto as Exhibit “C” and made a part hereof, acknowledging (a) the Commencement Date of this Lease, and (b) those items which have not been completed by Landlord. If Tenant takes possession of and occupies the Leased Premises, Tenant shall not be deemed to have accepted the Leased Premises and that the condition of the Leased Premises and the Building was at the time satisfactory and in conformity with the provisions of this Lease in all respects, subject to any punchlist items, unless Tenant so notifies Landlord in writing.

7.            Definitions. For purposes of this Lease (a) “Substantial Completion” (or any grammatical variation thereof) shall mean completion of construction of the Tenant Improvements, subject only to punchlist items to be identified by Landlord and Tenant in a joint inspection of the Leased Premises prior to Tenant’s occupancy, as established by a certificate of occupancy for the Leased Premises or other similar authorization issued by the appropriate governmental authority, if required, and (b) “Tenant Delay” shall mean any delay in the completion of the Tenant Improvements attributable to Tenant, including, without limitation (i) Tenant’s failure to meet
any time deadlines specified herein, (ii) Change Orders, (iii) the performance of any other work in the Leased Premises by any person, firm or corporation employed by or on behalf of Tenant, or any failure to complete or delay in completion of such work, (iv) Landlord’s inability to obtain an occupancy permit for the Leased Premises because of the need for completion of all or a portion of improvements being installed in the Leased Premises directly by Tenant, and (v) any other act or omission of Tenant.

	
             
 	
            8.
 	
            Warranty.
 

(a)          Landlord hereby warrants to Tenant, which warranty shall survive for the one (1) year period following the Substantial Completion of the Tenant Improvements, that (i) the materials and equipment furnished by Landlord’s contractors in the completion of the Tenant Improvements will be of good quality 

 

Exhibit B

Page 2

and new, and (ii) such materials and equipment and the work of such contractors shall be free from defects not inherent in the quality required or permitted hereunder. This warranty shall exclude damages or defects caused by Tenant, its agents, employees or contractors, improper or insufficient maintenance, improper operation or normal wear and tear under normal usage.

 

Exhibit B

Page 3

EXHIBIT “B-1”

SCOPE OF WORK

United Natural Foods, Inc.: 

	
            Improvements:
	
            Landlord shall provide the following improvements, at its sole cost and expense, to Tenant. Improvements shall be built to meet all applicable code and zoning requirements, including but not limited to building, fire and ADA requirements:
 
	
             

	
             
	
            Landlord shall undertake to demise the refrigerated area of the Leased Premises so as to create the following approximate square footages:
 
	
             

	
             
	
            a)
	
            Freezer – 51,658 Square Feet; App. -20° degrees

Cooler – 30,268 Square Feet; App. 36° degrees

Produce – 14,742 Square Feet; App. 35° degrees dry

– Square Feet; App. 35° degrees wet (with drains)

– Square Feet; App. 55° degrees dry

– Square Feet; App. 45° degrees dry

Cold Dock – 19,752 Square Feet; App. 36 degrees

Dry Storage & Dock – 246,070 Square Feet

 

A new 3,600 sq. ft. truck maintenance facility is to be constructed of pre-engineered steel on site at a location as shown on Exhibit . Substantial Completion of this structure shall be on or about 11/1/2007. See attached construction documents.

 

Office – 15,000 Square Feet. Landlord is to renovate (paint, carpet, minor reconfiguration of interior walls, new ceilings, HVAC, lighting, new bathroom fixtures and equipment ) the existing improvements on the first and second floor offices so as to create a modern office environment.
 
	
             
 
	
             
 	
            b)
 	
            Tenant shall be provided use of the current fueling station and above ground fuel storage tanks. Tenant will provide at its sole cost, the necessary insurance and inspections. Tenant will operate fueling station within the regulatory guidelines. The existing above ground tanks are double steel wall construction with a cement liner in between the steel walls. Tanks shall be in full compliance upon acceptance of tanks by Tenant and Tenant, upon termination of the Lease shall return said tanks and fueling station in full compliance with applicable laws and ordinances.
 
	
             
 
	
             
 	
            c)
 	
            Separate automobile and truck drives to premises to be materially similar to the site plan attached as an exhibit to the final lease.
 

 

 

Exhibit B-1

Page 1

	
             
 	
            d)
 	
            Separate utilities-Tenant shall pay one hundred percent of the cost for electrical usage in the low temperature area minus any historical cost over the last twelve months for any non-UNFI rented space. Once a new tenant occupies space in this area Tenant shall pay its pro-rata share of electric in the Low Temperature areas. Tenant shall also pay for its electrical service in the non-refrigerated area of its premises via a separate dedicated electric meter provided to UNFI at Landlord’s cost
 
	
             
 	
             
 	
             
 
	
             
 	
            e)
 	
            Automobile parking – 210 spaces to be constructed and delivered to Tenant on or about 11/1/2007. Should Tenant expand into other areas of the building Landlord shall provide other parking to Tenant to be agreed to by the parties.
 
	
             
 	
             
 	
             
 
	
             
 	
            f)
 	
            Two battery rooms. One with a total of 875 amps, 480 Volts, 3 phase with 45 disconnects. 2nd battery room has 425 amps, 480 Volt 3 phase with 98 disconnects.
 
	
             
 	
             
 	
             
 
	
             
 	
            g)
 	
            Dock doors – Thirty (30) dock doors minimum total: twenty (20) in the dry warehouse and ten (10) in the cooler area of the warehouse. Docks to be in good working order
 
	
             
 	
             
 	
             
 
	
             
 	
            h)
 	
            One (1) 12’ x 14’ minimum, drive-in door in good working order
 
	
             
 	
             
 	
             
 
	
             
 	
            i)
 	
            Electric service – Landlord shall provide electrical service to meet current and future loads for tenant improvements and expansion.
 
	
             
 	
             
 	
             
 
	
             
 	
            j)
 	
            Lighting – High Pressure Sodium in good working order which can be retrofitted by Tenant at anytime at their sole cost and expense.
 
	
             
 	
             
 	
             
 
	
             
 	
            k)
 	
            Warehouse Ventilation – Provide for three (3) air changes minimum per hour.
 
	
             
 	
             
 	
             
 
	
             
 	
            l)
 	
            Sprinkler – ESFR fire suppression system to be in good working order which Landlord warrants is acceptable for UNFI’s use.
 
	
             
 	
             
 	
             
 
	
             
 	
            m)
 	
            Complete fire alarm system to code. 
 
	
             
 	
             
 	
             
 
	
             
 	
            n)
 	
            Smoke/heat evacuation per code. 
 
	
             
 	
             
 	
             
 
	
             
 	
            o)
 	
            Restrooms in office and warehouse to code.
 
	
             
 	
             
 	
             
 
	
             
 	
            p)
 	
            Racking – All of the existing racking in the Leased Premises shall be provided to Tenant for its use and modified at Tenant’s expense.
 
	
             
 	
             
 	
             
 
	
             
 	
            q)
 	
            All mechanical, electrical, plumbing, HVAC, dock equipment systems shall be provided in good working order upon commencement of the lease. Landlord shall warrant the capital cost 
 

 

Exhibit B-1

Page 2

 

	
             
 	
             
 	
            of replacement of these systems for one year subsequent to the commencement of the Lease.
 
	
             
 	
             
 	
             
 
	
            Signage:
 	
            Landlord shall, at Tenant’s cost, provide building mounted signage on the face of the building subject to municipal approval. Landlord shall provide a monument sign at Landlord’s cost on the McIntosh street side of the property in keeping with Landlord’s signage program and subject to municipal approval of same.
 
	
             
 	
             
 	
             
 
	
            Representations/
 Warranties:
 	
            Landlord represents and warrants that the premises will meet all applicable codes, including but not limited to fire, building, ADA requirements (once requirements are provided to Landlord for review) and that Tenant's use complies with current zoning affecting the property.
 
	
             
 	
             
 	
             
 

 

 

Exhibit B-1

Page 3

Exhibit B-1

 

	
            CSI Detailed Estimate
 	
             
 
	
             
 	
             
 
	
            Division 1. General Requirements
 	
             
 
	
             
 	
             
 
	
            01510 Temporary Utilities
 	
            Landlord shall allow use of all available utilities by tenants forces to complete the fit up of tenants space prior to lease commencement
 
	
            01580 Project Identification
 	
            Building Signage shall be provided on MacIntosh Road indicating the truck and, as allowable by Sarasota County, employee entrances to UNFI
 
	
            01740 Cleaning

01760 Protecting Installed Construction
 	
            All walls reasonably requested by tenantshall be power washed to restore cleanliness of wall to like new condition and remove all traces of mold, mildew, cobwebs and dirt.
 
	
             
 	
             
 
	
            Division 2. Site Work
 	
             
 
	
             
 	
             
 
	
            02500 Utility Services
 	
            Landlord warrants that all utilities are adequate for tenants intended use
 
	
            02540 Septic Tank
 	
            Landlord warrants that all septic connections are adequate for tenants intended use
 
	
            02765 Pavement Markings
 	
            Truck court shall be re-striped to indicate trailer parking, car parking, truck loading, pedestrian crossings and other directional information
 
	
             
 	
             
 
	
            02813 Lawn Sprinkling and Irrigation

02821 Chain Link Fences
 	
            Exterior landscaping shall be provided and maintained as per local requirements 

The perimeter of the property will be fenced and landlord shall provide one 24 Hr Security Guard posted at the main truck entance and one 12-hour security guard posted at the employee entrance. The employee entrance would be chained or gated after hours with a sign directing visitors to the truck entrance. Security Guards shall communicate with appropriate personnel regarding UNFI visitors
 
	
            02890 Traffic Signs and Signals – Install *
 	
            Handicapped Parking Signage shall be provided as required by code Signage shall be provided indicating exclusive use of parking for UNFI employees, trailer parking and truck loading
 

 

 

	
            02935 Plant Maintenance
 	
            Exterior landscaping shall be provided and maintained as per local requirements
 
	
             
 	
             
 
	
            Division 3. Concrete
 	
             
 
	
             
 	
            All concrete floor joints shall be filled with Floor caulk. In the Freezer MM-80 by Metzer/McGuire shall be used. Refrigerated areas shall only be caulked after the appropriate temperature has been reached. For non refrigerated areas MM-80, Versaflex or an approved equal shall be used. Prior to caulking, all joints shall be routed with a saw blade and caulking shall be applied full depth without backer- rod or sand fill. Landlord cost not to exceed $3.00 per lineal foot
 
	
             
 	
             
 
	
            Division 5. Metals
 	
             
 
	
             
 	
             
 
	
            05300 Metal Decking *
 	
            All metal deck and structural steel joists where flaking is occuring shall be sandblasted to have loose paint removed and all exposed surfaces shall be re- painted to match. Dock areas shall be re-painted in white.
 
	
            05520 Metal Hand Railings and Iron Work
 	
            All bollards protecting rack shall be removed and all holes patched and filled for bollards that land outside tenants new racking layout; tenant shall insall new bollards
 
	
             
 	
             
 
	
            Division 8. Doors, Windows & Glazing
 	
             
 
	
             
 	
             
 
	
            08100 Doors
 	
            Landlord shall cause all interior and exterior doors frames and associated hardware to be in good and proper working order for tenants intended use.
 
	
            08100 Exterior Doors
 	
            All exterior doors to tenants space shall have light tight seal to prevent the infiltration of insects and other pests into tenants leased property
 

 

 

	
             
 	
            All interior warehouse equipment doors and openings shall be raised to 13'-0 clear height to allow access to tenants material handling equipment
 
	
            08710 Door Hardware
 	
            If landlord has master keying schedule for property, landlord shall provide keying schedule so that tenant can cause a re-keying of all exterior doors within the master key program
 
	
             
 	
             
 
	
            Division 13. Special Construction
 	
             
 
	
             
 	
             
 
	
            13900 Fire Suppression
 	
            Landlord warrants that ESFR fire suppression systems are in good and working order and shall provide sprinkler shop drawings for tenants leased space along with results of sprinkler test warranting the proper working order of said system
 
	
             
 	
             
 
	
            Division 15. Mechanical
 	
             
 
	
             
 	
             
 
	
            15610 Refrigeration Compressors
 	
            All refrigeration equipment shall be serviced by a licensed third party approved prior to commissioning
 
	
             
 	
            Design temperatures in all refrigerated areas shall be held for a period of 5 days before lease commencement on that portion of the building
 
	
            15700 Heating, Venting and Air

Conditioning
 	
            Prior to occupancy landlord shall provide air quality tests showing that all office spaces throughout the leased premisises are free from airborne contaminants that may cause harm to occupants
 
	
            15810 Ducts and Diffusers
 	
            Ductwork and condensate lines feeding the lower office areas shall be relocated withing chaseways as part of new tenant office improvements
 
	
             
 	
             
 

 

 

	
            Division 16. Electrical
 	
             
 
	
             
 	
             
 
	
            16100 Electrical
 	
            Landlord warrants that all emergency lighting and emergency exit signs throughout the building are in proper working order and meets all code requirements for tenants intended use.
 
	
            16500 Light Fixtures
 	
            Lighting in employee parking areas shall be provided at a minimum of 1 FC. Photometric plans shall be provided by landlord if requested by tenant to prove lighting levels meet this standard 
 
	
             
 	
            Landlord shall cause all interior warehouse lighting to be in good and proper working order with consistent light color and configuration throughout tenant warehouse space. At tenant option, landlord may provide tenant with a lighting allowance for the work that would be required should the tenant elect to install new fixtures throughout portions of the lease space. [note, this provision may be deleted but Tenant should receive a credit to acknowledge that cost that Landlord has not Incurred]
 
	
             
 	
            Landlord shall ensure that appropriate temporary parking lot lighting is maintained until permanent lighting is installed
 

 

 

EXHIBIT “C”

LETTER OF UNDERSTANDING

Meridian-Hudson McIntosh, LLC 

17757 U.S. Highway 19 North, Suite 200 

Clearwater, FL 33764

RE: Lease Agreement between Meridian-Hudson McIntosh, LLC, a Delaware limited liability company (“Landlord”) and United Natural Foods, Inc. (“Tenant”) dated _________________, 2007 (the “Lease”), for Suite 1 (the “Leased Premises”) of the building commonly known as Meridian (the “Building”), located at 6100 McIntosh, Sarasota, Florida, within the Park (the “Park”)

Dear _________________________:

The undersigned, on behalf of Tenant, certifies to Landlord as follows:

	
             
 	
            1.
 	
            The Commencement Date under the Lease is ____________________________.
 

	
             
 	
            2.
 	
            The rent commencement date is ___________________.
 

	
             
 	
            3.
 	
            The expiration date of the Lease is ___________________.
 

	
             
 	
            4.
 	
            The Lease (including amendments or guaranty, if any) is the entire agreement between Landlord and Tenant as to the leasing of the Leased Premises and is in full force and effect.
 

	
             
 	
            5.
 	
            Check one
 

__ The Landlord has completed the improvements designated as Landlord’s obligation under the Lease “(excluding Tenant’s punchlist items)”, if any, and Tenant has accepted the Leased Premises as of the Commencement Date.

__ Tenant has taken possession notwithstanding Landlord’s failure to complete the improvements designate as Landlord’s obligation under the Lease, and Tenant has not accepted the Leased Premises, and shall not pay rent thereunder until such obligations have been fulfilled.

	
             
 	
            6.
 	
            To the best of the undersigned’s knowledge, there are no uncured events of default by either Tenant or Landlord under the Lease.
 

 

Exhibit C

Page 1

IN WITNESS WHEREOF, the undersigned has caused this Letter of Understanding to be executed this ____ day of _________________, 2007.

 

	
            TENANT:
 
	
             
 	
             
 
	
             
 	
             
 
	
            By:
 	
             
 
	
            Name:
 	
             
 
	
            Title:
 	
             
 
	
             
 	
             
 
	
             
 	
             
 
	
            Attest:
 	
             
 
	
            Name:
 	
             
 
	
            Title:
 	
             
 
	
             
 	
             
 
	
             
 	
             
 
	
            [CORPORATE SEAL]
 

 

 

Exhibit C

Page 2

EXHIBIT “D”

[Intentionally Omitted]

 

Exhibit D

Page 1

EXHIBIT “E”

RULES AND REGULATIONS

1.            The sidewalks, entrances, driveways and roadways serving and adjacent to the Leased Premises shall not be obstructed or used for any purpose other than ingress and egress. Landlord shall control the Common Areas.

2.            No awnings or other projections shall be attached to the outside walls of the Building. No curtains, blinds, shades or screens shall be attached to or hung in, or used in connection with, any window or door of the Leased Premises other than Landlord standard window coverings without Landlord’s prior written approval. All electric ceiling fixtures hung in offices or spaces along the perimeter of the Building of a quality, type, design and color approved by Landlord. Neither the interior nor the exterior of any windows shall be coated or otherwise sunscreened except for the following products:________________________________ or without written consent of Landlord, which shall not be unreasonably withheld.

3.            No sign, advertisement, notice or handbill shall be exhibited, distributed, painted or affixed by any tenant on, about or from any part of the Leased Premises, the Building or in the Common Areas including the parking area without the prior written consent of Landlord. In the event of the violation of the foregoing by any tenant, Landlord may remove or stop same without any liability, and may charge the expense incurred in such removal or stopping to tenant.

4.            The sinks and toilets and other plumbing fixtures shall not be used for any purpose other than those for which they were constructed, and no sweepings, rubbish, rags, or other substances shall be thrown therein. All damages resulting from any misuse of the fixtures shall be borne by the tenant who, or whose subtenants, assignees or any of their servants, employees, agents, visitors or licensees shall have caused the same.

5.            Additional boring, cutting or stringing of wires shall be subject to Landlord’s approval, which shall not be unreasonably withheld. .

6.            No bicycles, vehicles (except for fork lifts, hand trucks and similar equipment) , birds or animals of any kind (except seeing eye dogs) shall be brought into or kept in or about the Leased Premises, and no cooking shall be done or permitted by any tenant on the Leased Premises, except microwave cooking, and the preparation of coffee, tea, hot chocolate and similar items for tenants and their employees. No tenant shall cause or permit any unusual or objectionable odors to be produced in or permeate from the Leased Premises.

7.            The Leased Premises shall not be used for manufacturing, unless such use conforms to the zoning applicable to the area, and the Landlord provides written consent. No tenant shall occupy or permit any portion of the Leased Premises to be occupied as an office for the manufacture or sale of liquor, narcotics, or tobacco in any form, or as a medical office, or as a barber or manicure shop, or as a copy, photographic or print shop or an employment bureau without the express written consent of Landlord, proper zoning, and any costs associated with an increase in insurance as a result of any of the fore mentioned uses. The Leased Premises shall not be used for lodging or sleeping or for any immoral or illegal purpose. The foregoing notwithstanding, Tenant may install an exercise facility and/or day
care center for the benefit of its employees provided Tenant complies with all laws in the installation and operation of such facilities.

8.            No tenant shall make, or permit to be made any unseemly, excessive or disturbing noises or disturb or interfere with occupants of this or neighboring buildings or premises or those having business with 

 

Exhibit D

Page 1

them, whether by the use of any musical instrument, radio, phonograph, unusual noise, or in any other way. No tenant shall throw anything out of doors, windows or down the passageways.

9.            No tenant, subtenant or assignee nor any of its servants, employees, agents, visitors or licensees, shall at any time bring or keep upon the Leased Premises any flammable (except for flammable items used as part of the Permitted Use), combustible or explosive fluid, chemical or substance or firearm.

10.          Without Landlord’s written consent which shall not be unreasonably denied, no additional locks or bolts of any kind shall be placed upon any of the doors or windows by any tenant, nor shall any changes be made to existing locks or the mechanism thereof. Each tenant must upon the termination of his tenancy, restore to the Landlord all keys of doors, offices, and toilet rooms, either furnished to, or otherwise procured by, such tenant and in the event of the loss of keys so furnished, such tenant shall pay to the Landlord the cost of replacing the same or of changing the lock or locks opened by such lost key if Landlord shall deem it necessary to make such changes.

11.          No tenant shall overload the floors of the Leased Premises. All damage to the floor, structure or foundation of the Building due to improper positioning or storage items or materials shall be repaired by Landlord at the sole cost and expense of tenant, who shall reimburse Landlord immediately therefor upon demand.

12.          Each tenant shall be responsible for all persons entering the Building at tenant’s invitation, express or implied. Landlord shall in no case be liable for damages for any error with regard to the admission to or exclusion from the Building of any person. In case of an invasion, mob riot, public excitement or other circumstances rendering such action advisable in Landlord’s opinion, Landlord reserves the right without any abatement of rent to require all persons to vacate the Building and to prevent access to the Building during the continuance of the same for the safety of the tenants and the protection of the Building and the property in the Building.

13.          Canvassing, soliciting and peddling in the Building are prohibited, and each tenant shall report and otherwise cooperate to prevent the same.

14.          All equipment of any electrical or mechanical nature shall be placed by tenant in the Leased Premises in settings that will, to the maximum extent possible, absorb or prevent any vibration, noise and annoyance.

15.          There shall not be used in any space, either by any tenant or others, any hand trucks except those equipped with rubber tires and rubber side guards.

	
             
 	
            16.
 	
            Intentionally deleted.
 

17.          The Building is a smoke-free Building. Smoking is strictly prohibited within the Building. Smoking shall only be allowed in areas designated as a smoking area by Landlord. Tenant and its employees, representatives, contractors or invitees shall not smoke within the Building or throw cigar or cigarette butts or other substances or litter of any kind in or about the Building, except in receptacles for that purpose.

	
             
 	
            18.
 	
            Intentionally deleted.
 

19           Tenant, its employees, customers, invitees and guests shall, when using the parking facilities in and around the Building, observe and obey all signs regarding fire lanes and no-parking and driving speed zones and designated handicapped and visitor spaces, and when parking always park between the designated lines. Landlord reserves the right to tow away, at the expense of the owner, any vehicle which is improperly parked or parked in a no-parking zone or in a designated handicapped area, and any vehicle which is left in any parking lot in violation of the foregoing regulation. All vehicles shall be parked at the sole risk of the 

 

2

owner, and Landlord assumes no responsibility for any damage to or loss of vehicles.

20.          Tenant shall be responsible for and cause the proper disposal of medical waste, including hypodermic needles, created by its employees.

21.          . Except as otherwise expressly permitted by the terms of the Lease, no outside storage is permitted except the storage of trucks and other vehicles in good working order and used in the normal course of business.

22.          No tenant shall be allowed to conduct an auction from the Leased Premises without the prior written consent of Landlord.

It is Landlord’s desire to maintain in the Building and Common Areas the highest standard of dignity and good taste consistent with comfort and convenience for tenants. Any action or condition not meeting this high standard should be reported directly to Landlord. The Landlord reserves the right to make such other and further rules and regulations as in its judgment may from time to time be necessary for the safety, care and cleanliness of the Building and Common Areas, and for the preservation of good order therein; provided such new rules or regulations do not materially increase Tenant’s obligations or liabilities under the Lease and do not materially and adversely impair Tenant’s access to or use of the Leased Premises or the Common Areas.

 

3

EXHIBIT “F”

OFFER SPACE

[TO BE ADDED]

 

1

EXHIBIT “G”

Move Out Standards

In furtherance of the terms and conditions of this Lease and without limiting the generality thereof, Tenant herby agrees that the Leased Premises shall be surrendered by Tenant to Landlord on or before the last day of the Term or the date of any earlier termination thereof in accordance with the terms and conditions of this Lease in a manner that is fully consistent in all respects with the following standards and guidelines; provided, however, that in no event shall the Leased Premises at the time of surrender by Tenant to Landlord be required to be in better condition than existed on the Commencement Date:

	
            A. Lights
 	
            Office and warehouse lights to be fully operational with all bulbs functioning.
 
	
            B. Dock Levelers Doors
 	
            In good working condition.
 
	
            C. Dock Seals
 	
            Free of tears and broken backboards repaired.
 
	
            D. Warehouse Floors
 	
            Free of stains and power washed with no racking bolts and or other protrusions left in floor. Free of any large cracks which, if any, shall be properly repaired by a licensed mason. Any cracks in floor shall be repaired with an epoxy or polymer.
 
	
            E. Tenant Installed
    Equipment and Wiring
 	
            Intentionally deleted.
 
	
            F. Walls
 	
            Sheetrock damage should be patched and fire taped so that there are no holes in office or warehouse.
 
	
            G. Roof
 	
            Any tenant installed equipment to be removed and roof penetrations to be properly repaired by a licensed roofing contractor.
 
	
            H. Signs
 	
            To be removed, holes patched and paint touched up as necessary.
 
	
            I. Heating Ventilating
    And Air Conditioning
 	
            A written report from a licensed and reputable HVAC contractor within the last 3 months of Term stating that all heaters within the warehouse and office areas are operational and safe and in good operating condition.
 
	
            J. Overall Cleanliness
 	
            Clean windows, sanitize bathrooms, vacuumed carpet and remove any and all debris from office and warehouse areas. Remove all pallets and debris from exterior of Leased Premises.
 
	
            K. Upon Completion
 	
            Contract Landlord’s property manager to coordinate date for turning off power, turning in keys, and obtaining final Landlord inspection of the Leased Premises which, in turn, will facilitate any refund of Security Deposit in accordance with the terms and conditions of this Lease.
 

 

 

1

EXHIBIT “H”

TRUCK PARKING AREA

[TO BE ADDED]

 

1

EXHIBIT “I”

INDEMNITY AGREEMENT

	
            1.
 	
            __________________________ (“Contractor”) agrees to indemnify, hold harmless, release and defend (even if the allegations are false, fraudulent or groundless), to the maximum extent permitted by law, and covenants not to sue, Meridian-Hudson McIntosh LLC , Meridian Management Company of Florida, LLC, their successors or assigns (hereinafter collectively known as “Indemnified Parties”) from any and all liability, loss, suits, claims, damages, costs, judgments and expenses (including attorney’s fees and costs of litigation) which in whole or in part result from, or arise out of, or are claimed to result from or to arise out of: 
 

	
             
 	
            a.
 	
            Any activity on or use of premises or facilities or any performance under the scope of work in connection __________________________________________________and any additional work on the Meridian Business Center located at 6100 McIntosh Road, Sarasota, Florida (“Contract”); or 
 

	
             
 	
            b.
 	
            any acts, errors or omissions (including, without limitation, professional negligence) of Contractor, its employees, representatives, subcontractors, or agents in connection with the performance of this Contract. 
 

	
            2
 	
            This agreement to indemnify includes, but is not limited to, personal injury (including death at any time) and property or other damage (including, but without limitations, contract or tort or patent, copyright, trade secret or trademark infringement) sustained by any person or persons (including, but not limited to, companies, or corporations, Contractor and its employees or agents, and members of the general public).
 

	
            3.
 	
            If a claim by a third party is made or threatened against Indemnified Parties, and if Indemnified Parties intends to seek indemnity, Indemnified Parties shall promptly notify Contractor in writing of such claim. Contractor shall have thirty days after receipt of such notice to undertake, conduct and control, through counsel of its own choosing and at its expense, the settlement or defense of the claim, and Indemnified Parties shall cooperate with it in connection therewith; provided, that 
 

	
             
 	
            a.
 	
            the Contractor shall permit Indemnified Parties to participate in such settlement or defense through counsel chosen by Indemnified Parties, provided that the fees and expenses of such counsel shall be borne by Indemnified Parties and shall not be reimbursed by the Contractor, 
 

	
             
 	
            b.
 	
            the Contractor shall promptly reimburse Indemnified Parties for the full amount of any loss resulting from such claim and all related expenses (other than the fees and expenses of counsel as aforesaid) incurred by the Indemnified Parties,
 

	
             
 	
            c.
 	
            Contractor shall not, without the prior written consent of Indemnified Parties, which consent shall not 
 

 

2

be unreasonably withheld, settle or compromise any Claim or consent to the entry of any judgment which does not include as an unconditional term thereof the giving by the claimant or the plaintiff to Indemnified Parties and Contractor a release from all liability in respect of such claim and 

	
             
 	
            d.
 	
            nothing herein shall require Indemnified Parties to consent to the entry of any order, injunction or consent decreeing its ability to conduct its business operations after the date thereof. So long as Contractor is reasonably contesting any such claim in good faith, Indemnified Parties shall not pay or settle any such claim. If Contractor does not notify Indemnified Parties within thirty days after the receipt of Indemnified Parties notice of a claim that it elects to undertake the defense of the claim, Indemnified Parties shall have the right to contest, settle or compromise the claim in the exercise of its reasonable judgment at the expense of the Contractor. The parties agree to cooperate fully with each other in connection with the defense, negotiations and settlement of any such claim.
 

	
            4.
 	
            All disputes under this Contract shall be settled by arbitration in Sarasota, Florida, before a single arbitrator pursuant to the rules of the American Arbitration Association. Arbitration may be commenced at any time by any party hereto giving written notice to each other party to a dispute that such dispute has been referred to arbitration under this Section. The arbitrator shall be selected by the joint agreement of the parties, but if they do not so agree within 20 days after the date of the notice referred to above, the selection shall be made pursuant to the rules from the panels of arbitrators maintained by such Association. Any award rendered by the arbitrator shall be conclusive and binding upon the parties hereto; provided, however, that any such award shall be accompanied by a written opinion of the arbitrator giving
the reason for the award. This provision for arbitration shall be specifically enforceable by the parties and the decision of the arbitrator in accordance herewith shall be final and binding and there shall be no right of appeal therefrom.
 

	
            6.
 	
            Contractor shall carry and maintain insurance in the amounts and types set forth in “Exhibit 1” attached hereto and made a part hereof, on its own behalf, and on behalf of Indemnified Parties. Contractor shall provide to Indemnified Parties certificates of insurance evidencing the same and reflecting the effective date of such coverage. Should Contractor engage a subcontractor, the same conditions will apply under this Contract to each subcontractor.
 

 

3

IN WITNESS WHEREOF, the Contractor and Indemnified Parties have executed this indemnification agreement by their respective duly authorized officers.

Contractor__________________________________

By:_________________________________

Its:_________________________________

Dated:______________________________

Meridian-Hudson McIntosh LLC, a Delaware limited liability company

By:_____________________________________

 

Meridian Management Company of Florida, LLC, a Florida limited liability company

By:______________________________________ 

State of ______________________)

	
             
 	
            SS)
 

Country of ________________)

On the ________ day of ______________in the year 2007 before me, the undersigned, a notary public in and for said state, personally appeared ___________________, personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual or the person upon behalf of which the individual acted, executed the instrument.

Notary Public

State of ______________________)

	
             
 	
            SS)
 

Country of ________________)

On the _______ day of _____________ in the year 2007 before me, the undersigned, a notary public in and for said state, personally appeared ___________________ personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual or the person upon behalf of which the individual acted, executed the instrument.

 

4

____________________________________ 

Notary Public 

 

State of ______________________)

	
             
 	
            SS)
 

Country of ________________)

On the _______ day of _____________ in the year 2007 before me, the undersigned, a notary public in and for said state, personally appeared ___________________ personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual or the person upon behalf of which the individual acted, executed the instrument.

____________________________________ 

Notary Public 

 

5

Exhibit 1

 

	
            A.
 	
            Workers’ Compensation in accordance with applicable law or laws. Employer’s Liability Insurance with a Limit of at least Five Hundred Thousand Dollars ($500,000.00).
 

	
            B.
 	
            Comprehensive General Liability with a combined Bodily Injury and Property Damage Limit of at least Two Million Dollars ($2,000,000.00). (The limit may be provided through a combination of primary and umbrella/excess liability policies), including the following perils:
 

	
             
 	
            1.
 	
            Broad Form Blanket Contractual Liability for liability assumed under this Contract and all other contracts with the Property owner.
 

	
             
 	
            2.
 	
            Completed Operation/Products Liability.
 

	
             
 	
            3.
 	
            Broad Form Property Damage.
 

	
            A.
 	
            Comprehensive Automobile Liability Insurance covering the use of all Owned, Non-Owned and Hired Vehicles with a combined Bodily Injury and Property Damage Limit of at lease One Million Dollars ($1,000,000.00) per accident.
 

	
            B.
 	
            A waiver of subrogation endorsement to Indemnified Parties and all of their related or affiliated Corporations subsidiaries, entities, companies, trusts and/or partnerships and their owned, controlled, associated, affiliated and subsidiary companies, corporations and/or partnerships and the respective agents, consultants, principles, partners, servants, officers, stockholders, directors, employees, trustees, successors, assigns, ground lessors, investment lessors and tenants.
 

	
            C.
 	
            Endorsements must be furnished for all policies of insurance, except workers’ compensation, reflecting the inclusion of the interests of the Indemnified Parties and their agents, employees, successors, assigns, ground lessors, investment lessors and tenants as additional insured for bodily injury or property damage arising out of or in connection with the Contractor’s work, including but not limited to coverage for the acts or omissions of the Indemnified Parties and their agents, employees, successors assigns, ground lessors, investment lessors and tenants. Coverage is to be endorsed to reflect that insurance is to be primary for the Indemnified Parties and their agents, employees, successors, assigns, ground lessors, investment lessors and tenants and that the limits will be exhausted before any other insurance is
to apply. A copy of policy endorsement and any other documents required to verify such insurance is to verify such insurance are to be submitted with the appropriate certificate.
 

Insurance shall be placed with insurers with a Best’s rating of no less that “A”. Prior to commencement of performance, Contractor shall furnish Indemnified Parties with a certificate of insurance for each policy. Each certificate is to be signed by a person authorized by that insurer to bind coverage in its behalf. Their certificate(s) must be in a form approved by Indemnified Parties and Indemnified Parties may require complete, certified copies of any or all policies at any time.

Failure to maintain required insurance at all times shall constitute a default and material breach. In such event, Contractor shall immediately notify Indemnified Parties and cease all performance of its duties until further directed by Indemnified Parties. In the absence of satisfactory insurance coverage, Indemnified Parties may, at its option: (a) procure insurance with collection rights for premiums, attorney’s fees and costs against Contractor by way of set-off or recoupment from sums due Contractor, at Indemnified Parties’ option; (b) immediately terminate this Contract, or (c) self insurer the risk, with all damages and costs incurred, by judgment, settlement or otherwise, including attorney’s fees and costs, being collectible from Contractor, by way of set-off or recoupment from any sums due Contractor.

 

6Exhibit 4.8

    
      

    

     

    

      Exhibit
        4.8

       

       

      JAMES
        RIVER COAL COMPANY

       

       

      INDENTURE

       

       

      DATED
        AS OF _______________, 200__

       

       

      _________________________,
        TRUSTEE

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      TABLE
        OF CONTENTS

      

      
        	
                ARTICLE
                  I

              	 	 
	
                DEFINITIONS
                  AND INCORPORATION BY REFERENCE

              	
                1

              
	
                SECTION
                  1.1

              	
                Definitions.

              	
                1

              
	
                SECTION
                  1.2

              	
                Other
                  Definitions.

              	
                4

              
	
                SECTION
                  1.3

              	
                Incorporation
                  by Reference of Trust Indenture Act.

              	
                4

              
	
                SECTION
                  1.4

              	
                Rules
                  Of Construction.

              	
                5

              
	
                ARTICLE
                  II

              	 	 
	
                THE
                  SECURITIES

              	 	
                5

              
	
                SECTION
                  2.1

              	
                Issuable
                  In Series.

              	
                5

              
	
                SECTION
                  2.2

              	
                Establishment
                  Of Terms Of Series Of Securities.

              	
                5

              
	
                SECTION
                  2.3

              	
                Execution
                  and Authentication.

              	
                7

              
	
                SECTION
                  2.4

              	
                Registrar
                  and Paying Agent.

              	
                7

              
	
                SECTION
                  2.5

              	
                Paying
                  Agent to Hold Money in Trust.

              	
                8

              
	
                SECTION
                  2.6

              	
                Securityholder
                  Lists.

              	
                8

              
	
                SECTION
                  2.7

              	
                Transfer
                  and Exchange.

              	
                8

              
	
                SECTION
                  2.8

              	
                Mutilated,
                  Destroyed, Lost and Stolen Securities.

              	
                9

              
	
                SECTION
                  2.9

              	
                Outstanding
                  Securities.

              	
                9

              
	
                SECTION
                  2.10

              	
                Treasury
                  Securities.

              	
                9

              
	
                SECTION
                  2.11

              	
                Temporary
                  Securities.

              	
                10

              
	
                SECTION
                  2.12

              	
                Cancellation.

              	
                10

              
	
                SECTION
                  2.13

              	
                Defaulted
                  Interest.

              	
                10

              
	
                SECTION
                  2.14

              	
                Global
                  Securities.

              	
                10

              
	
                SECTION
                  2.15

              	
                CUSIP
                  Numbers.

              	
                11

              
	
                ARTICLE
                  III

              	 	 
	
                REDEMPTION

              	 	
                11

              
	
                SECTION
                  3.1

              	
                Notice
                  To Trustee.

              	
                11

              
	
                SECTION
                  3.2

              	
                Selection
                  of Securities to be Redeemed.

              	
                11

              
	
                SECTION
                  3.3

              	
                Notice
                  of Redemption.

              	
                12

              
	
                SECTION
                  3.4

              	
                Effect
                  of Notice of Redemption.

              	
                12

              
	
                SECTION
                  3.5

              	
                Deposit
                  of Redemption Price.

              	
                12

              
	
                SECTION
                  3.6

              	
                Securities
                  Redeemed in Part.

              	
                12

              
	
                ARTICLE
                  IV

              	 	 
	
                COVENANTS

              	 	
                13

              
	
                SECTION
                  4.1

              	
                Payment
                  of Principal and Interest.

              	
                13

              
	
                SECTION
                  4.2

              	
                SEC
                  Reports.

              	
                13

              
	
                SECTION
                  4.3

              	
                Compliance
                  Certificate.

              	
                13

              
	
                SECTION
                  4.4

              	
                Stay,
                  Extension and Usury Laws.

              	
                13

              
	
                SECTION
                  4.5

              	
                Corporate
                  Existence.

              	
                13

              
	
                SECTION
                  4.6

              	
                Taxes.

              	
                14

              
	
                ARTICLE
                  V

              	 	 
	
                SUCCESSORS

              	 	
                14

              
	
                SECTION
                  5.1

              	
                When
                  Company May Merge, Etc.

              	
                14

              
	
                SECTION
                  5.2

              	
                Successor
                  Corporation Substituted.

              	
                14

              
	
                ARTICLE
                  VI

              	 	 
	
                DEFAULTS
                  AND REMEDIES

              	
                14

              
	
                SECTION
                  6.1

              	
                Events
                  of Default.

              	
                14

              
	
                SECTION
                  6.2

              	
                Acceleration
                  of Maturity; Rescission and Annulment.

              	
                15

              
	
                SECTION
                  6.3

              	
                Collection
                  Of Indebtedness And Suits For Enforcement By Trustee.

              	
                16

              
	
                SECTION
                  6.4

              	
                Trustee
                  May File Proofs Of Claim.

              	
                16

              
	
                SECTION
                  6.5

              	
                Trustee
                  May Enforce Claims Without Possession Of Securities.

              	
                17

              
	
                SECTION
                  6.6

              	
                Application
                  of Money Collected.

              	
                17

              
	
                SECTION
                  6.7

              	
                Limitation
                  On Suits.

              	
                17

              
	
                SECTION
                  6.8

              	
                Unconditional
                  Right of Holders to Receive Principal and Interest.

              	
                18

              
	
                SECTION
                  6.9

              	
                Restoration
                  of Rights and Remedies.

              	
                18

              

      

      
        
          
          

        

        
          i

          
            

          

        

        
          
          

        

      

      

      
        	
                SECTION
                  6.10

              	
                Rights
                  and Remedies Cumulative.

              	
                18

              
	
                SECTION
                  6.11

              	
                Delay
                  or Omission Not Waiver.

              	
                18

              
	
                SECTION
                  6.12

              	
                Control
                  by Holders.

              	
                18

              
	
                SECTION
                  6.13

              	
                Waiver
                  Of Past Defaults.

              	
                19

              
	
                SECTION
                  6.14

              	
                Undertaking
                  For Costs.

              	
                19

              
	
                ARTICLE
                  VII

              	 	 
	
                TRUSTEE

              	 	
                19

              
	
                SECTION
                  7.1

              	
                Duties
                  of Trustee.

              	
                19

              
	
                SECTION
                  7.2

              	
                Rights
                  of Trustee.

              	
                20

              
	
                SECTION
                  7.3

              	
                Individual
                  Rights of Trustee.

              	
                21

              
	
                SECTION
                  7.4

              	
                Trustee’s
                  Disclaimer.

              	
                21

              
	
                SECTION
                  7.5

              	
                Notice
                  Of Defaults.

              	
                21

              
	
                SECTION
                  7.6

              	
                Reports
                  by Trustee to Holders.

              	
                21

              
	
                SECTION
                  7.7

              	
                Compensation
                  and Indemnity.

              	
                22

              
	
                SECTION
                  7.8

              	
                Replacement
                  of Trustee.

              	
                22

              
	
                SECTION
                  7.9

              	
                Successor
                  Trustee by Merger, Etc.

              	
                23

              
	
                SECTION
                  7.10

              	
                Eligibility;
                  Disqualification.

              	
                23

              
	
                SECTION
                  7.11

              	
                Referential
                  Collection of Claims Against Company.

              	
                23

              
	
                ARTICLE
                  VIII

              	 	 
	
                SATISFACTION
                  AND DISCHARGE; DEFEASANCE

              	
                23

              
	
                SECTION
                  8.1

              	
                Satisfaction
                  and Discharge of Indenture.

              	
                23

              
	
                SECTION
                  8.2

              	
                Application
                  of Trust Funds; Indemnification.

              	
                24

              
	
                SECTION
                  8.3

              	
                Legal
                  Defeasance of Securities of any Series.

              	
                24

              
	
                SECTION
                  8.4

              	
                Covenant
                  Defeasance.

              	
                25

              
	
                SECTION
                  8.5

              	
                Repayment
                  to Company.

              	
                26

              
	
                ARTICLE
                  IX

              	 	 
	
                AMENDMENTS
                  AND WAIVERS

              	 	
                26

              
	
                SECTION
                  9.1

              	
                Without
                  Consent of Holders.

              	
                26

              
	
                SECTION
                  9.2

              	
                With
                  Consent of Holders.

              	
                27

              
	
                SECTION
                  9.3

              	
                Limitations.

              	
                27

              
	
                SECTION

                  9.4

              	
                Compliance
                  With Trust Indenture Act.

              	
                28

              
	
                SECTION
                  9.5

              	
                Revocation
                  and Effect of Consents.

              	
                28

              
	
                SECTION
                  9.6

              	
                Notation
                  on or Exchange of Securities.

              	
                28

              
	
                SECTION
                  9.7

              	
                Trustee
                  Protected.

              	
                28

              
	
                ARTICLE
                  X

              	 	 
	
                MISCELLANEOUS

              	 	
                28

              
	
                SECTION
                  10.1

              	
                Trust
                  Indenture Act Controls.

              	
                28

              
	
                SECTION
                  10.2

              	
                Notices.

              	
                29

              
	
                SECTION
                  10.3

              	
                Communication
                  by Holders with Other Holders.

              	
                29

              
	
                SECTION
                  10.4

              	
                Certificate
                  and Opinion as to Conditions Precedent.

              	
                29

              
	
                SECTION
                  10.5

              	
                Statements
                  Required in Certificate or Opinion.

              	
                30

              
	
                SECTION
                  10.6

              	
                Rules
                  by Trustee and Agents.

              	
                30

              
	
                SECTION
                  10.7

              	
                Legal
                  Holidays.

              	
                30

              
	
                SECTION
                  10.8

              	
                No
                  Recourse Against Others.

              	
                30

              
	
                SECTION
                  10.9

              	
                Counterparts.

              	
                30

              
	
                SECTION
                  10.10

              	
                Governing
                  Laws.

              	
                30

              
	
                SECTION
                  10.11

              	
                No
                  Adverse Interpretation of Other Agreements.

              	
                30

              
	
                SECTION
                  10.12

              	
                Successors.

              	
                31

              
	
                SECTION
                  10.13

              	
                Severability.

              	
                31

              
	
                SECTION
                  10.14

              	
                Table
                  of Contents, Headings, Etc.

              	
                31

              
	
                ARTICLE
                  XI

              	 	 
	
                SINKING
                  FUNDS

              	 	
                31

              
	
                SECTION
                  11.1

              	
                Applicability
                  of Article.

              	
                31

              
	
                SECTION
                  11.2

              	
                Satisfaction
                  Of Sinking Fund Payments With Securities.

              	
                31

              
	
                SECTION
                  11.3

              	
                Redemption
                  Of Securities For Sinking Fund.

              	
                32

              

      

      

      

      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

      CROSS
        REFERENCE SCHEDULE

       

      
        	
                Trust
                  Indenture Act Section 

              	
                 Indenture
                  Section

              

      

      
        	
                Section 310

              	
                (a)(1)

              	
                7.10

              
	 	
                (a)(2)

              	
                7.10

              
	 	
                (a)(3)

              	
                N/A

              
	 	
                (a)(4)

              	
                N/A

              
	 	
                (a)(5)

              	
                7.10

              
	 	
                (b)

              	
                7.10

              
	
                Section
                  311

              	
                (a)

              	
                7.11

              
	 	
                (b)

              	
                7.11

              
	 	
                (c)

              	
                N/A

              
	
                Section
                  312

              	
                (a)

              	
                2.6

              
	 	
                (b)

              	
                10.3

              
	 	
                (c)

              	
                10.3

              
	
                Section
                  313

              	
                (a)

              	
                7.6

              
	 	
                (b)(1)

              	
                7.6

              
	 	
                (b)(2)

              	
                7.6

              
	 	
                (c)(1)

              	
                7.6

              
	 	
                (d)

              	
                7.6

              
	
                Section
                  314

              	
                (a)

              	
                4.2,
                  10.5

              
	 	
                (b)

              	
                N/A

              
	 	
                (c)(1)

              	
                10.4

              
	 	
                (c)(2)

              	
                10.4

              
	 	
                (c)(3)

              	
                N/A

              
	 	
                (d)

              	
                N/A

              
	 	
                (e)

              	
                10.5

              
	 	
                (f)

              	
                N/A

              
	
                Section
                  315

              	
                (a)

              	
                7.1

              
	 	
                (b)

              	
                7.5

              
	 	
                (c)

              	
                7.1

              
	 	
                (d)

              	
                7.1

              
	 	
                (e)

              	
                6.14

              
	
                Section
                  316

              	
                (a)

              	
                2.10

              
	 	
                (a)(1)(A)

              	
                6.12

              
	 	
                (a)(1)(B)

              	
                6.13

              
	 	
                (b)

              	
                6.8

              
	
                Section
                  317

              	
                (a)(1)

              	
                6.3

              
	 	
                (a)(2)

              	
                6.4

              
	 	
                (b)

              	
                2.5

              
	
                Section
                  318

              	
                (a)

              	
                10.1

              

      

      

       

      *    This
        Cross Reference Table shall not, for any purpose, be deemed to be part of
        the
        Indenture.

       

      

      
        
          
          

        

        
          iii

          
            

          

        

        
          
          

        

      

      

      INDENTURE,
        dated as of _______________, 200__ between JAMES RIVER COAL COMPANY, a Virginia
        corporation (“Company”),
        and
        ____________________, as trustee (“Trustee”).

       

      Each
        party agrees as follows for the benefit of the other party and for the equal
        and
        ratable benefit of the Holders of the Securities issued under this
        Indenture:

       

      ARTICLE
        I

       

      DEFINITIONS
        AND INCORPORATION BY REFERENCE

       

      SECTION
        1.1 Definitions.

       

      “Additional
        Amounts”
means
        any additional amounts which are required hereby or by any Security, under
        circumstances specified herein or therein, to be paid by the Company in respect
        of certain taxes imposed on Holders specified herein or therein and which
        are
        owing to such Holders.

       

      “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 the purposes of this definition, “control” (including, with
        correlative meanings, the terms “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
        or by agreement or otherwise.

       

      “Agent”
means
        any Registrar, Paying Agent or Service Agent.

       

      “Authorized
        Newspaper”
means
        a
        newspaper in an official language of the country of publication customarily
        published at least once a day for at least five days in each calendar week
        and
        of general circulation in the place in connection with which the term is
        used.
        If it shall be impractical in the opinion of the Trustee to make any publication
        of any notice required hereby in an Authorized Newspaper, any publication
        or
        other notice in lieu thereof that is made or given by the Trustee shall
        constitute a sufficient publication of such notice.

       

      “Bearer”
means
        anyone in possession from time to time of a Bearer Security.

       

      “Bearer
        Security”
means
        any Security, including any interest coupon appertaining thereto, that does
        not
        provide for the identification of the Holder thereof.

       

      “Board
        of Directors”
means
        the Board of Directors of the Company or any duly authorized committee
        thereof.

       

      “Board
        Resolution”
means
        a
        copy of a resolution certified by the Secretary or an Assistant Secretary
        of the
        Company to have been adopted by the Board of Directors or pursuant to
        authorization by the Board of Directors and to be in full force and effect
        on
        the date of the certificate and delivered to the Trustee.

       

      “Business
        Day”
means,
        unless otherwise provided by Board Resolution, Officers’ Certificate or
        supplemental indenture hereto for a particular Series, any day except a
        Saturday, Sunday or a legal holiday in the City of New York on which banking
        institutions are authorized or required by law, regulation or executive order
        to
        close.

       

      “Capital
        Stock”
means
        any and all shares, interests, participations, rights or other equivalents
        (however designated) of corporate stock.

       

      “Company”
means
        the party named as such above until a successor replaces it and thereafter
        means
        the successor.

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      

       

      “Company
        Order”
means
        a
        written order signed in the name of the Company by two Officers, one of whom
        must be the Company’s principal executive officer, principal financial officer
        or principal accounting officer.

       

      “Company
        Request”
means
        a
        written request signed in the name of the Company by its Chief Executive
        Officer, the President or a Vice President, and by its Treasurer, an Assistant
        Treasurer, its Secretary or an Assistant Secretary, and delivered to the
        Trustee.

       

      “Corporate
        Trust Office”
means
        the office of the Trustee at which at any particular time its corporate trust
        business shall be principally administered.

       

      “Default”
means
        any event which is, or after notice or passage of time or both would be,
        an
        Event of Default.

       

      “Depository”
means,
        with respect to the Securities of any Series issuable or issued in whole
        or in
        part in the form of one or more Global Securities, the person designated
        as
        Depository for such Series by the Company, which Depository shall be a clearing
        agency registered under the Exchange Act; and if at any time there is more
        than
        one such person, “Depository” as used with respect to the Securities of any
        Series shall mean the Depository with respect to the Securities of such
        Series.

       

      “Discount
        Security”
means
        any Security that provides for an amount less than the stated principal amount
        thereof to be due and payable upon declaration of acceleration of the maturity
        thereof pursuant to Section
        6.2.

       

      “Dollars”
and
        “$”
means
        the currency of The United States of America.

       

      “Exchange
        Act”
means
        the Securities Exchange Act of 1934, as amended.

       

      “GAAP”
means
        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
        have been approved by a significant segment of the accounting profession,
        which
        are in effect as of the date of determination.

       

      “Global
        Security”
or
        “Global
        Securities”
means
        a
        Security or Securities, as the case may be, in the form established pursuant
        to
Section
        2.2
        evidencing all or part of a Series of Securities, issued to the Depository
        for
        such Series or its nominee, and registered in the name of such Depository
        or
        nominee.

       

      “Holder”
or
        “Securityholder”
means
        a
        person in whose name a Security is registered or the holder of a Bearer
        Security.

       

      “indebtedness”
means,
        with respect to any person, and without duplication, (a) all indebtedness,
        obligations and other liabilities (contingent or otherwise) of such person
        for
        borrowed money (including obligations of the Company in respect of overdrafts,
        foreign exchange contracts, currency exchange agreements, interest rate
        protection agreements, and any loans or advances from banks, whether or not
        evidenced by notes or similar instruments) or evidenced by bonds, debentures,
        notes or similar instruments (whether or not the recourse of the lender is
        to
        the whole of the assets of such person or to only a portion thereof) (other
        than
        any account payable or other accrued current liability or obligation incurred
        in
        the ordinary course of business in connection with the obtaining of materials
        or
        services), (b) all reimbursement obligations and other liabilities
        (contingent or otherwise) of such person with respect to letters of credit,
        bank
        guarantees or bankers’ acceptances, (c) all obligations and liabilities
        (contingent or otherwise) in respect of leases of such person required, in
        conformity with generally accepted accounting principles, to be accounted
        for as
        capitalized lease obligations on the balance sheet of such person and all
        obligations and other liabilities (contingent or otherwise) under any lease
        or
        related document (including a purchase agreement) in connection with the
        lease
        of real property which provides that such person is contractually obligated
        to
        purchase or cause a third party to purchase the leased property and thereby
        guarantee a minimum residual value of the leased property to the lessor and
        the
        obligations of such person under such lease or related document to purchase
        or
        to cause a third party to purchase such leased property, (d) all
        obligations of such 

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      person
        (contingent or otherwise) with respect to an interest rate or other swap,
        cap or
        collar agreement or other similar instrument or agreement or foreign currency
        hedge, exchange, purchase or similar instrument or agreement, (e) all
        direct or indirect guaranties or similar agreements by such person in respect
        of, and obligations or liabilities (contingent or otherwise) of such person
        to
        purchase or otherwise acquire or otherwise assure a creditor against loss
        in
        respect of indebtedness, obligations or liabilities of another person of
        the
        kind described in clauses (a) through (d), (f) any indebtedness or
        other obligations described in clauses (a) through (e) secured by any
        mortgage, pledge, lien or other encumbrance existing on property which is
        owned
        or held by such person, regardless of whether the indebtedness or other
        obligation secured thereby shall have been assumed by such person and
        (g) any and all refinancings, replacements, deferrals, renewals, extensions
        and refundings of, or amendments, modifications or supplements to, any
        indebtedness, obligation or liability of the kind described in clauses
        (a) through (f).

       

      “Indenture”
means
        this Indenture as amended or supplemented, from time to time and shall include
        the form and terms of particular Series of Securities established as
        contemplated hereunder.

       

      “interest”
with
        respect to any Discount Security which by its terms bears interest only after
        Maturity, means interest payable after Maturity.

       

      “Maturity,”
when
        used with respect to any Security or installment of principal thereof, means
        the
        date on which the principal of such Security or such installment of principal
        becomes due and payable as therein or herein provided, whether at the Stated
        Maturity or by declaration of acceleration, call for redemption, or
        otherwise.

       

      “Officer”
means
        the Chief Executive Officer, the President, any Vice President, the Treasurer,
        the Secretary, any Assistant Treasurer or any Assistant Secretary of the
        Company.

       

      “Officers’
        Certificate”
means
        a
        certificate signed by two Officers, one of whom must be the Company’s principal
        executive officer, principal financial officer or principal accounting
        officer.

       

      “Opinion
        of Counsel”
means
        a
        written opinion of legal counsel who is acceptable to the Trustee. The counsel
        may be an employee of or counsel to the Company.

       

      “person”
means
        any individual, corporation, partnership, joint venture, association, limited
        liability company, joint-stock company, trust, unincorporated organization
        or
        government or any agency or political subdivision thereof.

       

      “principal”
of
        a
        Security means the principal of the Security plus, when appropriate, the
        premium, if any, on, and any Additional Amounts in respect of, the
        Security.

       

      “Responsible
        Officer”
means
        any officer of the Trustee in its Corporate Trust Office and also means,
        with
        respect to a particular corporate trust matter, any other officer to whom
        any
        corporate trust matter is referred because of his or her knowledge of and
        familiarity with a particular subject.

       

      “SEC”
means
        the Securities and Exchange Commission.

       

      “Securities”
means
        the debentures, notes or other debt instruments of the Company of any Series
        authenticated and delivered under this Indenture.

       

      “Series”
or
        “Series
        of Securities”
means
        each series of debentures, notes or other debt instruments of the Company
        created pursuant to Sections
        2.1 and 2.2
        hereof.

       

      “Stated
        Maturity”
when
        used with respect to any Security or any installment of principal thereof
        or
        interest thereon, means the date specified in such Security as the fixed
        date on
        which the principal of such Security or such installment of principal or
        interest is due and payable.

       

      “Subsidiary”
of
        any
        specified person means any corporation, association or other business entity
        of
        which more than 50% of the total voting power of shares of Capital Stock
        entitled (without regard to the occurrence of any contingency) to vote in
        the
        election of directors, managers or trustees thereof is at the time owned
        or
        controlled, directly or indirectly, by such person or one or more of the
        other
        Subsidiaries of that person or a combination thereof.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

       

      “TIA”
means
        the Trust Indenture Act of 1939 (15 U.S. Code Sections 77aaa-77bbbb) as in
        effect on the date of this Indenture; provided, however, that in the event
        the
        Trust Indenture Act of 1939 is amended after such date, “TIA” means, to the
        extent required by any such amendment, the Trust Indenture Act as so
        amended.

       

      “Trustee”
means
        the person named as the “Trustee” in the first paragraph of this instrument
        until a successor Trustee shall have become such pursuant to the applicable
        provisions of this Indenture, and thereafter “Trustee” shall mean each person
        who is then a Trustee hereunder, and if at any time there is more than one
        such
        person, “Trustee” as used with respect to the Securities of any Series shall
        mean the Trustee with respect to Securities of that Series.

       

      “U.S.
        Government Obligations”
means
        securities which are (i) direct obligations of The United States of America
        for
        the payment of which its full faith and credit is pledged or (ii) obligations
        of
        a person controlled or supervised by and acting as an agency or instrumentality
        of The United States of America the payment of which is unconditionally
        guaranteed as a full faith and credit obligation by The United States of
        America, and which in the case of (i) and (ii) are not callable or redeemable
        at
        the option of the issuer thereof, and shall also include a depository receipt
        issued by a bank or trust company as custodian with respect to any such U.S.
        Government Obligation or a specific payment of interest on or principal of
        any
        such U.S. Government Obligation held by such custodian for the account of
        the
        holder of a depository receipt, provided that (except as required by law)
        such
        custodian is not authorized to make any deduction from the amount payable
        to the
        holder of such depository receipt from any amount received by the custodian
        in
        respect of the U.S. Government Obligation evidenced by such depository
        receipt.

       

      SECTION
        1.2 Other
        Definitions.

       

      
        	
                Term

              	
                Defined
                  in Section

              
	
                Bankruptcy
                  Law

              	
                6.1

              
	
                Custodian

              	
                6.1

              
	
                Event
                  of Default

              	
                6.1

              
	
                Legal
                  Holiday

              	
                10.7

              
	
                mandatory
                  sinking fund payment

              	
                11.1

              
	
                optional
                  sinking fund payment

              	
                11.1

              
	
                Paying
                  Agent

              	
                2.4

              
	
                Registrar

              	
                2.4

              
	
                Service
                  Agent

              	
                2.4

              
	
                successor
                  person

                 

              	
                5.1

                 

              

      

      SECTION
        1.3 Incorporation
        by Reference of Trust Indenture Act.

       

      Whenever
        this Indenture refers to a provision of the TIA, the provision is incorporated
        by reference in and made a part of this Indenture. The following TIA terms
        used
        in this Indenture have the following meanings:

       

      “Commission”
means
        the SEC.

       

      “indenture
        securities”
means
        the Securities.

       

      “indenture
        security holder”
means
        a
        Securityholder.

       

      “indenture
        to be qualified”
means
        this Indenture.

       

      “indenture
        trustee”
or
        “institutional
        trustee”
means
        the Trustee.

       

      “obligor”
on
        the
        indenture securities means the Company and any successor obligor upon the
        Securities.

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      All
        other
        terms used in this Indenture that are defined by the TIA, defined by TIA
        reference to another statute or defined by SEC rule under the TIA and not
        otherwise defined herein are used herein as so defined.

       

      SECTION
        1.4 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 generally accepted accounting
                  principles;

              

      

       

      
        	 	
                (c)

              	
                references
                  to “generally
                  accepted accounting principles”
                  and “GAAP”
                  shall mean generally accepted accounting principles in effect as
                  of the
                  time when and for the period as to which such accounting principles
                  are to
                  be applied;

              

      

       

      
        	 	
                (d)

              	
                “or”
                  is not exclusive;

              

      

       

      
        	 	
                (e)

              	
                words
                  in the singular include the plural, and in the plural include the
                  singular; and

              

      

       

      
        	 	
                (f)

              	
                provisions
                  apply to successive events and
                  transactions.

              

      

       

      ARTICLE
        II

       

      THE
        SECURITIES

       

      SECTION
        2.1 Issuable
        In Series.

       

      The
        aggregate principal amount of Securities that may be authenticated and delivered
        under this Indenture is unlimited. The Securities may be issued in one or
        more
        Series. All Securities of a Series shall be identical except as may be set
        forth
        or determined in the manner provided in a Board Resolution, supplemental
        indenture or Officers’ Certificate detailing the adoption of the terms thereof
        pursuant to authority granted under a Board Resolution. In the case of
        Securities of a Series to be issued from time to time, the Board Resolution,
        Officers’ Certificate or supplemental indenture detailing the adoption of the
        terms thereof pursuant to authority granted under a Board Resolution may
        provide
        for the method by which specified terms (such as interest rate, maturity
        date,
        record date or date from which interest shall accrue) are to be determined.
        Securities may differ between Series in respect of any matters, provided
        that
        all Series of Securities shall be equally and ratably entitled to the benefits
        of the Indenture.

       

      SECTION
        2.2 Establishment
        Of Terms Of Series Of Securities.

       

      At
        or
        prior to the issuance of any Securities within a Series, the following shall
        be
        established (as to the Series generally, in the case of Subsection
        2.2.1
        and
        either as to such Securities within the Series or as to the Series generally
        in
        the case of Subsections
        2.2.2 through 2.2.21)
        by or
        pursuant to a Board Resolution, and set forth or determined in the manner
        provided in a Board Resolution, supplemental indenture or an Officers’
Certificate:

       

      2.2.1 the
        title
        of the Series (which shall distinguish the Securities of that particular
        Series
        from the Securities of any other Series);

       

      2.2.2 the
        price
        or prices (expressed as a percentage of the principal amount thereof) at
        which
        the Securities of the Series will be issued;

       

      2.2.3 any
        limit
        upon the aggregate principal amount of the Securities of the Series which
        may be
        authenticated and delivered under this Indenture (except for Securities
        authenticated and delivered upon registration of transfer of, or in exchange
        for, or in lieu of, other Securities of the Series pursuant to Section
        2.7, 2.8, 2.11, 3.6 or 9.6);

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      

       

      2.2.4 the
        date
        or dates on which the principal of the Securities of the Series is
        payable;

       

      2.2.5 the
        rate
        or rates (which may be fixed or variable) per annum or, if applicable, the
        method used to determine such rate or rates (including, but not limited to,
        any
        commodity, commodity index, stock exchange index or financial index) at which
        the Securities of the Series shall bear interest, if any, the date or dates
        from
        which such interest, if any, shall accrue, the date or dates on which such
        interest, if any, shall commence and be payable and any regular record date
        for
        the interest payable on any interest payment date;

       

      2.2.6 the
        place
        or places where the principal of and interest, if any, on the Securities
        of the
        Series shall be payable, where the Securities of such Series may be surrendered
        for registration of transfer or exchange and where notices and demands to
        or
        upon the Company in respect of the Securities of such Series and this Indenture
        may be served, and the method of such payment, if by wire transfer, mail
        or
        other means;

       

      2.2.7 if
        applicable, the period or periods within which, the price or prices at which
        and
        the terms and conditions upon which the Securities of the Series may be
        redeemed, in whole or in part, at the option of the Company;

       

      2.2.8 the
        obligation, if any, of the Company to redeem or purchase the Securities of
        the
        Series pursuant to any sinking fund or analogous provisions or at the option
        of
        a Holder thereof and the period or periods within which, the price or prices
        at
        which and the terms and conditions upon which Securities of the Series shall
        be
        redeemed or purchased, in whole or in part, pursuant to such
        obligation;

       

      2.2.9 the
        dates, if any, on which and the price or prices at which the Securities of
        the
        Series will be repurchased by the Company at the option of the Holders thereof
        and other detailed terms and provisions of such repurchase
        obligations;

       

      2.2.10 if
        other
        than denominations of $1,000 and any integral multiple thereof, the
        denominations in which the Securities of the Series shall be
        issuable;

       

      2.2.11 the
        forms
        of the Securities of the Series in bearer or fully registered form (and,
        if in
        fully registered form, whether the Securities will be issuable as Global
        Securities);

       

      2.2.12 if
        other
        than the principal amount thereof, the portion of the principal amount of
        the
        Securities of the Series that shall be payable upon declaration of acceleration
        of the maturity thereof pursuant to Section
        6.2;

       

      2.2.13 the
        provisions, if any, relating to any security provided for the Securities
        of the
        Series;

       

      2.2.14 any
        addition to or change in the Events of Default which applies to any Securities
        of the Series and any change in the right of the Trustee or the requisite
        Holders of such Securities to declare the principal amount thereof due and
        payable pursuant to Section
        6.2;

       

      2.2.15 any
        addition to or change in the covenants set forth in Articles
        IV or V
        which
        applies to Securities of the Series;

       

      2.2.16 any
        other
        terms of the Securities of the Series (which may modify or delete any provision
        of this Indenture insofar as it applies to such Series); and

       

      2.2.17 any
        depositories, interest rate calculation agents, exchange rate calculation
        agents
        or other agents with respect to Securities of such Series if other than those
        appointed herein.

       

      All
        Securities of any one Series need not be issued at the same time and may
        be
        issued from time to time, consistent with the terms of this Indenture, if
        so
        provided by or pursuant to the Board Resolution, supplemental indenture hereto
        or Officers’ Certificate referred to above, and the authorized principal amount
        of any Series may not be increased to provide for issuances of additional
        Securities of such Series, unless otherwise provided in such Board Resolution,
        supplemental indenture or Officers’ Certificate.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      

       

      SECTION
        2.3 Execution
        and Authentication.

       

      Two
        Officers shall sign the Securities for the Company by manual or facsimile
        signature.

       

      If
        an
        Officer whose signature is on a Security no longer holds that office at the
        time
        the Security is authenticated, the Security shall nevertheless be
        valid.

       

      A
        Security shall not be valid until authenticated by the manual signature of
        the
        Trustee or an authenticating agent. The signature shall be conclusive evidence
        that the Security has been authenticated under this Indenture.

       

      The
        Trustee shall at any time, and from time to time, authenticate Securities
        for
        original issue in the principal amount provided in the Board Resolution,
        supplemental indenture hereto or Officers’ Certificate, upon receipt by the
        Trustee of a Company Order. Such Company Order may authorize authentication
        and
        delivery pursuant to oral or electronic instructions from the Company or
        its
        duly authorized agent or agents, which oral instructions shall be promptly
        confirmed in writing. Each Security shall be dated the date of its
        authentication unless otherwise provided by a Board Resolution, a supplemental
        indenture hereto or an Officers’ Certificate.

       

      The
        aggregate principal amount of Securities of any Series outstanding at any
        time
        may not exceed any limit upon the maximum principal amount for such Series
        set
        forth in the Board Resolution, supplemental indenture hereto or Officers’
Certificate delivered pursuant to Section
        2.2,
        except
        as provided in Section
        2.8.

       

      Prior
        to
        the issuance of Securities of any Series, the Trustee shall have received
        and
        (subject to Section
        7.2)
        shall
        be fully protected in relying on: (a) the Board Resolution, supplemental
        indenture hereto or Officers’ Certificate establishing the form of the
        Securities of that Series or of Securities within that Series and the terms
        of
        the Securities of that Series or of Securities within that Series, (b) an
        Officers’ Certificate complying with Section
        10.4,
        and (c)
        an Opinion of Counsel complying with Section
        10.4.

       

      The
        Trustee shall have the right to decline to authenticate and deliver any
        Securities of such Series: (a) if the Trustee, being advised by counsel,
        determines that such action may not be taken lawfully; or (b) if the Trustee
        in
        good faith by its board of directors or trustees, executive committee or
        a trust
        committee of directors and/or Vice Presidents shall determine that such action
        would expose the Trustee to personal liability to Holders of any then
        outstanding Series of Securities.

       

      The
        Trustee may appoint an authenticating agent acceptable to the Company to
        authenticate Securities. An authenticating agent may authenticate Securities
        whenever the Trustee may do so. Each reference in this Indenture to
        authentication by the Trustee includes authentication by such agent. An
        authenticating agent has the same rights as an Agent to deal with the Company
        or
        an Affiliate of the Company.

       

      SECTION
        2.4 Registrar
        and Paying Agent.

       

      The
        Company shall maintain, with respect to each Series of Securities, at the
        place
        or places specified with respect to such Series pursuant to Section
        2.2,
        an
        office or agency where Securities of such Series may be presented or surrendered
        for payment (“Paying
        Agent”),
        where
        Securities of such Series may be surrendered for registration of transfer
        or
        exchange (“Registrar”)
        and
        where notices and demands to or upon the Company in respect of the Securities
        of
        such Series and this Indenture may be served (“Service
        Agent”).
        The
        Registrar shall keep a register with respect to each Series of Securities
        and to
        their transfer and exchange. The Company will give prompt written notice
        to the
        Trustee of the name and address, and any change in the name or address, of
        each
        Registrar, Paying Agent or Service Agent. If at any time the Company shall
        fail
        to maintain any such required Registrar, Paying Agent or Service Agent or
        shall
        fail to furnish the Trustee with the name and address thereof, such
        presentations, surrenders, notices and demands may be made or served at the
        Corporate Trust Office of the Trustee, and the Company hereby appoints the
        Trustee as its agent to receive all such presentations, surrenders, notices
        and
        demands.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      

       

      The
        Company may also from time to time designate one or more co-registrars,
        additional paying agents or additional service agents and may from time to
        time
        rescind such designations; provided, however, that no such designation or
        rescission shall in any manner relieve the Company of its obligations to
        maintain a Registrar, Paying Agent and Service Agent in each place so specified
        pursuant to Section
        2.2
        for
        Securities of any Series for such purposes. The Company will give prompt
        written
        notice to the Trustee of any such designation or rescission and of any change
        in
        the name or address of any such co-registrar, additional paying agent or
        additional service agent. The term “Registrar” includes any co-registrar; the
        term “Paying Agent” includes any additional paying agent; and the term “Service
        Agent” includes any additional service agent.

       

      The
        Company hereby appoints the Trustee as the initial Registrar, Paying Agent
        and
        Service Agent for each Series unless another Registrar, Paying Agent or Service
        Agent, as the case may be, is appointed prior to the time Securities of that
        Series are first issued.

       

      SECTION
        2.5 Paying
        Agent to Hold Money in Trust.

       

      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
        Securityholders of any Series of Securities, or the Trustee, all money held
        by
        the Paying Agent for the payment of principal of or interest on the Series
        of
        Securities, and will notify the Trustee of any default by the Company in
        making
        any such payment. While any such default continues, the Trustee may require
        a
        Paying Agent to pay all money held by it to the Trustee. The 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
        or a
        Subsidiary of the Company) shall have no further liability for the money.
        If the
        Company or a Subsidiary of the Company acts as Paying Agent, it shall segregate
        and hold in a separate trust fund for the benefit of Securityholders of any
        Series of Securities all money held by it as Paying Agent.

       

      SECTION
        2.6 Securityholder
        Lists.

       

      The
        Trustee shall preserve in as current a form as is reasonably practicable
        the
        most recent list available to it of the names and addresses of Securityholders
        of each Series of Securities and shall otherwise comply with TIA Section
        312(a).
        If the Trustee is not the Registrar, the Company shall furnish to the Trustee
        at
        least ten days before each interest payment date and at such other times
        as the
        Trustee may request in writing a list, in such form and as of such date as
        the
        Trustee may reasonably require, of the names and addresses of Securityholders
        of
        each Series of Securities.

       

      SECTION
        2.7 Transfer
        and Exchange.

       

      Where
        Securities of a Series are presented to the Registrar or a co-registrar with
        a
        request to register a transfer or to exchange them for an equal principal
        amount
        of Securities of the same Series, the Registrar shall register the transfer
        or
        make the exchange if its requirements for such transactions are met. To permit
        registrations of transfers and exchanges, the Trustee shall authenticate
        Securities at the Registrar’s request. No service charge shall be made for any
        registration of transfer or exchange (except as otherwise expressly permitted
        herein), but 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 tax or similar governmental charge payable
        upon
        exchanges pursuant to Sections
        2.11, 3.6 or 9.6).

       

      Neither
        the Company nor the Registrar shall be required (a) to issue, register the
        transfer of, or exchange Securities of any Series for the period beginning
        at
        the opening of business fifteen days immediately preceding the mailing of
        a
        notice of redemption of Securities of that Series selected for redemption
        and
        ending at the close of business on the day of such mailing, or (b) to register
        the transfer of or exchange Securities of any Series selected, called or
        being
        called for redemption as a whole or the portion being redeemed of any such
        Securities selected, called or being called for redemption in part.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      

       

      SECTION
        2.8 Mutilated,
        Destroyed, Lost and Stolen Securities.

       

      If
        any
        mutilated Security is surrendered to the Trustee, the Company shall execute
        and
        the Trustee shall authenticate and make available for delivery in exchange
        therefor a new Security of the same Series and of like tenor and principal
        amount and bearing a number not contemporaneously outstanding.

       

      If
        there
        shall be delivered to the Company and the Trustee (i) evidence to their
        satisfaction of the destruction, loss or theft of any Security and (ii) such
        security or indemnity as may be required by them to save each of them and
        any
        agent of either of them harmless, then, in the absence of notice to the Company
        or the Trustee that such Security has been acquired by a bona fide purchaser,
        the Company shall execute and upon its request the Trustee shall authenticate
        and make available for delivery, in lieu of any such destroyed, lost or stolen
        Security, a new Security of the same Series and of like tenor and principal
        amount and bearing a number not contemporaneously outstanding.

       

      In
        case
        any such mutilated, destroyed, lost or stolen Security has become or is about
        to
        become due and payable, the Company in its discretion may, instead of issuing
        a
        new Security, pay such Security.

       

      Upon
        the
        issuance of any new Security under this Section, the Company may require
        the
        payment of a sum sufficient to cover any tax or other governmental charge
        that
        may be imposed in relation thereto and any other expenses (including the
        fees
        and expenses of the Trustee) connected therewith.

       

      Every
        new
        Security of any Series issued pursuant to this Section in lieu of any destroyed,
        lost or stolen Security shall constitute an original additional contractual
        obligation of the Company, whether or not the destroyed, lost or stolen Security
        shall be at any time enforceable by anyone, and shall be entitled to all
        the
        benefits of this Indenture equally and proportionately with any and all other
        Securities of that Series duly issued hereunder.

       

      The
        provisions of this Section are exclusive and shall preclude (to the extent
        lawful) all other rights and remedies with respect to the replacement or
        payment
        of mutilated, destroyed, lost or stolen Securities.

       

      SECTION
        2.9 Outstanding
        Securities.

       

      The
        Securities outstanding at any time are all the Securities authenticated by
        the
        Trustee except for those canceled by it, those delivered to it for cancellation,
        those reductions in the interest on a Global Security effected by the Trustee
        in
        accordance with the provisions hereof and those described in this Section
        as not
        outstanding.

       

      If
        a
        Security is replaced pursuant to Section
        2.8,
        it
        ceases to be outstanding until the Trustee receives proof satisfactory to
        it
        that the replaced Security is held by a bona fide purchaser.

       

      If
        the
        Paying Agent (other than the Company, a Subsidiary of the Company or an
        Affiliate of the Company) holds on the Maturity of Securities of a Series
        money
        sufficient to pay such Securities payable on that date, then on and after
        that
        date such Securities of the Series cease to be outstanding and interest on
        them
        ceases to accrue.

       

      A
        Security does not cease to be outstanding because the Company or an Affiliate
        of
        the Company holds the Security.

       

      In
        determining whether the Holders of the requisite principal amount of outstanding
        Securities have given any request, demand, authorization, direction, notice,
        consent or waiver hereunder, the principal amount of a Discount Security
        that
        shall be deemed to be outstanding for such purposes shall be the amount of
        the
        principal thereof that would be due and payable as of the date of such
        determination upon a declaration of acceleration of the Maturity thereof
        pursuant to Section
        6.2.

       

      SECTION
        2.10 Treasury
        Securities.

       

      In
        determining whether the Holders of the required principal amount of Securities
        of a Series have concurred in any request, demand, authorization, direction,
        notice, consent or waiver, Securities of a Series owned by the Company shall
        be
        disregarded, except that for the purposes of determining whether the Trustee
        shall be protected in relying on any such request, demand, authorization,
        direction, notice, consent or waiver, only Securities of a Series that the
        Trustee knows are so owned shall be so disregarded.

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      

       

      SECTION
        2.11 Temporary
        Securities.

       

      Until
        definitive Securities are ready for delivery, the Company may prepare and
        the
        Trustee shall authenticate temporary Securities upon a Company Order. Temporary
        Securities shall be substantially in the form of definitive Securities but
        may
        have variations that the Company considers appropriate for temporary Securities.
        Without unreasonable delay, the Company shall prepare and the Trustee upon
        request shall authenticate definitive Securities of the same Series and date
        of
        maturity in exchange for temporary Securities. Until so exchanged, temporary
        securities shall have the same rights under this Indenture as the definitive
        Securities.

       

      SECTION
        2.12 Cancellation.

       

      The
        Company at any time may deliver Securities to the Trustee for cancellation.
        The
        Registrar and the Paying Agent shall forward to the Trustee any Securities
        surrendered to them for registration of transfer, exchange or payment. The
        Trustee shall cancel all Securities surrendered for transfer, exchange, payment,
        replacement or cancellation and deliver such canceled Securities to the Company,
        unless the Company otherwise directs; provided that the Trustee shall not
        be
        required to destroy Securities. The Company may not issue new Securities
        to
        replace Securities that it has paid or delivered to the Trustee for
        cancellation.

       

      SECTION
        2.13 Defaulted
        Interest.

       

      If
        the
        Company defaults in a payment of interest on a Series of Securities, it shall
        pay the defaulted interest, plus, to the extent permitted by law, any interest
        payable on the defaulted interest, to the persons who are Securityholders
        of the
        Series on a subsequent special record date. The Company shall fix the record
        date and payment date. At least 10 days before the record date, the Company
        shall mail to the Trustee and to each Securityholder of the Series a notice
        that
        states the record date, the payment date and the amount of interest to be
        paid.
        The Company may pay defaulted interest in any other lawful manner.

       

      SECTION
        2.14 Global
        Securities.

       

      2.14.1 Terms
        Of Securities.
        A Board
        Resolution, a supplemental indenture hereto or an Officers’ Certificate shall
        establish whether the Securities of a Series shall be issued in whole or
        in part
        in the form of one or more Global Securities and the Depository for such
        Global
        Security or Securities.

       

      2.14.2 Transfer
        And Exchange.
        Notwithstanding any provisions to the contrary contained in Section
        2.7
        of the
        Indenture and in addition thereto, any Global Security shall be exchangeable
        pursuant to Section
        2.7
        of the
        Indenture for Securities registered in the names of Holders other than the
        Depository for such Security or its nominee only if (i) such Depository notifies
        the Company that it is unwilling or unable to continue as Depository for
        such
        Global Security or if at any time such Depository ceases to be a clearing
        agency
        registered under the Exchange Act, and, in either case, the Company fails
        to
        appoint a successor Depository registered as a clearing agency under the
        Exchange Act within 90 days of such event, (ii) the Company executes and
        delivers to the Trustee an Officers’ Certificate to the effect that such Global
        Security shall be so exchangeable or (iii) an Event of Default with respect
        to
        the Securities represented by such Global Security shall have happened and
        be
        continuing. Any Global Security that is exchangeable pursuant to the preceding
        sentence shall be exchangeable for Securities registered in such names as
        the
        Depository 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 Section
        2.14.2,
        a
        Global Security may not be transferred except as a whole by the Depository
        with
        respect to such Global Security to a nominee of such Depository, by a nominee
        of
        such Depository to such Depository or another nominee of such Depository
        or by
        the Depository or any such nominee to a successor Depository or a nominee
        of
        such a successor Depository.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      

       

      2.14.3 Legend.
        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 Depository or a nominee
        of the
        Depository. This Security is exchangeable for Securities registered in the
        name
        of a person other than the Depository or its nominee only in the limited
        circumstances described in the Indenture, and may not be transferred except
        as a
        whole by the Depository to a nominee of the Depository, by a nominee of the
        Depository to the Depository or another nominee of the Depository or by the
        Depository or any such nominee to a successor Depository or a nominee of
        such a
        successor Depository.”

       

      2.14.4 Acts
        Of Holders.
        The
        Depository, 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.

       

      2.14.5 Payments.
        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.

       

      2.14.6 Consents,
        Declaration And Directions.
        Except
        as provided in Section
        2.14.5,
        the
        Company, the Trustee and any Agent shall treat a person as the Holder of
        such
        principal amount of outstanding Securities of such Series represented by
        a
        Global Security as shall be specified in a written statement of the Depository
        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
        2.15 CUSIP
        Numbers.

       

      The
        Company in issuing the Securities may use “CUSIP” numbers (if then generally in
        use), and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption
        as a convenience to Holders; provided 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 and that
        reliance may be placed only on the other elements of identification printed
        on
        the Securities, and any such redemption shall not be affected by any defect
        in
        or omission of such numbers.

       

      ARTICLE
        III

       

      REDEMPTION

       

      SECTION
        3.1 Notice
        To Trustee.

       

      The
        Company may, with respect to any Series of Securities, reserve the right
        to
        redeem and pay the Series of Securities or may covenant to redeem and pay
        the
        Series of Securities or any part thereof prior to the Stated Maturity thereof
        at
        such time and on such terms as provided for in such Securities. If a Series
        of
        Securities is redeemable and the Company wants or is obligated to redeem
        prior
        to the Stated Maturity thereof all or part of the Series of Securities pursuant
        to the terms of such Securities, it shall notify the Trustee of the redemption
        date and the principal amount of Series of Securities to be redeemed. The
        Company shall give the notice at least 45 days before the redemption date
        (or
        such shorter notice as may be acceptable to the Trustee).

       

      SECTION
        3.2 Selection
        of Securities to be Redeemed.

       

      Unless
        otherwise indicated for a particular Series by a Board Resolution, a
        supplemental indenture or an Officers’ Certificate, if less than all the
        Securities of a Series are to be redeemed, the Trustee shall select the
        Securities of the Series to be redeemed in any manner that the Trustee deems
        fair and appropriate. The Trustee shall make the selection from Securities
        of
        the Series outstanding not previously called for redemption. The Trustee
        may
        select for redemption portions of the principal of Securities of the Series
        that
        have denominations larger than $1,000. Securities of the Series and portions
        of
        them it selects shall be in amounts of $1,000 or whole multiples of $1,000
        or,
        with respect to Securities of any Series issuable in other denominations
        pursuant to Section
        2.2.10,
        the
        minimum principal denomination for each Series and integral multiples thereof.
        Provisions of this Indenture that apply to Securities of a Series called
        for
        redemption also apply to portions of Securities of that Series called for
        redemption.

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      

       

      SECTION
        3.3 Notice
        of Redemption.

       

      Unless
        otherwise indicated for a particular Series by Board Resolution, a supplemental
        indenture hereto or an Officers’ Certificate, at least 30 days but not more than
        60 days before a redemption date, the Company shall mail a notice of redemption
        by first-class mail to each Holder whose Securities are to be redeemed and,
        if
        any Bearer Securities are outstanding, publish on one occasion a notice in
        an
        Authorized Newspaper.

       

      The
        notice shall identify the Securities of the Series to be redeemed and shall
        state:

       

      
        	 	
                (a)

              	
                the
                  redemption date;

              

      

       

      
        	 	
                (b)

              	
                the
                  redemption price;

              

      

       

      
        	 	
                (c)

              	
                the
                  name and address of the Paying
                  Agent;

              

      

       

      
        	 	
                (d)

              	
                that
                  Securities of the Series called for redemption must be surrendered
                  to the
                  Paying Agent to collect the redemption
                  price;

              

      

       

      
        	
              	(e)	
                that
                  interest on Securities of the Series called for redemption ceases
                  to
                  accrue on and after the redemption date; 

              

      

       

      
        	 	
                (f)

              	
                the
                  CUSIP number, if any; and

              

      

       

      
        	 	
                (g)

              	
                any
                  other information as may be required by the terms of the particular
                  Series
                  or the Securities of a Series being
                  redeemed.

              

      

       

      At
        the
        Company’s request, the Trustee shall give the notice of redemption in the
        Company’s name and at its expense.

       

      SECTION
        3.4 Effect
        of Notice of Redemption.

       

      Once
        notice of redemption is mailed or published as provided in Section
        3.3,
        Securities of a Series called for redemption become due and payable on the
        redemption date and at the redemption price. A notice of redemption may not
        be
        conditional. Upon surrender to the Paying Agent, such Securities shall be
        paid
        at the redemption price plus accrued interest to the redemption date, provided
        that installments of interest whose Stated Maturity is on or prior to the
        redemption date shall be payable to the Holders of such Securities (or one
        or
        more predecessor Securities) registered at the close of business on the relevant
        record date therefor according to their terms and the terms of this
        Indenture.

       

      SECTION
        3.5 Deposit
        of Redemption Price.

       

      On
        or
        before the redemption date, the Company shall deposit with the Paying Agent
        money sufficient to pay the redemption price of and accrued interest, if
        any, on
        all Securities to be redeemed on that date.

       

      SECTION
        3.6 Securities
        Redeemed in Part.

       

      Upon
        surrender of a Security that is redeemed in part, the Trustee shall authenticate
        for the Holder a new Security of the same Series and the same maturity equal
        in
        principal amount to the unredeemed portion of the Security
        surrendered.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      

       

      ARTICLE
        IV

       

      COVENANTS

       

      SECTION
        4.1 Payment
        of Principal and Interest.

       

      The
        Company covenants and agrees for the benefit of the Holders of each Series
        of
        Securities that it will duly and punctually pay the principal of and interest,
        if any, on the Securities of that Series in accordance with the terms of
        such
        Securities and this Indenture.

       

      SECTION
        4.2 SEC
        Reports.

       

      The
        Company shall deliver to the Trustee within 15 days after it files them with
        the
        SEC copies of the annual reports and of the information, documents, and other
        reports (or copies of such portions of any of the foregoing as the SEC may
        by
        rules and regulations prescribe) which the Company is required to file with
        the
        SEC pursuant to Section 13 or 15(d) of the Exchange Act. The Company also
        shall
        comply with the other provisions of TIA Section 314(a). Delivery of such
        reports, information and documents to the Trustee is for informational purposes
        only and the Trustee’s receipt of such shall not constitute constructive notice
        of any information contained therein or determinable from information contained
        therein, including the Company’s compliance with any of its covenants hereunder
        (as to which the Trustee is entitled to rely exclusively on an Officers’
Certificate).

       

      SECTION
        4.3 Compliance
        Certificate. 

       

      The
        Company shall deliver to the Trustee, within 120 days after the end of each
        fiscal year of the Company, an Officers’ Certificate stating that a review of
        the activities of the Company and its Subsidiaries during the preceding fiscal
        year has been made under the supervision of the signing Officers with a view
        to
        determining whether the 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 his/her 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 may have knowledge).

       

      The
        Company will, so long as any of the Securities are outstanding, deliver to
        the
        Trustee, forthwith upon 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
        4.4 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 or the Securities and the Company (to the extent
        it may lawfully do so) hereby expressly waives all benefit or 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.

       

      SECTION
        4.5 Corporate
        Existence.

       

      Subject
        to Article
        V,
        the
        Company will do or cause to be done all things necessary to preserve and
        keep in
        full force and effect its corporate existence and the rights (charter and
        statutory), licenses and franchises of the Company; provided, however, that
        the
        Company shall not be required to preserve any such right, license or franchise
        if the Board of Directors shall determine that the preservation thereof is
        no
        longer desirable in the conduct of the business of the Company and its
        Subsidiaries taken as a whole and that the loss thereof is not adverse in
        any
        material respect to the Holders.

       

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      

       

      SECTION
        4.6 Taxes.

       

      The
        Company shall pay prior to delinquency all taxes, assessments and governmental
        levies, except as contested in good faith and by appropriate
        proceedings.

       

      ARTICLE
        V

       

      SUCCESSORS

       

      SECTION
        5.1 When
        Company May Merge, Etc.

       

      The
        Company shall not consolidate with or merge with or into, or convey, transfer
        or
        lease all or substantially all of its properties and assets to, any person
        (a
“successor
        person”)
        unless:

       

      
        	 	
                (a)

              	
                the
                  Company is the surviving corporation or the successor person (if
                  other
                  than the Company) is a corporation organized and validly existing
                  under
                  the laws of any U.S. domestic jurisdiction and expressly assumes
                  the
                  Company’s obligations on the Securities and under this Indenture;
                  and

              

      

       

      
        	 	
                (b)

              	
                immediately
                  after giving effect to the transaction, no Default or Event of
                  Default,
                  shall have occurred and be
                  continuing.

              

      

       

      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 any supplemental indenture
        comply with this Indenture.

       

      SECTION
        5.2 Successor
        Corporation 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 corporation formed by such consolidation or 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; provided, however,
        that
        the predecessor Company in the case of a sale, conveyance or other disposition
        (other than a lease) shall be released from all obligations and covenants
        under
        this Indenture and the Securities.

       

      ARTICLE
        VI

       

      DEFAULTS
        AND REMEDIES

       

      SECTION
        6.1 Events
        of Default.

       

      “Event
        of Default,”
        wherever used herein with respect to Securities of any Series, means any
        one of
        the following events, unless in the establishing Board Resolution, supplemental
        indenture or Officers’ Certificate, it is provided that such Series shall not
        have the benefit of said Event of Default:

       

      
        	 	
                (a)

              	
                default
                  in the payment of any interest on any Security of that Series when
                  it
                  becomes due and payable, and continuance of such default for a
                  period of
                  30 days (unless the entire amount of such payment is deposited
                  by the
                  Company with the Trustee or with a Paying Agent prior to the expiration
                  of
                  such period of 30 days); or

              

      

       

      
        	 	
                (b)

              	
                default
                  in the payment of principal of any Security of that Series at its
                  Maturity; or 

              

      

       

      
        	 	
                (c)

              	
                default
                  in the deposit of any sinking fund payment, when and as due in
                  respect of
                  any Security of that Series; or

              

      

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      

       

      
        	 	
                (d)

              	
                default
                  in the performance or breach of any covenant or warranty of the
                  Company in
                  this Indenture (other than a covenant or warranty for which the
                  consequences of nonperformance or breach are addressed elsewhere
                  in this
                  Section
                  6.1
                  and other than a covenant or warranty that has been included in
                  this
                  Indenture solely for the benefit of Series of Securities other
                  than that
                  Series), which default continues uncured for a period of 60 days
                  after
                  there has been given, by registered or certified mail, to the Company
                  by
                  the Trustee or to the Company and the Trustee by the Holders of
                  not less
                  than a majority in principal amount of the outstanding Securities
                  of that
                  Series a written notice specifying such default or breach and requiring
                  it
                  to be remedied and stating that such notice is a “Notice of Default”
                  hereunder; or

              

      

       

      
        	 	
                (e)

              	
                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)

              	
                generally
                  is unable to pay its debts as the same become due;
                  or

              

      

       

      
        	 	
                (f)

              	
                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, or

              

      

       

      
        	 	
                (iii)

              	
                orders
                  the liquidation of the Company, and the order or decree remains
                  unstayed
                  and in effect for 60 days; or

              

      

       

      
        	 	
                (g)

              	
                any
                  other Event of Default provided with respect to Securities of that
                  Series,
                  which is specified in a Board Resolution, a supplemental indenture
                  hereto
                  or an Officers’ Certificate, in accordance with Section
                  2.2.18.

              

      

       

      The
        term
“Bankruptcy
        Law”
means
        title 11, 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.

       

      SECTION
        6.2 Acceleration
        of Maturity; Rescission and Annulment. 

       

      If
        an
        Event of Default with respect to Securities of any Series at the time
        outstanding occurs and is continuing (other than an Event of Default referred
        to
        in Section
        6.1(e) or (f)),
        then
        in every such case the Trustee or the Holders of not less than a majority
        in
        principal amount of the outstanding Securities of that Series may declare
        the
        principal amount (or, if any Securities of that Series are Discount Securities,
        such portion of the principal amount as may be specified in the terms of
        such
        Securities) of and accrued and unpaid interest, if any, on all of the Securities
        of that Series to be due and payable immediately, by a notice in writing
        to the
        Company (and to the Trustee if given by Holders), and upon any such declaration
        such principal amount (or specified amount) and accrued and unpaid interest,
        if
        any, shall become immediately due and payable. If an Event of Default specified
        in Section
        6.1(e) or (f)
        shall
        occur, the principal amount (or specified amount) of and accrued and unpaid
        interest, if any, on all outstanding Securities shall ipso facto become and
        be
        immediately due and payable without any declaration or other act on the part
        of
        the Trustee or any Holder.

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      

       

      At
        any
        time after such a declaration of acceleration with respect to any Series
        has
        been made and before a judgment or decree for payment of the money due has
        been
        obtained by the Trustee as hereinafter in this Article provided, the Holders
        of
        a majority in principal amount of the outstanding Securities of that Series,
        by
        written notice to the Company and the Trustee, may rescind and annul such
        declaration and its consequences if all Events of Default with respect to
        Securities of that Series, other than the non-payment of the principal and
        interest, if any, of Securities of that Series which have become due solely
        by
        such declaration of acceleration, have been cured or waived as provided in
        Section
        6.13.

       

      No
        such
        rescission shall affect any subsequent Default or impair any right consequent
        thereon.

       

      SECTION
        6.3 Collection
        Of Indebtedness And Suits For Enforcement By Trustee. 

       

      The
        Company covenants that if:

       

      
        	 	
                (a)

              	
                default
                  is made in the payment of any interest on any Security when such
                  interest
                  becomes due and payable and such default continues for a period
                  of 30
                  days, or

              

      

       

      
        	 	
                (b)

              	
                default
                  is made in the payment of principal of any Security at the Maturity
                  thereof, or

              

      

       

      
        	 	
                (c)

              	
                default
                  is made in the deposit of any sinking fund payment when and as
                  due by the
                  terms of a Security,

              

      

       

      then,
        the
        Company will, upon demand of the Trustee, pay to it, for the benefit of the
        Holders of such Securities, the whole amount then due and payable on such
        Securities for principal and interest and, to the extent that payment of
        such
        interest shall be legally enforceable, interest on any overdue principal
        and any
        overdue interest at the rate or rates prescribed therefor in such Securities,
        and, in addition thereto, 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.

       

      If
        the
        Company fails to pay such amounts forthwith upon such demand, the Trustee,
        in
        its own name and as trustee of an express trust, may institute a judicial
        proceeding for the collection of the sums so due and unpaid, may prosecute
        such
        proceeding to judgment or final decree and may enforce the same against the
        Company or any other obligor upon such Securities and collect the moneys
        adjudged or deemed to be payable in the manner provided by law out of the
        property of the Company or any other obligor upon such Securities, wherever
        situated.

       

      If
        an
        Event of Default with respect to any Securities of any Series occurs and
        is
        continuing, the Trustee may in its discretion proceed to protect and enforce
        its
        rights and the rights of the Holders of Securities of such Series by such
        appropriate judicial proceedings as the Trustee shall deem most effectual
        to
        protect and enforce any such rights, whether for the specific enforcement
        of any
        covenant or agreement in this Indenture or in aid of the exercise of any
        power
        granted herein, or to enforce any other proper remedy.

       

      SECTION
        6.4 Trustee
        May File Proofs Of Claim.

       

      In
        case
        of the pendency of any receivership, insolvency, liquidation, bankruptcy,
        reorganization, arrangement, adjustment, composition or other judicial
        proceeding relative to the Company or any other obligor upon the Securities
        or
        the property of the Company or of such other obligor or their creditors,
        the
        Trustee (irrespective of whether the principal of the Securities shall then
        be
        due and payable as therein expressed or by declaration or otherwise and
        irrespective of whether the Trustee shall have made any demand on the Company
        for the payment of overdue principal or interest) shall be entitled and
        empowered, by intervention in such proceeding or otherwise, (a) to file and
        prove a claim for the whole amount of principal and interest owing and unpaid
        in
        respect of the Securities and to file such 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 of the Holders allowed in such judicial
        proceeding, and (b) to collect and receive any moneys or other property payable
        or deliverable on any such claims and to distribute the same, and any custodian,
        receiver, assignee, trustee, liquidator, sequestrator or other similar official
        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 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.

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      

       

      Nothing
        herein contained shall be deemed to authorize the Trustee to authorize or
        consent to or accept or adopt on behalf of any Holder any plan of
        reorganization, arrangement, adjustment or composition affecting the Securities
        or the rights of any Holder thereof or to authorize the Trustee to vote in
        respect of the claim of any Holder in any such proceeding.

       

      SECTION
        6.5 Trustee
        May Enforce Claims Without Possession Of Securities.

       

      All
        rights of action and claims under this Indenture or the Securities may be
        prosecuted and enforced by the Trustee without the possession of any of the
        Securities or the production thereof in any proceeding relating thereto,
        and any
        such proceeding instituted by the Trustee shall be brought in its own name
        as
        trustee of an express trust, and any recovery of judgment shall, after provision
        for the payment of the reasonable compensation, expenses, disbursements and
        advances of the Trustee, its agents and counsel, be for the ratable benefit
        of
        the Holders of the Securities in respect of which such judgment has been
        recovered.

       

      SECTION
        6.6 Application
        of Money Collected.

       

      Any
        money
        collected by the Trustee pursuant to this Article shall be applied in the
        following order, at the date or dates fixed by the Trustee and, in case of
        the
        distribution of such money on account of principal or interest, upon
        presentation of the Securities and the notation thereon of the payment if
        only
        partially paid and upon surrender thereof if fully paid:

       

      First:
        To
        the payment of all amounts due the Trustee under Section
        7.7;
        and

       

      Second:
        To the payment of the amounts then due and unpaid for principal of and interest
        on the Securities in respect of which or for the benefit of which such money
        has
        been collected, ratably, without preference or priority of any kind, according
        to the amounts due and payable on such Securities for principal and interest,
        respectively; and

       

      Third:
        To
        the Company.

       

      SECTION
        6.7 Limitation
        On Suits.

       

      No
        Holder
        of any Security of any Series shall have any right to institute any proceeding,
        judicial or otherwise, with respect to this Indenture, or for the appointment
        of
        a receiver or trustee, or for any other remedy hereunder, unless:

       

      
        	 	
                (a)

              	
                such
                  Holder has previously given written notice to the Trustee of a
                  continuing
                  Event of Default with respect to the Securities of that
                  Series;

              

      

       

      
        	 	
                (b)

              	
                the
                  Holders of at least a majority in principal amount of the outstanding
                  Securities of that Series shall have made written request to the
                  Trustee
                  to institute proceedings in respect of such Event of Default in
                  its own
                  name as Trustee hereunder;

              

      

       

      
        	 	
                (c)

              	
                such
                  Holder or Holders have offered to the Trustee reasonable indemnity
                  against
                  the costs, expenses and liabilities to be incurred in compliance
                  with such
                  request;

              

      

       

      
        	 	
                (d)

              	
                the
                  Trustee for 60 days after its receipt of such notice, request and
                  offer of
                  indemnity has failed to institute any such proceeding;
                  and

              

      

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

      

       

      
        	 	
                (e)

              	
                no
                  direction inconsistent with such written request has been given
                  to the
                  Trustee during such 60-day period by the Holders of a majority
                  in
                  principal amount of the outstanding Securities of that
                  Series;

              

      

       

      it
        being
        understood and intended that no one or more of such Holders shall have any
        right
        in any manner whatever by virtue of, or by availing of, any provision of
        this
        Indenture to affect, disturb or prejudice the rights of any other of such
        Holders, or to obtain or to seek to obtain priority or preference over any
        other
        of such Holders or to enforce any right under this Indenture, except in the
        manner herein provided and for the equal and ratable benefit of all such
        Holders.

       

      SECTION
        6.8 Unconditional
        Right of Holders to Receive Principal and Interest.

       

      Notwithstanding
        any other provision in this Indenture, the Holder of any Security shall have
        the
        right, which is absolute and unconditional, to receive payment of the principal
        of and interest, if any, on such Security on the Stated Maturity or Stated
        Maturities expressed in such Security (or, in the case of redemption, on
        the
        redemption date) and to institute suit for the enforcement of any such payment,
        and such rights shall not be impaired without the consent of such
        Holder.

       

      SECTION
        6.9 Restoration
        of Rights and Remedies.

       

      If
        the
        Trustee or any Holder has instituted any proceeding to enforce any right
        or
        remedy under this Indenture and such proceeding has been discontinued or
        abandoned for any reason, or has been determined adversely to the Trustee
        or to
        such Holder, then and in every such case, subject to any determination in
        such
        proceeding, the Company, the Trustee and the Holders shall be restored severally
        and respectively to their former positions hereunder and thereafter all rights
        and remedies of the Trustee and the Holders shall continue as though no such
        proceeding had been instituted.

       

      SECTION
        6.10 Rights
        and Remedies Cumulative.

       

      Except
        as
        otherwise provided with respect to the replacement or payment of mutilated,
        destroyed, lost or stolen Securities in Section
        2.8,
        no
        right or remedy herein conferred upon or reserved to the Trustee or to the
        Holders is intended to be exclusive of any other right or remedy, and every
        right and remedy shall, to the extent permitted by law, be cumulative and
        in
        addition to every other right and remedy given hereunder or now or hereafter
        existing at law or in equity or otherwise. The assertion or employment of
        any
        right or remedy hereunder, or otherwise, shall not, to the extent permitted
        by
        law, prevent the concurrent assertion or employment of any other appropriate
        right or remedy.

       

      SECTION
        6.11 Delay
        or Omission Not Waiver.

       

      No
        delay
        or omission of the Trustee or of any Holder of any Securities to exercise
        any
        right or remedy accruing upon any Event of Default shall impair any such
        right
        or remedy or constitute a waiver of any such Event of Default or an acquiescence
        therein. Every right and remedy given by this Article or by law to the Trustee
        or to the Holders may be exercised from time to time, and as often as may
        be
        deemed expedient, by the Trustee or by the Holders, as the case may
        be.

       

      SECTION
        6.12 Control
        by Holders.

       

      The
        Holders of a majority in principal amount of the outstanding Securities of
        any
        Series shall have the right to 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 the Trustee, with respect to the Securities of such
        Series, provided that:

       

      
        	 	
                (a)

              	
                such
                  direction shall not be in conflict with any rule of law or with
                  this
                  Indenture,

              

      

       

      
        	 	
                (b)

              	
                the
                  Trustee may take any other action deemed proper by the Trustee
                  which is
                  not inconsistent with such direction,
                  and

              

      

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

      

       

      
        	 	
                (c)

              	
                subject
                  to the provisions of Section
                  6.1,
                  the Trustee shall have the right to decline to follow any such
                  direction
                  if the Trustee in good faith shall, by a Responsible Officer of
                  the
                  Trustee, determine that the proceeding so directed would involve
                  the
                  Trustee in personal liability.

              

      

       

      SECTION
        6.13 Waiver
        Of Past Defaults.

       

      The
        Holders of not less than a majority in principal amount of the outstanding
        Securities of any Series may on behalf of the Holders of all the Securities
        of
        such Series waive any past Default hereunder with respect to such Series
        and its
        consequences, except a Default (i) in the payment of the principal of or
        interest on any Security of such Series (provided, however, that the Holders
        of
        a majority in principal amount of the outstanding Securities of any Series
        may
        rescind an acceleration and its consequences, including any related payment
        default that resulted from such acceleration) or (ii) in respect of a covenant
        or provision hereof which cannot be modified or amended without the consent
        of
        the Holder of each outstanding Security of such Series affected. Upon any
        such
        waiver, 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; but no such waiver shall extend to any subsequent or other Default
        or
        impair any right consequent thereon.

       

      SECTION
        6.14 Undertaking
        For Costs.

       

      All
        parties to this Indenture agree, and each Holder of any Security by his
        acceptance thereof shall be deemed to have agreed, that any court may in
        its
        discretion require, 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,
        suffered or omitted by it as Trustee, the filing by any party litigant in
        such
        suit of an undertaking to pay the costs of such suit, and that such court
        may in
        its discretion assess reasonable costs, including reasonable attorneys’ fees,
        against any party litigant in such suit, having due regard to the merits
        and
        good faith of the claims or defenses made by such party litigant; but the
        provisions of this Section shall not apply to any suit instituted by the
        Company, to any suit instituted by the Trustee, to any suit instituted by
        any
        Holder, or group of Holders, holding in the aggregate more than 10% in principal
        amount of the outstanding Securities of any Series, or to any suit instituted
        by
        any Holder for the enforcement of the payment of the principal of or interest
        on
        any Security on or after the Stated Maturity or Stated Maturities expressed
        in
        such Security (or, in the case of redemption, on the redemption
        date).

       

      ARTICLE
        VII

       

      TRUSTEE

       

      SECTION
        7.1 Duties
        of Trustee.

       

      
        	 	
                (a)

              	
                If
                  an Event of Default has occurred and is continuing, the Trustee
                  shall
                  exercise 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 man
                  would
                  exercise or use under the circumstances in the conduct of his own
                  affairs.

              

      

       

      
        	 	
                (b)

              	
                Except
                  during the continuance of an Event of
                  Default:

              

      

       

      
        	 	
                (i)

              	
                The
                  Trustee need perform only those duties that are specifically set
                  forth in
                  this Indenture and no others.

              

      

       

      
        	 	
                (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 Officers’ Certificates or Opinions of Counsel
                  furnished to the Trustee and conforming to the requirements of
                  this
                  Indenture; however, in the case of any such Officers’ Certificates or
                  Opinions of Counsel which by any provisions hereof are specifically
                  required to be furnished to the Trustee, the Trustee shall examine
                  such
                  Officers’ Certificates and Opinions of Counsel to determine whether or not
                  they conform to the requirements of this
                  Indenture.

              

      

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

      

       

      
        	 	
                (c)

              	
                The
                  Trustee may not be relieved from liability for its own negligent
                  action,
                  its own negligent failure to act or its own willful misconduct,
                  except
                  that:

              

      

       

      
        	 	
                (i)

              	
                This
                  paragraph does not limit the effect of paragraph (b) 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 proved that the Trustee
                  was
                  negligent in ascertaining the pertinent
                  facts.

              

      

       

      
        	 	
                (iii)

              	
                The
                  Trustee shall not be liable with respect to any action taken, suffered
                  or
                  omitted to be taken by it with respect to Securities of any Series
                  in good
                  faith in accordance with the direction of the Holders of a majority
                  in
                  principal amount of the outstanding Securities of such Series relating
                  to
                  the time, method and place of conducting any proceeding for any
                  remedy
                  available to the Trustee, or exercising any trust or power conferred
                  upon
                  the Trustee, under this Indenture with respect to the Securities
                  of such
                  Series.

              

      

       

      
        	 	
                (d)

              	
                Every
                  provision of this Indenture that in any way relates to the Trustee
                  is
                  subject to paragraph (a), (b) and (c) of this
                  Section.

              

      

       

      
        	 	
                (e)

              	
                The
                  Trustee may refuse to perform any duty or exercise any right or
                  power at
                  the request or direction of any Holder 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 as the Trustee may agree in writing with the Company. Money
                  held in
                  trust by the Trustee need not be segregated from other funds except
                  to the
                  extent required by law.

              

      

       

      
        	 	
                (g)

              	
                No
                  provision of this Indenture shall require the Trustee to risk its
                  own
                  funds or otherwise incur any financial liability in the performance
                  of any
                  of its duties, or in the exercise of any of its rights or powers,
                  if it
                  shall have reasonable grounds for believing that repayment of such
                  funds
                  or adequate indemnity against such risk is not reasonably assured
                  to
                  it.

              

      

       

      
        	 	
                (h)

              	
                The
                  Paying Agent, the Registrar and any authenticating agent shall
                  be entitled
                  to the protections, immunities and standard of care as are set
                  forth in
                  paragraphs (a), (b) and (c) of this Section with respect to the
                  Trustee.

              

      

       

      SECTION
        7.2 Rights
        of Trustee.

       

      
        	 	
                (a)

              	
                The
                  Trustee may rely on and shall be protected in acting or refraining
                  from
                  acting upon any document believed by it to be genuine and to have
                  been
                  signed or presented by the proper person. The Trustee need not
                  investigate
                  any fact or matter stated in the
                  document.

              

      

       

      
        	 	
                (b)

              	
                Before
                  the Trustee acts or refrains from acting, it may require an Officers’
                  Certificate. The Trustee shall not be liable for any action it
                  takes or
                  omits to take in good faith in reliance on such Officers’
                  Certificate.

              

      

       

      
        	 	
                (c)

              	
                The
                  Trustee may act through agents and shall not be responsible for
                  the
                  misconduct or negligence of any agent appointed with due care.
                  No
                  Depository shall be deemed an agent of the Trustee and the Trustee
                  shall
                  not be responsible for any act or omission by any
                  Depository.

              

      

       

      
        	 	
                (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 its rights
                  or
                  powers, provided that the Trustee’s conduct does not constitute negligence
                  or bad faith.

              

      

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

      

       

      
        	 	
                (e)

              	
                The
                  Trustee may consult with counsel and the advice of such counsel
                  or any
                  Opinion of Counsel shall be full and complete authorization and
                  protection
                  in respect of any action taken, suffered or omitted by it hereunder
                  without negligence and in good faith and in reliance
                  thereon.

              

      

       

      
        	 	
                (f)

              	
                The
                  Trustee shall be under no obligation to exercise any of the rights
                  or
                  powers vested in it by this Indenture at the request or direction
                  of any
                  of the Holders of Securities unless such Holders shall have offered
                  to the
                  Trustee reasonable security or indemnity against the costs, expenses
                  and
                  liabilities which might be incurred by it in compliance with such
                  request
                  or direction.

              

      

       

      
        	 	
                (g)

              	
                The
                  Trustee may consult with counsel of its selection and the advice
                  of such
                  counsel or any Opinion of Counsel shall be full and complete authorization
                  and protection in respect of any action taken, suffered or omitted
                  by it
                  hereunder without negligence and in good faith and in reliance
                  thereon.
                  

              

      

       

      
        	 	
                (h)

              	
                The
                  Trustee shall not be bound to make any investigation into the facts
                  or
                  matters stated in any resolution, certificate, statement, instrument,
                  opinion, report, notice, request, direction, consent, order, bond,
                  debenture, note, other evidence of indebtedness or other paper
                  or
                  document, but the Trustee, in its discretion, may make such further
                  inquiry or investigation into such facts or matters as it may see
                  fit.

              

      

       

      
        	 	
                (i)

              	
                The
                  Trustee shall not be deemed to have notice of any Default or Event
                  of
                  Default unless a Responsible Officer of the Trustee has actual
                  knowledge
                  thereof or unless written notice of any event which is in fact
                  such a
                  default is received by the Trustee at the Corporate Trust Office
                  of the
                  Trustee, and such notice references the Securities generally or
                  the
                  Securities of a particular Series and this
                  Indenture.

              

      

       

      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. The Trustee is also subject to Sections
        7.10 and 7.11.

       

      SECTION
        7.4 Trustee’s
        Disclaimer.

       

      The
        Trustee makes no representation as to the validity or adequacy of this Indenture
        or the Securities, it shall not be accountable for the Company’s use of the
        proceeds from the Securities, and it shall not be responsible for any statement
        in the Securities other than its authentication.

       

      SECTION
        7.5 Notice
        Of Defaults.

       

      If
        a
        Default or Event of Default occurs and is continuing with respect to the
        Securities of any Series and if it is known to a Responsible Officer of the
        Trustee, the Trustee shall mail to each Securityholder of the Securities
        of that
        Series and, if any Bearer Securities are outstanding, publish on one occasion
        in
        an Authorized Newspaper, notice of a Default or Event of Default within 90
        days
        after it occurs or, if later, after a Responsible Officer of the Trustee
        has
        knowledge of such Default or Event of Default. Except in the case of a Default
        or Event of Default in payment of principal of or interest on any Security
        of
        any Series, the Trustee may withhold the notice if and so long as its corporate
        trust committee or a committee of its Responsible Officers in good faith
        determines that withholding the notice is in the interests of Securityholders
        of
        that Series.

       

      SECTION
        7.6 Reports
        by Trustee to Holders.

       

      Within
        60
        days after May 15 in each year, the Trustee shall transmit by mail to all
        Securityholders, as their names and addresses appear on the register kept
        by the
        Registrar and, if any Bearer Securities are outstanding, publish in an
        Authorized Newspaper, a brief report dated as of such May 15, in accordance
        with, and to the extent required under, TIA Section 313.

       

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

      

       

      A
        copy of
        each report at the time of its mailing to Securityholders of any Series shall
        be
        filed with the SEC and each stock exchange on which the Securities of that
        Series are listed. The Company shall promptly notify the Trustee when Securities
        of any Series are listed on any stock exchange.

       

      SECTION
        7.7 Compensation
        and Indemnity. 

       

      The
        Company shall pay to the Trustee from time to time compensation for its services
        as the Company and the Trustee shall from time to time agree upon in writing.
        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 upon
        request for all reasonable out-of-pocket expenses incurred by it. Such expenses
        shall include the reasonable compensation and expenses of the Trustee’s agents
        and counsel.

       

      The
        Company shall indemnify each of the Trustee and any predecessor Trustee
        (including the cost of defending itself) against any loss, liability or expense,
        including taxes (other than taxes based upon, measured by or determined by
        the
        income of the Trustee) incurred by it except as set forth in the next paragraph
        in the performance of its duties under this Indenture as Trustee or Agent.
        The
        Trustee shall notify the Company promptly of any claim for which it may seek
        indemnity. The Company shall defend the claim and the Trustee shall cooperate
        in
        the defense. The Trustee may have one separate counsel and the Company shall
        pay
        the reasonable fees and expenses of such counsel. The Company need not pay
        for
        any settlement made without its consent, which consent shall not be unreasonably
        withheld. This indemnification shall apply to officers, directors, employees,
        shareholders and agents of the Trustee.

       

      The
        Company need not reimburse any expense or indemnify against any loss or
        liability incurred by the Trustee or by any officer, director, employee,
        shareholder or agent of the Trustee through negligence or bad
        faith.

       

      To
        secure
        the Company’s payment obligations in this Section, the Trustee shall have a lien
        prior to the Securities of any Series on all money or property held or collected
        by the Trustee, except that held in trust to pay principal of and interest
        on
        particular Securities of that Series.

       

      When
        the
        Trustee incurs expenses or renders services after an Event of Default specified
        in Section
        6.1(e) or (f)
        occurs,
        the expenses and the compensation for the services are intended to constitute
        expenses of administration under any Bankruptcy Law.

       

      The
        provisions of this Section shall survive the termination of this
        Indenture.

       

      SECTION
        7.8 Replacement
        of Trustee. 

       

      A
        resignation or removal of the Trustee and appointment of a successor Trustee
        shall become effective only upon the successor Trustee’s acceptance of
        appointment as provided in this Section.

       

      The
        Trustee may resign with respect to the Securities of one or more Series by
        so
        notifying the Company at least 30 days prior to the date of the proposed
        resignation. The Holders of a majority in principal amount of the Securities
        of
        any Series may remove the Trustee with respect to that Series by so notifying
        the Trustee and the Company. The Company may remove the Trustee with respect
        to
        Securities of one or more Series if:

       

      
        	 	
                (a)

              	
                the
                  Trustee fails to comply with Section
                  7.10;

              

      

       

      
        	 	
                (b)

              	
                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;

              

      

       

      
        	 	
                (c)

              	
                a
                  Custodian or public officer takes charge of the Trustee or its
                  property;
                  or 

              

      

       

      
        	 	
                (d)

              	
                the
                  Trustee becomes incapable of
                  acting.

              

      

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

      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. Within
        one year after the successor Trustee takes office, the Holders of a majority
        in
        principal amount of the then outstanding Securities may appoint a successor
        Trustee to replace the successor Trustee appointed by the Company.

       

      If
        a
        successor Trustee with respect to the Securities of any one or more Series
        does
        not take office within 60 days after the retiring Trustee resigns or is removed,
        the retiring Trustee, the Company or the Holders of at least a majority in
        principal amount of the Securities of the applicable Series may petition
        any
        court of competent jurisdiction for the appointment of a successor
        Trustee.

       

      A
        successor Trustee shall deliver a written acceptance of its appointment to
        the
        retiring Trustee and to the Company. Immediately after that, the retiring
        Trustee shall transfer all property held by it as Trustee to the successor
        Trustee subject to the lien provided for in Section
        7.7,
        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
        with respect to each Series of Securities for which it is acting as Trustee
        under this Indenture. A successor Trustee shall mail a notice of its succession
        to each Securityholder of each such Series and, if any Bearer Securities
        are
        outstanding, publish such notice on one occasion in an Authorized Newspaper.
        Notwithstanding replacement of the Trustee pursuant to this Section
        7.8,
        the
        Company’s obligations under Section
        7.7
        hereof
        shall continue for the benefit of the retiring Trustee with respect to expenses
        and liabilities incurred by it prior to such replacement.

       

      SECTION
        7.9 Successor
        Trustee by Merger, Etc.

       

      If
        the
        Trustee consolidates with, 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.

       

      This
        Indenture shall always have a Trustee who satisfies the requirements of TIA
        Section 310(a)(1), (2) and (5). The Trustee shall always have a combined
        capital
        and surplus of at least $25,000,000 as set forth in its most recent published
        annual report of condition. The Trustee shall comply with TIA Section
        310(b).

       

      SECTION
        7.11 Referential
        Collection of Claims Against Company. 

       

      The
        Trustee is subject to TIA Section 311(a), excluding any creditor relationship
        listed in TIA Section 311(b). A Trustee who has resigned or been removed
        shall
        be subject to TIA Section 311(a) to the extent indicated.

       

      ARTICLE
        VIII

       

      SATISFACTION
        AND DISCHARGE; DEFEASANCE

       

      SECTION
        8.1 Satisfaction
        and Discharge of Indenture.

       

      This
        Indenture shall upon Company Order cease to be of further effect (except
        as
        hereinafter provided in this Section
        8.1),
        and
        the Trustee, at the expense of the Company, shall execute proper instruments
        acknowledging satisfaction and discharge of this Indenture, when

       

      
        	 	
                (a)

              	
                either:

              

      

       

      
        	 	
                (i)

              	
                all
                  Securities theretofore authenticated and delivered (other than
                  Securities
                  that have been destroyed, lost or stolen and that have been replaced
                  or
                  paid) have been delivered to the Trustee for cancellation;
                  or

              

      

       

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

      
        	 	
                (ii)

              	
                all
                  such Securities not theretofore delivered to the Trustee for cancellation
                  (1) have become due and payable, or (2) will become due and payable
                  at
                  their Stated Maturity within one year, or (3) are to be called
                  for
                  redemption within one year under arrangements satisfactory to the
                  Trustee
                  for the giving of notice of redemption by the Trustee in the name,
                  and at
                  the expense, of the Company; and the Company has irrevocably deposited
                  or
                  caused to be deposited with the Trustee as trust funds in trust
                  an amount
                  sufficient for the purpose of paying and discharging the entire
                  indebtedness on such Securities not theretofore delivered to the
                  Trustee
                  for cancellation, for principal and interest to the date of such
                  deposit
                  (in the case of Securities which have become due and payable on
                  or prior
                  to the date of such deposit) or to the Stated Maturity or redemption
                  date,
                  as the case may be;

              

      

       

      
        	 	
                (b)

              	
                the
                  Company has paid or caused to be paid all other sums payable hereunder
                  by
                  the Company; and

              

      

       

      
        	 	
                (c)

              	
                the
                  Company has delivered to the Trustee an Officers’ Certificate and an
                  Opinion of Counsel, each stating that all conditions precedent
                  herein
                  provided for relating to the satisfaction and discharge of this
                  Indenture
                  have been complied with.

              

      

       

      Notwithstanding
        the satisfaction and discharge of this Indenture, the obligations of the
        Company
        to the Trustee under Section
        7.7,
        and, if
        money shall have been deposited with the Trustee pursuant to clause (a) of
        this
        Section, the provisions of Sections
        2.4, 2.7, 2.8, 8.1, 8.2 and 8.5
        shall
        survive. 

       

      SECTION
        8.2 Application
        of Trust Funds; Indemnification.

       

      
        	 	
                (a)

              	
                Subject
                  to the provisions of Section
                  8.5,
                  all money deposited with the Trustee pursuant to Section
                  8.1,
                  all money and U.S. Government Obligations or Foreign Government
                  Obligations deposited with the Trustee pursuant to Section
                  8.3 or 8.4
                  and all money received by the Trustee in respect of U.S. Government
                  Obligations or Foreign Government Obligations deposited with the
                  Trustee
                  pursuant to Section
                  8.3 or 8.4,
                  shall be held in trust and applied by it, in accordance with the
                  provisions of the Securities and this Indenture, to the payment,
                  either
                  directly or through any Paying Agent (other than the Company acting
                  as its
                  own Paying Agent) as the Trustee may determine, to the persons
                  entitled
                  thereto, of the principal and interest for whose payment such money
                  has
                  been deposited with or received by the Trustee or to make mandatory
                  sinking fund payments or analogous payments as contemplated by
                  Sections
                  8.3 or 8.4.

              

      

       

      
        	 	
                (b)

              	
                The
                  Company shall pay and shall indemnify the Trustee against any tax,
                  fee or
                  other charge imposed on or assessed against U.S. Government Obligations
                  or
                  Foreign Government Obligations deposited pursuant to Sections
                  8.3 or 8.4
                  or
                  the interest and principal received in respect of such obligations
                  other
                  than any payable by or on behalf of
                  Holders.

              

      

       

      
        	 	
                (c)

              	
                The
                  Trustee shall deliver or pay to the Company from time to time upon
                  Company
                  Request any U.S. Government Obligations or Foreign Government Obligations
                  or money held by it as provided in Sections
                  8.3 or 8.4
                  which, in the opinion of a nationally recognized firm of independent
                  certified public accountants expressed in a written certification
                  thereof
                  delivered to the Trustee, are then in excess of the amount thereof
                  which
                  then would have been required to be deposited for the purpose for
                  which
                  such U.S. Government Obligations or Foreign Government Obligations
                  or
                  money were deposited or received. This provision shall not authorize
                  the
                  sale by the Trustee of any U.S. Government Obligations or Foreign
                  Government Obligations held under this
                  Indenture.

              

      

       

      SECTION
        8.3 Legal
        Defeasance of Securities of any Series.

       

      Unless
        this Section
        8.3
        is
        otherwise specified, pursuant to Section
        2.2.20,
        to be
        inapplicable to Securities of any Series, the Company shall be deemed to
        have
        paid and discharged the entire indebtedness on all the outstanding Securities
        of
        any Series on the 91st day after the date of the deposit referred to in
        subparagraph (d) hereof, and the provisions of this Indenture, as it relates
        to
        such outstanding Securities of such Series, shall no longer be in effect
        (and
        the Trustee, at the expense of the Company, shall, at Company Request, execute
        proper instruments acknowledging the same), except as to:

       

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

      

       

      
        	 	
                (a)

              	
                the
                  rights of Holders of Securities of such Series to receive, from
                  the trust
                  funds described in subparagraph (d) hereof, (i) payment of the
                  principal
                  of and each installment of principal of and interest on the outstanding
                  Securities of such Series on the Stated Maturity of such principal
                  or
                  installment of principal or interest and (ii) the benefit of any
                  mandatory
                  sinking fund payments applicable to the Securities of such Series
                  on the
                  day on which such payments are due and payable in accordance with
                  the
                  terms of this Indenture and the Securities of such
                  Series;

              

      

       

      
        	 	
                (b)

              	
                the
                  provisions of Sections
                  2.4, 2.7, 2.8, 8.2, 8.3, and 8.5;
                  and

              

      

       

      
        	 	
                (c)

              	
                the
                  rights, powers, trust and immunities of the Trustee hereunder;
                  provided
                  that, the following conditions shall have been
                  satisfied:

              

      

       

      
        	 	
                (d)

              	
                the
                  Company shall have deposited or caused to be irrevocably deposited
                  (except
                  as provided in Section
                  8.2(c))
                  with the Trustee as trust funds in trust for the purpose of making
                  the
                  following payments, specifically pledged as security for and dedicated
                  solely to the benefit of the Holders of such Securities, cash in
                  Dollars
                  and/or U.S. Government Obligations, which through the payment of
                  interest
                  and principal in respect thereof in accordance with their terms,
                  will
                  provide (and without reinvestment and assuming no tax liability
                  will be
                  imposed on such Trustee), not later than one day before the due
                  date of
                  any payment of money, an amount in cash, sufficient, in the opinion
                  of a
                  nationally recognized firm of independent public accountants expressed
                  in
                  a written certification thereof delivered to the Trustee, to pay
                  and
                  discharge each installment of principal of and interest, if any,
                  on and
                  any mandatory sinking fund payments in respect of all the Securities
                  of
                  such Series on the dates such installments of interest or principal
                  and
                  such sinking fund payments are due;

              

      

       

      
        	 	
                (e)

              	
                such
                  deposit will not result in a breach or violation of, or constitute
                  a
                  default under, this Indenture or any other agreement or instrument
                  to
                  which the Company is a party or by which it is bound;
                  

              

      

       

      
        	 	
                (f)

              	
                no
                  Default or Event of Default with respect to the Securities of such
                  Series
                  shall have occurred and be continuing on the date of such deposit
                  or
                  during the period ending on the 91st day after such
                  date;

              

      

       

      
        	 	
                (g)

              	
                the
                  Company shall have delivered to the Trustee an Officers’ Certificate and
                  an Opinion of Counsel to the effect that (i) the Company has received
                  from, or there has been published by, the Internal Revenue Service
                  a
                  ruling, or (ii) since the date of execution of this Indenture,
                  there has
                  been a change in the applicable Federal income tax law, in either
                  case to
                  the effect that, and based thereon such Opinion of Counsel shall
                  confirm
                  that, the Holders of the Securities of such Series will not recognize
                  income, gain or loss for Federal income tax purposes as a result
                  of such
                  deposit, defeasance and discharge and will be subject to Federal
                  income
                  tax on the same amounts and in the same manner and at the same
                  times as
                  would have been the case if such deposit, defeasance and discharge
                  had not
                  occurred;

              

      

       

      
        	 	
                (h)

              	
                the
                  Company shall have delivered to the Trustee an Officers’ Certificate
                  stating that the deposit was not made by the Company with the intent
                  of
                  preferring the Holders of the Securities of such Series over any
                  other
                  creditors of the Company or with the intent of defeating, hindering,
                  delaying or defrauding any other creditors of the Company;
                  and

              

      

       

      
        	 	
                (i)

              	
                the
                  Company shall have delivered to the Trustee an Officers’ Certificate and
                  an Opinion of Counsel, each stating that all conditions precedent
                  provided
                  for relating to the defeasance contemplated by this Section have
                  been
                  complied with.

              

      

       

      SECTION
        8.4 Covenant
        Defeasance.

       

      Unless
        this Section
        8.4
        is
        otherwise specified pursuant to Section
        2.2.20
        to be
        inapplicable to Securities of any Series, on and after the 91st day after
        the
        date of the deposit referred to in subparagraph (a) hereof, the Company may
        omit
        to comply with respect to the Securities of any Series with any term, provision
        or condition set forth under Sections
        4.2, 4.3, 4.4, 4.6, and 5.1
        as well
        as any additional covenants specified in a supplemental indenture for such
        Series of Securities or a Board Resolution or an Officers’ Certificate delivered
        pursuant to Section
        2.2.20
        (and the
        failure to comply with any such covenants shall not constitute a Default
        or
        Event of Default with respect to such Series under Section
        6.1)
        and the
        occurrence of any event specified in a supplemental indenture for such Series
        of
        Securities or a Board Resolution or an Officers’ Certificate delivered pursuant
        to Section
        2.2.18
        and
        designated as an Event of Default shall not constitute a Default or Event
        of
        Default hereunder, with respect to the Securities of such Series, provided
        that
        the following conditions shall have been satisfied:

       

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

      

       

      
        	 	
                (a)

              	
                With
                  reference to this Section
                  8.4,
                  the Company has deposited or caused to be irrevocably deposited
                  (except as
                  provided in Section
                  8.2(c))
                  with the Trustee as trust funds in trust for the purpose of making
                  the
                  following payments specifically pledged as security for, and dedicated
                  solely to, the benefit of the Holders of such Securities, cash
                  in Dollars
                  and/or U.S. Government Obligations, which through the payment of
                  interest
                  and principal in respect thereof in accordance with their terms,
                  will
                  provide (and without reinvestment and assuming no tax liability
                  will be
                  imposed on such Trustee), not later than one day before the due
                  date of
                  any payment of money, an amount in cash, sufficient, in the opinion
                  of a
                  nationally recognized firm of independent certified public accountants
                  expressed in a written certification thereof delivered to the Trustee,
                  to
                  pay and discharge each installment of principal of and interest,
                  if any,
                  on and any mandatory sinking fund payments in respect of the Securities
                  of
                  such Series on the dates such installments of interest or principal
                  and
                  such sinking fund payments are due;

              

      

       

      
        	 	
                (b)

              	
                Such
                  deposit will not result in a breach or violation of, or constitute
                  a
                  default under, this Indenture or any other agreement or instrument
                  to
                  which the Company is a party or by which it is
                  bound;

              

      

       

      
        	 	
                (c)

              	
                No
                  Default or Event of Default with respect to the Securities of such
                  Series
                  shall have occurred and be continuing on the date of such deposit
                  or
                  during the period ending on the 91st day after such
                  date;

              

      

       

      
        	 	
                (d)

              	
                The
                  Company shall have delivered to the Trustee an Opinion of Counsel
                  to the
                  effect that Holders of the Securities of such Series will not recognize
                  income, gain or loss for federal income tax purposes as a result
                  of such
                  deposit and covenant defeasance and will be subject to federal
                  income tax
                  on the same amounts, in the same manner and at the same times as
                  would
                  have been the case if such deposit and covenant defeasance had
                  not
                  occurred; and

              

      

       

      
        	
              	(e)	
                The
                  Company shall have delivered to the Trustee an Officers’ Certificate and
                  an Opinion of Counsel, each stating that all conditions precedent
                  herein
                  provided for relating to the covenant defeasance contemplated by
                  this
                  Section have been complied with. 

              

      

       

      SECTION
        8.5 Repayment
        to Company.

       

      The
        Trustee and the Paying Agent shall pay to the Company upon request any money
        held by them for the payment of principal and interest that remains unclaimed
        for two years. After that, Securityholders entitled to the money must look
        to
        the Company for payment as general creditors unless an applicable abandoned
        property law designates another person.

       

      ARTICLE
        IX

       

      AMENDMENTS
        AND WAIVERS

       

      SECTION
        9.1 Without
        Consent of Holders.

       

      The
        Company and the Trustee may amend or supplement this Indenture or the Securities
        of one or more Series without the consent of any Securityholder:

       

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

      

       

      
        	 	
                (a)

              	
                to
                  cure any ambiguity, defect or
                  inconsistency;

              

      

       

      
        	 	
                (b)

              	
                to
                  comply with Article
                  V;

              

      

       

      
        	 	
                (c)

              	
                to
                  provide for uncertificated Securities in addition to or in place
                  of
                  certificated Securities; 

              

      

       

      
        	 	
                (d)

              	
                to
                  make any change that does not adversely affect the rights of any
                  Securityholder;

              

      

       

      
        	 	
                (e)

              	
                to
                  provide for the issuance of and establish the form and terms and
                  conditions of Securities of any Series as permitted by this
                  Indenture;

              

      

       

      
        	 	
                (f)

              	
                to
                  evidence and provide for the acceptance of appointment hereunder
                  by a
                  successor Trustee with respect to the Securities of one or more
                  Series and
                  to add to or change any of the provisions of this Indenture as
                  shall be
                  necessary to provide for or facilitate the administration of the
                  trusts
                  hereunder by more than one Trustee;
                  or

              

      

       

      
        	 	
                (g)

              	
                to
                  comply with requirements of the SEC in order to effect or maintain
                  the
                  qualification of this Indenture under the
                  TIA.

              

      

       

      SECTION
        9.2 With
        Consent of Holders.

       

      The
        Company and the Trustee may enter into a supplemental indenture with the
        written
        consent of the Holders of at least a majority in principal amount of the
        outstanding Securities of each Series affected by such supplemental indenture
        (including consents obtained in connection with a tender offer or exchange
        offer
        for the Securities of such Series), for the purpose of adding any provisions
        to
        or changing in any manner or eliminating any of the provisions of this Indenture
        or of any supplemental indenture or of modifying in any manner the rights
        of the
        Securityholders of each such Series. Except as provided in Section
        6.13,
        the
        Holders of at least a majority in principal amount of the outstanding Securities
        of any Series by notice to the Trustee (including consents obtained in
        connection with a tender offer or exchange offer for the Securities of such
        Series) may waive compliance by the Company with any provision of this Indenture
        or the Securities with respect to such Series.

       

      It
        shall
        not be necessary for the consent of the Holders of Securities under this
        Section
        9.2
        to
        approve the particular form of any proposed supplemental indenture or waiver,
        but it shall be sufficient if such consent approves the substance thereof.
        After
        a supplemental indenture or waiver under this section becomes effective,
        the
        Company shall mail to the Holders of Securities affected thereby and, if
        any
        Bearer Securities affected thereby are outstanding, publish on one occasion
        in
        an Authorized Newspaper, a notice briefly describing the supplemental indenture
        or waiver. Any failure by the Company to mail or publish such notice, or
        any
        defect therein, shall not, however, in any way impair or affect the validity
        of
        any such supplemental indenture or waiver.

       

      SECTION
        9.3 Limitations.

       

      Without
        the consent of each Securityholder affected, an amendment or waiver may
        not:

       

      
        	 	
                (a)

              	
                reduce
                  the amount of Securities whose Holders must consent to an amendment,
                  supplement or waiver;

              

      

       

      
        	 	
                (b)

              	
                reduce
                  the rate of or extend the time for payment of interest (including
                  default
                  interest) on any Security; 

              

      

       

      
        	 	
                (c)

              	
                reduce
                  the principal or change the Stated Maturity of any Security or
                  reduce the
                  amount of, or postpone the date fixed for, the payment of any sinking
                  fund
                  or analogous obligation;

              

      

       

      
        	 	
                (d)

              	
                reduce
                  the principal amount of Discount Securities payable upon acceleration
                  of
                  the maturity thereof;

              

      

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

      

       

      
        	 	
                (e)

              	
                waive
                  a Default or Event of Default in the payment of the principal of
                  or
                  interest, if any, on any Security (except a rescission of acceleration
                  of
                  the Securities of any Series by the Holders of at least a majority
                  in
                  principal amount of the outstanding Securities of such Series and
                  a waiver
                  of the payment default that resulted from such
                  acceleration);

              

      

       

      
        	 	
                (f)

              	
                make
                  the principal of or interest, if any, on any Security payable in
                  any
                  currency other than that stated in the Security;
                  

              

      

       

      
        	 	
                (g)

              	
                adversely
                  affect the right of any Security;

              

      

       

      
        	 	
                (h)

              	
                make
                  any change in Sections
                  6.8, 6.13, or 9.3
                  (this sentence); or

              

      

       

      
        	 	
                (i)

              	
                waive
                  a redemption payment with respect to any
                  Security.

              

      

       

      SECTION
        9.4 Compliance
        With Trust Indenture Act.

       

      Every
        amendment to this Indenture or the Securities of one or more Series shall
        be set
        forth in a supplemental indenture hereto that complies with the TIA as then
        in
        effect.

       

      SECTION
        9.5 Revocation
        and Effect of Consents.

       

      Until
        an
        amendment is set forth in a supplemental indenture or a 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. However, any such Holder
        or
        subsequent Holder may revoke the consent as to his Security or portion of
        a
        Security if the Trustee receives the notice of revocation before the date
        of the
        supplemental indenture or the date the waiver becomes effective.

       

      Any
        amendment or waiver once effective shall bind every Securityholder of each
        Series affected by such amendment or waiver unless it is of the type described
        in any of clauses (a) through (h) of Section
        9.3.
        In that
        case, the amendment or waiver shall bind each Holder of a Security who has
        consented to it and every subsequent Holder of a Security or portion of a
        Security that evidences the same debt as the consenting Holder’s
        Security.

       

      SECTION
        9.6 Notation
        on or Exchange of Securities.

       

      The
        Trustee may place an appropriate notation about an amendment or waiver on
        any
        Security of any Series thereafter authenticated. The Company in exchange
        for
        Securities of that Series may issue and the Trustee shall authenticate upon
        request new Securities of that Series that reflect the amendment or
        waiver.

       

      SECTION
        9.7 Trustee
        Protected.

       

      In
        executing, or accepting the additional trusts created by, any supplemental
        indenture permitted by this Article or the modifications thereby of the trusts
        created by this Indenture, the Trustee shall be entitled to receive, and
        (subject to Section
        7.1)
        shall
        be fully protected in relying upon, an Opinion of Counsel stating that the
        execution of such supplemental indenture is authorized or permitted by this
        Indenture. The Trustee shall sign all supplemental indentures, except that
        the
        Trustee need not sign any supplemental indenture that adversely affects its
        rights.

       

      ARTICLE
        X

       

      MISCELLANEOUS

       

      SECTION
        10.1 Trust
        Indenture Act Controls.

       

      If
        any
        provision of this Indenture limits, qualifies, or conflicts with another
        provision which is required or deemed to be included in this Indenture by
        the
        TIA, such required or deemed provision shall control.

       

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

      

       

      SECTION
        10.2 Notices.

       

      Any
        notice or communication by the Company or the Trustee to the other, or by
        a
        Holder to the Company or the Trustee, is duly given if in writing and delivered
        in person or mailed by first-class mail:

       

      if
        to the
        Company:

      

      James
        River Coal Company

      901
        E.
        Byrd Street, Suite 1600

      Richmond,
        Virginia 23219

      Attention:
        Peter T. Socha

      Telephone:
        (804) 780-3000

      Facsimile:
        (804) _______________

      

      if
        to the
        Trustee:

      

       

       

       

       

      Attention:

      Telephone:
        (_____) _______________

      Facsimile:
        (_____) _______________

      

      The
        Company or the Trustee by notice to the other may designate additional or
        different addresses for subsequent notices or communications.

       

      Any
        notice or communication to a Securityholder shall be mailed by first-class
        mail
        to his address shown on the register kept by the Registrar and, if any Bearer
        Securities are outstanding, published in an Authorized Newspaper. Failure
        to
        mail a notice or communication to a Securityholder of any Series or any defect
        in it shall not affect its sufficiency with respect to other Securityholders
        of
        that or any other Series.

       

      If
        a
        notice or communication is mailed or published in the manner provided above,
        within the time prescribed, it is duly given, whether or not the Securityholder
        receives it.

       

      If
        the
        Company mails a notice or communication to Securityholders, it shall mail
        a copy
        to the Trustee and each Agent at the same time.

       

      SECTION
        10.3 Communication
        by Holders with Other Holders.

       

      Securityholders
        of any Series may communicate pursuant to TIA Section 312(b) with other
        Securityholders of that Series or any other Series with respect to their
        rights
        under this Indenture or the Securities of that Series or all Series. The
        Company, the Trustee, the Registrar and anyone else shall have the protection
        of
        TIA Section 312(c).

       

      SECTION
        10.4 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:

       

      
        	 	
                (a)

              	
                an
                  Officers’ Certificate stating that, in the opinion of the signers, all
                  conditions precedent, if any, provided for in this Indenture relating
                  to
                  the proposed action have been complied with;
                  and

              

      

       

      
        	 	
                (b)

              	
                an
                  Opinion of Counsel stating that, in the opinion of such counsel,
                  all such
                  conditions precedent have been complied
                  with.

              

      

       

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

      

       

      SECTION
        10.5 Statements
        Required in Certificate or 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 Section 314(a)(4)) shall comply with the provisions of TIA Section 314(e)
        and 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 as to whether or not such covenant or condition
                  has been
                  complied with; and

              

      

       

      
        	 	
                (d)

              	
                a
                  statement as to whether or not, in the opinion of such person,
                  such
                  condition or covenant has been complied
                  with.

              

      

       

      SECTION
        10.6 Rules
        by Trustee and Agents.

       

      The
        Trustee may make reasonable rules for action by or a meeting of Securityholders
        of one or more Series. Any Agent may make reasonable rules and set reasonable
        requirements for its functions.

       

      SECTION
        10.7 Legal
        Holidays.

       

      Unless
        otherwise provided by Board Resolution, Officers’ Certificate or supplemental
        indenture hereto for a particular Series, a “Legal
        Holiday”
is
        any
        day that is not a Business Day. If a payment date is a Legal Holiday at a
        place
        of payment, payment may be made at that place on the next succeeding day
        that is
        not a Legal Holiday, and no interest shall accrue for the intervening
        period.

       

      SECTION
        10.8 No
        Recourse Against Others.

       

      A
        director, officer, employee or stockholder, as such, of the Company shall
        not
        have any liability for any obligations of the Company under the Securities
        or
        the Indenture or for any claim based on, in respect of or by reason of such
        obligations or their creation. Each Securityholder by accepting a Security
        waives and releases all such liability. The waiver and release are part of
        the
        consideration for the issue of the Securities.

       

      SECTION
        10.9 Counterparts.

       

      This
        Indenture may be executed in any number of counterparts and by the parties
        hereto in separate counterparts, each of which when so executed shall be
        deemed
        to be an original and all of which taken together shall constitute one and
        the
        same agreement.

       

      SECTION
        10.10 Governing
        Laws.

       

      THIS
        INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY THE LAWS OF THE STATE OF
        NEW
        YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH STATE, WITHOUT
        REGARD TO THE CONFLICT OF LAWS PROVISIONS THEREOF.

       

      SECTION
        10.11 No
        Adverse Interpretation of Other Agreements.

       

      This
        Indenture may not be used to interpret another indenture, loan or debt agreement
        of the Company or a Subsidiary of the Company. Any such indenture, loan or
        debt
        agreement may not be used to interpret this Indenture.

       

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

      

       

      SECTION
        10.12 Successors.

       

      All
        agreements of the Company in this Indenture and the Securities shall bind
        its
        successor. All agreements of the Trustee in this Indenture shall bind its
        successor.

       

      SECTION
        10.13 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
        10.14 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 hereof.

       

      ARTICLE
        XI

       

      SINKING
        FUNDS

       

      SECTION
        11.1 Applicability
        of Article.

       

      The
        provisions of this Article shall be applicable to any sinking fund for the
        retirement of the Securities of a Series, except as otherwise permitted or
        required by any form of Security of such Series issued pursuant to this
        Indenture.

       

      The
        minimum amount of any sinking fund payment provided for by the terms of the
        Securities of any Series is herein referred to as a “mandatory
        sinking fund payment”
and
        any
        other amount provided for by the terms of Securities of such Series is herein
        referred to as an “optional
        sinking fund payment.”
If
        provided for by the terms of Securities of any Series, the cash amount of
        any
        sinking fund payment may be subject to reduction as provided in Section
        11.2.
        Each
        sinking fund payment shall be applied to the redemption of Securities of
        any
        Series as provided for by the terms of the Securities of such Series.

       

      SECTION
        11.2 Satisfaction
        Of Sinking Fund Payments With Securities.

       

      The
        Company may, in satisfaction of all or any part of any sinking fund payment
        with
        respect to the Securities of any Series to be made pursuant to the terms
        of such
        Securities (1) deliver outstanding Securities of such Series to which such
        sinking fund payment is applicable (other than any of such Securities previously
        called for mandatory sinking fund redemption) and (2) apply as credit Securities
        of such Series to which such sinking fund payment is applicable and which
        have
        been repurchased by the Company or redeemed either at the election of the
        Company pursuant to the terms of such Series of Securities (except pursuant
        to
        any mandatory sinking fund) or through the application of permitted optional
        sinking fund payments or other optional redemptions pursuant to the terms
        of
        such Securities, provided that such Securities have not been previously so
        credited. Such Securities shall be received by the Trustee, together with
        an
        Officers’ Certificate with respect thereto, not later than 15 days prior to the
        date on which the Trustee begins the process of selecting Securities for
        redemption, and shall be credited for such purpose by the Trustee at the
        price
        specified in such Securities for redemption through operation of the sinking
        fund and the amount of such sinking fund payment shall be reduced accordingly.
        If as a result of the delivery or credit of Securities in lieu of cash payments
        pursuant to this Section
        11.2,
        the
        principal amount of Securities of such Series to be redeemed in order to
        exhaust
        the aforesaid cash payment shall be less than $100,000, the Trustee need
        not
        call Securities of such Series for redemption, except upon receipt of a Company
        Order that such action be taken, and such cash payment shall be held by the
        Trustee or a Paying Agent and applied to the next succeeding sinking fund
        payment, provided, however, that the Trustee or such Paying Agent shall from
        time to time upon receipt of a Company Order pay over and deliver to the
        Company
        any cash payment so being held by the Trustee or such Paying Agent upon delivery
        by the Company to the Trustee of Securities of that Series purchased by the
        Company having an unpaid principal amount equal to the cash payment required
        to
        be released to the Company.

       

      
        
          
          

        

        
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      SECTION
        11.3 Redemption
        Of Securities For Sinking Fund.

       

      Not
        less
        than 45 days (unless otherwise indicated in the Board Resolution, supplemental
        indenture or Officers’ Certificate in respect of a particular Series of
        Securities) prior to each sinking fund payment date for any Series of
        Securities, the Company will deliver to the Trustee an Officers’ Certificate
        specifying the amount of the next ensuing mandatory sinking fund payment
        for
        that Series pursuant to the terms of that Series, the portion thereof, if
        any,
        which is to be satisfied by payment of cash and the portion thereof, if any,
        which is to be satisfied by delivering and crediting of Securities of that
        Series pursuant to Section
        11.2,
        and the
        optional amount, if any, to be added in cash to the next ensuing mandatory
        sinking fund payment, and the Company shall thereupon be obligated to pay
        the
        amount therein specified. Not less than 30 days (unless otherwise indicated
        in
        the Board Resolution, Officers’ Certificate or supplemental indenture in respect
        of a particular Series of Securities) before each such sinking fund payment
        date
        the Trustee shall select the Securities to be redeemed upon such sinking
        fund
        payment date in the manner specified in Section
        3.2
        and
        cause notice of the redemption thereof to be given in the name of and at
        the
        expense of the Company in the manner provided in Section
        3.3.
        Such
        notice having been duly given, the redemption of such Securities shall be
        made
        upon the terms and in the manner stated in Sections
        3.4, 3.5 and 3.6.

       

      
        
          
          

        

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

       

       

      
        	 	
                JAMES
                  RIVER COAL COMPANY

                 

                By:______________________________

                      
                  Name:_________________________

                      
                  Its:___________________________

                 

                Attest:___________________________

                 

                [TRUSTEE]

                 

                
                  By:______________________________

                        
                    Name:_________________________

                        
                    Its:___________________________
 

                 

                Attest:____________________________

              

      

    

     

     

     

     

     

    33

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