Document:

Exhibit 10.1

 

EXHIBIT 10.1

STANDARD INDUSTRIAL/COMMERCIAL MULTI-TENANT LEASE — NET

AIR COMMERCIAL REAL ESTATE ASSOCIATION

1. Basic Provisions (“Basic Provisions”).

     1.1 Parties: This Lease (“Lease”), dated for reference purposes only August 8,
2006, is made by and between John Robert Meehan (“Lessor”) and
CardioGenesis Corporation (“Lessee”), (collectively the “Parties", or individually
a “Party").

     1.2(a) Premises: That certain portion of the Project (as defined below), including all
improvements therein or to be provided by Lessor under the terms of this Lease, commonly known by
the street address of 11 Musick, located in the City of Irvine,
County of Orange, State of CA, with zip code 92618,
as outlined on Exhibit A attached hereto (“Premises”) and generally
described as (describe briefly the nature of the Premises): a one (1) story flex building
located in the Irvine Spectrum, consisting of approximately 7,800 square feet.
In addition to Lessee’s rights to use and occupy the Premises as hereinafter specified,
Lessee shall have non-exclusive rights to the any utility raceways of the building containing the
Premises (“Building”) and to the common Areas (as defined in Paragraph 2.7 below), but shall not
have any rights to the roof or exterior walls of the Building or to any other buildings in the
Project. The Premises, the Building, the Common Areas, the land upon which they are located, along
with all other buildings and improvements thereon, are herein collectively referred to as the
“Project.” (See also Paragraph 2)

     1.2(b) Parking: 31 unreserved vehicle parking spaces. (See also Paragraph 2.6)

     1.3 Term: 5 years and 2 months (“Original Term”)
commencing October 1, 2006 (“Commencement Date”) and ending November 30, 2011 (“Expiration Date”). (See also Paragraph 3)

     1.4 Early Possession: N/A (“Early Possession Date”). (See also Paragraphs 3.2 and
3.3)

     1.5 Base Rent: $ 8,970.00 per month (“Base Rent”), payable on the first day
of each month commencing October 1, 2006. (See also Paragraph 4)

þ If this box is checked, there are provisions in this Lease for the Base
Rent to be adjusted. Notwithstanding anything contained in this Lease agreement
to the contrary, months 13 and 25 shall be free of Base Rent.

     1.6 Lessee’s Share of Common Area Operating Expenses: one hundred
percent (100 %) (“Lessee’s Share”). Lessee’s Share has been calculated by dividing the
approximate square footage of the Premises by the approximate square footage of the Project. In the
event that the size of the Premises and/or the Project are modified during the term of this Lease,
Lessor shall recalculate Lessee’s Share to reflect such modification.

     1.7 Base Rent and Other Monies Paid Upon Execution:

	 	(a)	 	Base Rent: $8,970.00 for the period October 1, 2006-October 31, 2006 .
	 
	 	(b)	 	Common Area Operating Expenses: $0.00 for the period N/A
	 
	 	(c)	 	Security Deposit: $8,970.00 (“Security Deposit”). (See also Paragraph 5)
	 
	 	(d)	 	Other: $35,880.00  for additional Security Deposit to be applied
against base rent equally during months 14, 26, 38, and 50.
	 
	 	(e)	 	Total Due Upon Execution of this Lease: $53,820.00.

     1.8 Agreed Use: General office and industrial use for a medical device company and
other lawful uses related thereto. (See also Paragraph 6)

     1.9 Insuring Party. Lessor is the “Insuring Party”. (See also Paragraph 8)

     1.10 Real Estate Brokers: (See also Paragraph 15)

          (a) Representation: The following real estate brokers (the “Brokers”) and brokerage
relationships exist in this transaction (check applicable boxes):

	þ	 	Scott Haushalter Brokerage represents Lessor exclusively (“Lessor’s
Broker”);
	 
	þ	 	Cushman & Wakefield of California, Inc. represents Lessee exclusively (“Lessee’s Broker”); or
	 
	o	 	                     represents both Lessor and Lessee (“Dual Agency”).

          (b) Payment to Brokers: Upon execution and delivery of this Lease by both Parties, Lessor
shall pay to the Brokers the brokerage fee agreed to in a separate written agreement (or if there
is no such agreement, the sum of                     or 6 % of the total Base Rent for the brokerage
services rendered by the Brokers). 3.5% to Lessee’s Broker and 2.5% to Lessor’s Brokers

     1.11 Guarantor. The obligations of the Lessee under this Lease are to be guaranteed by
None (“Guarantor”). (See also Paragraph 37)

     1.12 Attachments. Attached hereto are the following, all of which constitute a part of this Lease:

	þ	 	an Addendum consisting of Paragraphs 50 through 59;
	 
	þ	 	a site plan depicting the Premises;
	 
	o	 	a site plan depicting the Project;

	 	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
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	o	 	a current set of the Rules and Regulations for the Project;
	 
	o	 	a current set of the Rules and Regulations adopted by the owners’ association;
	 
	o	 	a Work Letter;
	 
	þ	 	other (specify); An Addendum deliniating Lessor’s Work to be completed in the Premises.

2. Premises.

     2.1 Letting. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the
Premises, for the term, at the rental, and upon all of the terms, covenants and conditions set
forth in this Lease. Unless otherwise provided herein, any statement of size set forth in this
Lease, or that may have been used in calculating Rent, is an approximation which the Parties agree
is reasonable and any payments based thereon are not subject to revision whether or not the actual
size is more or less. NOTE: Lessee is advised to verify the actual size prior to executing this
Lease.

     2.2 Condition. Lessor shall deliver that portion of the Premises contained within the Building
(‘Unit”) to Lessee broom clean and free of debris on the Commencement Date or the Early Possession
Date, whichever first occurs (“Start Date”), and, so long as the required service contracts
described in Paragraph 7.1(b) below are obtained by Lessee and in effect within thirty days
following the Start Date, warrants that the existing electrical, plumbing, fire sprinkler,
lighting, heating, ventilating and air conditioning systems (“HVAC”), loading doors, sump pumps, if
any, and all other such elements in the Unit, other than those constructed by Lessee, shall be in
good operating condition on said date, that the structural elements of the roof, bearing walls and
foundation of the Unit shall be free of material defects, and that the Unit does not contain
hazardous levels of any mold or fungi defined as toxic under applicable state or federal law. If a
non-compliance with such warranty exists as of the Start Date, or if one of such systems or
elements should malfunction or fail within the appropriate warranty period, Lessor shall, as
Lessor’s sole obligation with respect to such matter, except as otherwise provided in this Lease,
promptly after receipt of written notice from Lessee setting forth with specificity the nature and
extent of such non-compliance, malfunction or failure, rectify same at Lessor’s expense. The
warranty periods shall be as follows: (i) 6 months as to the HVAC systems, and (ii) 30 days as to
the remaining systems and other elements of the Unit. If Lessee does not give Lessor the required
notice within the appropriate warranty period, correction of any such non-compliance, malfunction
or failure shall be the obligation of Lessee at Lessee’s sole cost and expense (except for the
repairs to the fire sprinkler systems, roof, foundations, and/or bearing walls — see Paragraph 7).

     2.3 Compliance. Lessor warrants that to the best of its knowledge the improvements on the
Premises and the Common Areas comply with the building codes that were in effect at the time that
each such improvement, or portion thereof, was constructed, and also with all applicable laws,
covenants or restrictions of record, regulations, and ordinances in effect on the Start Date
(“Applicable Requirements”). Said warranty does not apply to the use to which Lessee will put the
Premises, modifications which may be required by the Americans with Disabilities Act or any similar
laws as a result of Lessee’s use (see Paragraph 49), or to any Alterations or Utility Installations
(as defined in Paragraph 7.3(a)) made or to be made by Lessee.
NOTE: Lessee is responsible for determining whether or not the Applicable Requirements and
especially the zoning are appropriate for Lessee’s intended use, and acknowledges that past uses of
the Premises may no longer be allowed. If the Premises do not comply with said warranty, Lessor
shall, except as otherwise provided, promptly after receipt of written notice from Lessee setting
forth with specificity the nature and extent of such non-compliance, rectify the same at Lessor’s
expense. If Lessee does not give Lessor written notice of a non-compliance with this warranty
within 6 months following the Start Date, correction of that non-compliance shall be the obligation
of Lessee at Lessee’s sole cost and expense. If the Applicable Requirements are hereafter changed
so as to require during the term of this Lease the construction of an addition to or an alteration
of the Unit, Premises and/or Building, the remediation of any Hazardous Substance, or the
reinforcement or other physical modification of the Unit, Premises and/or Building (“Capital
Expenditure”), Lessor and Lessee shall allocate the cost of such work as follows:

          (a) Subject to Paragraph 2.3(c) below, if such Capital Expenditures are required as a result
of the specific and unique use of the Premises by Lessee as compared with uses by tenants in
general, Lessee shall be fully responsible for the cost thereof, provided, however that if such
Capital Expenditure is required during the last 2 years of this Lease and the cost thereof exceeds
6 months’ Base Rent, Lessee may instead terminate this Lease unless Lessor notifies Lessee, in
writing, within 10 days after receipt of Lessee’s termination notice that Lessor has elected to pay
the difference between the actual cost thereof and the amount equal to 6 months’ Base Rent. If
Lessee elects termination, Lessee shall immediately cease the use of the Premises which requires
such Capital Expenditure and deliver to Lessor written notice specifying a termination date at
least 90 days thereafter. Such termination date shall, however, in no event be earlier than the
last day that Lessee could legally utilize the Premises without commencing such Capital
Expenditure.

          (b) If such Capital Expenditure is not the result of the specific and unique use of the
Premises by Lessee (such as, governmentally mandated seismic modifications), then Lessor and Lessee
shall allocate the obligation to pay for the portion of such costs reasonably attributable to the
Premises pursuant to the formula set out in Paragraph 7.1(d); provided, however, that if such
Capital Expenditure is required during the last 2 years of this Lease or if Lessor reasonably
determines that it is not economically feasible to pay its share thereof, Lessor shall have the
option to terminate this Lease upon 90 days prior written notice to Lessee unless Lessee notifies
Lessor, in writing, within 10 days after receipt of Lessor’s termination notice that Lessee will
pay for such Capital Expenditure. If Lessor does not elect to terminate, and fails to tender its
share of any such Capital Expenditure, Lessee may advance such funds and deduct same, with
Interest, from Rent until Lessor’s share of such costs have been fully paid.
If Lessee is unable to finance Lessor’s share, or if the balance of the Rent due and payable for
the remainder of this Lease is not sufficient to fully reimburse Lessee on an offset basis, Lessee
shall have the right to terminate this Lease upon 30 days written notice to Lessor.

          (c) Notwithstanding the above, the provisions concerning Capital Expenditures are intended to
apply only to non-voluntary, unexpected, and new Applicable Requirements. If the Capital
Expenditures are instead triggered by Lessee as a result of an actual or proposed change in use,
change in intensity of use, or modification to the Premises then, and in that event, Lessee shall
either: (i) immediately cease such changed use or intensity of use and/or take such other steps as
may be necessary to eliminate the requirement for such Capital Expenditure, or (ii) complete such
Capital Expenditure at its own expense. Lessee shall not have any right to terminate this Lease.

     2.4 Acknowledgements. Lessee acknowledges that: (a) it has been advised by Lessor and/or
Brokers to satisfy itself with respect to the condition of the Premises (including but not limited
to the electrical, HVAC and fire sprinkler systems, security, environmental aspects, and
compliance with Applicable Requirements and the Americans with Disabilities Act), and their
suitability for Lessee’s intended use, (b) Lessee has made such investigation as it deems necessary
with reference to such matters and assumes all responsibility therefor as the same relate to its
occupancy of the Premises, and (c) neither Lessor, Lessor’s agents, nor Brokers have made any oral
or written representations or warranties with respect to said matters other than as set forth in
this Lease. In addition, Lessor acknowledges that: (i) Brokers have made no representations,
promises or warranties concerning Lessee’s ability to honor the Lease or suitability to occupy the
Premises, and (ii) it is Lessor’s sole responsibility to investigate the financial capability
and/or suitability of all proposed tenants.

     2.5 Lessee as Prior Owner/Occupant. The warranties made by Lessor in Paragraph 2 shall be of
no force or effect if immediately prior to the Start Date Lessee was the owner or occupant of the
Premises. In such event, Lessee shall be responsible for any necessary corrective work.

     2.6 Vehicle Parking. Lessee shall be entitled to use the number of parking spaces specified in
Paragraph 1.2(b) on those portions of the Common Areas designated from time to time by Lessor for
parking. Lessee shall not use more parking spaces than said number. Said parking spaces shall be
used for parking by vehicles no larger than full-size passenger automobiles or pick-up trucks,
herein called “Permitted Size Vehicles.”

	 	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
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Lessor may regulate the loading and unloading of vehicles by adopting Rules and Regulations as
provided in Paragraph 2.9. No vehicles other than Permitted Size Vehicles may be parked in the
Common Area without the prior written permission of Lessor. In addition:

          (a) Lessee shall not permit or allow any vehicles that belong to or are controlled by Lessee
or Lessee’s employees, suppliers, shippers, customers, contractors or invitees to be loaded,
unloaded, or parked in areas other than those designated by Lessor for such activities.

          (b) Lessee shall not service or store any vehicles in the Common Areas.

          (c) If Lessee permits or allows any of the prohibited activities described in this Paragraph
2.6, then Lessor shall have the right, without notice, in addition to such other rights and
remedies that it may have, to remove or tow away the vehicle involved and charge the cost to
Lessee, which cost shall be immediately payable upon demand by Lessor.

     2.7 Common Areas — Definition. The term “Common Areas” is defined as all areas and facilities
outside the Premises and within the exterior boundary line of the Project and interior utility
raceways and installations within the Unit that are provided and designated by the Lessor from time
to time for the general non-exclusive use of Lessor, Lessee and other tenants of the Project and
their respective employees, suppliers, shippers, customers, contractors and invitees, including
parking areas, loading and unloading areas, trash areas, roadways, walkways, driveways and
landscaped areas.

     2.8 Common Areas — Lessee’s Rights. Lessor grants to Lessee, for the benefit of Lessee and its
employees, suppliers, shippers, contractors, customers and invitees, during the term of this Lease,
the non-exclusive right to use, in common with others entitled to such use, the Common Areas as
they exist from time to time, subject to any rights, powers, and privileges reserved by Lessor
under the terms hereof or under the terms of any rules and regulations or restrictions governing
the use of the Project. Under no circumstances shall the right herein granted to use the Common
Areas be deemed to include the right to store any property, temporarily or permanently, in the
Common Areas. Any such storage shall be permitted only by the prior written consent of Lessor or
Lessor’s designated agent, which consent may be revoked at any time. In the event that any
unauthorized storage shall occur then Lessor shall have the right, without notice, in addition to
such other rights and remedies that it may have, to remove the property and charge the cost to
Lessee, which cost shall be immediately payable upon demand by Lessor.

     2.9 Common Areas — Rules and Regulations. Lessor or such other person(s) as Lessor may appoint
shall have the exclusive control and management of the Common Areas and shall have the right, from
time to time, to establish, modify, amend and enforce reasonable rules and regulations (“Rules and
Regulations”) for the management, safety, care, and cleanliness of the grounds, the parking and
unloading of vehicles and the preservation of good order, as well as for the convenience of other
occupants or tenants of the Building and the Project and their invitees. Lessee agrees to abide by
and conform to all such Rules and Regulations, and shall use its best efforts to cause its
employees, suppliers, shippers, customers, contractors and invitees to so abide and conform. Lessor
shall not be responsible to Lessee for the non-compliance with said Rules and Regulations by other
tenants of the Project.

     2.10 Common Areas — Changes. Lessor shall have the right, in Lessor’s sole discretion, from
time to time:

          (a) To make changes to the Common Areas, including, without limitation, changes in the
location, size, shape and number of driveways, entrances, parking spaces, parking areas, loading
and unloading areas, ingress, egress, direction of traffic, landscaped areas, walkways and utility
raceways;

          (b) To close temporarily any of the Common Areas for maintenance purposes so long as
reasonable access to the Premises remains available;

          (c) To designate other land outside the boundaries of the Project to be a part of the Common
Areas;

          (d) To add additional buildings and improvements to the Common Areas;

          (e) To use the Common Areas while engaged in making additional improvements, repairs or
alterations to the Project, or any portion thereof; and

          (f) To do and perform such other acts and make such other changes in, to or with respect to
the Common Areas and Project as Lessor may, in the exercise of sound business judgment, deem to be
appropriate.

3. Term.

     3.1 Term. The Commencement Date, Expiration Date and Original Term of this Lease are as
specified in Paragraph 1.3.

     3.2 Early Possession. If Lessee totally or partially occupies the Premises prior to the
Commencement Date, the obligation to pay Base Rent shall be abated for the period of such early
possession. All other terms of this Lease (including but not limited to the obligations to pay
Lessee’s Share of Common Area Operating Expenses, Real Property Taxes and insurance premiums and to
maintain the Premises) shall be in effect during such period. Any such early possession shall not
affect the Expiration Date.

     3.3 Delay In Possession. Lessor agrees to use its best commercially reasonable efforts to
deliver possession of the Premises to Lessee by the Commencement Date. If, despite said efforts,
Lessor is unable to deliver possession as agreed, Lessor shall not be subject to any liability
therefor, nor shall such failure affect the validity of this Lease or change the Expiration Date.
Lessee shall not, however, be obligated to pay Rent or perform its other obligations until Lessor
delivers possession of the Premises and any period of rent abatement that Lessee would otherwise
have enjoyed shall run from the date of the delivery of possession and continue for a period equal
to what Lessee would otherwise have enjoyed, but minus any days of delay caused by the acts or
omissions of Lessee. If possession is not delivered within 60 days after the Commencement Date,
Lessee may, at its option, by notice in writing within 10 days after the end of such 60 day period,
cancel this Lease, in which event the Parties shall be discharged from all obligations hereunder.
If such written notice is not received by Lessor within said 10 day period, Lessee’s right to
cancel shall terminate. Except as otherwise provided, if possession is not tendered to Lessee by
the Start Date and Lessee does not terminate this Lease, as aforesaid, any period of rent abatement
that Lessee would otherwise have enjoyed shall run from the date of delivery of possession and
continue for a period equal to what Lessee would otherwise have enjoyed under the terms hereof, but
minus any days of delay caused by the acts or omissions of Lessee. If possession of the Premises
is not delivered within 4 months after the Commencement Date, this Lease shall terminate unless
other agreements are reached between Lessor and Lessee, in writing.

     3.4 Lessee Compliance. Lessor shall not be required to tender possession of the Premises to
Lessee until Lessee complies with its obligation to provide evidence of insurance (Paragraph 8.5).
Pending delivery of such evidence, Lessee shall be required to perform all of its obligations under
this Lease from and after the Start Date, including the payment of Rent, notwithstanding Lessor’s
election to withhold possession pending receipt of such evidence of insurance. Further, if Lessee
is required to perform any other conditions prior to or concurrent with the Start Date, the Start
Date shall occur but Lessor may elect to withhold possession until such conditions are satisfied.

4. Rent.

     4.1 Rent Defined. All monetary obligations of Lessee to Lessor under the terms of this Lease
(except for the Security Deposit) are deemed to be rent (“Rent”).

     4.2 Common Area Operating Expenses. Lessee shall pay to Lessor during the term hereof, in
addition to the Base Rent, Lessee’s Share (as specified in Paragraph 1.6) of all Common Area
Operating Expenses, as hereinafter defined, during each calendar year of the term of this Lease, in
accordance with the following provisions:

          (a) “Common Area Operating Expenses” are defined, for purposes of this Lease, as all costs
incurred by Lessor relating

	 	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
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to the ownership and operation of the Project, including, but not limited to, the following:

               (i) The operation, repair and maintenance, in neat, clean, good order and condition , and if
necessary the
replacement, of the following:

                    (aa) The Common Areas and Common Area improvements, including parking areas, loading and
unloading areas, trash areas, roadways, parkways, walkways, driveways, landscaped areas, bumpers,
irrigation systems, Common Area lighting
facilities, fences and gates, elevators, roofs, and roof drainage systems.

                    (bb) Exterior signs and any tenant directories.

                    (cc) Any fire sprinkler systems.

               (ii) The cost of water, gas, electricity and telephone to service the Common Areas and any
utilities not separately
metered.

               (iii) Trash disposal, pest control services, property management, security services, owners’
association dues and
fees, the cost to repaint the exterior of any structures and the cost of any environmental
inspections.

               (iv) Reserves set aside for maintenance, repair and/or replacement of Common Area improvements and
equipment.

               (v) Real Property Taxes (as defined in Paragraph 10).

               (vi) The cost of the premiums for the insurance maintained by Lessor pursuant to Paragraph 8.

               (vii) Any deductible portion of an insured loss concerning the Building or the Common Areas.

               (viii) Auditors’, accountants’ and attorneys’ fees and costs related to the operation, maintenance,
repair and
replacement of the Project.

               (ix) The cost of any capital improvement to the Building or the Project not covered under the
provisions of
Paragraph 2.3 provided; however, that Lessor shall allocate the cost of any such capital
improvement over a 12 year period and Lessee shall not be
required to pay more than Lessee’s Share of 1/144th of the cost of such capital improvement in any
given month.

               (x) Any other services to be provided by Lessor that are stated elsewhere in this Lease to be a
Common Area Operating Expense.

          (b) Any Common Area Operating Expenses and Real Property Taxes that are specifically attributable
to the Unit, the
Building or to any other building in the Project or to the operation, repair and maintenance
thereof, shall be allocated entirely to such Unit, Building, or
other building. However, any Common Area Operating Expenses and Real Property Taxes that are not
specifically attributable to the Building or to any
other building or to the operation, repair and maintenance thereof, shall be equitably allocated by
Lessor to all buildings in the Project.

          (c) The inclusion of the improvements, facilities and services set forth in Subparagraph 4.2(a)
shall not be deemed to impose
an obligation upon Lessor to either have said improvements or facilities or to provide those
services unless the Project already has the same, Lessor
already provides the services, or Lessor has agreed elsewhere in this Lease to provide the same or
some of them.

          (d) Lessee’s Share of Common Area Operating Expenses is payable monthly on the same day as the Base
Rent is due
hereunder. The amount of such payments shall be based on Lessor’s estimate of the annual Common
Area Operating Expenses. Within 60 days after
written request (but not more than once each year) Lessor shall deliver to Lessee a reasonably
detailed statement showing Lessee’s Share of the
actual Common Area Operating Expenses incurred during the preceding year. If Lessee’s payments
during such year exceed Lessee’s Share, Lessor
shall credit the amount of such over-payment against Lessee’s future payments. If Lessee’s payments
during such year were less than Lessee’s
Share, Lessee shall pay to Lessor the amount of the deficiency within 10 days after delivery by
Lessor to Lessee of the statement.

          (e) Common Area Operating Expenses shall not include any expenses paid by any tenant directly to
third parties, or as to
which Lessor is otherwise reimbursed by any third party, other tenant, or insurance proceeds.

     4.3 Payment. Lessee shall cause payment of Rent to be received by Lessor in lawful money of the
United States, without offset or
deduction (except as specifically permitted in this Lease), on or before the day on which it is
due. All monetary amounts shall be rounded to the nearest
whole dollar. In the event that any invoice prepared by Lessor is inaccurate such inaccuracy shall
not constitute a waiver and Lessee shall be obligated
to pay the amount set forth in this Lease. Rent for any period during the term hereof which is for
less than one full calendar month shall be prorated
based upon the actual number of days of said month. Payment of Rent shall be made to Lessor at its
address stated herein or to such other persons or
place as Lessor may from time to time designate in writing. Acceptance of a payment which is less
than the amount then due shall not be a waiver of
Lessor’s rights to the balance of such Rent, regardless of Lessor’s endorsement of any check so
stating. In the event that any check, draft, or other
instrument of payment given by Lessee to Lessor is dishonored for any reason, Lessee agrees to pay
to Lessor the sum of $25 in addition to any Late
Charge and Lessor, at its option, may require all future Rent be paid by cashier’s check. Payments
will be applied first to accrued late charges and
attorney’s fees, second to accrued interest, then to Base Rent and Common Area Operating Expenses,
and any remaining amount to any other
outstanding charges or costs.

5. Security Deposit. Lessee shall deposit with Lessor upon execution hereof the Security Deposit as
security for Lessee’s faithful performance
of its obligations under this Lease. If Lessee fails to pay Rent, or otherwise Defaults under this
Lease, Lessor may use, apply or retain all or any portion
of said Security Deposit for the payment of any amount due Lessor or to reimburse or compensate
Lessor for any liability, expense, loss or damage
which Lessor may suffer or incur by reason thereof. If Lessor uses or applies all or any portion of
the Security Deposit, Lessee shall within 10 days
after written request therefor deposit monies with Lessor sufficient to restore said Security
Deposit to the full amount required by this Lease. If the Base
Rent increases during the term of this Lease, Lessee shall, upon written request from Lessor,
deposit additional monies with Lessor so that the total
amount of the Security Deposit shall at all times bear the same proportion to the increased Base
Rent as the initial Security Deposit bore to the initial
Base Rent. Should the Agreed Use be amended to accommodate a material change in the business of
Lessee or to accommodate a sublessee or
assignee, Lessor shall have the right to increase the Security Deposit to the extent necessary, in
Lessor’s reasonable judgment, to account for any
increased wear and tear that the Premises may suffer as a result thereof. If a change in control of
Lessee occurs during this Lease and following such
change the financial condition of Lessee is, in Lessor’s reasonable judgment, significantly
reduced, Lessee shall deposit such additional monies with
Lessor as shall be sufficient to cause the Security Deposit to be at a commercially reasonable
level based on such change in financial condition.
Lessor shall not be required to keep the Security Deposit separate from its general accounts.
Within 14 days after the expiration or termination of this
Lease, if Lessor elects to apply the Security Deposit only to unpaid Rent, and otherwise within 30
days after the Premises have been vacated pursuant
to Paragraph 7.4(c) below, Lessor shall return that portion of the Security Deposit not used or
applied by Lessor. No part of the Security Deposit shall
be considered to be held in trust, to bear interest or to be prepayment for any monies to be paid
by Lessee under this Lease.

6. Use.

     6.1 Use. Lessee shall use and occupy the Premises only for the Agreed Use, or any other legal use
which is reasonably comparable
thereto, and for no other purpose. Lessee shall not use or permit the use of the Premises in a
manner that is unlawful, creates damage, waste or a
nuisance, or that disturbs occupants of or causes damage to neighboring premises or properties.
Other than guide, signal and seeing eye dogs, Lessee
shall not keep or allow in the Premises any pets, animals, birds, fish, or reptiles. Lessor shall
not unreasonably withhold or delay its consent to any
written request for a modification of the Agreed Use, so long as the same will not impair the
structural integrity of the Building or the mechanical or

	 	 	 	 	 
	                                        

	 	 	 	                                        
	 
	 	 	 	 
	                                        

	 	 
	 	                                        
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electrical systems therein, and/or is not significantly more burdensome to the Project. If Lessor
elects to withhold consent, Lessor shall within 7 days
after such request give written notification of same, which notice shall include an explanation of
Lessor’s objections to the change in the Agreed Use.

     6.2 Hazardous Substances.

          (a) Reportable Uses Require Consent. The term “Hazardous Substance” as used in this Lease shall
mean any product,
substance, or waste whose presence, use, manufacture, disposal, transportation, or release, either
by itself or in combination with other materials
expected to be on the Premises, is either: (i) potentially injurious to the public health, safety
or welfare, the environment or the Premises, (ii) regulated
or monitored by any governmental authority, or (iii) a basis for potential liability of Lessor to
any governmental agency or third party under any applicable
statute or common law theory. Hazardous Substances shall include, but not be limited to,
hydrocarbons, petroleum, gasoline, and/or crude oil or any
products, by-products or fractions thereof. Lessee shall not engage in any activity in or on the
Premises which constitutes a Reportable Use of
Hazardous Substances without the express prior written consent of Lessor and timely compliance (at
Lessee’s expense) with all Applicable
Requirements. “Reportable Use” shall mean (i) the installation or use of any above or below ground
storage tank, (ii) the generation, possession,
storage, use, transportation, or disposal of a Hazardous Substance that requires a permit from, or
with respect to which a report, notice, registration or
business plan is required to be filed with, any governmental authority, and/or (iii) the presence
at the Premises of a Hazardous Substance with respect
to which any Applicable Requirements requires that a notice be given to persons entering or
occupying the Premises or neighboring properties.
Notwithstanding the foregoing, Lessee may use any ordinary and customary materials reasonably
required to be used in the normal course of the
Agreed Use, ordinary office supplies (copier toner, liquid paper, glue, etc.) and common household
cleaning materials, so long as such use is in
compliance with all Applicable Requirements, is not a Reportable Use, and does not expose the
Premises or neighboring property to any meaningful
risk of contamination or damage or expose Lessor to any liability therefor. In addition, Lessor may
condition its consent to any Reportable Use upon
receiving such additional assurances as Lessor reasonably deems necessary to protect itself, the
public, the Premises and/or the environment against
damage, contamination, injury and/or liability, including, but not limited to, the installation
(and removal on or before Lease expiration or termination) of
protective modifications (such as concrete encasements) and/or increasing the Security Deposit.

          (b) Duty to Inform Lessor. If Lessee knows, or has reasonable cause to believe, that a Hazardous
Substance has come to
be located in, on, under or about the Premises, other than as previously consented to by Lessor,
Lessee shall immediately give written notice of such
fact to Lessor, and provide Lessor with a copy of any report, notice, claim or other documentation
which it has concerning the presence of such
Hazardous Substance.

          (c) Lessee Remediation. Lessee shall not cause or permit any Hazardous Substance to be spilled or
released in, on,
under, or about the Premises (including through the plumbing or sanitary sewer system) and shall
promptly, at Lessee’s expense, comply with all
Applicable Requirements and take all investigatory and/or remedial action reasonably recommended,
whether or not formally ordered or required, for
the cleanup of any contamination of, and for the maintenance, security and/or monitoring of the
Premises or neighboring properties, that was caused or
materially contributed to by Lessee, or pertaining to or involving any Hazardous Substance brought
onto the Premises during the term of this Lease, by
or for Lessee, or any third party.

          (d) Lessee Indemnification. Lessee shall indemnify, defend and hold Lessor, its agents, employees,
lenders and ground
lessor, if any, harmless from and against any and all loss of rents and/or damages, liabilities,
judgments, claims, expenses, penalties, and attorneys’
and consultants’ fees arising out of or involving any Hazardous Substance brought onto the Premises
by or for Lessee, or any third party (provided,
however, that Lessee shall have no liability under this Lease with respect to underground migration
of any Hazardous Substance under the Premises
from areas outside of the Project not caused or contributed to by Lessee). Lessee’s obligations
shall include, but not be limited to, the effects of any
contamination or injury to person, property or the environment created or suffered by Lessee, and
the cost of investigation, removal, remediation,
restoration and/or abatement, and shall survive the expiration or termination of this Lease. No
termination, cancellation or release agreement entered
into by Lessor and Lessee shall release Lessee from its obligations under this Lease with respect
to Hazardous Substances, unless specifically so
agreed by Lessor in writing at the time of such agreement.

          (e) Lessor Indemnification. Lessor and its successors and assigns shall indemnify, defend,
reimburse and hold Lessee, its
employees and lenders, harmless from and against any and all environmental damages, including the
cost of remediation, which are suffered as a
direct result of Hazardous Substances on the Premises prior to Lessee taking possession or which
are caused by the gross negligence or willful
misconduct of Lessor, its agents or employees or any third party. Lessor’s obligations, as and when
required by the Applicable Requirements, shall
include, but not be limited to, the cost of investigation, removal, remediation, restoration and/or
abatement, and shall survive the expiration or
termination of this Lease.

          (f) Investigations and Remediations. Lessor shall retain the responsibility and pay for any
investigations or remediation
measures required by governmental entities having jurisdiction with respect to the existence of
Hazardous Substances on the Premises prior to the
Lessee taking possession, unless such remediation measure is required as a result of Lessee’s use
(including “Alterations”, as defined in paragraph
7.3(a) below) of the Premises, in which event Lessee shall be responsible for such payment. Lessee
shall cooperate fully in any such activities at the
request of Lessor, including allowing Lessor and Lessor’s agents to have reasonable access to the
Premises at reasonable times in order to carry out
Lessor’s investigative and remedial responsibilities.

          (g) Lessor Termination Option. If a Hazardous Substance Condition (see Paragraph 9.1(e)) occurs
during the term of this Lease,
unless Lessee is legally responsible therefor (in which case Lessee shall make the investigation
and remediation thereof required by the Applicable
Requirements and this Lease shall continue in full force and effect, but subject to Lessor’s rights
under Paragraph 6.2(d) and Paragraph 13), Lessor
may, at Lessor’s option, either (i) investigate and remediate such Hazardous Substance Condition,
if required, as soon as reasonably possible at
Lessor’s expense, in which event this Lease shall continue in full force and effect, or (ii) if the
estimated cost to remediate such condition exceeds 12
times the then monthly Base Rent or $100,000, whichever is greater, give written notice to Lessee,
within 30 days after receipt by Lessor of knowledge
of the occurrence of such Hazardous Substance Condition, of Lessor’s desire to terminate this Lease
as of the date 60 days following the date of such
notice. In the event Lessor elects to give a termination notice, Lessee may, within 10 days
thereafter, give written notice to Lessor of Lessee’s
commitment to pay the amount by which the cost of the remediation of such Hazardous Substance
Condition exceeds an amount equal to 12 times the
then monthly Base Rent or $100,000, whichever is greater. Lessee shall provide Lessor with said
funds or satisfactory assurance thereof within 30
days following such commitment. In such event, this Lease shall continue in full force and effect,
and Lessor shall proceed to make such remediation
as soon as reasonably possible after the required funds are available. If Lessee does not give such
notice and provide the required funds or assurance
thereof within the time provided, this Lease shall terminate as of the date specified in Lessor’s
notice of termination.

     6.3 Lessee’s Compliance with Applicable Requirements. Except as otherwise provided in this Lease,
Lessee shall, at Lessee’s
sole expense, fully, diligently and in a timely manner, materially comply with all Applicable
Requirements, the requirements of any applicable fire
insurance underwriter or rating bureau, and the recommendations of Lessor’s engineers and/or
consultants which relate in any manner to such
Requirements, without regard to whether said Requirements are now in effect or become effective
after the Start Date. Lessee shall, within 10 30 days
after receipt of Lessor’s written request, provide Lessor with copies of all permits and other
documents, and other information evidencing Lessee’s
compliance with any Applicable Requirements specified by Lessor, and shall immediately upon
receipt, notify Lessor in writing (with copies of any
documents involved) of any threatened or actual claim, notice, citation, warning, complaint or
report pertaining to or involving the failure of Lessee or the

	 	 	 	 	 
	                                        

	 	 
	 	                                        
	 
	 	 	 	 
	                                        

	 	 
	 	                                        
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Premises to comply with any Applicable Requirements. Likewise, Lessee shall immediately give
written notice to Lessor of: (i) any water damage to the
Premises and any suspected seepage, pooling, dampness or other condition conducive to the
production of mold; or (ii) any mustiness or other odors
that might indicate the presence of mold in the Premises.

     6.4 Inspection; Compliance. Lessor and Lessor’s “Lender” (as defined in Paragraph 30) and
consultants shall have the right to enter
into Premises at any time, in the case of an emergency, and otherwise at reasonable times after
reasonable notice, for the purpose of inspecting the
condition of the Premises and for verifying compliance by Lessee with this Lease. The cost of any
such inspections shall be paid by Lessor, unless a
violation of Applicable Requirements, or a Hazardous Substance condition (see Paragraph 9.1) is
found to exist or be imminent, or the inspection is
requested or ordered by a governmental authority. In such case, Lessee shall upon request reimburse
Lessor for the cost of such inspection, so long
as such inspection is reasonably related to the violation or contamination. In addition, Lessee
shall provide copies of all relevant material safety data
sheets (MSDS) to Lessor within 10 days of the receipt of written request therefor.

7. Maintenance; Repairs, Utility Installations; Trade Fixtures and Alterations.

     7.1 Lessee’s Obligations.

          (a) In General. Subject to the provisions of Paragraph 2.2 (Condition), 2.3 (Compliance), 6.3
(Lessee’s Compliance with
Applicable Requirements), 7.2 (Lessor’s Obligations), 9 (Damage or Destruction), and 14
(Condemnation), Lessee shall, at Lessee’s sole expense,
keep the Premises, Utility Installations (intended for Lessee’s exclusive use, no matter where
located), and Alterations in good order, condition and
repair (whether or not the portion of the Premises requiring repairs, or the means of repairing the
same, are reasonably or readily accessible to Lessee,
and whether or not the need for such repairs occurs as a result of Lessee’s use, any prior use, the
elements or the age of such portion of the Premises),
including, but not limited to, all equipment or facilities, such as plumbing, HVAC equipment,
electrical, lighting facilities, boilers, pressure vessels,
fixtures, interior walls, interior surfaces of exterior walls, ceilings, floors, windows, doors,
plate glass, and skylights but excluding any items which are
the responsibility of Lessor pursuant to Paragraph 7.2. Lessee, in keeping the Premises in good
order, condition and repair, shall exercise and perform
good maintenance practices, specifically including the procurement and maintenance of the service
contracts required by Paragraph 7.1(b) below.
Lessee’s obligations shall include restorations, replacements or renewals when necessary to keep
the Premises and all improvements thereon or a part
thereof in good order, condition and state of repair.

          (b) Service Contracts. Lessee shall, at Lessee’s sole expense, procure and maintain contracts, with
copies to Lessor, in
customary form and substance for, and with contractors specializing and experienced in the
maintenance of the following equipment and
improvements, if any, if and when installed on the Premises: (i) HVAC equipment, (ii) boiler and
pressure vessels, (iii) clarifiers, and (iv) any other
equipment, if reasonably required by Lessor. However, Lessor reserves the right, upon notice to
Lessee, to procure and maintain any or all of such
service contracts, and Lessee shall reimburse Lessor, upon demand, for the cost thereof.

          (c) Failure to Perform. If Lessee fails to perform Lessee’s obligations under this Paragraph 7.1,
Lessor may enter upon the
Premises after 10 days’ prior written notice to Lessee (except in the case of an emergency, in
which case no notice shall be required), perform such
obligations on Lessee’s behalf, and put the Premises in good order, condition and repair, and
Lessee shall promptly pay to Lessor a sum equal to 115
105% of the cost thereof.

          (d) Replacement. Subject to Lessee’s indemnification of Lessor as set forth in Paragraph 8.7 below,
and without relieving
Lessee of liability resulting from Lessee’s failure to exercise and perform good maintenance
practices, if an item described in Paragraph 7.1(b) cannot
be repaired other than at a cost which is in excess of 50% of the cost of replacing such item, then
such item shall be replaced by Lessor, and the cost
thereof shall be prorated between the Parties and Lessee shall only be obligated to pay, each month
during the remainder of the term of this Lease, on
the date on which Base Rent is due, an amount equal to the product of multiplying the cost of such
replacement by a fraction, the numerator of which is
one, and the denominator of which is 144 (ie. 1/144th of the cost per month). Lessee shall pay
Interest on the unamortized balance but may prepay its
obligation at any time.

     7.2 Lessor’s Obligations. Subject to the provisions of Paragraphs 2.2 (Condition), 2.3
(Compliance), 4.2 (Common Area Operating
Expenses), 6 (Use), 7.1 (Lessee’s Obligations), 9 (Damage or Destruction) and 14 (Condemnation),
Lessor, subject to reimbursement pursuant to
Paragraph 4.2, shall keep in good order, condition and repair the foundations, exterior walls,
structural condition of interior bearing walls, exterior roof,
fire sprinkler system, Common Area fire alarm and/or smoke detection systems, fire hydrants,
parking lots, walkways, parkways, driveways,
landscaping, fences, signs and utility systems serving the Common Areas and all parts thereof, as
well as providing the services for which there is a
Common Area Operating Expense pursuant to Paragraph 4.2. Lessor shall not be obligated to paint the
exterior or interior surfaces of exterior walls nor
shall Lessor be obligated to maintain, repair or replace windows, doors or plate glass of the
Premises. Lessee expressly waives the benefit of any
statute now or hereafter in effect to the extent it is inconsistent with the terms of this Lease.

     7.3 Utility Installations; Trade Fixtures; Alterations.

          (a) Definitions. The term “Utility Installations” refers to all floor and window coverings, air
and/or vacuum lines, power
panels, electrical distribution, security and fire protection systems, communication cabling,
lighting fixtures, HVAC equipment, plumbing, and fencing in
or on the Premises. The term “Trade Fixtures” shall mean Lessee’s machinery and equipment that can
be removed without doing material damage to
the Premises. The term “Alterations” shall mean any modification of the improvements, other than
Utility Installations or Trade Fixtures, whether by
addition or deletion. “Lessee Owned Alterations and/or Utility Installations” are defined as
Alterations and/or Utility Installations made by Lessee
that are not yet owned by Lessor pursuant to Paragraph 7.4(a).

          (b) Consent. Lessee shall not make any Alterations or Utility Installations to the Premises without
Lessor’s prior written
consent. Lessee may, however, make non-structural Utility Installations to the interior of the
Premises (excluding the roof) without such consent but
upon notice to Lessor, as long as they are not visible from the outside, do not involve puncturing,
relocating or removing the roof or any existing walls,
will not affect the electrical, plumbing, HVAC, and/or life safety systems, and the cumulative cost
thereof during this Lease as extended does not
exceed a sum equal to 3 month’s Base Rent in the
aggregate or a sum equal to one month’s Base Rent
in any one year. Notwithstanding the
foregoing, but subject ot the Addendum attached hereto, Lessee shall not make or permit any roof
penetrations and/or install anything on the
roof without the prior written approval of Lessor. Lessor may, as a precondition to granting such
approval, require Lessee to utilize a contractor chosen
and/or approved by Lessor. Any Alterations or Utility Installations that Lessee shall desire to
make and which require the consent of the Lessor shall be
presented to Lessor in written form with detailed plans. Consent shall be deemed conditioned upon
Lessee’s: (i) acquiring all applicable governmental
permits, (ii) furnishing Lessor with copies of both the permits and the plans and specifications
prior to commencement of the work, and (iii) compliance
with all conditions of said permits and other Applicable Requirements in a prompt and expeditious
manner. Any Alterations or Utility Installations shall
be performed in a workmanlike manner with good and sufficient materials. Lessee shall promptly upon
completion furnish Lessor with as-built plans
and specifications. For work which costs an amount in excess of one three month’s Base Rent, Lessor
may condition its consent upon Lessee
providing a lien and completion bond in an amount equal to 150% of the estimated cost of such
Alteration or Utility Installation and/or upon Lessee’s
posting an additional Security Deposit with Lessor. Notwithstanding anything contained in this
Lease agreement to the contrary, Lessee
intends to add a urinal to the men’s restroom at Lessee’s sole cost and expense and Lessor shall
not unreasonably withhold its
consent to hereby approves such improvement.

          (c) Liens; Bonds. Lessee shall pay, when due, all claims for labor or materials furnished or
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to or for Lessee at or for use on the Premises, which claims are or may be secured by any
mechanic’s or materialman’s lien against the Premises or
any interest therein. Lessee shall give Lessor not less than 10 days notice prior to the
commencement of any work in, on or about the Premises, and
Lessor shall have the right to post notices of non-responsibility. If Lessee shall contest the
validity of any such lien, claim or demand, then Lessee
shall, at its sole expense defend and protect itself, Lessor and the Premises against the same and
shall pay and satisfy any such adverse judgment that
may be rendered thereon before the enforcement thereof. If Lessor shall require, Lessee shall
furnish a surety bond in an amount equal to 150% of the
amount of such contested lien, claim or demand, indemnifying Lessor against liability for the same.
If Lessor elects to participate in any such action,
Lessee shall pay Lessor’s attorneys’ fees and costs.

     7.4 Ownership; Removal; Surrender; and Restoration.

          (a) Ownership. Subject to Lessor’s right to require removal or elect ownership as hereinafter
provided, all Alterations and
Utility Installations made by Lessee shall be the property of Lessee, but considered a part of the
Premises. Lessor may, at any time, elect in writing to
be the owner of all or any specified part of the Lessee Owned Alterations and Utility
Installations. Unless otherwise instructed per paragraph 7.4(b)
hereof, all Lessee Owned Alterations and Utility Installations shall, at the expiration or
termination of this Lease, become the property of Lessor and be
surrendered by Lessee with the Premises.

          (b) Removal. By delivery to Lessee of written notice from Lessor not earlier than 90 and not later
than 30 days prior to the
end of the term of this Lease at the time Lessee requests Lessors consent to a Lessee owned
alteration or utility installation, Lessor
may require that any or all Lessee shall inform Lessee whether such Owned Alterations or Utility
Installations be removed by the expiration or
termination of this Lease. Lessor may require the removal at any time of all or any part of any
Lessee Owned Alterations or Utility Installations made
without the required consent.

          (c) Surrender; Restoration. Lessee shall surrender the Premises by the Expiration Date or any
earlier termination date,
with all of the improvements, parts and surfaces thereof broom clean and free of debris, and in
good operating order, condition and state of repair,
ordinary wear and tear excepted. “Ordinary wear and tear” shall not include any damage or
deterioration that would have been prevented by good
maintenance practice. Notwithstanding the foregoing, if this Lease is for 12 months or less, then
Lessee shall surrender the Premises in the same
condition as delivered to Lessee on the Start Date with NO allowance for ordinary wear and tear.
Lessee shall repair any damage occasioned by the
installation, maintenance or removal of Trade Fixtures, Lessee owned Alterations and/or Utility
Installations, furnishings, and equipment as well as the
removal of any storage tank installed by or for Lessee. Lessee shall also completely remove from
the Premises any and all Hazardous Substances
brought onto the Premises by or for Lessee, or any third party (except Hazardous Substances which
were deposited via underground migration from
areas outside of the Project) even if such removal would require Lessee to perform or pay for work
that exceeds statutory requirements to the extent
required by applicable laws. Trade Fixtures shall remain the property of Lessee and shall be
removed by Lessee. Any personal property of Lessee
not removed on or before the Expiration Date or any earlier termination date shall be deemed to
have been abandoned by Lessee and may be disposed
of or retained by Lessor as Lessor may desire. The failure by Lessee to timely vacate the Premises
pursuant to this Paragraph 7.4(c) without the
express written consent of Lessor shall constitute a holdover under the provisions of Paragraph 26
below.

8. Insurance; Indemnity.

     8.1 Payment of Premiums. The cost of the premiums for the insurance policies required to be carried
by Lessor, pursuant to
Paragraphs 8.2(b), 8.3(a) and 8.3(b), shall be a Common Area Operating Expense. Premiums for policy
periods commencing prior to, or extending
beyond, the term of this Lease shall be prorated to coincide with the corresponding Start Date or
Expiration Date.

     8.2 Liability Insurance.

          (a) Carried by Lessee. Lessee shall obtain and keep in force a Commercial General Liability policy
of insurance protecting
Lessee and Lessor as an additional insured against claims for bodily injury, personal injury and
property damage based upon or arising out of the
ownership, use, occupancy or maintenance of the Premises and all areas appurtenant thereto. Such
insurance shall be on an occurrence basis
providing single limit coverage in an amount not less than $1,000,000 per occurrence with an annual
aggregate of not less than $2,000,000. Lessee
shall add Lessor as an additional insured by means of an endorsement at least as broad as the
Insurance Service Organization’s “Additional
Insured-Managers or Lessors of Premises” Endorsement and coverage shall also be extended to include
damage caused by heat, smoke or fumes
from a hostile fire. The policy shall not contain any intra-insured exclusions as between insured
persons or organizations, but shall include coverage for
liability assumed under this Lease as an “insured contract” for the performance of Lessee’s
indemnity obligations under this Lease. The limits of said
insurance shall not, however, limit the liability of Lessee nor relieve Lessee of any obligation
hereunder. Lessee shall provide an endorsement on its
liability policy(ies) which provides that its insurance shall be primary to and not contributory
with any similar insurance carried by Lessor, whose
insurance shall be considered excess insurance only.

          (b) Carried by Lessor. Lessor shall maintain liability insurance as described in Paragraph 8.2(a),
in addition to, and not in
lieu of, the insurance required to be maintained by Lessee. Lessee shall not be named as an
additional insured therein.

     8.3 Property Insurance — Building, Improvements and Rental Value.

          (a) Building and Improvements. Lessor shall obtain and keep in force a policy or policies of
insurance in the name of
Lessor, with loss payable to Lessor, any ground-lessor, and to any Lender insuring loss or damage
to the Premises. The amount of such insurance
shall be equal to the full insurable replacement cost of the Premises, as the same shall exist from
time to time, or the amount required by any Lender,
but in no event more than the commercially reasonable and available insurable value thereof. Lessee
Owned Alterations and Utility Installations, Trade
Fixtures, and Lessee’s personal property shall be insured by Lessee under Paragraph 8.4. If the
coverage is available and commercially appropriate,
such policy or policies shall insure against all risks of direct physical loss or damage (except
the perils of flood and/or earthquake unless required by a
Lender), including coverage for debris removal and the enforcement of any Applicable Requirements
requiring the upgrading, demolition, reconstruction
or replacement of any portion of the Premises as the result of a covered loss. Said policy or
policies shall also contain an agreed valuation provision in
lieu of any coinsurance clause, waiver of subrogation, and inflation guard protection causing an
increase in the annual property insurance coverage
amount by a factor of not less than the adjusted U.S. Department of Labor Consumer Price Index for
All Urban Consumers for the city nearest to where
the Premises are located. If such insurance coverage has a deductible clause, the deductible amount
shall not exceed $1,000 per occurrence.

          (b) Rental Value. Lessor shall also obtain and keep in force a policy or policies in the name of
Lessor with loss payable to
Lessor and any Lender, insuring the loss of the full Rent for one year with an extended period of
indemnity for an additional 180 days (“Rental Value
insurance”). Said insurance shall contain an agreed valuation provision in lieu of any coinsurance
clause, and the amount of coverage shall be
adjusted annually to reflect the projected Rent otherwise payable by Lessee, for the next 12 month
period.

          (c) Adjacent Premises. Lessee shall pay for any increase in the premiums for the property insurance
of the Building and for
the Common Areas or other buildings in the Project if said increase is caused by Lessee’s acts,
omissions, use or occupancy of the Premises.

          (d) Lessee’s Improvements. Since Lessor is the Insuring Party, Lessor shall not be required to
insure Lessee Owned
Alterations and Utility Installations unless the item in question has become the property of Lessor
under the terms of this Lease.

     8.4 Lessee’s Property; Business Interruption Insurance.

          (a) Property Damage. Lessee shall obtain and maintain insurance coverage on all of Lessee’s
personal property, Trade
Fixtures, and Lessee Owned Alterations and Utility Installations. Such insurance shall be full
replacement cost coverage with a deductible of not to

	 	 	 	 	 
	                                        

	 	 
	 	                                        
	 
	 	 	 	 
	                                        

	 	 
	 	                                        
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exceed
$1,000 $50,000 per occurrence. The proceeds from any such insurance shall be used by Lessee
for the replacement of personal property,
Trade Fixtures and Lessee Owned Alterations and Utility Installations. Lessee shall provide Lessor
with written evidence that such insurance is in force.

          (b) Business Interruption. Lessee shall obtain and maintain loss of income and extra expense
insurance in amounts as will
reimburse Lessee for direct or indirect loss of earnings attributable to all perils commonly
insured against by prudent lessees in the business for a
period of twelve (12) months of Lessee or attributable to prevention of access to the Premises as a
result of such perils.

          (c) No Representation of Adequate Coverage. Lessor makes no representation that the limits or forms
of coverage of
insurance specified herein are adequate to cover Lessee’s property, business operations or
obligations under this Lease.

     8.5 Insurance Policies. Insurance required herein shall be by companies duly licensed or admitted
to transact business in the state
where the Premises are located, and maintaining during the policy term a “General Policyholders
Rating” of at least A-, VI, as set forth in the most
current issue of “Best’s Insurance Guide”, or such other rating as may be required by a Lender.
Lessee shall not do or permit to be done anything
which invalidates the required insurance policies. Lessee shall, prior to the Start Date, deliver
to Lessor certified copies of policies of such insurance or
certificates evidencing the existence and amounts of the required insurance. No such policy shall
be cancelable or subject to modification except after
30 days prior written notice to Lessor. Lessee shall, at
least 10 days prior to the expiration of
such policies, furnish Lessor with evidence of renewals or
“insurance binders” evidencing renewal thereof, or Lessor may order such insurance and charge the
cost thereof to Lessee, which amount shall be
payable by Lessee to Lessor upon demand. Such policies shall be for a term of at least one year, or
the length of the remaining term of this Lease,
whichever is less. If either Party shall fail to procure and maintain the insurance required to be
carried by it, the other Party may, but shall not be
required to, procure and maintain the same.

     8.6 Waiver of Subrogation. Without affecting any other rights or remedies, Lessee and Lessor each
hereby release and relieve the
other, and waive their entire right to recover damages against the other, for loss of or damage to
its property arising out of or incident to the perils
required to be insured against herein. The effect of such releases and waivers is not limited by
the amount of insurance carried or required, or by any
deductibles applicable hereto. The Parties agree to have their respective property damage insurance
carriers waive any right to subrogation that such
companies may have against Lessor or Lessee, as the case may be, so long as the insurance is not
invalidated thereby.

     8.7 Indemnity. Except for Lessor’s gross negligence or willful misconduct, Lessee shall indemnify,
protect, defend and hold harmless
the Premises, Lessor and its agents, Lessor’s master or ground lessor, partners and Lenders, from
and against any and all claims, loss of rents and/or
damages, liens, judgments, penalties, attorneys’ and consultants’ fees, expenses and/or liabilities
arising out of, involving, or in connection with, the use
and/or occupancy of the Premises by Lessee. If any action or proceeding is brought against Lessor
by reason of any of the foregoing matters, Lessee
shall upon notice defend the same at Lessee’s expense by counsel reasonably satisfactory to Lessor
and Lessor shall cooperate with Lessee in such
defense. Lessor need not have first paid any such claim in order to be defended or indemnified.
Notwithstanding anything contained in this
Lease agreement to the contrary, Lessor and Lessee shall provide mutual indemmnity to the other
party pursuant to this section 8.7.

     8.8 Exemption of Lessor and its Agents from Liability. Notwithstanding the negligence or breach of
this Lease by Lessor or its
agents, neither Lessor nor its agents shall be liable under any circumstances for: (i) injury or
damage to the person or goods, wares, merchandise or
other property of Lessee, Lessee’s employees, contractors, invitees, customers, or any other person
in or about the Premises, whether such damage or
injury is caused by or results from fire, steam, electricity, gas, water or rain, indoor air
quality, the presence of mold or from the breakage, leakage,
obstruction or other defects of pipes, fire sprinklers, wires, appliances, plumbing, HVAC or
lighting fixtures, or from any other cause, whether the said
injury or damage results from conditions arising upon the Premises or upon other portions of the
Building, or from other sources or places, (ii) any
damages arising from any act or neglect of any other tenant of Lessor or from the failure of Lessor
or its agents to enforce the provisions of any other
lease in the Project, or (iii) injury to Lessee’s business or for any loss of income or profit
therefrom. Instead, it is intended that Lessee’s sole recourse in
the event of such damages or injury be to file a claim on the insurance policy(ies) that Lessee is
required to maintain pursuant to the provisions of
paragraph 8. Notwithstanding anything contained in this Lease agreement to the contrary, Lessor
shall be liable for Lessor’s
negligence and willful misconduct and any pre-existing conditions such as mold or other hazadous
substances.

     8.9 Failure to Provide Insurance. Lessee acknowledges that any failure on its part to obtain or
maintain the insurance required
herein will expose Lessor to risks and potentially cause Lessor to incur costs not contemplated by
this Lease, the extent of which will be extremely
difficult to ascertain. Accordingly, for any month or portion thereof that Lessee does not maintain
the required insurance and/or does not provide Lessor
with the required binders or certificates evidencing the existence of the required insurance, the
Base Rent shall be automatically increased, without any
requirement for notice to Lessee, by an amount equal to 10% of the then existing Base Rent or $100,
whichever is greater. The parties agree that such
increase in Base Rent represents fair and reasonable compensation for the additional risk/costs
that Lessor will incur by reason of Lessee’s failure to
maintain the required insurance. Such increase in Base Rent shall in no event constitute a waiver
of Lessee’s Default or Breach with respect to the
failure to maintain such insurance, prevent the exercise of any of the other rights and remedies
granted hereunder, nor relieve Lessee of its obligation to
maintain the insurance specified in this Lease. Lessor’s remedy shall be to procure such insurance
at Lessee’s cost.

9. Damage or Destruction.

     9.1 Definitions.

          (a) “Premises Partial Damage” shall mean damage or destruction to the improvements on the Premises,
other than
Lessee Owned Alterations and Utility Installations, which can reasonably be repaired in 3 months or
less from the date of the damage or destruction,
and the cost thereof does not exceed a sum equal to 6 month’s Base Rent. Lessor shall notify Lessee
in writing within 30 days from the date of the
damage or destruction as to whether or not the damage is Partial or Total. Notwithstanding the
foregoing, Premises Partial Damage shall not include
damage to windows, doors, and/or other similar items which Lessee has the responsibility to repair
or replace pursuant to the provisions of Paragraph
7.1.

          (b) “Premises Total Destruction” shall mean damage or destruction to the improvements on the
Premises, other than
Lessee Owned Alterations and Utility Installations and Trade Fixtures, which cannot reasonably be
repaired in 3 months or less from the date of the
damage or destruction and/or the cost thereof exceeds a sum equal to 6 month’s Base Rent. Lessor
shall notify Lessee in writing within 30 days from
the date of the damage or destruction as to whether or not the damage is Partial or Total.

          (c) “Insured Loss” shall mean damage or destruction to improvements on the Premises, other than
Lessee Owned
Alterations and Utility Installations and Trade Fixtures, which was caused by an event required to
be covered by the insurance described in Paragraph
8.3(a), irrespective of any deductible amounts or coverage limits involved.

          (d) “Replacement Cost” shall mean the cost to repair or rebuild the improvements owned by Lessor at
the time of the
occurrence to their condition existing immediately prior thereto, including demolition, debris
removal and upgrading required by the operation of
Applicable Requirements, and without deduction for depreciation.

          (e) “Hazardous Substance Condition” shall mean the occurrence or discovery of a condition involving
the presence of, or
a contamination by, a Hazardous Substance as defined in Paragraph 6.2(a), in, on, or under the
Premises which requires repair, remediation, or
restoration.

     9.2 Partial Damage — Insured Loss. If a Premises Partial Damage that is an Insured Loss occurs,
then Lessor shall, at Lessor’s

	 	 	 	 	 
	                                        

	 	 
	 	                                        
	 
	 	 	 	 
	                                        

	 	 
	 	                                        
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expense, repair such damage (but not Lessee’s Trade Fixtures or Lessee Owned Alterations and
Utility Installations) as soon as reasonably possible
and this Lease shall continue in full force and effect; provided, however, that Lessee shall, at
Lessor’s election, make the repair of any damage or
destruction the total cost to repair of which is $10,000 or less, and, in such event, Lessor shall
make any applicable insurance proceeds available to
Lessee on a reasonable basis for that purpose. Notwithstanding the foregoing, if the required
insurance was not in force or the insurance proceeds are
not sufficient to effect such repair, the Insuring Party shall promptly contribute the shortage in
proceeds as and when required to complete said repairs.
In the event, however, such shortage was due to the fact that, by reason of the unique nature of
the improvements, full replacement cost insurance
coverage was not commercially reasonable and available, Lessor shall have no obligation to pay for
the shortage in insurance proceeds or to fully
restore the unique aspects of the Premises unless Lessee provides Lessor with the funds to cover
same, or adequate assurance thereof, within 10 days
following receipt of written notice of such shortage and request therefor. If Lessor receives said
funds or adequate assurance thereof within said 10 day
period, the party responsible for making the repairs shall complete them as soon as reasonably
possible and this Lease shall remain in full force and
effect. If such funds or assurance are not received, Lessor may nevertheless elect by written
notice to Lessee within 10 days thereafter to: (i) make
such restoration and repair as is commercially reasonable with Lessor paying any shortage in
proceeds, in which case this Lease shall remain in full
force and effect, or (ii) have this Lease terminate 30 days thereafter. Lessee shall not be
entitled to reimbursement of any funds contributed by Lessee
to repair any such damage or destruction. Premises Partial Damage due to flood or earthquake shall
be subject to Paragraph 9.3, notwithstanding that
there may be some insurance coverage, but the net proceeds of any such insurance shall be made
available for the repairs if made by either Party.

     9.3 Partial Damage — Uninsured Loss. If a Premises Partial Damage that is not an Insured Loss
occurs, unless caused by a
negligent or willful act of Lessee (in which event Lessee shall make the repairs at Lessee’s
expense), Lessor may either: (i) repair such damage as
soon as reasonably possible at Lessor’s expense, in which event this Lease shall continue in full
force and effect, or (ii) terminate this Lease by giving
written notice to Lessee within 30 days after receipt by Lessor of knowledge of the occurrence of
such damage. Such termination shall be effective 60
days following the date of such notice. In the event Lessor elects to terminate this Lease, Lessee
shall have the right within 10 days after receipt of the
termination notice to give written notice to Lessor of Lessee’s commitment to pay for the repair of
such damage without reimbursement from Lessor.
Lessee shall provide Lessor with said funds or satisfactory assurance thereof within 30 days after
making such commitment. In such event this Lease
shall continue in full force and effect, and Lessor shall proceed to make such repairs as soon as
reasonably possible after the required funds are
available. If Lessee does not make the required commitment, this Lease shall terminate as of the
date specified in the termination notice.

     9.4 Total Destruction. Notwithstanding any other provision hereof, if a Premises Total Destruction
occurs, this Lease shall terminate
60 days following such Destruction. If the damage or destruction was caused by the gross negligence
or willful misconduct of Lessee, Lessor shall
have the right to recover Lessor’s damages from Lessee, except as provided in Paragraph 8.6.

     9.5 Damage Near End of Term. If at any time during the last 6 months of this Lease there is damage
for which the cost to repair
exceeds one month’s Base Rent, whether or not an Insured Loss,
Lessor or Lessee may terminate this
Lease effective 60 days following the date of
occurrence of such damage by giving a written termination notice to
Lessee other party within 30
days after the date of occurrence of such damage.
Notwithstanding the foregoing, if Lessee at that time has an exercisable option to extend this
Lease or to purchase the Premises, then Lessee may
preserve this Lease by, (a) exercising such option and (b) providing Lessor with any shortage in
insurance proceeds (or adequate assurance thereof)
needed to make the repairs on or before the earlier of (i) the date which is 10 days after Lessee’s
receipt of Lessor’s written notice purporting to
terminate this Lease, or (ii) the day prior to the date upon which such option expires. If Lessee
duly exercises such option during such period and
provides Lessor with funds (or adequate assurance thereof) to cover any shortage in insurance
proceeds, Lessor shall, at Lessor’s commercially
reasonable expense, repair such damage as soon as reasonably possible and this Lease shall continue
in full force and effect. If Lessee fails to
exercise such option and provide such funds or assurance during such period, then this Lease shall
terminate on the date specified in the termination
notice and Lessee’s option shall be extinguished.

     9.6 Abatement of Rent; Lessee’s Remedies.

          (a) Abatement. In the event of Premises Partial Damage or Premises Total Destruction or a Hazardous
Substance
Condition for which Lessee is not responsible under this Lease, the Rent payable by Lessee for the
period required for the repair, remediation or
restoration of such damage shall be abated in proportion to the degree to which Lessee’s use of the
Premises is impaired, but not to exceed the
proceeds received from the Rental Value insurance. All other obligations of Lessee hereunder shall
be performed by Lessee, and Lessor shall have no
liability for any such damage, destruction, remediation, repair or restoration except as provided
herein.

          (b) Remedies. If Lessor shall be obligated to repair or restore the Premises and does not commence,
in a substantial and
meaningful way, such repair or restoration within 90 days after such obligation shall accrue,
Lessee may, at any time prior to the commencement of
such repair or restoration, give written notice to Lessor and to any Lenders of which Lessee has
actual notice, of Lessee’s election to terminate this
Lease on a date not less than 60 days following the giving of such notice. If Lessee gives such
notice and such repair or restoration is not commenced
within 30 days thereafter, this Lease shall terminate as of the date specified in said notice. If
the repair or restoration is commenced within such 30
days, this Lease shall continue in full force and effect. “Commence” shall mean either the
unconditional authorization of the preparation of the required
plans, or the beginning of the actual work on the Premises, whichever first occurs.

     9.7 Termination; Advance Payments. Upon termination of this Lease pursuant to Paragraph 6.2(g) or
Paragraph 9, an equitable
adjustment shall be made concerning advance Base Rent and any other advance payments made by Lessee
to Lessor. Lessor shall, in addition, return
to Lessee so much of Lessee’s Security Deposit as has not been, or is not then required to be, used
by Lessor.

     9.8 Waive Statutes. Lessor and Lessee agree that the terms of this Lease shall govern the effect of
any damage to or destruction of
the Premises with respect to the termination of this Lease and hereby waive the provisions of any
present or future statute to the extent inconsistent
herewith.

10. Real Property Taxes.

     10.1 Definition. As used herein, the term “Real Property Taxes” shall include any form of
assessment; real estate, general, special,
ordinary or extraordinary, or rental levy or tax (other than inheritance, personal income or estate
taxes); improvement bond; and/or license fee imposed
upon or levied against any legal or equitable interest of Lessor in the Project, Lessor’s right to
other income therefrom, and/or Lessor’s business of
leasing, by any authority having the direct or indirect power to tax and where the funds are
generated with reference to the Project address and where
the proceeds so generated are to be applied by the city, county or other local taxing authority of
a jurisdiction within which the Project is located. The
term “Real Property Taxes” shall also include any tax, fee, levy, assessment or charge, or any
increase therein: (i) imposed by reason of events
occurring during the term of this Lease, including but not limited to, a change in the ownership of
the Project, (ii) a change in the improvements thereon,
and/or (iii) levied or assessed on machinery or equipment provided by Lessor to Lessee pursuant to
this Lease. In calculating Real Property Taxes for
any calendar year, the Real Property Taxes for any real estate tax year shall be included in the
calculation of Real Property Taxes for such calendar
year based upon the number of days which such calendar year and tax year have in common.

     10.2 Payment of Taxes. Except as otherwise provided in Paragraph 10.3, Lessor shall pay the Real
Property Taxes applicable to the
Project, and said payments shall be included in the calculation of Common Area Operating Expenses
in accordance with the provisions of Paragraph
4.2.

     10.3 Additional Improvements. Common Area Operating Expenses shall not include Real Property Taxes
specified in the tax

	 	 	 	 	 
	                                        

	 	 	 	                                        
	 
	 	 	 	 
	                                        

	 	 
	 	                                        
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assessor’s records and work sheets as being caused by additional improvements placed upon the
Project by other lessees or by Lessor for the exclusive enjoyment of such other lessees.
Notwithstanding Paragraph 10.2 hereof, Lessee shall, however, pay to Lessor at the time Common Area
Operating Expenses are payable under Paragraph 4.2, the entirety of any increase in Real Property
Taxes if assessed solely by reason of Alterations, Trade Fixtures or Utility Installations placed
upon the Premises by Lessee or at Lessee’s request or by reason of any alterations or improvements
to the Premises made by Lessor subsequent to the execution of this Lease by the Parties.

     10.4 Joint Assessment. If the Building is not separately assessed, Real Property Taxes
allocated to the Building shall be an equitable proportion of the Real Property Taxes for all of
the land and improvements included within the tax parcel assessed, such proportion to be determined
by Lessor from the respective valuations assigned in the assessor’s work sheets or such other
information as may be reasonably available. Lessor’s reasonable determination thereof, in good
faith, shall be conclusive.

     10.5 Personal Property Taxes. Lessee shall pay prior to delinquency all taxes assessed
against and levied upon Lessee Owned Alterations and Utility Installations, Trade Fixtures,
furnishings, equipment and all personal property of Lessee contained in the Premises. When
possible, Lessee shall cause its Lessee Owned Alterations and Utility Installations, Trade
Fixtures, furnishings, equipment and all other personal property to be assessed and billed
separately from the real property of Lessor. If any of Lessee’s said property shall be assessed
with Lessor’s real property, Lessee shall pay Lessor the taxes attributable to Lessee’s property
within 10 days after receipt of a written statement setting forth the taxes applicable to Lessee’s
property.

11. Utilities and Services. Lessee shall pay for all water, gas, heat, light, power, telephone,
trash disposal and other utilities and services supplied to the Premises, together with any taxes
thereon. Notwithstanding the provisions of Paragraph 4.2, if at any time in Lessor’s sole judgment,
Lessor determines that Lessee is using a disproportionate amount of water, electricity or other
commonly metered utilities, or that Lessee is generating such a large volume of trash as to require
an increase in the size of the trash receptacle and/or an increase in the number of times per month
that it is emptied, then Lessor may increase Lessee’s Base Rent by an amount equal to such
increased costs. There shall be no abatement of Rent and Lessor shall not be liable in any respect
whatsoever for the inadequacy, stoppage, interruption or discontinuance of any utility or service
due to riot, strike, labor dispute, breakdown, accident, repair or other cause beyond Lessor’s
reasonable control or in cooperation with governmental request or directions,
except to the extent of Lessor’s negligence or willful misconduct .

12. Assignment and Subletting.

     12.1 Lessor’s Consent Required.

          (a) Lessee shall not voluntarily or by operation of law assign, transfer, mortgage or encumber
(collectively, “assign or assignment") or sublet all or any part of Lessee’s interest in this Lease
or in the Premises without Lessor’s prior written consent, which shall not be
unreasonably withheld conditioned or delayed. Notwithstanding anything contained in this
lease agreement to the contrary, Lessee may sublease or assign the Premises to any wholly owend
subsidiary company, without obtaining Lessor’s written consent. Notwithstanding the foregoing, an
assignment or subletting of all or a portion of the Premises to an “Affiliate” of Lessee shall not
require Lessor’s consent under this Article 12, provided that (a) Lessee shall supply Lessor with a
fully executed copy of the document evidencing the assignment or sublease at least ten (10) days
prior to the transfer in question, (b) such assignment or sublease is not a subterfuge by Lessee to
avoid its obligations under this Lease, (c) if the transfer is an assignment, the assignee assumes,
in full, the obligations of Lessee under this Lease, and if the transfer is a sublease, the
transferee executes such documentation reasonably required by Lessor in connection with the
subordination of such sublease to this Lease, and (d) Lessee remains fully liable under this Lease.
The term “Affiliate” of Lessee shall mean an entity which is (i) controlled by, controls, or is
under common control with Lessee: (ii) any entity with which Lessee has merged or consolidated, or
(iii) any entity which acquires all or substantially all of the assets and/or shares of stock or
assets of Lessee. The term “control,” or controlled” as used in this paragraph shall mean the
ownership, directly or indirectly, of at least fifty percent (50%) of the voting securities of, or
possession of the right to vote, in the ordinary direction of its affairs, of at least fifty
percent (50%) of the voting interest in, an entity.

          (b) Unless Lessee is a corporation and its stock is publicly traded on a national stock
exchange, a change in the control of Lessee shall constitute an assignment requiring consent. The
transfer, on a cumulative basis, of 25% or more of the voting control of Lessee shall constitute a
change in control for this purpose.

          (c) The involvement of Lessee or its assets in any transaction, or series of transactions (by
way of merger, sale, acquisition, financing, transfer, leveraged buy-out or otherwise), whether or
not a formal assignment or hypothecation of this Lease or Lessee’s assets occurs, which results or
will result in a reduction of the Net Worth of Lessee by an amount greater than 25 50% of
such Net Worth as it was represented at the time of the execution of this Lease or at the time of
the most recent assignment
to which Lessor has consented, or as it exists immediately prior to said transaction or
transactions constituting such reduction, whichever was or is greater, shall be considered an
assignment of this Lease to which Lessor may withhold its consent. “Net Worth of Lessee” shall mean
the net worth of Lessee (excluding any guarantors) established under generally accepted accounting
principles.

          (d) An assignment or subletting without consent shall, at Lessor’s option, be a Default
curable after notice per Paragraph 13.1(c), or a noncurable Breach without the necessity of any
notice and grace period. If Lessor elects to treat such unapproved assignment or subletting as a
noncurable Breach, Lessor may either: (i) terminate this Lease, or (ii) upon 30 days written
notice, increase the monthly Base Rent to 110% of the Base Rent then in effect. Further, in the
event of such Breach and rental adjustment, (i) the purchase price of any option to purchase the
Premises held by Lessee shall be subject to similar adjustment to 110% of the price previously in
effect, and (ii) all fixed and non-fixed rental adjustments scheduled during the remainder of the
Lease term shall be increased to 110% of the scheduled adjusted rent.

          (e) Lessee’s remedy for any breach of Paragraph 12.1 by Lessor shall be limited to
compensatory damages and/or injunctive relief.

          (f) Lessor may reasonably withhold consent to a proposed assignment or subletting if Lessee is
in Default at the time consent is requested.

          (g) Notwithstanding the foregoing, allowing a diminimus portion of the Premises, ie. 20 square
feet or less, to be used by a third party vendor in connection with the installation of a vending
machine or payphone shall not constitute a subletting.

     12.2 Terms and Conditions Applicable to Assignment and Subletting.

          (a) Regardless of Lessor’s consent, no assignment or subletting shall: (i) be effective
without the express written assumption by such assignee or sublessee of the obligations of Lessee
under this Lease, (ii) release Lessee of any obligations hereunder, or (iii) alter the primary
liability of Lessee for the payment of Rent or for the performance of any other obligations to be
performed by Lessee.

          (b) Lessor may accept Rent or performance of Lessee’s obligations from any person other than
Lessee pending approval or disapproval of an assignment. Neither a delay in the approval or
disapproval of such assignment nor the acceptance of Rent or performance shall constitute a waiver
or estoppel of Lessor’s right to exercise its remedies for Lessee’s Default or Breach.

          (c) Lessor’s consent to any assignment or subletting shall not constitute consent to any
subsequent assignment or

 

	 	 	 
	                    

	 	                    
	                    

	 	                    
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subletting.

          (d) In the event of any Default or Breach by Lessee, Lessor may proceed directly against
Lessee, any Guarantors or anyone else responsible for the performance of Lessee’s obligations under
this Lease, including any assignee or sublessee, without first exhausting Lessor’s remedies against
any other person or entity responsible therefore to Lessor, or any security held by Lessor.

          (e) Each request for consent to an assignment or subletting shall
be in writing, accompanied by information relevant to Lessor’s determination
as to the financial and operational responsibility and appropriateness of the
proposed assignee or sublessee, including but not limited to the intended use
and/or required modification of the Premises, if any, together with a fee of
$500 as consideration for Lessor’s considering and processing said request.
Lessee agrees to provide Lessor with such other or additional information
and/or documentation as may be reasonably requested. (See also Paragraph 36)

          (f) Any assignee of, or sublessee under, this Lease shall, by reason of
accepting such assignment, entering into such sublease, or entering into possession
of the Premises or any portion thereof, be deemed to have assumed and agreed to
conform and comply with each and every term, covenant, condition and obligation
herein to be observed or performed by Lessee during the term of said assignment or
sublease, other than such obligations as are contrary to or inconsistent with
provisions of an assignment or sublease to which Lessor has specifically consented
to in writing.

          (f) Lessor’s consent to any assignment or subletting shall not
transfer to the assignee or sublessee any Option granted to the original
Lessee by this Lease unless such transfer is specifically consented to by
Lessor in writing. (See Paragraph 39.2)

     12.3 Additional Terms and Conditions Applicable to Subletting. The following terms and conditions
shall apply to any subletting by Lessee of all or any part of the Premises and shall be deemed
included in all subleases under this Lease whether or not expressly incorporated therein:

          (a) Lessee hereby assigns and transfers to Lessor all of Lessee’s interest in all Rent payable on
any sublease, and Lessor may collect such Rent and apply same toward Lessee’s obligations under
this Lease; provided, however, that until a Breach shall occur in the performance of Lessee’s
obligations, Lessee may collect said Rent. In the event that the amount collected by Lessor exceeds
Lessee’s then outstanding obligations any such excess shall be refunded to Lessee. Lessor shall
not, by reason of the foregoing or any assignment of such sublease, nor by reason of the collection
of Rent, be deemed liable to the sublessee for any failure of Lessee to perform and comply with any
of Lessee’s obligations to such sublessee. Lessee hereby irrevocably authorizes and directs any
such sublessee, upon receipt of a written notice from Lessor stating that a Breach exists in the
performance of Lessee’s obligations under this Lease, to pay to Lessor all Rent due and to become
due under the sublease. Sublessee shall rely upon any such notice from Lessor and shall pay all
Rents to Lessor without any obligation or right to inquire as to whether such Breach exists,
notwithstanding any claim from Lessee to the contrary.

          (b) In the event of a Breach by Lessee, Lessor may, at its option, require sublessee to attorn
to Lessor, in which event Lessor shall undertake the obligations of the sublessor under such
sublease from the time of the exercise of said option to the expiration of such sublease; provided,
however, Lessor shall not be liable for any prepaid rents or security deposit paid by such
sublessee to such sublessor or for any prior Defaults or Breaches of such sublessor.

          (c) Any matter requiring the consent of the sublessor under a
sublease shall also require the consent of Lessor.

          (d) No sublessee shall further assign or sublet all or any part of the Premises
without Lessor’s prior written consent.

          (e) Lessor shall deliver a copy of any notice of Default or Breach by Lessee to the sublessee,
who shall have the right to cure the Default of Lessee within the grace period, if any, specified
in such notice. The sublessee shall have a right of reimbursement and offset from and against
Lessee for any such Defaults cured by the sublessee.

13. Default; Breach; Remedies.

     13.1 Default; Breach. A “Default” is defined as a failure by the Lessee to comply
with or perform any of the terms, covenants, conditions or Rules and Regulations under
this Lease. A “Breach” is defined as the occurrence of one or more of the following
Defaults, and the failure of Lessee to cure such Default within any applicable grace
period:

          (a) The
abandonment of the Premises; or the vacating of the Premises without providing
a commercially reasonable level of security, or where the coverage of the property
insurance described in Paragraph 8.3 is jeopardized as a result thereof, or without
providing reasonable assurances to minimize potential vandalism.

          (b) The failure of Lessee to make any payment of Rent or any
Security Deposit required to be made by Lessee hereunder, whether to Lessor or
to a third party, when due, to provide reasonable evidence of insurance or
surety bond, or to fulfill any obligation under this Lease which endangers or
threatens life or property, where such failure continues for a period of 3 5
business days following written notice to Lessee.

          (c) The commission of waste, act or acts constituting public or private nuisance,
and/or an illegal activity on the Premises by Lessee, where such actions continue
for a period of 3 30 business days following written notice to Lessee.

          (d) The failure by Lessee to provide (i) reasonable written evidence of compliance with
Applicable Requirements, (ii) the service contracts, (iii) the rescission of an unauthorized
assignment or subletting, (iv) an Estoppel Certificate, (v) a requested subordination, (vi)
evidence concerning any guaranty and/or Guarantor, (vii) any document requested under Paragraph 41,
(viii) material data safety sheets (MSDS), or (ix) any other documentation or information which
Lessor may reasonably require of Lessee under the terms of this Lease, where any such failure
continues for a period of 10 30 days following written notice to Lessee.

          (e) A Default by Lessee as to the terms, covenants, conditions or provisions of this Lease, or
of the rules adopted under Paragraph 2.9 hereof, other than those described in subparagraphs
13.1(a), (b), (c) or (d), above, where such Default continues for a period of 30 days after written
notice; provided, however, that if the nature of Lessee’s Default is such that more than 30 days
are reasonably required for its cure, then it shall not be deemed to be a Breach if Lessee
commences such cure within said 30 day period and thereafter diligently prosecutes such cure to
completion.

          (f) The occurrence of any of the following events: (i) the making of any general arrangement
or assignment for the benefit of creditors; (ii) becoming a “debtor” as defined in 11 U.S.C.
§101 or any successor statute thereto (unless, in the case of a petition filed against
Lessee, the same is dismissed within 60 days); (iii) the appointment of a trustee or receiver to
take possession of substantially all of Lessee’s assets located at the Premises or of Lessee’s
interest in this Lease, where possession is not restored to Lessee
within 30 60 days; or (iv) the
attachment, execution or other judicial seizure of substantially all of Lessee’s assets located at
the Premises or of Lessee’s interest in this Lease, where such
seizure is not discharged within 30
60 days; provided, however, in the event that any provision of this subparagraph is contrary to any
applicable law, such provision shall be of no force or effect, and not affect the validity of the
remaining provisions.

          (g) The discovery that any financial statement of Lessee or of any Guarantor given to Lessor
was materially false.

          (h) If the performance of Lessee’s obligations under this Lease is guaranteed: (i) the death
of a Guarantor, (ii) the termination of a Guarantor’s liability with respect to this Lease other
than in accordance with the terms of such guaranty, (iii) a Guarantor’s becoming insolvent or the
subject of a bankruptcy filing, (iv) a Guarantor’s refusal to honor the guaranty, or (v) a
Guarantor’s breach of its guaranty obligation on an anticipatory basis, and Lessee’s failure,
within 60 days following written notice of any such event, to provide written alternative assurance
or security, which, when coupled with the then existing resources of Lessee, equals or exceeds the
combined financial resources of Lessee and the Guarantors that existed at the time of execution of
this Lease.

 

	 	 	 
	                    

	 	                    
	                    

	 	                    
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     13.2 Remedies. If Lessee fails to perform any of its affirmative duties or
obligations, within 10 days after written notice (or in case of an emergency, without
notice), Lessor may, at its option, perform such duty or obligation on Lessee’s
behalf, including but not limited to the obtaining of reasonably required bonds,
insurance policies, or governmental licenses, permits or approvals. Lessee shall pay
to Lessor an amount equal to 115% of the costs and expenses incurred by Lessor in such
performance upon receipt of an invoice therefor. In the event of a Breach, Lessor may,
with or without further notice or demand, and without limiting Lessor in the exercise
of any right or remedy which Lessor may have by reason of such Breach:

          (a) Terminate Lessee’s right to possession of the Premises by any lawful means, in which
case this Lease shall terminate and Lessee shall immediately surrender possession to
Lessor. In such event Lessor shall be entitled to recover from Lessee: (i) the unpaid Rent
which had been earned at the time of termination; (ii) the worth at the time of award of
the amount by which the unpaid rent which would have been earned after termination until
the time of award exceeds the amount of such rental loss that the Lessee proves could have
been reasonably avoided; (iii) the worth at the time of award of the amount by which the
unpaid rent for the balance of the term after the time of award exceeds the amount of such
rental loss that the Lessee proves could be reasonably avoided; and (iv) any other amount
necessary to compensate Lessor for all the detriment proximately caused by the Lessee’s
failure to perform its obligations under this Lease or which in the ordinary course of
things would be likely to result therefrom, including but not limited to the cost of
recovering possession of the Premises, expenses of reletting, including necessary
renovation and alteration of the Premises, reasonable attorneys’ fees, and that portion of
any leasing commission paid by Lessor in connection with this Lease applicable to the
unexpired term of this Lease. The worth at the time of award of the amount referred to in
provision (iii) of the immediately preceding sentence shall be computed by discounting such
amount at the discount rate of the Federal Reserve Bank of the District within which the
Premises are located at the time of award plus one percent. Efforts by Lessor to mitigate
damages caused by Lessee’s Breach of this Lease shall not waive Lessor’s right to recover
damages under Paragraph 12. If termination of this Lease is obtained through the
provisional remedy of unlawful detainer, Lessor shall have the right to recover in such
proceeding any unpaid Rent and damages as are recoverable therein, or Lessor may reserve
the right to recover all or any part thereof in a separate suit. If a notice and grace
period required under Paragraph 13.1 was not previously given, a notice to pay rent or
quit, or to perform or quit given to Lessee under the unlawful detainer statute shall also
constitute the notice required by Paragraph 13.1. In such case, the applicable grace
period required by Paragraph 13.1 and the unlawful detainer statute shall run concurrently,
and the failure of Lessee to cure the Default within the greater of the two such grace
periods shall constitute both an unlawful detainer and a Breach of this Lease entitling
Lessor to the remedies provided for in this Lease and/or by said statute.

          (b) Continue the Lease and Lessee’s right to possession and recover the Rent as it becomes
due, in which event Lessee may sublet or assign, subject only to reasonable limitations. Acts of
maintenance, efforts to relet, and/or the appointment of a receiver to protect the Lessor’s
interests, shall not constitute a termination of the Lessee’s right to possession.

          (c) Pursue any other remedy now or hereafter available under the laws or judicial decisions of
the state wherein the Premises are located. The expiration or termination of this Lease and/or the
termination of Lessee’s right to possession shall not relieve Lessee from liability under any
indemnity provisions of this Lease as to matters occurring or accruing during the term hereof or by
reason of Lessee’s occupancy of the Premises.

     13.3 Inducement Recapture. Any agreement for free or abated rent or other charges, or for the
giving or paying by Lessor to or for Lessee of any cash or other bonus, inducement or consideration
for Lessee’s entering into this Lease, all of which concessions are hereinafter referred to as
“Inducement Provisions”, shall be deemed conditioned upon Lessee’s full and faithful performance of
all of the terms, covenants and conditions of this Lease. Upon Breach of this Lease by Lessee, any
such Inducement Provision shall automatically be deemed deleted from this Lease and of no further
force or effect, and any rent, other charge, bonus, inducement or consideration theretofore abated,
given or paid by Lessor under such an Inducement Provision shall be immediately due and payable by
Lessee to Lessor, notwithstanding any subsequent cure of said Breach by Lessee. The acceptance by
Lessor of rent or the cure of the Breach which initiated the operation of this paragraph shall not
be deemed a waiver by Lessor of the provisions of this paragraph unless specifically so stated in
writing by Lessor at the time of such acceptance.

     13.4 Late Charges. Lessee hereby acknowledges that late payment by Lessee of Rent will cause
Lessor to incur costs not contemplated by this Lease, the exact amount of which will be extremely
difficult to ascertain. Such costs include, but are
not limited to, processing and accounting charges, and late charges which may be imposed upon
Lessor by any Lender. Accordingly, if any Rent shall not be received by Lessor within 5 days after
such amount shall be due, then, without any requirement for notice to Lessee, Lessee shall
immediately pay to Lessor a one-time late charge equal to 10% of each such overdue amount or $100,
whichever is greater. The parties hereby agree that such late charge represents a fair and
reasonable estimate of the costs Lessor will incur by reason of such late payment. Acceptance of
such late charge by Lessor shall in no event constitute a waiver of Lessee’s Default or Breach with
respect to such overdue amount, nor prevent the exercise of any of the other rights and remedies
granted hereunder. In the event that a late charge is payable hereunder, whether or not collected,
for 3 consecutive installments of Base Rent, then notwithstanding any provision of this Lease to
the contrary, Base Rent shall, at Lessor’s option, become due and payable quarterly in advance.

     13.5 Interest. Any monetary payment due Lessor hereunder, other than late charges, not
received by Lessor, when due as to scheduled payments (such as Base Rent) or within 30 days
following the date on which it was due for non-scheduled payment, shall bear interest from the date
when due, as to scheduled payments, or the 31st day after it was due as to non-scheduled payments.
The interest (“Interest”) charged shall be computed at the rate of 10% per annum but shall not
exceed the maximum rate allowed by law. Interest is payable in addition to the potential late
charge provided for in Paragraph 13.4.

     13.6 Breach by Lessor.

          (a) Notice of Breach. Lessor shall not be deemed in breach of this Lease unless Lessor fails
within a reasonable time to perform an obligation required to be performed by Lessor. For purposes
of this Paragraph, a reasonable time shall in no event be less than 30 days after receipt by
Lessor, and any Lender whose name and address shall have been furnished Lessee in writing for such
purpose, of written notice specifying wherein such obligation of Lessor has not been performed;
provided, however, that if the nature of Lessor’s obligation is such that more than 30 days are
reasonably required for its performance, then Lessor shall not be in breach if performance is
commenced within such 30 day period and thereafter diligently pursued to completion.

          (b) Performance by Lessee on Behalf of Lessor. In the event that neither Lessor nor Lender
cures said breach within 30 days after receipt of said notice, or if having commenced said cure
they do not diligently pursue it to completion, then Lessee may elect to cure said breach at
Lessee’s expense and offset from Rent the actual and reasonable cost to perform such cure, provided
however, that such offset shall not exceed an amount equal to the greater of one month’s Base Rent
or the Security Deposit, reserving Lessee’s right to reimbursement from Lessor for any such expense
in excess of such offset. Lessee shall document the cost of said cure and supply said documentation
to Lessor.

14. Condemnation. If the Premises or any portion thereof are taken under the power of eminent
domain or sold under the threat of the exercise of said power
(collectively “Condemnation”), this
Lease shall terminate as to the part taken as of the date the condemning authority takes title or
possession, whichever first occurs. If more than 10% of the floor area of the Unit, or more than
25% of Lessee’s Reserved Parking Spaces, is taken by Condemnation, Lessee may, at Lessee’s option,
to be exercised in writing within 10 days after Lessor shall have given Lessee written notice of
such taking (or in the absence of such notice, within 10 days after the condemning authority shall
have taken possession) terminate this Lease as of the date the condemning authority takes such
possession. If Lessee does not terminate this Lease in accordance with the foregoing, this Lease
shall remain in full force and effect as to the portion of the Premises remaining, except that the
Base Rent shall be reduced in proportion to the reduction in utility of the

 

	 	 	 
	                    

	 	                    
	                    

	 	                    
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Premises caused by such Condemnation. Condemnation awards and/or payments shall be the property of
Lessor, whether such award shall be made as compensation for diminution in value of the leasehold,
the value of the part taken, or for severance damages; provided, however, that Lessee shall be
entitled to any compensation for Lessee’s relocation expenses, loss of business goodwill and/or
Trade Fixtures, without regard to whether or not this Lease is terminated pursuant to the
provisions of this Paragraph. All Alterations and Utility Installations made to the Premises by
Lessee, for purposes of Condemnation only, shall be considered the property of the Lessee and
Lessee shall be entitled to any and all compensation which is payable therefor. In the event that
this Lease is not terminated by reason of the Condemnation, Lessor shall repair any damage to the
Premises caused by such Condemnation.

15. Brokerage Fees.

     15.1 Additional Commission. In addition to the payments owed pursuant to Paragraph 1.10 above,
and unless Lessor and the Brokers otherwise agree in writing, Lessor agrees that: (a) if Lessee
exercises any Option, (b) if Lessee acquires from Lessor any rights to the Premises or other
premises owned by Lessor and located within the Project, (c) if Lessee remains in possession of the
Premises, with the consent of Lessor, after the expiration of this Lease, or (d) if Base Rent is
increased, whether by agreement or operation of an escalation clause herein, then, Lessor shall pay
Brokers a fee in accordance with the schedule of the Brokers in effect at the time of the execution
of this Lease.

     15.2 Assumption of Obligations. Any buyer or transferee of Lessor’s interest in this Lease
shall be deemed to have assumed Lessor’s obligation hereunder. Brokers shall be third party
beneficiaries of the provisions of Paragraphs 1.10, 15, 22 and 31. If Lessor fails to pay to
Brokers any amounts due as and for brokerage fees pertaining to this Lease when due, then such
amounts shall
accrue Interest. In addition, if Lessor fails to pay any amounts to Lessee’s Broker when due,
Lessee’s Broker may send written notice to Lessor and Lessee of such failure and if Lessor fails to
pay such amounts within 10 days after said notice, Lessee shall pay said monies to its Broker and
offset such amounts against Rent. In addition, Lessee’s Broker shall be deemed to be a third party
beneficiary of any commission agreement entered into by and/or between Lessor and Lessor’s Broker
for the limited purpose of collecting any brokerage fee owed.

     15.3 Representations and Indemnities of Broker Relationships. Lessee and Lessor each represent
and warrant to the other that it has had no dealings with any person, firm, broker or finder (other
than the Brokers, if any) in connection with this Lease, and that no one other than said named
Brokers is entitled to any commission or finder’s fee in connection herewith. Lessee and Lessor do
each hereby agree to indemnify, protect, defend and hold the other harmless from and against
liability for compensation or charges which may be claimed by any such unnamed broker, finder or
other similar party by reason of any dealings or actions of the indemnifying Party, including any
costs, expenses, attorneys’ fees reasonably incurred with respect thereto.

16. Estoppel Certificates.

          (a) Each
Party (as “Responding Party”) shall within 10 days after written notice from the
other Party (the “Requesting Party”) execute, acknowledge and deliver to the Requesting Party a
statement in writing in form similar to the then most current “Estoppel Certificate” form published
by the AIR Commercial Real Estate Association, plus such additional information, confirmation
and/or statements as may be reasonably requested by the Requesting Party.

          (b) If the Responding Party shall fail to execute or deliver the Estoppel Certificate within
such 10 day period, the Requesting Party may execute an Estoppel Certificate stating that: (i) the
Lease is in full force and effect without modification except as may be represented by the
Requesting Party, (ii) there are no uncured defaults in the Requesting Party’s performance, and
(iii) if Lessor is the Requesting Party, not more than one month’s rent has been paid in advance.
Prospective purchasers and encumbrancers may rely upon the Requesting Party’s Estoppel Certificate,
and the Responding Party shall be estopped from denying the truth of the facts contained in said
Certificate.

          (c) If Lessor desires to finance, refinance, or sell the Premises, or any part thereof, Lessee
and all Guarantors shall deliver to any potential lender or purchaser designated by Lessor such
financial statements as may be reasonably required by such lender or purchaser, including but not
limited to Lessee’s financial statements for the past 3 years. All such financial statements shall
be received by Lessor and such lender or purchaser in confidence and shall be used only for the
purposes herein set forth.

17. Definition of Lessor. The term “Lessor” as used herein shall mean the owner or owners at the
time in question of the fee title to the Premises, or, if this is a sublease, of the Lessee’s
interest in the prior lease. In the event of a transfer of Lessor’s title or interest in the
Premises or this Lease, Lessor shall deliver to the transferee or assignee (in cash or by credit)
any unused Security Deposit held by Lessor. Except as provided in Paragraph 15, upon such transfer
or assignment and delivery of the Security Deposit, as aforesaid, the prior Lessor shall be
relieved of all liability with respect to the obligations and/or covenants under this Lease
thereafter to be performed by the Lessor. Subject to the foregoing, the obligations and/or
covenants in this Lease to be performed by the Lessor shall be binding only upon the Lessor as
hereinabove defined.

18. Severability. The invalidity of any provision of this Lease, as determined by a court of
competent jurisdiction, shall in no way affect the validity of any other provision hereof.

19. Days. Unless otherwise specifically
indicated to the contrary, the word “days” as used in this Lease
shall mean and refer to calendar days.

20. Limitation on Liability. The obligations of Lessor under this Lease
shall not constitute personal obligations of Lessor, or its partners,
members, directors, officers or shareholders, and Lessee shall look to the
Premises, and to no other assets of Lessor, for the satisfaction of any
liability of Lessor with respect to this Lease, and shall not seek
recourse against Lessor’s partners, members, directors, officers or
shareholders, or any of their
personal assets for such satisfaction. Notwithstanding anything contained in this Lease
agreement to the contrary, the limitations of this section 20 shall also apply to Lessee.

21. Time of Essence. Time is of the essence with respect to the performance of all obligations
to be performed or observed by the Parties under this Lease.

22. No Prior or Other Agreements; Broker Disclaimer. This Lease contains all agreements between the
Parties with respect to any matter mentioned herein, and no other prior or contemporaneous
agreement or understanding shall be effective. Lessor and Lessee each represents and warrants to
the Brokers that it has made, and is relying solely upon, its own investigation as to the nature,
quality, character and financial responsibility of the other Party to this Lease and as to the use,
nature, quality and character of the Premises. Brokers have no responsibility with respect thereto
or with respect to any default or breach hereof by either Party. The liability (including court
costs and attorneys’ fees), of any Broker with respect to negotiation, execution, delivery or
performance by either Lessor or Lessee under this Lease or any amendment or modification hereto
shall be limited to an amount up to the fee received by such Broker pursuant to this Lease;
provided, however, that the foregoing limitation on each Broker’s liability shall not be applicable
to any gross negligence or willful misconduct of such Broker.

23. Notices.

     23.1 Notice Requirements. All notices required or permitted by this Lease or applicable law
shall be in writing and may be delivered in person (by hand or by courier) or may be sent by
regular, certified or registered mail or U.S. Postal Service Express Mail, with postage prepaid, or
by facsimile transmission, and shall be deemed sufficiently given if served in a manner specified
in this Paragraph 23. The addresses noted adjacent to a Party’s signature on this Lease shall be
that Party’s address for delivery or mailing of notices. Either Party may by written notice to the
other specify a different address for notice, except that upon Lessee’s taking possession of the
Premises, the Premises shall constitute Lessee’s address for notice. A copy of all notices to
Lessor shall be concurrently transmitted to such party or parties at such addresses as Lessor may
from time to time hereafter designate in writing.

 

	 	 	 
	                    

	 	                    
	                    

	 	                    
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     23.2 Date of Notice. Any notice sent by registered or certified mail, return receipt
requested, shall be deemed given on the date of delivery shown on the receipt card, or if no
delivery date is shown, the postmark thereon. If sent by regular mail the notice shall be deemed
given 72 hours after the same is addressed as required herein and mailed with postage prepaid.
Notices delivered by United States Express Mail or overnight courier that guarantee next day
delivery shall be deemed given 24 hours after delivery of the same to the Postal Service or
courier. Notices transmitted by facsimile transmission or similar means shall be deemed delivered
upon telephone confirmation of receipt (confirmation report from fax machine is sufficient),
provided a copy is also delivered via delivery or mail. If notice is received on a Saturday, Sunday
or legal holiday, it shall be deemed received on the next business day.

24. Waivers. No waiver by Lessor of the Default or Breach of any term, covenant or condition hereof
by Lessee, shall be deemed a waiver of any other term, covenant or condition hereof, or of any
subsequent Default or Breach by Lessee of the same or of any other term, covenant or condition
hereof. Lessor’s consent to, or approval of, any act shall not be deemed to render unnecessary the
obtaining of Lessor’s consent to, or approval of, any subsequent or similar act by Lessee, or be
construed as the basis of an estoppel to enforce the provision or provisions of this Lease
requiring such consent. The acceptance of Rent by Lessor shall not be a waiver of any Default or
Breach by Lessee. Any payment by Lessee may be accepted by Lessor on account of moneys or damages
due Lessor, notwithstanding any qualifying statements or conditions made by Lessee in connection
therewith, which such statements and/or conditions shall be of no force or effect whatsoever unless
specifically agreed to in writing by Lessor at or
before the time of deposit of such payment. Notwithstanding anything contained in this Lease
agreement to the contrary, the provisions of this section 24 shall also apply to Lessee.

25. Disclosures Regarding The Nature of a Real Estate Agency Relationship.

     (a) When entering into a discussion with a real estate agent regarding a real
estate transaction, a Lessor or Lessee should from the outset understand what type of
agency relationship or representation it has with the agent or agents in the
transaction. Lessor and Lessee acknowledge being advised by the Brokers in this
transaction, as follows:

          (i) Lessor’s Agent. A Lessor’s agent under a listing agreement with the Lessor acts as the
agent for the Lessor only. A Lessor’s agent or subagent has the following affirmative
obligations: To the Lessor: A fiduciary duty of utmost care, integrity, honesty, and
loyalty in dealings with the Lessor. To the Lessee and the
Lessor: (a) Diligent exercise of
reasonable skills and care in performance of the agent’s duties. (b) A duty of honest and
fair dealing and good faith. (c) A duty to disclose all facts known to the agent materially
affecting the value or desirability of the property that are not known to, or within the
diligent attention and observation of, the Parties. An agent is not obligated to reveal to
either Party any confidential information obtained from the other Party which does not
involve the affirmative duties set forth above.

          (ii) Lessee’s Agent. An agent can agree to act as agent for the Lessee only. In these
situations, the agent is not the Lessor’s agent, even if by agreement the agent may receive
compensation for services rendered, either in full or in part from the Lessor. An agent acting only
for a Lessee has the following affirmative obligations. To the
Lessee: A fiduciary duty of utmost
care, integrity, honesty, and loyalty in dealings with the Lessee.
To the Lessee and the Lessor:
(a) Diligent exercise of reasonable skills and care in performance of the agent’s duties. (b) A
duty of honest and fair dealing and good faith. (c) A duty to disclose all facts known to the agent
materially affecting the value or desirability of the property that are not known to, or within the
diligent attention and observation of, the Parties. An agent is not obligated to reveal to either
Party any confidential information obtained from the other Party which does not involve the
affirmative duties set forth above.

          (iii) Agent Representing Both Lessor and Lessee. A real estate agent, either acting directly
or through one or more associate licenses, can legally be the agent of both the Lessor and the
Lessee in a transaction, but only with the knowledge and consent of both the Lessor and the Lessee.
In a dual agency situation, the agent has the following affirmative obligations to both the Lessor
and the Lessee: (a) A fiduciary duty of utmost care, integrity, honesty and loyalty in the dealings
with either Lessor or the Lessee. (b) Other duties to the Lessor and the Lessee as stated above in
subparagraphs (i) or (ii). In representing both Lessor and Lessee, the agent may not without the
express permission of the respective Party, disclose to the other Party that the Lessor will accept
rent in an amount less than that indicated in the listing or that the Lessee is willing to pay a
higher rent than that offered. The above duties of the agent in a real estate transaction do not
relieve a Lessor or Lessee from the responsibility to protect their own interests. Lessor and
Lessee should carefully read all agreements to assure that they adequately express their
understanding of the transaction. A real estate agent is a person qualified to advise about real
estate. If legal or tax advice is desired, consult a competent professional.

     (b) Brokers have no responsibility with respect to any Default or Breach hereof by either
Party. The Parties agree that no lawsuit or other legal proceeding involving any breach of duty,
error or omission relating to this Lease may be brought against Broker more than one year after the
Start Date and that the liability (including court costs and attorneys’ fees), of any Broker with
respect to any such lawsuit and/or legal proceeding shall not exceed the fee received by such
Broker pursuant to this Lease; provided, however, that the foregoing limitation on each Broker’s
liability shall not be applicable to any gross negligence or willful misconduct of such Broker.

     (c) Buyer and Seller agree to identify to Brokers as “Confidential” any communication or
information given Brokers that is considered by such Party to be
confidential.

 
26. No Right To Holdover. Lessee has no right to retain possession of the Premises or any part
thereof beyond the expiration or termination of this Lease. In the event that Lessee holds over,
then the Base Rent shall be increased to 150% of the Base Rent applicable immediately preceding the
expiration or termination. Nothing contained herein shall be construed as consent by Lessor to any
holding over by Lessee.

27. Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall,
wherever possible, be cumulative with all other remedies at law or in equity.

28. Covenants and Conditions; Construction of Agreement. All provisions of this Lease to be
observed or performed by Lessee are both covenants and conditions. In construing this Lease, all
headings and titles are for the convenience of the Parties only and shall not be considered a part
of this Lease. Whenever required by the context, the singular shall include the plural and vice
versa. This Lease shall not be construed as if prepared by one of the Parties, but rather according
to its fair meaning as a whole, as if both Parties had prepared it.

29. Binding Effect; Choice of Law. This Lease shall be binding upon the parties, their personal
representatives, successors and assigns and be governed by the laws of the State in which the
Premises are located. Any litigation between the Parties hereto concerning this Lease shall be
initiated in the county in which the Premises are located.

30. Subordination; Attornment; Non-Disturbance.

     30.1 Subordination. This Lease and any Option granted hereby shall be subject and subordinate
to any ground lease, mortgage, deed of trust, or other hypothecation or security device
(collectively, “Security Device”), now or hereafter placed upon the Premises, to any and all
advances made on the security thereof, and to all renewals, modifications, and extensions thereof.
Lessee agrees that the holders of any such Security Devices (in this Lease together referred to as
“Lender”) shall have no liability or obligation to perform any of the obligations of Lessor under
this Lease. Any Lender may elect to have this Lease and/or any Option granted hereby superior to
the lien of its Security Device by giving written notice thereof to Lessee, whereupon this Lease
and such Options shall be deemed prior to such Security Device, notwithstanding the relative dates
of the documentation or recordation thereof.

     30.2 Attornment. In the event that Lessor transfers title to the Premises, or the Premises are
acquired by another upon the foreclosure or termination of a Security Device to which this Lease is
subordinated (i) Lessee shall, subject to the non-disturbance provisions of Paragraph 30.3, attorn
to such new owner, and upon request, enter into a new lease, containing all of the terms and
provisions of this Lease, with such new owner for

 

	 	 	 
	                    

	 	                    
	                    

	 	                    
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the remainder of the term hereof, or, at the election of the new owner, this Lease will
automatically become a new lease between Lessee and such new owner, and (ii) Lessor shall
thereafter be relieved of any further obligations hereunder and such new owner shall assume all of
Lessor’s obligations, except that such new owner shall not: (a) be liable for any act or omission
of any prior lessor or with respect to events occurring prior to acquisition of ownership; (b) be
subject to any offsets or defenses which Lessee might have against any prior lessor, (c) be bound
by prepayment of more than one month’s rent, or (d) be liable for the return of any security
deposit paid to any prior lessor.

     30.3 Non-Disturbance. With respect to Security Devices entered into by Lessor after the
execution of this Lease, Lessee’s subordination of this Lease shall be subject to receiving a
commercially reasonable non-disturbance agreement (a
“Non-Disturbance Agreement”) from the Lender
which Non-Disturbance Agreement provides that Lessee’s possession of the Premises, and this Lease,
including any options to extend the term hereof, will not be disturbed so long as Lessee is not in
Breach hereof and attorns to the record owner of the Premises. Further, within 60 days after the
execution of this Lease, Lessor shall use its commercially
reasonable efforts to obtain a Non-Disturbance Agreement from the holder of any pre-existing
Security Device which is secured by the Premises. In the event that Lessor is unable to provide the
Non-Disturbance Agreement within said 60 days, then Lessee may, at Lessee’s option, directly
contact Lender and attempt to negotiate for the execution and delivery of a Non-Disturbance
Agreement. Lessor to provide the Non Disturbance Agreement upon Lease execution.

     30.4 Self-Executing. The agreements contained in this Paragraph 30 shall be effective
without the execution of any further documents; provided, however, that, upon written request from
Lessor or a Lender in connection with a sale, financing or refinancing of the Premises, Lessee and
Lessor shall execute such further writings as may be reasonably required to separately document any
subordination, attornment and/or Non-Disturbance Agreement provided for herein.

31. Attorneys’ Fees. If any Party or Broker brings an action or proceeding involving the Premises
whether founded in tort, contract or equity, or to declare rights hereunder, the Prevailing Party
(as hereafter defined) in any such proceeding, action, or appeal thereon, shall be entitled to
reasonable attorneys’ fees. Such fees may be awarded in the same suit or recovered in a separate
suit, whether or not such action or proceeding is pursued to decision or judgment. The term,
“Prevailing Party” shall include, without limitation, a Party or Broker who substantially obtains
or defeats the relief sought, as the case may be, whether by compromise, settlement, judgment, or
the abandonment by the other Party or Broker of its claim or defense. The attorneys’ fees award
shall not be computed in accordance with any court fee schedule, but shall be such as to fully
reimburse all attorneys’ fees reasonably incurred. In addition, Lessor shall be entitled to
attorneys’ fees, costs and expenses incurred in the preparation and service of notices of Default
and consultations in connection therewith, whether or not a legal action is subsequently commenced
in connection with such Default or resulting Breach ($200 is a reasonable minimum per occurrence
for such services and consultation).

32. Lessor’s Access; Showing Premises; Repairs. Lessor and Lessor’s agents shall have the right to
enter the Premises at any time, in the case of an emergency, and otherwise at reasonable times
after reasonable prior notice for the purpose of showing the same to prospective purchasers,
lenders, or tenants, only during the last 6 month of the term and making such alterations,
repairs, improvements or additions to the Premises as Lessor may deem necessary or desirable and
the erecting, using and maintaining of utilities, services, pipes and conduits through the Premises
and/or other premises as long as there is no material adverse effect on Lessee’s use of the
Premises. All such activities shall be without abatement of rent or liability to Lessee.

33. Auctions. Lessee shall not conduct, nor permit to be conducted, any auction upon the Premises
without Lessor’s prior written consent. Lessor shall not be obligated to exercise any standard of
reasonableness in determining whether to permit an auction.

34. Signs. Lessor may place on the Premises ordinary “For Sale” signs at any time and ordinary “For
Lease” signs during the last 6 months of the term hereof. Except for ordinary “For Sublease” signs
which may be placed only on the Premises, Lessee shall not place any sign upon the Project without
Lessor’s prior written consent. All signs must comply with all Applicable Requirements.

35. Termination; Merger. Unless specifically stated otherwise in writing by Lessor, the voluntary
or other surrender of this Lease by Lessee, the mutual termination or cancellation hereof, or a
termination hereof by Lessor for Breach by Lessee, shall automatically terminate any sublease or
lesser estate in the Premises; provided, however, that Lessor may elect to continue any one or all
existing subtenancies. Lessor’s failure within 10 days following any such event to elect to the
contrary by written notice to the holder of any such lesser interest, shall constitute Lessor’s
election to have such event constitute the termination of such interest.

36. Consents. Except as otherwise provided herein, wherever in this Lease the consent of a Party is
required to an act by or for the other Party, such consent shall not be unreasonably withheld or
delayed. Lessor’s actual reasonable costs and expenses (including but not limited to architects’,
attorneys’, engineers’ and other consultants’ fees) incurred in the consideration of, or response
to, a request by Lessee for any Lessor consent, including but not limited to consents to an
assignment, a subletting or the presence or use of a Hazardous Substance, shall be paid by Lessee
upon receipt of an invoice and supporting documentation therefor. Lessor’s consent to any act,
assignment or subletting shall not constitute an acknowledgment that no Default or Breach by Lessee
of this Lease exists, nor shall such consent be deemed a waiver of any then existing Default or
Breach, except as may be otherwise specifically stated in writing by Lessor at the time of such
consent. The failure to specify herein any particular condition to Lessor’s consent shall not
preclude the imposition by Lessor at the time of consent of such further or other conditions as are
then reasonable with reference to the particular matter for which consent is being given. In the
event that either Party disagrees with any determination made by the other hereunder and reasonably
requests the reasons for such determination, the determining party shall furnish its reasons in
writing and in reasonable detail within 10 business days following such request.

37. Guarantor.

     37.1 Execution. The Guarantors, if any, shall each execute a guaranty in the form most
recently published by the AIR Commercial Real Estate Association.

     37.2 Default. It shall constitute a Default of the Lessee if any Guarantor fails or refuses,
upon request to provide: (a) evidence of the execution of the guaranty, including the authority of
the party signing on Guarantor’s behalf to obligate Guarantor, and in the case of a corporate
Guarantor, a certified copy of a resolution of its board of directors authorizing the making of
such guaranty, (b) current financial statements, (c) an Estoppel Certificate, or (d) written
confirmation that the guaranty is still in effect.

38. Quiet Possession. Subject to payment by Lessee of the Rent and performance of all of the
covenants, conditions and
provisions on Lessee’s part to be observed and performed under this Lease, Lessee shall have quiet
possession and quiet enjoyment of the Premises during the term hereof.

39. Options. If Lessee is granted an option, as defined below, then the following provisions shall
apply.

     39.1 Definition. “Option” shall mean: (a) the right to extend the term of or renew this Lease
or to extend or renew any lease that Lessee has on other property of Lessor; (b) the right of first
refusal or first offer to lease either the Premises or other property of Lessor; (c) the right to
purchase or the right of first refusal to purchase the Premises or other property of Lessor.

     39.2 Options Personal To Original Lessee. Any Option granted to Lessee in this Lease is
personal to the original Lessee, and cannot be assigned or exercised by anyone other than said
original Lessee and only while the original Lessee is in full possession of the Premises and, if
requested by Lessor, with Lessee certifying that Lessee has no intention of thereafter assigning or
subletting.

     39.3 Multiple Options. In the event that Lessee has any multiple Options to extend or renew
this Lease, a later Option cannot be exercised unless the prior Options have been validly
exercised.

 

	 	 	 
	                    

	 	                    
	                    

	 	                    
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COMMERCIAL REAL ESTATE ASSOCIATION
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     39.4 Effect of Default on Options.

          (a) Lessee shall have no right to exercise an Option: (i) during the period commencing with
the giving of any notice of Default and continuing until said Default is cured, (ii) during the
period of time any Rent is unpaid (without regard to whether notice thereof is given Lessee), (iii)
during the time Lessee is in Breach of this Lease, or (iv) in the event that Lessee has been given
3 or more notices of separate Default, whether or not the Defaults are cured, during the 12 month
period immediately preceding the exercise of the Option.

          (b) The period of time within which an Option may be exercised shall not be extended or
enlarged by reason of Lessee’s inability to exercise an Option because of the provisions of
Paragraph 39.4(a).

          (c) An Option shall terminate and be of no further force or
effect, notwithstanding Lessee’s due and timely exercise of the Option, if,
after such exercise and prior to the commencement of the extended term or
completion of the purchase, (i) Lessee fails to pay Rent for a period of 30
days after such Rent becomes due (without any necessity of Lessor to give
notice thereof),or (ii) if Lessee commits a Breach of this Lease.

40. Security Measures. Lessee hereby acknowledges that the Rent payable to Lessor hereunder does
not include the cost of guard service or other security measures, and that Lessor shall have no
obligation whatsoever to provide same. Lessee assumes all responsibility for the protection of the
Premises, Lessee, its agents and invitees and their property from the acts of third parties.

41. Reservations. Lessor reserves the right: (i) to grant, without the consent or joinder of
Lessee, such easements, rights and dedications that Lessor deems necessary, (ii) to cause the
recordation of parcel maps and restrictions, and (iii) to create and/or install new utility
raceways, so long as such easements, rights, dedications, maps, restrictions, and utility raceways
do not unreasonably interfere with the use of the Premises by Lessee. Lessee agrees to sign any
documents reasonably requested by Lessor to effectuate such rights.

42. Performance Under Protest. . If at any time a dispute shall arise as to any amount or sum of
money to be paid by one Party to the other under the provisions hereof, the Party against whom the
obligation to pay the money is asserted shall have the right to make payment “under protest” and
such payment shall not be regarded as a voluntary payment and there shall survive the right on the
part of said Party to institute suit for recovery of such sum. If it shall be adjudged that there
was no legal obligation on the part of said Party to pay such sum or any part thereof, said Party
shall be entitled to recover such sum or so much thereof as it was not legally required to pay. A
Party who does not initiate suit for the recovery of sums paid “under protest” within 6 months
shall be deemed to have waived its right to protest such payment.

43. Authority; Multiple Parties; Execution.

               (a) If either Party hereto is a corporation, trust, limited liability company, partnership, or
similar entity, each individual executing this Lease on behalf of such entity represents and
warrants that he or she is duly authorized to execute and deliver this Lease on its behalf. Each
Party shall, within 30 days after request, deliver to the other Party satisfactory evidence of such
authority.

               (b) If this Lease is executed by more than one person or entity as “Lessee”, each such person
or entity shall be jointly and severally liable hereunder. It is agreed that any one of the named
Lessees shall be empowered to execute any amendment to this Lease, or other document ancillary
thereto and bind all of the named Lessees, and Lessor may rely on the same as if all of the named
Lessees had executed such document.

               (c) This Lease may be executed by the Parties in counterparts, each of which shall be deemed
an original and all of which together shall constitute one and the same instrument.

44. Conflict. Any conflict between the printed provisions of this Lease and the typewritten or
handwritten provisions shall be controlled by the typewritten or handwritten provisions.

45. Offer. Preparation of this Lease by either party or their agent and submission of same to the
other Party shall not be deemed an offer to lease to the other Party. This Lease is not intended to
be binding until executed and delivered by all Parties hereto.

46. Amendments. This Lease may be modified only in writing, signed by the Parties in interest at
the time of the modification. As long as they do not materially change Lessee’s obligations
hereunder, Lessee agrees to make such reasonable non-monetary modifications to this Lease as may be
reasonably required by a Lender in connection with the obtaining of normal financing or refinancing
of the Premises.

47. Waiver of Jury Trial. THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO TRIAL BY JURY IN ANY
ACTION OR PROCEEDING INVOLVING THE PROPERTY OR ARISING OUT OF THIS AGREEMENT.

48. Mediation and Arbitration of Disputes. An Addendum requiring the Mediation and/or the
Arbitration of all disputes between the Parties and/or Brokers arising out of this Lease
o is o is not attached to this Lease.

49. Americans with Disabilities Act. Since compliance with the Americans with Disabilities Act
(ADA) is dependent upon Lessee’s specific use of the Premises, Lessor makes no warranty or
representation as to whether or not the Premises comply with ADA or any similar legislation. In the
event that Lessee’s use of the Premises requires modifications or additions to the Premises in
order to be in ADA compliance, Lessee agrees to make any such necessary modifications and/or
additions at Lessee’s expense.

LESSOR AND LESSEE HAVE CAREFULLY READ AND REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED
HEREIN, AND BY THE EXECUTION OF THIS LEASE SHOW THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE
PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS LEASE ARE
COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO
THE PREMISES.

ATTENTION: NO REPRESENTATION OR RECOMMENDATION IS MADE BY THE AIR COMMERCIAL REAL ESTATE
ASSOCIATION OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT, OR TAX CONSEQUENCES OF THIS
LEASE OR THE TRANSACTION TO WHICH IT RELATES. THE PARTIES ARE URGED TO:

1. SEEK ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE.

2. RETAIN APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE PREMISES. SAID
INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED TO: THE POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES,
THE ZONING OF THE PREMISES, THE STRUCTURAL INTEGRITY, THE CONDITION OF THE ROOF AND OPERATING
SYSTEMS, COMPLIANCE WITH THE AMERICANS WITH DISABILITIES ACT AND THE SUITABILITY OF THE PREMISES
FOR LESSEE’S INTENDED USE.

WARNING: IF THE PREMISES ARE LOCATED IN A STATE OTHER THAN CALIFORNIA, CERTAIN PROVISIONS OF THE
LEASE MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE STATE IN WHICH THE PREMISES ARE
LOCATED.

The parties hereto have executed this Lease at the place and on the dates specified above their
respective signatures.

	 	 	 	 	 	 	 	 	 	 	 
	Executed at:	 	 Irvine, CA	 	Executed at:	 	 Foothill Ranch, CA
	 

	 	 	 	 
	 	 	 	 	 	 
	On:

	 	 	 	 August 23, 2006	 	On:	 	 	 	 August 21, 2006
	 	 	 	 	 	 	 

	 	 	 
	By LESSOR:

	 	By LESSEE:
	  John Robert Meehan

	 	CardioGenesis Corporation
	 
	 	 
	 

	 	 

	 	 	 
	By:
	 	 /s/
J.R. Meehan
	 

	 	 

	 	 	 
	Name Printed:
	 	 John R. Meehan
	 

	 	 

	 	 	 
	Title:
	 	 Owner/Lessor
	 

	 	 

	 	 	 
	By:
	 	 /s/ Richard Lanigan
	 

	 	 

	 	 	 
	Name Printed:
	 	 Richard Lanigan
	 

	 	 

	 	 	 
	Title:
	 	 Sr. V.P. Research &
Business Development
	 

	 	 

 

	 	 	 
	                    

	 	                    
	                    

	 	                    
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COMMERCIAL REAL ESTATE ASSOCIATION
	 	FORM MTN-5-5/05E

PAGE 16 OF 17

 

 

	 	 	 
	By:
	 	 
	 

	 	 

	 	 	 
	Name Printed:
	 	 
	 

	 	 

	 	 	 
	Title:
	 	 
	 

	 	 

	 	 	 
	Address:
	 	 
	 

	 	 
	 
	 	 
	 
	 
	 	 
	 

	 	 	 
	Telephone: (     )
	 	 
	 

	 	 

	 	 	 
	Facsimile: (     )
	 	 
	 

	 	 

	 	 	 
	Federal ID No.
	 	 
	 

	 	 

	 	 	 
	BROKER:  
	 
	 	 
	 
	 
	 	 
	 

	 	 	 
	Attn:
	 	 
	 

	 	 

	 	 	 
	Title:
	 	 
	 

	 	 

	 	 	 
	Address:
	 	 
	 

	 	 
	 
	 	 
	 

	 	 	 
	Telephone: (     )
	 	 
	 

	 	 

	 	 	 
	Facsimile: (     )
	 	 
	 

	 	 

	 	 	 
	Email:
	 	 
	 

	 	 

	 	 	 
	Federal ID No.
	 	 
	 

	 	 

	 	 	 
	By:
	 	 
	 

	 	 

	 	 	 
	Name Printed:
	 	 
	 

	 	 

	 	 	 
	Title:
	 	 
	 

	 	 

	 	 	 
	Address:
	 	 
	 

	 	 
	 
	 	 
	 
	 
	 	 
	 

	 	 	 
	Telephone: (     )
	 	 
	 

	 	 

	 	 	 
	Facsimile: (     )
	 	 
	 

	 	 

	 	 	 
	Federal ID No.
	 	 
	 

	 	 

	 	 	 
	BROKER:  
	 
	 	 
	 
	 
	 	 
	 

	 	 	 
	Attn:
	 	 
	 

	 	 

	 	 	 
	Title:
	 	 
	 

	 	 

	 	 	 
	Address:
	 	 
	 

	 	 
	 
	 	 
	 

	 	 	 
	Telephone: (     )
	 	 
	 

	 	 

	 	 	 
	Facsimile: (     )
	 	 
	 

	 	 

	 	 	 
	Email:
	 	 
	 

	 	 

	 	 	 
	Federal ID No.
	 	 
	 

	 	 

NOTICE: These forms are often modified to meet changing requirements of law and industry needs.
Always write or call to make sure you are utilizing the most current form: AIR Commercial Real
Estate Association, 800 W 6th Street, Suite 800, Los Angeles, CA
90017.

Telephone No. (213) 687-8777. Fax No.: (213) 687-8616.

©Copyright 1999 By AIR Commercial Real Estate Association.

All rights reserved.

No part of these works may be reproduced in any form without permission in writing.

 

	 	 	 
	                    

	 	                    
	                    

	 	                    
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	 	FORM MTN-5-5/05E

PAGE 17 OF 17

 

 

STANDARD OFFICE LEASE

FLOOR PLAN

Exhibit A

Property Address: 11 Musick Irvine CA 92618

11 Musick — Total Sq.Ft. 7,875

Office Building

	 	 	 	 	 
	 

	 	 	 	 

	 

	 	 	 	 

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PAGE 1 OF 1

 

RENT ADJUSTMENT(S)

STANDARD LEASE ADDENDUM

	 	 	 	 	 
	 

	 	Dated
	 	August 8, 2006
	 
	 	 	 	 
	 

	 	By and Between (Lessor)
	 	John Robert Meehan
	 
	 	 	 	 
	 

	 	(Lessee)
	 	CardioGenesis Corporation
	 
	 	 	 	 
	 

	 	Address of Premises:
	 	11 Musick Irvine CA 92618

Paragraph 50

	A.	 	RENT ADJUSTMENTS:

     The monthly rent for each month of the adjustment period(s) specified below shall be increased
using the method(s) indicated below: (Check Method(s) to be Used and Fill in Appropriately)

o I. Cost of Living Adjustment(s) (COLA)

     a. On (Fill in COLA Dates):

 

 

the Base Rent shall be adjusted by the change, if any, from the Base Month specified below, in the
Consumer Price Index of the Bureau of Labor Statistics of the U.S. Department of Labor for (select
one): o CPI W (Urban Wage Earners and Clerical Workers) or o CPI U (All
Urban Consumers), for (Fill in Urban Area):
 

 

All Items (1982-1984-100), herein referred to as “CPI”.

     b. The monthly rent payable in accordance with paragraph A.I.a. of this Addendum shall be
calculated as follows: the Base Rent set forth in paragraph 1.5 of the attached Lease, shall be
multiplied by a fraction the numerator of which shall be the CPI of the calendar month 2 months
prior to the month(s) specified in paragraph A.I.a. above during which the adjustment is to take
effect, and the denominator of which shall be the CPI of the calendar month which is 2 months prior
to (select one): the o first month of the term of this Lease as set forth in
paragraph 1.3 (“Base Month”) or o (Fill in Other “Base Month”):

 

The sum so calculated shall constitute the new monthly rent hereunder, but in no event, shall any
such new monthly rent be less than the rent payable for the month immediately preceding the rent
adjustment.

     c. In the event the compilation and/or publication of the CPI shall be transferred to any
other governmental department or bureau or agency or shall be discontinued, then the index most
nearly the same as the CPI shall be used to make such calculation. In the event that the Parties
cannot agree on such alternative index, then the matter shall be submitted for decision to the
American Arbitration Association in accordance with the then rules of said Association and the
decision of the arbitrators shall be binding upon the parties. The cost of said Arbitration shall
be paid equally by the Parties.

o II. Market Rental Value Adjustment(s) (MRV)

     a. On (Fill in MRV Adjustment Date(s):

 

 

the Base Rent shall be adjusted to the “Market Rental
Value” of the property as follows:

          1) Four months prior to each Market Rental Value Adjustment Date described above, the Parties
shall attempt to agree upon what the new MRV will be on the adjustment date. If agreement cannot be
reached within thirty days, then:

               (a) Lessor and Lessee shall immediately appoint a mutually acceptable appraiser or broker to
establish the new MRV within the next 30 days. Any associated costs will be split equally between
the Parties, or

               (b) Both Lessor and Lessee shall each immediately make a reasonable determination of the MRV
and submit such determination, in writing, to arbitration in accordance with the following
provisions:

                    (i) Within 15 days thereafter, Lessor and Lessee shall each select an o appraiser or o broker (“Consultant” -check one) of their choice to act as an
arbitrator. The two arbitrators so appointed shall immediately select a third mutually acceptable
Consultant to act as a third arbitrator.

                    (ii) The 3 arbitrators shall within 30 days of the appointment of the third arbitrator reach a
decision as to what the actual MRV for the Premises is, and whether Lessor’s or Lessee’s submitted
MRV is the closest thereto. The decision of a majority of the arbitrators shall be binding on the
Parties. The submitted MRV which is determined to be the closest to the actual MRV shall thereafter
be used by the Parties.

	 	 	 	 	 
	 

	 	 	 	 

	 

	 	 	 	 

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                    (iii) If either of the Parties fails to appoint an arbitrator within the specified 15 days,
the arbitrator timely appointed by one of them shall reach a decision on his or her own, and said
decision shall be binding on the Parties.

                    (iv) The entire cost of such arbitration shall be paid by the party whose submitted MRV is not
selected, i.e., the one that is NOT the closest to the actual MRV.

          2) Notwithstanding the foregoing, the new MRV shall not be less than the rent payable for the
month immediately preceding the rent adjustment.

     b. Upon the establishment of each New Market Rental Value:

               1) the new MRV will become the new “Base Rent” for the purpose of calculating any further
Adjustments, and

               2) the first month of each Market Rental Value term shall become the new ‘Base Month’ for the
purpose of calculating any further Adjustments.

þ III. Fixed Rental Adjustment(s) (FRA)

The Base Rent shall be increased to the following amounts on the dates set forth below:

	 	 	 	 
	On (Fill in FRA Adjustment Date(s)):	 	The New Base Rent shall be:
	10/1/2007-9/30/2008
	 	$	9,418.50
	10/1/2008-9/30/2009
	 	$	9,889.43
	10/1/2009-9/30/2010
	 	$	10,383.90
	10/1/2010-11/30/2011
	 	$	10,903.09

	B.	 	NOTICE:

     Unless specified otherwise herein, notice of any such adjustments, other than Fixed Rental
Adjustments, shall be made as specified in paragraph 23 of the Lease.

	C.	 	BROKER’S FEE:

     The Brokers shall be paid a Brokerage Fee for each adjustment specified above in accordance
with paragraph 15 of the Lease.

NOTICE: These forms are often modified to meet changing requirements of law and industry needs.
Always write or call to make sure you are utilizing the most current form: AIR Commercial Real
Estate Association, 800 W 6th Street, Suite 800, Los Angeles, CA 90017. Telephone No. (213) 687-8777. Fax No.: (213) 687-8616.

	 	 	 	 	 
	 

	 	 	 	 

	 

	 	 	 	 

	INITIALS

	 	 	 	INITIALS

			
	 	 	 
	©2000 — AIR COMMERCIAL REAL ESTATE ASSOCIATION
	 	FORM RA-3-8/00E

PAGE 2 OF 2

 

OPTION(S) TO EXTEND

STANDARD LEASE ADDENDUM

	 	 	 	 	 
	 

	 	Dated
	 	August 8, 2006
	 
	 	 	 	 
	 

	 	By and Between (Lessor)
	 	John Robert Meechan
	 
	 	 	 	 
	 

	 	By and Between (Lessee)
	 	CardioGenesis Corporation
	 
	 	 	 	 
	 

	 	Address of Premises:
	 	11 Musick Irvine CA 92618

Paragraph 51

A. OPTION(S) TO EXTEND:

Lessor hereby grants to Lessee the option to extend the term of this Lease for 2
additional 60 month period(s) commencing when the prior term expires upon each and all
of the following terms and conditions:

          (i) In order to exercise an option to extend, Lessee must give written notice of such election
to Lessor and Lessor must receive the same at least 3 but not more than 6 months
prior to the date that the option period would commence, time being of the essence. If proper
notification of the exercise of an option is not given and/or received, such option shall
automatically expire. Options (if there are more than one) may only be exercised consecutively.

          (ii) The provisions of paragraph 39, including those relating to Lessee’s Default set forth in
paragraph 39.4 of this Lease, are conditions of this Option.

          (iii) Except for the provisions of this Lease granting an option or options to extend the
term, all of the terms and conditions of this Lease except where specifically modified by this
option shall apply.

          (iv) This Option is personal to the original Lessee, and cannot be assigned or exercised by
anyone other than said original Lessee and only while the original Lessee is in full possession of
the Premises and without the intention of thereafter assigning or subletting.

          (v) The monthly rent for each month of the option period shall be calculated as follows, using
the method(s) indicated below: (Check Method(s) to be Used and Fill in Appropriately)

o I. Cost of Living Adjustment(s) (COLA)

     a. On (Fill in COLA Dates): 
 

 

the Base Rent shall be adjusted by the change, if any, from the Base Month specified below, in
the Consumer Price Index of the Bureau of Labor Statistics of the U.S. Department of Labor for
(select one): o CPI W (Urban Wage Earners and Clerical Workers) or o CPI U (All Urban Consumers), for (Fill in Urban Area):

 

 

 All Items (1982-1984 = 100), herein referred to as “CPI”.

     b. The monthly rent payable in accordance with paragraph A.I.a. of this Addendum shall be
calculated as follows: the Base Rent set forth in paragraph 1.5 of the attached Lease, shall be
multiplied by a fraction the numerator of which shall be the CPI of the calendar month 2 months
prior to the month(s) specified in paragraph A.I.a. above during which the adjustment is to take
effect, and the denominator of which shall be the CPI of the calendar month which is 2 months prior
to (select one): o the first month of the term of this Lease as set forth in paragraph 1.3
(“Base Month”) or o (Fill in Other “Base Month”):
 

 

 

The sum so calculated shall constitute the new monthly rent hereunder, but in no event, shall any
such new monthly rent be less than the rent payable for the month immediately preceding the rent
adjustment.

     c. In the event the compilation and/or publication of the CPI shall be transferred to any
other governmental department or bureau or agency or shall be discontinued, then the index most
nearly the same as the CPI shall be used to make such calculation. In the event that the Parties
cannot agree on such alternative index, then the matter shall be submitted for decision to the
American Arbitration Association in accordance with the then rules of said Association and the
decision of the arbitrators shall be binding upon the parties. The cost of said Arbitration shall
be paid equally by the Parties.

o II. Market Rental Value Adjustment(s) (MRV)

a. On
(Fill in MRV Adjustment Date(s)) 
 

 

 

the Base Rent shall be adjusted to the “Market Rental Value” of the property as follows:

          1) Four months prior to each Market Rental Value Adjustment Date described above, the Parties
shall attempt to agree upon what the new MRV will be on the adjustment date. If agreement cannot be
reached, within thirty days, then:

               (a) Lessor and Lessee shall immediately appoint a mutually acceptable appraiser or broker to
establish the new MRV within the next 30 days. Any associated costs will be split equally between
the Parties, or

               (b) Both Lessor and Lessee shall each immediately make a reasonable determination of the MRV
and submit such determination, in

	 	 	 	 	 
	 

	 	 	 	 

	 

	 	 	 	 

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writing, to arbitration in accordance with the following provisions:

                    (i) Within 15 days thereafter, Lessor and Lessee shall each select an o appraiser or o broker (“Consultant”  check
one) of their choice to act as an arbitrator. The two arbitrators so appointed shall immediately
select a third mutually acceptable Consultant to act as a third arbitrator.

                    (ii) The 3 arbitrators shall within 30 days of the appointment of the third arbitrator reach a
decision as to what the actual MRV for the Premises is, and whether Lessor’s or Lessee’s submitted
MRV is the closest thereto. The decision of a majority of the arbitrators shall be binding on the
Parties. The submitted MRV which is determined to be the closest to the actual MRV shall thereafter
be used by the Parties.

                    (iii) If either of the Parties fails to appoint an arbitrator within the specified 15 days,
the arbitrator timely appointed by one of them shall reach a decision on his or her own, and said
decision shall be binding on the Parties.

                    (iv) The entire cost of such arbitration shall be paid by the party whose submitted MRV is not
selected, ie. the one that is NOT the closest to the actual MRV.

          2) Notwithstanding the foregoing, the new MRV shall not be less than the rent payable for the
month immediately preceding the rent adjustment.

     b. Upon the establishment of each New Market Rental Value:

          1) the new MRV will become the new “Base Rent” for the purpose of calculating any further
Adjustments, and

          2) the first month of each Market Rental Value term shall become the new “Base Month” for the
purpose of calculating any further Adjustments.

þ III. Fixed Rental Adjustment(s) (FRA)

The Base Rent shall be increased to the following amounts on the dates set forth below:

	 	 	 	 	 
	On (Fill in FRA Adjustment Date(s)):	 	The New Base Rent shall be:
	12/1/2011-11/30/2012
	 	$	11,448.25	 
	12/1/2012-11/30/2013
	 	$	12,020.66	 
	12/1/2013-11/30/2014
	 	$	12,621.70	 
	12/1/2014-11/30/2015
	 	$	13,252.78	 
	12/1/2015-11/30/2016
	 	$	13,915.42	 
	12/1/2016-11/30/2017
	 	$	14,611.19	 
	12/1/2017-11/30/2018
	 	$	15,341.75	 
	12/1/2018-11/30/2019
	 	$	16,108.84	 
	12/1/2019-11/30/2020
	 	$	16,914.28	 
	12/1/2020-11/30/2021
	 	$	17,759.99	 

	B.	 	NOTICE:

          Unless specified otherwise herein, notice of any rental adjustments, other than Fixed Rental
Adjustments, shall be made as specified in paragraph 23 of the Lease.

	C.	 	BROKER’S FEE:

     The Brokers shall be paid a Brokerage Fee for each adjustment specified above in accordance
with paragraph 15 of the Lease.

NOTICE: These forms are often modified to meet changing requirements of law and industry needs.
Always write or call to make sure you are utilizing the most current form: AIR Commercial Real
Estate Association, 800 W 6th Street, Suite 800, Los Angeles, CA 90017. Telephone No. (213)
687-8777. Fax No.: (213) 687-8616.

	 	 	 	 	 
	 

	 	 	 	 

	 

	 	 	 	 

	INITIALS

	 	 	 	INITIALS

			
	 	 	 
	©2000 — AIR COMMERCIAL REAL ESTATE ASSOCIATION
	 	FORM OE-3-8/00E

PAGE 2 OF 2

 

Addendum to Standard Industrial/Commercial Muti-Lessee Lease, dated August 8,

2006 by and between John Robert Meehan (“Lessor”) and CardioGenesis

Corporation (“Lessee”). The following terms and conditions are hereby

incorporated into and made part of that certain lease agreement referenced above

	53.	 	The following activities shall be completed by Lessor, at Lessor’s sole cost and expense to
include but not limited to, any costs for construction documents, engineering documents, city
permits or fees of any kind, collectively referred to as (“Lessor’s Work”). Lessor’s Work is
as follows:

	 	A.	 	Remove four (4) cubicles and repair all drywall where necessary, repair and or replace all
carpet as needed due to cubical removal, and repaint walls as necessary due to carpet and
cubical removal.
	 
	 	B.	 	Remove eight (8) cubicles and repair all drywall where necessary, repair and or replace all
carpet as needed due to cubical removal, and repaint walls as necessary due to carpet and
cubical removal.
	 
	 	C.	 	Install door similar to existing office doors for entry to office G.
	 
	 	D.	 	Paint all doors within the Premises.
	 
	 	E.	 	Purchase and install cover for network wires and security system in warehouse of the
Premises.
	 
	 	F.	 	Thoroughly clean all restrooms areas within the Premises.
	 
	 	G.	 	Notwithstanding anything contained in this lease agreement to the contrary, Lessor
agrees to deliver the Premises on the Commencement Date of the lease in full compliance
with any and all federal, state, county, city codes to include ADA.

	54.	 	If Lessor’s Work is not complete by October 1, 2006, the commencement date shall be extended
on a day for day basis until such work is complete and a certificate of occupancy, or its
equivalent, has been obtained for the Premises.

	55.	 	Lessee shall have the non-exclusive right, free of charge, to install and maintain on the
roof of the building satellite dishes for Lessees exclusive use. Lessee shall be responsible
for installation, maintenance, removal, and damage to building, electricity, and any insurance
needed.

	56.	 	Lessee shall have the exclusive right to all building signs at Lessees sole cost of
installation and removal, and based on association signage requirements to be provided upon
request.

 

	57.	 	Common Area Operating Expense Exclusions:

	 	 	 	Notwithstanding anything contained in this Lease agreement to the contrary, the following
shall be exclusions to Common Area Operating Expenses.
	 
	 	A.	 	Cost of decorating, redecorating, or special cleaning or other services not provided
on a regular basis to Lessees of the Building, so long as such decorations are typical and
customary in public areas of first-class office buildings in the market.
	 
	 	B.	 	Wages, salaries, fees, and fringe benefits paid to administrative or executive
personnel or officers or partners of Lessor unless employed at competitive rates as
independent contractors.
	 
	 	C.	 	Any charge for depreciation of the Building or equipment and any interest or other
financing charge.
	 
	 	D.	 	Any charge for Lessor’s income taxes, excess profit taxes, franchise taxes, or
similar taxes on Lessor’s business.
	 
	 	E.	 	All costs relating to activities for the solicitation and execution of leases of
space in the Building.
	 
	 	F.	 	All costs and expenses of operating the garage space and commercial space in the
Building.
	 
	 	G.	 	All costs for which Lessee or other Lessees in the Building are being charged other
than pursuant to (the operating expense) clauses.
	 
	 	H.	 	The cost of any electricity currently furnished to the Premises or any rentable area
of the Building for purposes other than the operation of building equipment and machinery
and the lighting of public toilets, stairways, shaftways, and building machinery or fan
rooms.
	 
	 	I.	 	The cost of correcting defects in the construction of the Building or in the Building
equipment, that conditions (not occasioned by construction defects) resulting from
ordinary wear and tear will not be deemed defects for the purpose of this category.
	 
	 	J.	 	The cost of any repairs made by Lessor because of the total or partial destruction of
the Building or the condemnation of a portion of the Building.
	 
	 	K.	 	Any increase in insurance premium to the extent that such increase is caused or
attributable to the use.
	 
	 	L.	 	The cost of any items for which Lessor is reimbursed by insurance or otherwise
compensated by parties other than Lessees of the Building pursuant to clauses similar to
this paragraph.
	 
	 	M.	 	The cost of any additional or capital improvements to the Building subsequent to the
date of original construction.

 

 

	 	N.	 	The cost of any repairs, alterations, additions, changes, replacements, and other
items which under generally accepted accounting principles are properly classified as
capital expenditures to the extent they upgrade or improve the Building as opposed to
replace existing items which have worn out.
	 
	 	O.	 	Any operating expenses representing an amount paid to a related corporation, entity,
or person, which is in excess of the amount, which would be paid in the absence of such
relationship.
	 
	 	P.	 	The cost of tools and equipment used initially in the construction, operation,
repair, and maintenance of the Building.
	 
	 	Q.	 	The cost of any work or service performed for or facilities, furnished to any Lessee
of the Building to a greater extent or in a manner favorable to such Lessee than that
performed for or furnished to Lessee.
	 
	 	R.	 	The cost of alterations of space in the Building leased to other Lessees.
	 
	 	S.	 	The cost of overtime or other expenses to Lessor in curing its defaults or performing
work expressly provided in the lease to be borne at Lessor’s expense.
	 
	 	T.	 	Capital improvements or expenditures incurred to reduce operating expenses shall be
included in operating expenses to the lesser of the annual amortized amount of said
improvements or expenditures (over the useful life of the improvement or item) or the
actual savings.
	 
	 	U.	 	The cost to comply with any environmental regulations including but not limited to
the cost of removal of chlorofluorocarbons (CFC) or adoption of Building HVAC systems to
use substances other than CFC, nor shall Lessee be responsible for any increase in cost of
substitute materials to replace CFC.

	58.	 	Real Property Tax Exclusions:

	 	 	 	Notwithstanding anything contained in this Lease agreement to the contrary, the following
shall be exclusions to Real Property Tax Exclusions.

	 	A.	 	Inheritance taxes
	 
	 	B.	 	Gift taxes
	 
	 	C.	 	Transfer taxes
	 
	 	D.	 	Franchise taxes
	 
	 	E.	 	Excise taxes
	 
	 	F.	 	Net income taxes
	 
	 	G.	 	Profit taxes

 

 

	 	H.	 	Capital levies
	 
	 	I.	 	Late payment charges and penalties
	 
	 	J.	 	Special assessments levied against other than Real Estate. Assessments payable
hereunder may be payable to Lessee in installments if the Lessor is permitted to do so.
	 
	 	K.	 	Real estate tax increases arising from sale or transfer of the Building, including
those arising from re-appraisal of the Building due solely to sale or transfer.

	59.	 	Lessee Audit Rights:

	 	 	 	Lessee shall have the right, at its own cost and expense (except as provided below), to
audit or inspect Lessor’s records (but not more than once in any Lease Year) with respect
to operating expenses and real estate taxes, as well as all other additional rent payable
by Lessee hereunder for any Lease Year. Lessee shall give Lessor not less than thirty (30)
days prior written notice of its intention to conduct any such audit. Lessor shall
cooperate with Lessee during the course of such audit, which shall be conducted during
normal business hours in Lessor’s office. Lessor agrees to make such personnel available
to Lessee as is reasonably necessary for Lessee, or for Lessee’s employees or agents to
conduct such audit. If such audit discloses that the amount paid by Lessee as Lessee’s
operating expenses and/or real estate taxes, or of other additional rental payable by
Lessee hereunder, has been overstated by more than two percent (2%), then, in addition to
immediately repaying such overpayment to Lessee with interest, Lessor shall also pay the
reasonable costs incurred by Lessee in connection with such audit.EX-4.3 FORM OF INDENTURE

 

Exhibit 4.3

FORM OF INDENTURE

EDUCATION REALTY TRUST, INC.

 

INDENTURE

Dated as of ___________, 2006

 

U.S. Bank National Association

Trustee

 

 

 

CROSS-REFERENCE TABLE*

	 	 	 	 	 
	Trust Indenture	 	 	 
	Act Section	 	Indenture 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	 
	(c)
	 	 	N.A.	 
	311(a)
	 	 	7.11	 
	(b)
	 	 	7.11	 
	(c)
	 	 	N.A.	 
	312(a)
	 	 	2.06	 
	(b)
	 	 	12.03	 
	(c)
	 	 	12.03	 
	313(a)
	 	 	7.06	 
	(b)(2)
	 	 	7.06; 7.07	 
	(c)
	 	 	7.06; 12.02	 
	(d)
	 	 	7.06	 
	314(a)
	 	 	4.03;12.02; 12.05	 
	(c)(1)
	 	 	12.04	 
	(c)(2)
	 	 	12.04	 
	(c)(3)
	 	 	N.A.	 
	(e)
	 	 	12.05	 
	(f)
	 	 	N.A.	 
	315(a)
	 	 	7.01	 
	(b)
	 	 	7.05,12.02	 
	(c)
	 	 	7.01	 
	(d)
	 	 	7.01	 
	(e)
	 	 	6.11	 
	316(a) (last sentence)
	 	 	2.09	 
	(a)(1)(A)
	 	 	6.05	 
	(a)(1)(B)
	 	 	6.04	 
	(a)(2)
	 	 	N.A.	 
	(b)
	 	 	6.07	 
	(c)
	 	 	2.13	 
	317(a)(1)
	 	 	6.08	 
	(a)(2)
	 	 	6.09	 
	(b)
	 	 	2.05	 
	318(a)
	 	 	12.01	 
	(b)
	 	 	N.A.	 
	(c)
	 	 	12.01	 

 

			
	 	 	N.A. means not applicable.

	 
	*	 	This Cross Reference Table is not part of the Indenture.

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 

	 	ARTICLE 1.	 	 	 	 
	 

	 	DEFINITIONS AND INCORPORATION	 	 	 	 
	 

	 	BY REFERENCE	 	 	 	 
	Section 1.01

	 	Definitions
	 	 	1	 
	Section 1.02

	 	Other Definitions
	 	 	6	 
	Section 1.03

	 	Incorporation by Reference of Trust Indenture Act
	 	 	7	 
	Section 1.04

	 	Rules of Construction
	 	 	7	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 2.	 	 	 	 
	 

	 	THE SECURITIES	 	 	 	 
	Section 2.01

	 	Issuable in Series
	 	 	7	 
	Section 2.02

	 	Establishment of Terms of Series of Securities
	 	 	8	 
	Section 2.03

	 	Execution and Authentication
	 	 	10	 
	Section 2.04

	 	Registrar and Paying Agent
	 	 	11	 
	Section 2.05

	 	Paying Agent to Hold Money in Trust
	 	 	12	 
	Section 2.06

	 	Holder Lists
	 	 	12	 
	Section 2.07

	 	Transfer and Exchange
	 	 	12	 
	Section 2.08

	 	Replacement Securities
	 	 	12	 
	Section 2.09

	 	Outstanding Securities
	 	 	13	 
	Section 2.10

	 	Treasury Securities
	 	 	13	 
	Section 2.11

	 	Temporary Securities
	 	 	13	 
	Section 2.12

	 	Cancellation
	 	 	14	 
	Section 2.13

	 	Defaulted Interest
	 	 	14	 
	Section 2.14

	 	Global Securities
	 	 	14	 
	Section 2.15

	 	CUSIP Numbers
	 	 	15	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 3.	 	 	 	 
	 

	 	REDEMPTION AND PREPAYMENT	 	 	 	 
	Section 3.01

	 	Notices to Trustee
	 	 	15	 
	Section 3.02

	 	Selection of Securities to Be Redeemed or Purchased
	 	 	 16	 
	Section 3.03

	 	Notice of Redemption
	 	 	16	 
	Section 3.04

	 	Effect of Notice of Redemption
	 	 	17	 
	Section 3.05

	 	Deposit of Redemption or Purchase Price
	 	 	17	 
	Section 3.06

	 	Securities Redeemed or Purchased in Part
	 	 	18	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 4.	 	 	 	 
	 

	 	COVENANTS	 	 	 	 
	Section 4.01

	 	Payment of Securities
	 	 	18	 
	Section 4.02

	 	Maintenance of Office or Agency
	 	 	18	 
	Section 4.03

	 	Reports
	 	 	19	 
	Section 4.04

	 	Compliance Certificate
	 	 	19	 
	Section 4.05

	 	Taxes
	 	 	20	 
	Section 4.06

	 	Stay, Extension and Usury Laws
	 	 	20	 
	Section 4.07

	 	Corporate Existence
	 	 	20	 

 

 

	 	 	 	 	 	 	 
	 

	 	ARTICLE 5.	 	 	 	 
	 

	 	SUCCESSORS	 	 	 	 
	Section 5.01

	 	Merger, Consolidation, or Sale of Assets
	 	 	21	 
	Section 5.02

	 	Successor Person Substituted
	 	 	21	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 6.	 	 	 	 
	 

	 	DEFAULTS AND REMEDIES	 	 	 	 
	Section 6.01

	 	Events of Default
	 	 	21	 
	Section 6.02

	 	Acceleration
	 	 	23	 
	Section 6.03

	 	Other Remedies
	 	 	23	 
	Section 6.04

	 	Waiver of Past Defaults
	 	 	23	 
	Section 6.05

	 	Control by Majority
	 	 	24	 
	Section 6.06

	 	Limitation on Suits
	 	 	24	 
	Section 6.07

	 	Rights of Holders of Securities to Receive Payment
	 	 	24	 
	Section 6.08

	 	Collection Suit by Trustee
	 	 	25	 
	Section 6.09

	 	Trustee May File Proofs of Claim
	 	 	25	 
	Section 6.10

	 	Priorities
	 	 	25	 
	Section 6.11

	 	Undertaking for Costs
	 	 	26	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 7.	 	 	 	 
	 

	 	TRUSTEE	 	 	 	 
	Section 7.01

	 	Duties of Trustee
	 	 	26	 
	Section 7.02

	 	Rights of Trustee
	 	 	27	 
	Section 7.03

	 	Individual Rights of Trustee
	 	 	28	 
	Section 7.04

	 	Trustee’s Disclaimer
	 	 	28	 
	Section 7.05

	 	Notice of Defaults
	 	 	28	 
	Section 7.06

	 	Reports by Trustee to Holders of the Securities
	 	 	28	 
	Section 7.07

	 	Compensation and Indemnity
	 	 	29	 
	Section 7.08

	 	Replacement of Trustee
	 	 	29	 
	Section 7.09

	 	Successor Trustee by Merger, etc.
	 	 	30	 
	Section 7.10

	 	Eligibility; Disqualification
	 	 	30	 
	Section 7.11

	 	Preferential Collection of Claims Against Company
	 	 	31	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 8.	 	 	 	 
	 

	 	LEGAL DEFEASANCE AND COVENANT DEFEASANCE	 	 	 	 
	Section 8.01

	 	Option to Effect Legal Defeasance or Covenant Defeasance
	 	 	31	 
	Section 8.02

	 	Legal Defeasance and Discharge
	 	 	31	 
	Section 8.03

	 	Covenant Defeasance
	 	 	32	 
	Section 8.04

	 	Conditions to Legal or Covenant Defeasance
	 	 	32	 
	Section 8.05

	 	Deposited Money and Government Securities to be Held
in Trust; Other Miscellaneous Provisions
	 	 	33	 
	Section 8.06

	 	Repayment to Company
	 	 	34	 
	Section 8.07

	 	Reinstatement
	 	 	34	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 9.	 	 	 	 
	 

	 	AMENDMENT, SUPPLEMENT AND WAIVER	 	 	 	 
	Section 9.01

	 	Without Consent of Holders of Securities
	 	 	34	 
	Section 9.02

	 	With Consent of Holders of Securities
	 	 	36	 
	Section 9.03

	 	Compliance with Trust Indenture Act
	 	 	37	 
	Section 9.04

	 	Revocation and Effect of Consents
	 	 	37	 

 

 

	 	 	 	 	 	 	 
	Section 9.05

	 	Notation on or Exchange of Securities
	 	 	37	 
	Section 9.06

	 	Trustee to Sign Amendments, etc.
	 	 	37	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 10.	 	 	 	 
	 

	 	GUARANTEES	 	 	 	 
	Section 10.01

	 	Guarantees.
	 	 	38	 
	Section 10.02

	 	Limitation on Guarantor Liability.
	 	 	39	 
	Section 10.03

	 	Execution and Delivery of Security Guarantee.
	 	 	39	 
	Section 10.04

	 	Guarantors May Consolidate, etc., on Certain Terms.
	 	 	39	 
	Section 10.05

	 	Releases Following Sale of Assets.
	 	 	40	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 11.	 	 	 	 
	 

	 	SATISFACTION AND DISCHARGE	 	 	 	 
	Section 11.01

	 	Satisfaction and Discharge
	 	 	41	 
	Section 11.02

	 	Application of Trust Money
	 	 	41	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE 12.	 	 	 	 
	 

	 	MISCELLANEOUS	 	 	 	 
	Section 12.01

	 	Trust Indenture Act Controls
	 	 	42	 
	Section 12.02

	 	Notices
	 	 	42	 
	Section 12.03

	 	Communication by Holders of Securities with Other
Holders of Securities
	 	 	43	 
	Section 12.04

	 	Certificate and Opinion as to Conditions Precedent
	 	 	43	 
	Section 12.05

	 	Statements Required in Certificate or Opinion
	 	 	43	 
	Section 12.06

	 	Rules by Trustee and Agents
	 	 	44	 
	Section 12.07

	 	No Personal Liability of Directors, Officers,
Employees and Stockholders
	 	 	44	 
	Section 12.08

	 	Governing Law
	 	 	44	 
	Section 12.09

	 	No Adverse Interpretation of Other Agreements
	 	 	44	 
	Section 12.10

	 	Successors
	 	 	44	 
	Section 12.11

	 	Severability
	 	 	44	 
	Section 12.12

	 	Counterpart Originals
	 	 	45	 
	Section 12.13

	 	Table of Contents, Headings, etc.
	 	 	45	 

 

 

     INDENTURE dated as of ___, 2006 between Education Realty Trust, Inc., a Maryland
corporation, the Guarantors (as defined) and U.S. Bank National Association, as trustee.

     The Company, the Guarantors and the Trustee agree as follows for the benefit of each other and
for the equal and ratable benefit of the Holders (as defined) of the Securities issued under this
Indenture:

ARTICLE 1.

DEFINITIONS AND INCORPORATION

BY REFERENCE

Section 1.01 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 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
purposes of this definition, “control,” as used with respect to any Person, means the possession,
directly or indirectly, of the power to direct or cause the direction of the management or policies
of such Person, whether through the ownership of voting securities, by agreement or otherwise;
provided that beneficial ownership of 10% or more of the Voting Stock of a Person will be deemed to
be control. For purposes of this definition, the terms “controlling,” “controlled by” and “under
common control with” have correlative meanings.

     “Agent” means any Registrar, co-registrar, Paying Agent or additional paying agent.

     “Authentication Order” means a written order signed in the name of the Company by an Officer.

     “Bankruptcy Law” means Title 11, U.S. Code or any similar federal or state law for the relief
of debtors.

     “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 any day other than a Legal Holiday.

     “Capital Lease Obligation” means, at the time any determination is to be made, the amount of
the liability in respect of a capital lease that would at that time be required to be capitalized
on a balance sheet in accordance with GAAP.

     “Capital Stock” means:

     (1) in the case of a corporation, corporate stock;

     (2) in the case of an association or business entity, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate stock;

1

 

     (3) in the case of a partnership or limited liability company, partnership or
membership interests (whether general or limited); and

     (4) any other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets of, the issuing Person.

     “Cash Equivalents” means:

     (1) United States dollars;

     (2) Government Securities having maturities of not more than one year from the date of
acquisition;

     (3) certificates of deposit and eurodollar time deposits with maturities of six months
or less from the date of acquisition, bankers’ acceptances with maturities not exceeding one
year and overnight bank deposits, in each case, with any lender party to the Company’s
credit agreement or with any domestic commercial bank having capital and surplus in excess
of $500.0 million and a Thomson Bank Watch Rating of “B” or better;

     (4) repurchase obligations with a term of not more than seven days for underlying
securities of the types described in clauses (2) and (3) above entered into with any
financial institution meeting the qualifications specified in clause (3) above;

     (5) commercial paper having the highest rating obtainable from Moody’s Investors
Service, Inc. or Standard & Poor’s Rating Services and in each case maturing within one year
after the date of acquisition; and

     (6) money market funds at least 95% of the assets of which constitute Cash Equivalents
of the kinds described in clauses (1) through (5) of this definition.

     “Company” means Education Realty Trust, Inc., a Maryland corporation, and any and all
successors thereto.

     “Corporate Trust Office of the Trustee” will be at the address of the Trustee specified in
Section 12.02 hereof or such other address as to which the Trustee may give notice to the Company.

     “Default” means any event that is, or with the passage of time or the giving of notice or both
would be, an Event of Default.

     “Depositary” means, with respect to the Securities issuable or issued in whole or in part in
global form, the Person specified in Section 2.02 hereof as the Depositary with respect to the
Securities, and any and all successors thereto appointed as depositary hereunder and having become
such pursuant to the applicable provision of this Indenture.

     “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 6.02.

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

2

 

     “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 as amended and/or modified from time to time.

     “Global Securities” means a Security or Securities, as the case may be, in the form
established pursuant to Section 2.02 evidencing all or part of a Series of Securities, issued to
the Depositary for such Series or its nominee, and registered in the name of such Depositary or
nominee.

     “Government Securities” means securities issued or directly and fully guaranteed or insured by
the United States government or any agency or instrumentality of the United States government
(provided that the full faith and credit of the United States is pledged in support of those
securities), and additionally, in respect of any Series of Securities denominated in other than
United States dollars, securities issued or directly and fully guaranteed or insured by the
government in whose currencies such Series of Securities are denominated (which in the case of the
Euro shall be deemed to include any government whose functional currency is the Euro).

     “Guarantee” means a guarantee other than by endorsement of negotiable instruments for
collection or deposit in the ordinary course of business, direct or indirect, in any manner
including, without limitation, by way of a pledge of assets or through letters of credit or
reimbursement agreements in respect thereof, of all or any part of any Indebtedness.

     “Guarantors” means each of:

     (1) the guarantors listed on the signature pages hereto; and

     (2) any other Subsidiary that executes a Security Guarantee in accordance with the
provisions of this Indenture,

and their respective successors and assigns.

     “Hedging Obligations” means, with respect to any specified Person, the obligations of such
Person under:

     (1) interest rate swap agreements, interest rate cap agreements and interest rate
collar agreements; and

     (2) other agreements or arrangements designed to protect such Person against
fluctuations in interest rates.

     “Holder” means a Person in whose name a Security is registered.

     “Indebtedness” means, with respect to any specified Person, any indebtedness of such Person,
whether or not contingent:

     (1) in respect of borrowed money;

     (2) evidenced by bonds, notes, debentures or similar instruments or letters of credit
(or reimbursement agreements in respect thereof);

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     (3) in respect of banker’s acceptances;

     (4) representing Capital Lease Obligations;

     (5) representing the balance deferred and unpaid of the purchase price of any property,
except any such balance that constitutes an accrued expense or trade payable; or

     (6) representing any Hedging Obligations,

if and to the extent any of the preceding items (other than letters of credit and Hedging
Obligations) would appear as a liability upon a balance sheet of the specified Person prepared in
accordance with GAAP. In addition, the term “Indebtedness” includes all Indebtedness of others
secured by a Lien on any asset of the specified Person (whether or not such Indebtedness is assumed
by the specified Person) and, to the extent not otherwise included, the Guarantee by the specified
Person of any indebtedness of any other Person.

     The amount of any Indebtedness outstanding as of any date will be:

     (1) the accreted value of the Indebtedness, in the case of any Indebtedness issued with
original issue discount;

     (2) the principal amount of the Indebtedness, together with any interest on the
Indebtedness that is more than 30 days past due, in the case of any other Indebtedness; and

     (3) with respect to Hedging Obligations, the amount of Indebtedness required to be
recorded as a liability in accordance with GAAP.

     “Indenture” means this instrument as amended and supplemented from time to time by one or more
indentures supplemental hereto entered into pursuant to the applicable provisions hereof, and shall
include the terms of particular Series of Securities established as contemplated by Section 2.02;
provided, however, that, if at any time more than one Person is acting as Trustee under this
instrument, “Indenture” shall mean, with respect to any one or more Series of Securities for which
such Person is Trustee, this instrument as originally executed or as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered into pursuant to the
applicable provisions hereof and shall include the terms of the or those particular Series of
Securities for which such Person is Trustee established as contemplated by Section 2.02, exclusive,
however, of any provisions or terms which relate solely to other Series of Securities for which
such Person is not Trustee, regardless of when such terms or provisions were adopted, and exclusive
of any provisions or terms adopted by means of one or more indentures supplemental hereto executed
and delivered after such Person had become Trustee but to which such Person, as such Trustee, was
not a party.

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

     “Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions in the City
of New York or in Boston, Massachusetts or at a place of payment are authorized by law, regulation
or executive order to remain closed. 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 on such payment for the intervening period.

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     “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest
or encumbrance of any kind in respect of such asset, whether or not filed, recorded or otherwise
perfected under applicable law, including any conditional sale or other title retention agreement,
any lease in the nature thereof, any option or other agreement to sell or give a security interest
in and any filing of or agreement to give any financing statement under the Uniform Commercial Code
(or equivalent statutes) of any jurisdiction.

     “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, notice of option to elect repayment or otherwise.

     “Obligations” means any principal, interest, penalties, fees, indemnifications,
reimbursements, damages and other liabilities payable under the documentation governing any
Indebtedness.

     “Officer” means, with respect to any Person, the Chairman of the Board, the Chief Executive
Officer, the President, the Chief Operating Officer, the Chief Financial Officer, the Treasurer,
any Assistant Treasurer, the Controller, the Secretary, any Assistant Secretary or any
Vice-President of such Person.

     “Officers’ Certificate” means a certificate signed on behalf of the Company by two Officers of
the Company, one of whom must be the principal executive officer, the principal financial officer,
the treasurer or the principal accounting officer of the Company, that meets the requirements of
Section 12.05 hereof.

     “Opinion of Counsel” means an opinion from legal counsel who is reasonably acceptable to the
Trustee, that meets the requirements of Section 12.05 hereof. The counsel may be an employee of or
counsel to the Company, any Subsidiary of the Company or the Trustee.

     “Person” means any individual, corporation, partnership, joint venture, association,
joint-stock company, trust, unincorporated organization, limited liability company or government or
other entity.

     “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,” when used with respect to the Trustee, means any officer within the
Corporate Trust Office of the Trustee (or any successor group of the Trustee) with direct
responsibility for the administration of this Indenture and, with respect to a particular corporate
trust matter, any other officer to whom such matter is referred because of his knowledge of and
familiarity with the 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.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Security Guarantee” means the guarantee of any Series of Securities by a Guarantor under
Article 10.

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     “Series” or “Series of Securities” means each series of debentures, notes or other debt
instruments of the Company created pursuant to Sections 2.01 and 2.02 hereof.

     “Significant Subsidiary” means any Subsidiary that would be a “significant subsidiary” as
defined in Article 1, Rule 1—02 of Regulation S—X, promulgated pursuant to the Securities Act, as
such Regulation is in effect on the date of this Indenture.

     “Stated Maturity” means, with respect to any installment of interest or principal on any
series of Indebtedness, the date on which such payment of interest or principal was scheduled to be
paid in the original documentation governing such Indebtedness, and shall not include any
contingent obligations to repay, redeem or repurchase any such interest or principal prior to the
date originally scheduled for the payment thereof.

     “Subsidiary” means, with respect to any specified Person:

     (1) 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 of the
corporation, association or other business entity is at the time owned or controlled,
directly or indirectly, by that Person or one or more of the other Subsidiaries of that
Person (or a combination thereof); and

     (2) any partnership (a) the sole general partner or the managing general partner of
which is such Person or a Subsidiary of such Person or (b) the only general partners of
which are that Person or one or more Subsidiaries of that Person (or any combination
thereof).

     “TIA” means the Trust Indenture Act of 1939 (15 U.S.C. §§ 77aaa-77bbbb) as in effect on the
date on which this Indenture is qualified under the TIA.

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

     “U.S. Legal Tender” means such coin or currency of the United States of America as at the time
of payment shall be legal tender for the payment of public and private debts.

     “Voting Stock” of any Person as of any date means the Capital Stock of such Person that is at
the time entitled to vote in the election of the board of directors of such Person.

Section 1.02 Other Definitions.

	 	 	 	 	 
	 	 	Defined in	 
	Term	 	Section	 
	“Covenant Defeasance”
	 	 	8.03	 
	“Event of Default”
	 	 	6.01	 
	“Legal Defeasance”
	 	 	8.02	 
	“Paying Agent”
	 	 	2.04	 
	“Registrar”
	 	 	2.04	 

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Section 1.03 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:

     “indenture securities” means the Securities;

     “indenture security Holder” means a Holder of a Security;

     “indenture to be qualified” means this Indenture;

     “indenture trustee” or “institutional trustee” means the Trustee; and

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

     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 have the meanings so assigned to them.

Section 1.04 Rules of Construction

     Unless the context otherwise requires:

     (1) a term has the meaning assigned to it;

     (2) an accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;

     (3) “or” is not exclusive;

     (4) words in the singular include the plural, and in the plural include the singular;

     (5) “will” shall be interpreted to express a command;

     (6) provisions apply to successive events and transactions; and

     (7) references to sections of or rules under the Securities Act will be deemed to
include substitute, replacement of successor sections or rules adopted by the SEC from time
to time.

ARTICLE 2.

THE SECURITIES

Section 2.01 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 in the Board Resolution, supplemental
indenture or Officers’ Certificate detailing the adoption of the terms thereof pursuant to the
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 may
provide for the method by which specified terms

7

 

(such as interest rate, maturity date, record date or date from which interest shall accrue)
are to be determined. All Series of Securities shall be entitled to the benefits of the Indenture,
provided that Securities may differ between Series in respect of any matters as provided by the
Board Resolution, supplemental indenture or Officers’ Certificate detailing the adoption of the
terms thereof pursuant to the authority granted under a Board Resolution.

Section 2.02 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 2.02(a) and either as to such
Securities within the Series or as to the Series generally in the case of Subsections 2.02(b)
through 2.02(v)) by a Board Resolution, a supplemental indenture or an Officers’ Certificate
pursuant to authority granted under a Board Resolution:

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

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

     (c) 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 2.07, 2.08, 2.11, 3.06 or 9.05);

     (d) the date or dates or the method by which such date or dates will be determined on which
the principal of the Securities of the Series is payable;

     (e) the rate or rates (which may be fixed or variable) per annum or, if applicable, the method
used to determine such rate or rates, 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 and the basis upon which interest shall be calculated if other
than that of a 360-day year consisting of twelve 30-day months;

     (f) the place or places where the principal of and interest, if any, on the Securities of the
Series shall be payable, or the method of such payment, if by wire transfer, mail or other means;

     (g) 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;

     (h) 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;

     (i) 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;

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

     (k) the forms of the Securities of the Series and whether the Securities will be issuable as
Global Securities;

     (l) 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 6.02;

     (m) if other than United States dollars, the currency of denomination of the Securities of the
Series;

     (n) if other than United States dollars, the designation of the currency, currencies or
currency units in which payment of the principal of and interest, if any, on the Securities of the
Series will be made;

     (o) if payments of principal of or interest, if any, on the Securities of the Series are to be
made in one or more currencies or currency units other than that or those in which such Securities
are denominated, the manner in which the exchange rate with respect to such payments will be
determined;

     (p) the manner in which the amounts of payment of principal of or interest, if any, on the
Securities of the Series will be determined, if such amounts may be determined by reference to an
index based on a currency or currencies or by reference to a commodity, commodity index, stock
exchange index or financial index;

     (q) the provisions, if any, relating to any security provided for the Securities of the
Series;

     (r) the provisions, if any, relating to any guarantees of the Securities of the Series;

     (s) 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 6.02;

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

     (u) any other terms of the Securities of the Series (which terms shall not be inconsistent
with the provisions of this Indenture, except as permitted by Section 9.01, but which may modify or
delete any provision of this Indenture insofar as it applies to such Series);

     (v) any trustees, 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; and

     (w) the date as of which any temporary Global Security representing Outstanding Securities of
or within the Series shall be dated if other than the date of original issuance of the first
Security of the Series to be issued;

     (x) the applicability, if any, of Sections 8.02 and/or 8.03 to the Securities of or within the
Series and any provisions in modification of, in addition to or in lieu of any of the provisions of
Article Eight;

9

 

     (y) if the Securities of such Series are to be issuable in definitive form (whether upon
original issue or upon exchange of a temporary Security of such Series) only upon receipt of
certain certificates or other documents or satisfaction of other conditions, then the form and/or
terms of such certificates, documents or conditions;

     (z) if the Securities of or within the Series are to be issued upon the exercise of debt
warrants, the time, manner and place for such Securities to be authenticated and delivered;

     (aa) whether and under what circumstances the Company will pay Additional Amounts on the
Securities of or within the Series to any Holder who is not a United States person (including any
modification to the definition of such term) in respect of any tax, assessment or governmental
charge and, if so, whether the Company will have the option to redeem such Securities rather than
pay such Additional Amounts (and the terms of any such option);

     (bb) the obligation, if any, of the Company to permit the Securities of such Series to be
converted into or exchanged for common stock of the Company or other Securities or property of the
Company and the terms and conditions upon which such conversion or exchange shall be effected
(including, without limitation, the initial conversion or exchange price or rate, the conversion or
exchange period, any adjustment of the applicable conversion or exchange price or rate and any
requirements relative to the reservation of such shares for purposes of conversion or exchange);

     (cc) if convertible or exchangeable, any applicable limitations on the ownership or
transferability of the Securities or property into which such Securities are convertible or
exchangeable; and

     (dd) the applicability, if any, of Article 10 or the Security Guarantee to the Securities of
or within the Series and any provisions in modification, in addition to or in lieu of any of the
provisions of Article 10 or any Security Guarantee.

     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 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.

Section 2.03 Execution and Authentication

     An Officer must 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 a
Security is authenticated, the Security will nevertheless be valid.

     A Security will not be valid until authenticated by the manual signature of the Trustee. The
signature will 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 of a Series for
original issue in the principal amount provided in the Board Resolution, supplemental indenture
hereto or Officers’ Certificate described in Section 2.02 with respect to such Series upon receipt
by the Trustee of an Authentication Order. Such Authentication 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

10

 

authentication unless otherwise provided by the Board Resolution, supplemental indenture
hereto or Officers’ Certificate described in Section 2.02 with respect to such Series.

     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
2.02, except as provided in Section 2.08.

     Prior to the issuance of Securities of any Series, the Trustee shall have received and
(subject to Section 7.02) 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 12.04, and
(c) an Opinion of Counsel complying with Section 12.04.

     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 lawfully
be taken; 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 Holders or an
Affiliate of the Company.

Section 2.04
Registrar and Paying Agent The Company will maintain with respect to each Series
of Securities at the place or places specified with respect to such Series pursuant to Section 2.02
an office or agency where Securities of such Series may be presented for registration of transfer
or for exchange (“Registrar”) and an office or agency where Securities of such Series may be
presented for payment (“Paying Agent”). The Registrar will keep a register of the Securities of
such Series and of their transfer and exchange. The Company may appoint one or more co-registrars
and one or more additional paying agents. The term “Registrar” includes any co-registrar and the
term “Paying Agent” includes any additional paying agent. The Company may change any Paying Agent
or Registrar without notice to any Holder. The Company will notify the Trustee in writing of the
name and address of any Agent not a party to this Indenture. If the Company fails to appoint or
maintain another entity as Registrar or Paying Agent, the Trustee shall act as such. The Company
or any of its Subsidiaries may act as Paying Agent or Registrar.

     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.

     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.

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Section 2.05 Paying Agent to Hold Money in Trust

     The Company will require each Paying Agent (other than the Trustee) to agree in writing that
the Paying Agent will hold in trust for the benefit of Holders of any Series of Securities for
which it is acting as Paying Agent, or the Trustee, all money held by the Paying Agent for the
payment of principal, premium, if any, or interest on such 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 the 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) will
have no further liability for the money. If the Company or a Subsidiary acts as Paying Agent, it
will segregate and hold in a separate trust fund for the benefit of the Holders of any Series of
Securities for which it acts as Paying Agent all money held by it as Paying Agent for such Series.
Upon any bankruptcy or reorganization proceedings relating to the Company, the Trustee will serve
as Paying Agent for each Series of Securities.

Section 2.06 Holder Lists

     The Trustee will preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of all Holders of each Series of Securities and
shall otherwise comply with TIA § 312(a). If the Trustee is not the Registrar, the Company will
furnish to the Trustee at least seven Business 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 the Holders of each Series of
Securities and the Company shall otherwise comply with TIA § 312(a).

Section 2.07 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, 3.06 or 9.05).

     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.

Section 2.08 Replacement Securities

     If any mutilated Security is surrendered to the Trustee or the Company and the Trustee
receives evidence to its satisfaction of the destruction, loss or theft of any Security, the
Company will issue and the Trustee, upon receipt of an Authentication Order, will authenticate a
replacement Security of the same Series if the Trustee’s requirements are met. If required by the Trustee or the Company, an
affidavit of loss and indemnity bond must be supplied by the Holder that is sufficient in the
judgment of the Trustee

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and the Company to protect the Company, the Trustee, any Agent and any
authenticating agent from any loss that any of them may suffer if a Security is replaced. The
Company may charge for its expenses in replacing a Security.

     Every replacement Security is an additional obligation of the Company and will be entitled to
all of the benefits of this Indenture equally and proportionately with all other Securities of the
same Series duly issued hereunder.

Section 2.09 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 in a Global Security effected by the Trustee in accordance with the provisions hereof, and
those described in this Section 2.09 as not outstanding. Except as set forth in Section 2.10
hereof, a Security does not cease to be outstanding because the Company or an Affiliate of the
Company holds the Security.

     If a Security is replaced pursuant to Section 2.08 hereof, it ceases to be outstanding unless
the Trustee receives proof satisfactory to it that the replaced Security is held by a protected
purchaser.

     If the principal amount of any Security is considered paid under Section 4.01 hereof, it
ceases to be outstanding and interest on it ceases to accrue.

     If the Paying Agent (other than the Company, a Subsidiary or an Affiliate of any thereof)
holds, on a redemption date or maturity date, money sufficient to pay Securities payable on that
date, then on and after that date such Securities will be deemed to be no longer outstanding and
will cease to accrue interest.

     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 6.02.

Section 2.10 Treasury Securities

     In determining whether the Holders of the required principal amount of Securities of a Series
have concurred in any direction, waiver or consent, Securities of such Series owned by the Company,
or by any Person directly or indirectly controlling or controlled by or under direct or indirect
common control with the Company, will be considered as though not outstanding, except that for the
purposes of determining whether the Trustee will be protected in relying on any such direction,
waiver or consent, only Securities of such Series that the Trustee knows are so owned will be so
disregarded.

Section 2.11 Temporary Securities

     Until certificates representing Securities are ready for delivery, the Company may prepare and
the Trustee, upon receipt of an Authentication Order, will authenticate temporary Securities.
Temporary Securities will be substantially in the form of certificated Securities but may have
variations that the Company considers appropriate for temporary Securities and as may be reasonably
acceptable to the Trustee. Without unreasonable delay, the Company will prepare and the Trustee
will authenticate definitive Securities of the same Series and date of maturity in exchange for temporary
Securities. After

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preparation of such definitive Securities, the temporary Securities will be
exchangeable for such definitive Securities upon surrender of the temporary Securities.

     Holders of temporary Securities will be entitled to all of the benefits of this Indenture.

Section 2.12 Cancellation

     The Company at any time may deliver Securities to the Trustee for cancellation. The Registrar
and Paying Agent will forward to the Trustee any Securities surrendered to them for registration of
transfer, exchange or payment. The Trustee and no one else will cancel all Securities surrendered
for registration of transfer, exchange, payment, replacement or cancellation and will destroy
canceled Securities (subject to the record retention requirements of the Exchange Act).
Certification of the destruction of all canceled Securities will be delivered to the Company. The
Company may not issue new Securities to replace Securities that it has paid or that have been
delivered to the Trustee for cancellation.

Section 2.13 Defaulted Interest

     If the Company defaults in a payment of interest on the Securities of a Series, it will pay
the defaulted interest in any lawful manner plus, to the extent lawful, interest payable on the
defaulted interest, to the Persons who are Holders of the Securities of such Series on a subsequent
special record date, in each case at the rate provided in such Series of Securities and in Section
4.01 hereof. The Company will notify the Trustee in writing of the amount of defaulted interest
proposed to be paid on each Security of such Series and the date of the proposed payment. The
Company will fix or cause to be fixed each such special record date and payment date, provided that
no such special record date may be less than 10 days prior to the related payment date for such
defaulted interest. At least 15 days before the special record date, the Company (or, upon the
written request of the Company, the Trustee in the name and at the expense of the Company) will
mail or cause to be mailed to Holders of Securities of such Series a notice that states the special
record date, the related payment date and the amount of such interest to be paid.

Section 2.14 Global Securities

     (a) 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 Depositary for such Global Security
or Securities.

     (b) Transfer and Exchange. Notwithstanding any provisions to the contrary contained
in Section 2.07 of the Indenture and in addition thereto, any Global Security shall be exchangeable
pursuant to Section 2.7 of the Indenture for Securities of the Series with respect to which such
Global Security was issued registered in the names of Holders other than the Depositary for such
Security or its nominee only if (i) such Depositary notifies the Company that it is unwilling or
unable to continue as Depositary for such Global Security or if at any time such Depositary ceases
to be a clearing agency registered under the Exchange Act, and, in either case, the Company fails
to appoint a successor Depositary 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 Depositary shall direct in writing in an aggregate principal amount equal to the principal
amount of the Global Security with like tenor and terms.

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     Except as provided in this Section 2.14(b), a Global Security may not be transferred except as
a whole by the Depositary with respect to such Global Security to a nominee of such Depositary, by
a nominee of such Depositary to such Depositary or another nominee of such Depositary or by the
Depositary or any such nominee to a successor Depositary or a nominee of such a successor
Depositary.

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

     (d) Acts of Holders. The Depositary, as a Holder, may appoint agents and otherwise
authorize participants to give or take any request, demand, authorization, direction, notice,
consent, waiver or other action which a Holder is entitled to give or take under the Indenture.

     (e) Payments. Notwithstanding the other provisions of this Indenture, unless
otherwise specified as contemplated by Section 2.02, payment of the principal of and interest, if
any, on any Global Security shall be made to the Holder thereof.

     (f) Consents, Declaration and Directions. Except as provided in Section 2.14(e), 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 Depositary with respect to such Global Security, for purposes of obtaining
any consents, declarations, waivers or directions required to be given by the Holders pursuant to
this Indenture.

Section 2.15 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 3.

REDEMPTION AND PREPAYMENT

Section 3.01 Notices 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 or in the Board Resolution, supplemental indenture or Officer’s Certificate described in
Section 2.02 with

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respect to such Series. 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 must furnish to the Trustee, at least 45 days but not
more than 60 days before a redemption date, an Officers’ Certificate setting forth:

     (1) the term of the applicable Series of Securities pursuant to which the redemption
shall occur;

     (2) the redemption date;

     (3) the principal amount of Securities of such Series to be redeemed; and

     (4) the redemption price.

Section 3.02 Selection of Securities to Be Redeemed or Purchased

     Unless otherwise indicated for a particular Series by a Board Resolution, a supplemental
indenture or an Officers’ Certificate, if less than all of the Securities of a Series are to be
redeemed or purchased in an offer to purchase at any time, the Trustee will select Securities of
such Series for redemption or purchase as follows:

     (1) if the Securities of such Series are listed on any national securities exchange, in
compliance with the requirements of the principal national securities exchange on which the
Securities of such Series are listed; or

     (2) if the Securities of such Series are not listed on any national securities
exchange, on a pro rata basis (based on amounts tendered), by lot or by such method as the
Trustee shall deem fair and appropriate.

     In the event of partial redemption or purchase by lot, the Securities of a Series to be
redeemed or purchased will be selected, unless otherwise provided herein, not less than 30 nor more
than 60 days prior to the redemption or purchase date by the Trustee from the outstanding
Securities of such Series not previously called for redemption or purchase.

     The Trustee will promptly notify the Company in writing of the Securities selected for
redemption or purchase and, in the case of any Security selected for partial redemption or
purchase, the principal amount thereof to be redeemed or purchased. Securities and portions of
Securities selected will be in amounts of the minimum authorized denomination for Securities of
that Series or integral multiples thereof; except that if all of the Series of Securities of a
Holder are to be redeemed or purchased, the entire outstanding amount of such Securities held by
such Holder, even if not an integral multiple of the minimum authorized denomination, shall be
redeemed or purchased. Except as provided in the preceding sentence, provisions of this Indenture
that apply to Securities called for redemption or purchase also apply to portions of Securities
called for redemption or purchase.

Section 3.03 Notice of Redemption

     Unless otherwise indicated for a particular Series of Securities by a Board Resolution, a
supplemental indenture or an Officers’ Certificate, at least 30 days but not more than 60 days
before a redemption date, the Company will mail or cause to be mailed, by first class mail, a
notice of redemption to each Holder whose Securities are to be redeemed at its registered address,
except that redemption notices may be mailed more than 60 days prior to a redemption date if the
notice is issued in connection

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with a defeasance of the Securities or a satisfaction and discharge of such Securities and
this Indenture pursuant to Articles 8 or 11 of this Indenture.

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

     (1) the redemption date;

     (2) the redemption price;

     (3) if any Security of the Series is being redeemed in part, the portion of the
principal amount of such Security to be redeemed and that, after the redemption date upon
surrender of such Security, a new Security or Securities in principal amount equal to the
unredeemed portion will be issued upon cancellation of the original Security;

     (4) the name and address of the Paying Agent;

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

     (6) that, unless the Company defaults in making such redemption payment, interest on
Securities of the Series called for redemption ceases to accrue on and after the redemption
date;

     (7) the Section of the Securities of the Series and/or Section of this Indenture
applicable to such Series pursuant to which the Securities of the Series called for
redemption are being redeemed; and

     (8) that no representation is made as to the correctness or accuracy of the CUSIP
number, if any, listed in such notice or printed on the Securities of the Series.

     At the Company’s request, the Trustee will give the notice of redemption in the Company’s name
and at its expense; provided, however, that the Company has delivered to the Trustee, at least 45
days prior to the redemption date, an Officers’ Certificate requesting that the Trustee give such
notice and setting forth the information to be stated in such notice as provided in the preceding
paragraph.

Section 3.04 Effect of Notice of Redemption

     Once notice of redemption is mailed in accordance with Section 3.03 hereof, Securities of a
Series called for redemption become irrevocably due and payable on the redemption date at the
redemption price. A notice of redemption may not be conditional.

Section 3.05 Deposit of Redemption or Purchase Price

     Prior to 10:00 a.m. New York City time on the relevant redemption or purchase date, the
Company will deposit with the Trustee or with the Paying Agent money sufficient to pay the
redemption or purchase price of and accrued interest, if any, on all Securities to be redeemed or
purchased on that date. The Trustee or the Paying Agent will promptly return to the Company any
money deposited with the Trustee or the Paying Agent by the Company in excess of the amounts
necessary to pay the redemption or purchase price of, and accrued interest, if any, on, all
Securities to be redeemed or purchased.

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     If the Company complies with the provisions of the preceding paragraph, on and after the
redemption or purchase date, interest will cease to accrue on the Securities or the portions of
Securities called for redemption or purchase. If a Security is redeemed or purchased on or after
an interest record date but on or prior to the related interest payment date, then any accrued and
unpaid interest shall be paid to the Person in whose name such Security was registered at the close
of business on such record date. If any Security called for redemption or purchase is not so paid
upon surrender for redemption or purchase because of the failure of the Company to comply with the
preceding paragraph, interest shall be paid on the unpaid principal, from the redemption or
purchase date until such principal is paid, and to the extent lawful on any interest not paid on
such unpaid principal, in each case at the rate provided in the Securities and in Section 4.01
hereof.

Section 3.06 Securities Redeemed or Purchased in Part

     Upon surrender of a Security that is redeemed or purchased in part, the Company will issue
and, upon receipt of an Authentication Order, the Trustee will authenticate for the Holder at the
expense of the Company a new Security of the same Series equal in principal amount to the
unredeemed or unpurchased portion of the Security surrendered.

ARTICLE 4.

COVENANTS

Section 4.01 Payment of Securities

     The Company will pay or cause to be paid the principal of, premium, if any, and interest, on
each Series of Securities on the dates and in the manner provided for the Securities of such Series
by the Board Resolution, supplemental indenture or Officer’s Certificate establishing the terms of
such Series. Principal, premium, if any, and interest will be considered paid on the date due if
the Paying Agent, if other than the Company or a Subsidiary thereof, holds as of 10:00 a.m. Eastern
Time on the due date money deposited by the Company in immediately available funds in U.S. Legal
Tender and designated for and sufficient to pay all principal, premium, if any, and interest then
due. If the Company or Subsidiary is acting as Paying Agent, the Company shall, prior to 10:00
a.m. New York City time on the due date, segregate and hold in trust U.S. Legal Tender sufficient
to make payments of principal, premium and interest due on such date.

     Unless otherwise indicated for a Series of Securities in the Board Resolution, supplemental
indenture or Officer’s Certificate described in Section 2.02, the Company will pay interest
(including post-petition interest in any proceeding under any Bankruptcy Law) on overdue principal,
and on overdue installments of interest (without regard to any applicable grace period), at the
rate equal to 1% per annum in excess of the then applicable interest rate on each Series of
Securities to the extent lawful. Notwithstanding anything to the contrary contained in this
Indenture, the Company may, to the extent it is required to do so by law, deduct or withhold income
or other similar taxes imposed by the United States of America from principal or interest payments
hereunder.

Section 4.02 Maintenance of Office or Agency

     The Company will maintain in the Borough of Manhattan, the City of New York, an office or
agency (which may be an office of the Trustee, being U.S. Bank National Association, located at 100
Wall Street, New York, New York 10005, or an affiliate of the Trustee, Registrar or co-registrar)
where Securities of each Series may be surrendered for registration of transfer or for exchange and
where notices and demands to or upon the Company in respect of Securities of each Series and this
Indenture may be served. The Company will give prompt written notice to the Trustee of the
location, and any change in

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the location, of such office or agency. If at any time the Company fails to maintain any such
required office or agency or fails to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office
of the Trustee.

     The Company may also from time to time designate one or more other offices or agencies where
the Securities of each Series may be presented or surrendered for any or all such purposes and may
from time to time rescind such designations; provided, however, that no such designation or
rescission will in any manner relieve the Company of its obligation to maintain an office or agency
in the Borough of Manhattan, the City of New York 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
location of any such other office or agency.

     The Company hereby designates the Corporate Trust Office of the Trustee as one such office or
agency of the Company in accordance with Section 2.04 hereof.

Section 4.03
Reports Whether or not required by the rules and regulations of the SEC, so long
as Securities of any Series are outstanding, the Company will file a copy of all of the information
and reports referred to in clauses (1) and (2) below with the SEC for public availability within
the time periods specified in the SEC’s rules and regulations:

     (1) all quarterly and annual financial information that would be required to be
contained in a filing with the SEC on Forms 10-Q and 10-K if the Company were required to
file such forms, and, with respect to the annual information only, a report thereon by the
Company’s certified independent accountants; and

     (2) all current reports that would be required to be filed with the SEC on Form 8-K if
the Company were required to file such reports.

If the SEC will not accept a filing referred to above, then the Company will furnish such
information and reports to the Trustee and Holders within 15 days of the time periods specified in
the SEC’s rules and regulations, and make such information available to prospective investors upon
request. The Company will at all times comply with TIA § 314(a).

     (b) The Trustee shall not be under a duty to review or evaluate any report or information
delivered to the Trustee pursuant to the provisions of this Section 4.03 for the purposes of making
such reports available to it and to the Holders of Securities of any Series who may request such
information. Delivery of such reports, information and documents to the Trustee as may be required
under this Section 4.03 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 Officers’ Certificates).

Section 4.04 Compliance Certificate

     (a) The Company shall deliver to the Trustee, within 90 days after the end of each fiscal
year, 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 his or her knowledge after due inquiry 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

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terms, provisions and conditions of this Indenture (or, if a Default or Event of
Default has occurred, describing all such Defaults or Events of Default of which he or she may have
knowledge and what action the Company is taking or proposes to take with respect thereto) and that
to his or her knowledge after due inquiry no event has occurred and remains in existence by reason
of which payments on account of the principal of or interest, if any, on the Securities of any
Series is prohibited or if such event has occurred, a description of the event and what action the
Company is taking or proposes to take with respect thereto.

     (b) So long as any of the Securities of any Series are outstanding, the Company will deliver
to the Trustee, forthwith upon any Officer becoming aware of any Default or Event of Default, an
Officers’ Certificate specifying such Default or Event of Default and what action the Company is
taking or proposes to take with respect thereto.

Section 4.05 Taxes

     The Company will pay, and will cause each of its Subsidiaries to pay, prior to delinquency,
all material taxes, assessments, and governmental levies except such as are contested in good faith
and by appropriate proceedings or where the failure to effect such payment is not adverse in any
material respect to the Holders of the Securities of any Series.

Section 4.06 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, that may
affect the covenants or the performance of this Indenture; and the Company (to the extent that it
may lawfully do so) hereby expressly waives all 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 4.07 Corporate Existence

     Subject to Article 5 hereof, the Company shall do or cause to be done all things necessary to
preserve and keep in full force and effect:

     (1) its corporate existence, and the corporate, partnership or other existence of each
of its Subsidiaries, in accordance with the respective organizational documents (as the same
may be amended from time to time) of the Company or any such Subsidiary; and

     (2) the rights (charter and statutory), licenses and franchises of the Company and its
Subsidiaries; provided, however, that the Company shall not be required to preserve any such
right, license or franchise, or the corporate, partnership or other existence of any of its
Subsidiaries, 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
of the Securities of any Series.

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ARTICLE 5.

SUCCESSORS

Section 5.01 Merger, Consolidation, or Sale of Assets

     The Company shall not consolidate with or merge into, or convey, transfer or lease all or
substantially all of its properties and assets to, any Person (a “Successor Person”), and may not
permit any Person to merge into, or convey, transfer or lease its properties and assets
substantially as an entirety to, the Company, unless:

     (1) the Successor Person (if any) is a corporation, partnership, trust or other entity
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

     (2) 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 such supplemental indenture comply with this Indenture.

Section 5.02 Successor Person Substituted

     Upon any consolidation or merger, or any sale, assignment, transfer, lease, conveyance or
other disposition of all or substantially all of the assets of the Company in a transaction that is
subject to, and that complies with the provisions of, Section 5.01 hereof, the Successor Person
formed by such consolidation or into or with which the Company is merged or to which such sale,
assignment, transfer, lease, conveyance or other disposition is made shall succeed to, and be
substituted for (so that from and after the date of such consolidation, merger, sale, lease,
conveyance or other disposition, the provisions of this Indenture referring to the “Company” shall
refer instead to the Successor Person and not to the Company), and may exercise every right and
power of the Company under this Indenture with the same effect as if such Successor Person had been
named as the Company herein; provided, however, that the predecessor Company shall not be relieved
from the obligation to pay the principal of and interest on the Securities except in the case of a
sale of all of the Company’s assets in a transaction that is subject to, and that complies with the
provisions of, Section 5.01 hereof.

ARTICLE 6.

DEFAULTS AND REMEDIES

Section 6.01 Events of Default

     “Event of Default,” wherever used herein with respect to Securities of any Series, means any
one of the following events, subject to any modifications, deletions or additions relating to any
Series of Securities, as provided in the establishing Board Resolution, supplemental indenture or
Officers’ Certificate for such Series:

     (1) the Company defaults for 30 days in the payment when due of interest on, any
Security of that Series;

     (2) the Company defaults in the payment when due (at maturity, upon redemption or
otherwise) of the principal of, or premium, if any, on any Security of that Series;

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     (3) the Company fails to observe or perform any covenant, representation, warranty or
other agreement in this Indenture (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) or
the Securities of that Series for 60 consecutive days after notice to the Company by the
Trustee or the Holders of Securities of that Series of at least 25% in aggregate principal
amount of such Securities then outstanding voting as a single class;

     (4) a default occurs under any mortgage, indenture or instrument under which there may
be issued or by which there may be secured or evidenced any Indebtedness for money borrowed
by the Company or any of its Subsidiaries (or the payment of which is guaranteed by the
Company or any of its Subsidiaries), whether such Indebtedness or guarantee now exists, or
is created after the date of this Indenture, if that default:

     (A) is caused by a failure to pay principal of, or interest or premium, if any,
on such Indebtedness prior to the expiration of the grace period provided in such
Indebtedness on the date of such default (a “Payment Default”); or

     (B) results in the acceleration of such Indebtedness prior to its express
maturity,

and, in each case, the principal amount of any such Indebtedness, together with the
principal amount of any other such Indebtedness under which there has been a Payment Default
or the maturity of which has been so accelerated, aggregates $25.0 million or more;

     (5) the Company or any Subsidiary that is a Significant Subsidiary or any group of
Subsidiaries that, taken as a whole, would constitute a Significant Subsidiary pursuant to
or within the meaning of Bankruptcy Law:

     (A) commences a voluntary case,

     (B) consents to the entry of an order for relief against it in an involuntary
case,

     (C) consents to the appointment of a custodian of it or for all or
substantially all of its property,

     (D) makes a general assignment for the benefit of its creditors, or

     (E) generally is not paying its debts as they become due; or

     (6) a court of competent jurisdiction enters an order or decree under any Bankruptcy
Law that:

     (A) is for relief against the Company or any of its Significant Subsidiaries or
any group of Subsidiaries that, taken as a whole, would constitute a Significant
Subsidiary in an involuntary case;

     (B) appoints a custodian of the Company or any of its Significant Subsidiaries
or any group of Subsidiaries that, taken as a whole, would constitute a Significant
Subsidiary or for all or substantially all of the property of the Company or any

22

 

of its Significant Subsidiaries or any group of Subsidiaries that, taken as a
whole, would constitute a Significant Subsidiary; or

     (C) orders the liquidation of the Company or any of its Significant
Subsidiaries or any group of Subsidiaries that, taken as a whole, would constitute a
Significant Subsidiary;

and the order or decree remains unstayed and in effect for 60 consecutive days; or

     (7) any other Event of Default 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 2.02(s).

Section 6.02 Acceleration

     In the case of an Event of Default with respect to Securities of any Series at the time
outstanding specified in clause (5) or (6) of Section 6.01 hereof, with respect to the Company, any
Subsidiary that is a Significant Subsidiary or any group of Subsidiaries that, taken as a whole,
would constitute a Significant Subsidiary, all outstanding Securities of such Series shall become
due and payable immediately without further action or notice. If any other Event of Default with
respect to Securities of any Series at the time outstanding occurs and is continuing, the Trustee
or the Holders of at least 25% in principal amount of the then outstanding Securities of such
Series may declare all the Securities of such Series to be due and payable immediately.

     Upon any such declaration, the Securities of such Series shall become due and payable
immediately. The Holders of a majority in aggregate principal amount of the then outstanding
Securities of such Series by written notice to the Trustee may on behalf of all of the Holders of
Securities of such Series rescind an acceleration and its consequences if the rescission would not
conflict with any judgment or decree and if all existing Events of Default with respect to
Securities of such Series (except nonpayment of principal, interest or premium that has become due
solely because of the acceleration) have been cured or waived.

Section 6.03 Other Remedies

     If an Event of Default with respect to Securities of any Series occurs and is continuing, the
Trustee may pursue any available remedy to collect the payment of principal, premium, if any, and
interest on the Securities of such Series or to enforce the performance of any provision of the
Securities of such Series or this Indenture.

     The Trustee may maintain a proceeding even if it does not possess any of the Securities of
such Series or does not produce any of them in the proceeding. A delay or omission by the Trustee
or any Holder of a Security of any Series in exercising any right or remedy accruing upon an Event
of Default with respect to Securities of such Series shall not impair the right or remedy or
constitute a waiver of or acquiescence in such Event of Default. All remedies are cumulative to
the extent permitted by law.

Section 6.04 Waiver of Past Defaults

     Holders of not less than a majority in aggregate principal amount of the then outstanding
Securities of a Series by notice to the Trustee may on behalf of the Holders of all of the
Securities of such Series waive an existing Default or Event of Default with respect to such Series
and its consequences hereunder, except a continuing Default or Event of Default in the payment of
the principal of, premium, if

23

 

any, or interest on, the Securities of such Series (including in connection with any offer to
purchase); provided, however, that the Holders of a majority in aggregate principal amount of the
then outstanding Securities of such Series may rescind an acceleration and its consequences,
including any related payment default that resulted from such acceleration. 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 6.05 Control by Majority

     Holders of a majority in principal amount of the then outstanding Securities of a Series may
direct the time, method and place of conducting any proceeding for exercising any remedy available
to the Trustee or exercising any trust or power conferred on it with respect to the Securities of
such Series. However, the Trustee may refuse to follow any direction that conflicts with law or
this Indenture that the Trustee determines may be unduly prejudicial to the rights of other Holders
of Securities of such Series or that may involve the Trustee in personal liability. The Trustee
shall be entitled to take any other action deemed proper by the Trustee which is not inconsistent
with such direction or this Indenture.

Section 6.06 Limitation on Suits

     A Holder of a Security of any Series may pursue a remedy with respect to this Indenture or the
Securities of that Series only if:

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

     (2) the Holders of at least 25% in principal amount of the then outstanding Securities
of that Series make a written request to the Trustee to pursue the remedy;

     (3) such Holder of a Security of that Series or Holders of Securities of that Series
offer and, if requested, provide to the Trustee indemnity satisfactory to the Trustee
against any loss, liability or expense;

     (4) the Trustee does not comply with the request within 60 days after receipt of the
request and the offer and, if requested, the provision of indemnity; and

     (5) during such 60-day period the Holders of a majority in principal amount of the then
outstanding Securities of that Series do not give the Trustee a written direction
inconsistent with the request.

     A Holder of a Security may not use this Indenture to prejudice the rights of another Holder of
a Security of the same Series or to obtain a preference or priority over another Holder of a
Security of the same Series.

Section 6.07 Rights of Holders of Securities to Receive Payment

     Notwithstanding any other provision of this Indenture, the right of any Holder of a Security
of any Series to receive payment of principal, premium, if any, and interest on a Security of that
Series, on or after the respective due dates expressed in the Security of that Series (including in
connection with an offer to purchase), or to bring suit for the enforcement of any such payment on
or after such respective dates, shall not be impaired or affected without the consent of such
Holder.

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Section 6.08 Collection Suit by Trustee

     If an Event of Default with respect to Securities of any Series specified in Section 6.01(1)
or (2) occurs and is continuing, the Trustee is authorized to recover judgment in its own name and
as trustee of an express trust against the Company for the whole amount of principal of, premium,
if any, and interest remaining unpaid on the Securities of that Series and interest on overdue
principal and, to the extent lawful, interest and such further amount as shall be sufficient to
cover the costs and expenses of collection, including the reasonable compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel.

Section 6.09 Trustee May File Proofs of Claim

     The Trustee is authorized to file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee (including any claim for the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel) and the Holders of the Securities of any Series allowed in any judicial proceedings
relative to the Company (or any other obligor upon the Securities of any Series), its creditors or
its property and shall be entitled and empowered to collect, receive and distribute any money or
other property payable or deliverable on any such claims and any custodian in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the Trustee, and in the
event that the Trustee shall consent to the making of such payments directly to the Holders, to pay
to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel, and any other amounts due the Trustee under
Section 7.07 hereof. To the extent that the payment of any such compensation, expenses,
disbursements and advances of the Trustee, its agents and counsel, and any other amounts due the
Trustee under Section 7.07 hereof out of the estate in any such proceeding, shall be denied for any
reason, payment of the same shall be secured by a Lien on, and shall be paid out of, any and all
distributions, dividends, money, securities and other properties that the Holders may be entitled
to receive in such proceeding whether in liquidation or under any plan of reorganization or
arrangement or otherwise. Nothing herein contained shall be deemed to authorize the Trustee to
authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization,
arrangement, adjustment or composition affecting the Securities of any Series or the rights of any
Holder, or to authorize the Trustee to vote in respect of the claim of any Holder in any such
proceeding.

Section 6.10 Priorities

     If the Trustee collects any money pursuant to this Article 6, it shall pay out the money in
the following order:

     First: to the Trustee, its agents and attorneys for amounts due under Section 7.07
hereof, including payment of all compensation, expense and liabilities incurred, and all
advances made, by the Trustee and the costs and expenses of collection;

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

     Third: to the Company or to such party as a court of competent jurisdiction shall
direct.

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     The Trustee may fix a record date and payment date for any payment to Holders of Securities
pursuant to this Section 6.10.

Section 6.11 Undertaking for Costs

     In any suit for the enforcement of any right or remedy under this Indenture or in any suit
against the Trustee for any action taken or omitted by it as a Trustee, a court in its discretion
may require the filing by any party litigant in the suit of an undertaking to pay the costs of the
suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’
fees, against any party litigant in the suit, having due regard to the merits and good faith of the
claims or defenses made by the party litigant. This Section 6.11 does not apply to a suit by the
Trustee, a suit by a Holder of a Security pursuant to Section 6.07 hereof, or a suit by Holders of
more than 10% in principal amount of the then outstanding Securities of any Series.

ARTICLE 7.

TRUSTEE

Section 7.01 Duties of Trustee

     (a) If an Event of Default with respect to any Series of Securities has occurred and is
continuing, the Trustee will exercise such of the rights and powers vested in it by this Indenture,
and use the same degree of care and skill in its exercise, as a prudent person would exercise or
use under the circumstances in the conduct of such person’s own affairs.

     (b) Except during the continuance of an Event of Default with respect to any Series of
Securities:

     (1) the duties of the Trustee will be determined solely by the express provisions of
this Indenture and the Trustee need perform only those duties that are specifically set
forth in this Indenture and no others, and no implied covenants or obligations shall be read
into this Indenture against the Trustee; and

     (2) 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
certificates or opinions furnished to the Trustee and conforming to the requirements of this
Indenture. However, in the case of any such certificates or opinions which by any
provisions hereof are specifically required to be furnished to the Trustee, the Trustee will
examine the certificates and opinions to determine whether or not they conform to the
requirements of this Indenture.

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

     (1) this paragraph does not limit the effect of paragraph (b) of this Section 7.01;

     (2) the Trustee will 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; and

     (3) the Trustee will not be liable with respect to any action it takes or omits to take
in good faith in accordance with a direction received by it pursuant to Section 6.05 hereof.

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     (d) Whether or not therein expressly so provided, every provision of this Indenture that in
any way relates to the Trustee is subject to paragraphs (a), (b), and (c) of this Section 7.01.

     (e) No provision of this Indenture will require the Trustee to expend or risk its own funds or
incur any liability. The Trustee will be under no obligation to exercise any of its rights and
powers under this Indenture at the request of any Holders of a Series of Securities, unless such
Holders have offered to the Trustee security and indemnity satisfactory to it against any loss,
liability or expense.

     (f) The Trustee will 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.

Section 7.02 Rights of Trustee

     (a) The Trustee may conclusively rely 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
or an Opinion of Counsel or both. The Trustee will not be liable for any action it takes or omits
to take in good faith in reliance on such Officers’ Certificate or Opinion of Counsel. The Trustee
may consult with counsel and the written advice of such counsel or any Opinion of Counsel will be
full and complete authorization and protection from liability in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance thereon.

     (c) The Trustee may act through its attorneys and agents and will not be responsible for the
misconduct or negligence of any agent appointed with due care.

     (d) The Trustee will not be liable for any action it takes or omits to take in good faith that
it believes to be authorized or within the rights or powers conferred upon it by this Indenture.

     (e) Unless otherwise specifically provided in this Indenture, any demand, request, direction
or notice from the Company will be sufficient if signed by an Officer of the Company.

     (f) The Trustee will 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 a Series of Securities
unless such Holders have offered to the Trustee reasonable security or indemnity against the costs,
expenses and liabilities that might be incurred by it in compliance with such request or direction.

     (g) The Trustee shall not be deemed to have notice of any Default or Event of Default with
respect to any Series of Securities 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 or Event of
Default is received by the Trustee at the Corporate Trust Office of the Trustee, and such notice
references the Series Securities governed by this Indenture with respect to which such Default or
Event of Default relates.

     (h) The rights, privileges, immunities and benefits given to the Trustee hereunder, including
without limitation, its right to be indemnified, are extended to, and shall be enforceable by, the
Trustee in each of its capacities hereunder, and to each agent, custodian and other Person employed
by the Trustee consistent with the terms of this Indenture to act hereunder.

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     (i) Any permissive right or authority granted to the Trustee shall not be construed as a
mandatory duty.

Section 7.03 Individual Rights of Trustee

     The Trustee in its individual or any other capacity may become the owner or pledgee of
Securities of any Series and may otherwise deal with the Company or any Affiliate of the Company
with the same rights it would have if it were not Trustee. However, in the event that the Trustee
acquires any conflicting interest, as described in the TIA, it must eliminate such conflict within
90 days, apply to the SEC for permission to continue as Trustee or resign. Any Agent may do the
same with like rights and duties. The Trustee is also subject to Sections 7.10 and 7.11 hereof.

Section 7.04 Trustee’s Disclaimer

     The Trustee will not be responsible for and makes no representation as to the validity or
adequacy of this Indenture or the Securities of any Series, it shall not be accountable for the
Company’s use of the proceeds from the Securities of any Series or any money paid to the Company or
upon the Company’s direction under any provision of this Indenture, it will not be responsible for
the use or application of any money received by any Paying Agent other than the Trustee, and it
will not be responsible for any statement or recital herein or any statement in the Securities of
any Series or any other document in connection with the sale of the Securities of any Series or
pursuant to this Indenture other than its certificate of authentication.

Section 7.05 Notice of Defaults

     If a Default or Event of Default with respect to any Series of Securities of such Series
occurs and is continuing and if it is known to the Trustee, the Trustee will mail to Holders of
Securities of such Series a notice of the Default or Event of Default within 90 days after it
occurs. Except in the case of a Default or Event of Default in payment of principal of, premium,
if any, or interest on a Security of any Series, the Trustee may withhold the notice if and so long
as a committee of its Responsible Officers in good faith determines that withholding the notice is
in the interests of the Holders of the Securities of such Series.

Section 7.06 Reports by Trustee to Holders of the Securities

     (a) Within 60 days after each [___] beginning with the [___] following the date of
this Indenture, and for so long as Securities of any Series remain outstanding, the Trustee will
mail to the Holders of the Securities of such Series a brief report dated as of such reporting date
that complies with TIA § 313(a) (but if no event described in TIA § 313(a) has occurred within the
twelve months preceding the reporting date, no report need be transmitted). The Trustee also will
comply with TIA § 313(b)(2). The Trustee will also transmit by mail all reports as required by TIA
§ 313(c).

     (b) A copy of each report at the time of its mailing to the Holders of Securities of any
Series will be mailed by the Trustee to the Company and filed by the Trustee with the SEC and each
stock exchange on which the Securities of such Series are listed in accordance with TIA § 313(d).
The Company will promptly notify the Trustee when the Securities of any Series are listed on any
stock exchange.

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Section 7.07 Compensation and Indemnity

     (a) The Company will pay to the Trustee from time to time reasonable compensation for its
acceptance of this Indenture and services hereunder as the Company and Trustee shall from time to
time agree in writing. The Trustee’s compensation will not be limited by any law on compensation
of a trustee of an express trust. The Company will reimburse the Trustee promptly upon request for
all reasonable disbursements, advances and expenses incurred or made by it in addition to the
compensation for its services. Such expenses will include the reasonable compensation,
disbursements and expenses of the Trustee’s agents and counsel.

     (b) The Company shall indemnify the Trustee against any and all losses, liabilities or
expenses incurred by it arising out of or in connection with the acceptance or administration of
its duties under this Indenture, including the costs and expenses of enforcing this Indenture
against the Company (including this Section 7.07) and defending itself against any claim (whether
asserted by the Company or any Holder or any other Person) or liability in connection with the
exercise or performance of any of its powers or duties hereunder, except to the extent any such
loss, liability or expense may be attributable to its negligence or bad faith or willful
misconduct. The Trustee will notify the Company promptly of any claim for which it may seek
indemnity. Failure by the Trustee to so notify the Company will not relieve the Company of its
obligations hereunder. The Company will defend the claim and the Trustee will cooperate in the
defense. The Trustee may have separate counsel and the Company will pay the reasonable fees and
expenses of such counsel. The Company need not pay for any settlement made without its consent,
which consent will not be unreasonably withheld.

     (c) The obligations of the Company under this Section 7.07 will survive the satisfaction and
discharge of this Indenture.

     (d) To secure the Company’s payment obligations in this Section 7.07, the Trustee will have a
Lien prior to the Securities of each Series on all money or property held or collected by the
Trustee, except that held in trust to pay principal and interest on particular Securities of a
Series. Such Lien will survive the satisfaction and discharge of this Indenture.

     (e) When the Trustee incurs expenses or renders services after an Event of Default specified
in Section 6.01(5) or (6) hereof occurs, the expenses and the compensation for the services
(including the fees and expenses of its agents and counsel) are intended to constitute expenses of
administration under any Bankruptcy Law.

     (f) The Trustee will comply with the provisions of TIA § 313(b)(2) to the extent applicable.

Section 7.08 Replacement of Trustee

     (a) A resignation or removal of the Trustee and appointment of a successor Trustee with
respect to the Securities of one or more Series will become effective only upon the successor
Trustee’s acceptance of appointment as provided in this Section 7.08.

     (b) The Trustee may resign in writing at any time and be discharged from the trust hereby
created by so notifying the Company. The Holders of a majority in principal amount of the then
outstanding Securities of a Series may remove the Trustee with respect to such Series by so
notifying the Trustee and the Company in writing. The Company may remove the Trustee with respect
to the Securities of one or more Series if:

     (1) the Trustee fails to comply with Section 7.10 hereof;

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     (2) 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;

     (3) a custodian or public officer takes charge of the Trustee or its property; or

     (4) the Trustee becomes incapable of acting.

     (c) If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for
any reason with respect to the Securities of one or more Series, the Company will promptly appoint
a successor Trustee with respect to the Securities of that or those Series (it being understood
that any such successor Trustee may be appointed with respect to the Securities of one or more or
all of such Series and that at any time there shall be only one Trustee with respect to the
Securities of any Series). Within one year after a successor Trustee takes office, the Holders of
a majority in principal amount of the then outstanding Securities of a Series may appoint a
successor Trustee with respect to such Series to replace the successor Trustee for such Series
appointed by the Company.

     (d) If a successor Trustee for a Series does not take office within 60 days after the retiring
Trustee for such Series resigns or is removed, the retiring Trustee, the Company, or the Holders of
at least 10% in principal amount of the then outstanding Securities of such Series may petition any
court of competent jurisdiction for the appointment of a successor Trustee with respect to such
Series.

     (e) If the Trustee for a Series, after written request by any Holder of Securities of such
Series who has been a Holder of Securities of such Series for at least six months, fails with
respect to such Series to comply with Section 7.10, such Holder may petition any court of competent
jurisdiction for the removal of the Trustee for such Series and the appointment of a successor
Trustee for such Series.

     (f) A successor Trustee will deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Thereupon, the resignation or removal of the retiring Trustee will
become effective, and the successor Trustee will have all the rights, powers and duties of the
Trustee under this Indenture. The successor Trustee will mail a notice of its succession to
Holders of each Series of Securities for which it acts as Trustee. The retiring Trustee will
promptly transfer all property held by it as Trustee to the successor Trustee, provided all sums
owing to the Trustee hereunder have been paid and subject to the Lien provided for in Section 7.07
hereof. Notwithstanding replacement of the Trustee pursuant to this Section 7.08, the Company’s
obligations under Section 7.07 hereof will continue for the benefit of the retiring Trustee.

Section 7.09 Successor Trustee by Merger, etc.

     If the Trustee consolidates, merges or converts into, or transfers all or substantially all of
its corporate trust business to, another corporation, the successor corporation without any further
act will be the successor Trustee.

Section 7.10 Eligibility; Disqualification

     There will at all times be a Trustee hereunder that is a corporation organized and doing
business under the laws of the United States of America or of any state thereof that is authorized
under such laws to exercise corporate trustee power, that is subject to supervision or examination
by federal or state authorities and that has a combined capital and surplus of at least $100
million as set forth in its most recent published annual report of condition.

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     This Indenture will always have a Trustee who satisfies the requirements of TIA § 310(a)(1),
(2) and (5). The Trustee is subject to TIA § 310(b).

Section 7.11 Preferential Collection of Claims Against Company

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

ARTICLE 8.

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

Section 8.01 Option to Effect Legal Defeasance or Covenant Defeasance

     If, pursuant to Section 2.02, provision is made for either or both of (a) defeasance of the
Securities of or within a Series under Section 8.02 or (b) covenant defeasance of the Securities of
or within a Series under Section 8.03 to be applicable to the Securities of a Series, then the
provisions of such Section or Sections, as the case may be, together with the other provisions of
this Article (with such modifications thereto as may be specified pursuant to Section 2.02 with
respect to the Securities of such Series), shall be applicable to the Securities of such Series,
and the Company may, at the option of the Board of Directors evidenced by a resolution set forth in
an Officers’ Certificate, at any time, elect to have either Section 8.02 or 8.03 hereof be applied
to all outstanding Securities of such Series upon compliance with the conditions set forth below in
this Article 8.

Section 8.02 Legal Defeasance and Discharge

     Upon the Company’s exercise under Section 8.01 hereof of the option applicable to this Section
8.02, the Company shall, subject to the satisfaction of the conditions set forth in Section 8.04
hereof, be deemed to have been discharged from its obligations with respect to all outstanding
Securities of a Series on the date the conditions set forth below are satisfied with respect to the
Securities of such Series (hereinafter, “Legal Defeasance”). For this purpose, Legal Defeasance
means that the Company will be deemed to have paid and discharged the entire Indebtedness
represented by the outstanding Securities of such Series, which will thereafter be deemed to be
“outstanding” only for the purposes of Section 8.05 hereof and the other Sections of this Indenture
referred to in clauses (1) and (2) below, and to have satisfied all their other obligations under
the Securities of such Series and this Indenture (and the Trustee, on demand of and at the expense
of the Company, shall execute proper instruments acknowledging the same), except for the following
provisions which will survive until otherwise terminated or discharged hereunder:

     (1) the rights of Holders of outstanding Securities of such Series to receive payments
in respect of the principal of, or interest or premium, if any, on such Securities when such
payments are due from the trust referred to in Section 8.04 hereof;

     (2) the Company’s obligations with respect to the Securities of such Series under
Article 2 and Section 4.02 hereof;

     (3) the rights, powers, trusts, duties and immunities of the Trustee hereunder and the
Company’s obligations in connection therewith; and

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     (4) this Article 8.

     Subject to compliance with this Article 8, the Company may exercise its option under this
Section 8.02 with respect to Securities of a Series notwithstanding the prior exercise of its
option under Section 8.03 hereof with respect to Securities of such Series.

Section 8.03 Covenant Defeasance

     Upon the Company’s exercise under Section 8.01 hereof of the option applicable to this Section
8.03, the Company shall, subject to the satisfaction of the conditions set forth in Section 8.04
hereof, be released from each of their obligations under the covenants contained in Sections 4.3
and 4.4, as well as any additional covenants contained in a supplemental indenture hereto for a
particular Series of Securities, with respect to the outstanding Securities of a Series on and
after the date the conditions set forth in Section 8.04 hereof are satisfied (hereinafter,
“Covenant Defeasance”), and the Securities of such Series shall thereafter be deemed not
“outstanding” for the purposes of any direction, waiver, consent or declaration or act of Holders
of Securities of such Series (and the consequences of any thereof) in connection with such
covenants, but will continue to be deemed “outstanding” for all other purposes hereunder (it being
understood that the Securities of such Series will not be deemed outstanding for accounting
purposes). For this purpose, Covenant Defeasance means that, with respect to the outstanding
Securities of such Series, the Company may omit to comply with and will have no liability in
respect of any term, condition or limitation set forth in any such covenant, whether directly or
indirectly, by reason of any reference elsewhere herein to any such covenant or by reason of any
reference in any such covenant to any other provision herein or in any other document and such
omission to comply will not constitute a Default or an Event of Default with respect to Securities
of such Series under Section 6.01 hereof, but, except as specified above, the remainder of this
Indenture and the Securities of such Series will be unaffected thereby. In addition, upon the
Company’s exercise under Section 8.01 hereof of the option applicable to this Section 8.03 hereof,
subject to the satisfaction of the conditions set forth in Section 8.04 hereof, Sections 6.01(3)
through 6.01(5) hereof will not constitute Events of Default.

Section 8.04 Conditions to Legal or Covenant Defeasance

     In order to exercise either Legal Defeasance or Covenant Defeasance under either Section 8.02
or 8.03 hereof:

     (1) the Company must irrevocably deposit with the Trustee, in trust, for the benefit of
the Holders of Securities of a Series, cash in such currency, currencies or currency units
in which such Securities are then specified as payable at Stated Maturity, non-callable
Government Securities, or a combination thereof, in such amounts as will be sufficient, in
the opinion of a nationally recognized firm of independent public accountants, to pay the
principal of, premium, if any, and interest on the outstanding Securities of such Series on
the stated date for payment thereof or on the applicable redemption date, as the case may
be, and the Company must specify whether the Securities of such Series are being defeased to
maturity or to a particular redemption date;

     (2) in the case of an election under Section 8.02 hereof, the Company has delivered to
the Trustee an Opinion of Counsel in the United States reasonably acceptable to the Trustee
confirming that:

     (A) the Company has received from, or there has been published by, the Internal
Revenue Service a ruling; or

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     (B) since the date 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 outstanding Securities of such Series will not
recognize income, gain or loss for federal income tax purposes as a result of such
Legal 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 Legal
Defeasance had not occurred;

     (3) in the case of an election under Section 8.03 hereof, the Company must deliver to
the Trustee an Opinion of Counsel in the United States reasonably acceptable to the Trustee
confirming that the Holders of the outstanding Securities of such Series will not recognize
income, gain or loss for federal income tax purposes as a result of such 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 Covenant Defeasance had not occurred;

     (4) no Default or Event of Default with respect to Securities of such Series shall have
occurred and be continuing on the date of such deposit (other than a Default or Event of
Default with respect to Securities of such Series resulting from the borrowing of funds to
be applied to such deposit);

     (5) such Legal Defeasance or Covenant Defeasance will not result in a breach or
violation of, or constitute a default under, any material agreement or instrument (other
than this Indenture) with respect to such Securities to which the Company or any of its
Subsidiaries is a party or by which the Company or any of its Subsidiaries is bound;

     (6) the Company must deliver to the Trustee an Officers’ Certificate stating that the
deposit was not made by the Company with the intent of preferring the Holders of Securities
of such Series over the other creditors of the Company or with the intent of defeating,
hindering, delaying or defrauding any other creditors of the Company or others; and

     (7) the Company must deliver to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for or relating to the Legal
Defeasance or the Covenant Defeasance have been complied with.

Section 8.05 Deposited Money and Government Securities to be Held in Trust; Other
Miscellaneous Provisions Subject to Section 8.06 hereof, all money and non-callable Government
Securities (including the proceeds thereof) deposited with the Trustee (or other qualifying
trustee, collectively for purposes of this Section 8.05, the “Trustee”) pursuant to Section 8.04
hereof in respect of the outstanding Securities of a Series will be held in trust and applied by
the Trustee, in accordance with the provisions of the Securities of such Series and this Indenture,
to the payment, either directly or through any Paying Agent (including the Company acting as Paying
Agent) as the Trustee may determine, to the Holders of the Securities of such Series of all sums
due and to become due thereon in respect of principal, premium, if any, and interest, but such
money need not be segregated from other funds except to the extent required by law.

     The Company will pay and indemnify the Trustee against any tax, fee or other charge imposed on
or assessed against the cash or non-callable Government Securities deposited pursuant to Section
8.04 hereof or the principal and interest received in respect thereof other than any such tax, fee
or other charge which by law is for the account of the Holders of an outstanding Series of
Securities.

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     Notwithstanding anything in this Article 8 to the contrary, the Trustee will deliver or pay to
the Company from time to time upon the request of the Company any money or non-callable Government
Securities held by it as provided in Section 8.04 hereof which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written certification thereof
delivered to the Trustee (which may be the opinion delivered under Section 8.04(1) hereof), are in
excess of the amount thereof that would then be required to be deposited to effect an equivalent
Legal Defeasance or Covenant Defeasance.

Section 8.06
Repayment to Company Any money deposited with the Trustee or any Paying Agent, or
then held by the Company, in trust for the payment of the principal of, premium, if any, or
interest on any Series of Securities and remaining unclaimed for two years after such principal,
premium, if any, or interest has become due and payable shall be paid to the Company on its request
or (if then held by the Company) will be discharged from such trust; and the Holder of Security of
such Series will thereafter be permitted to look only to the Company for payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such trust money, and all liability
of the Company as trustee thereof, will thereupon cease; provided, however, that the Trustee or
such Paying Agent, before being required to make any such repayment, may at the expense of the
Company cause to be published once, in The New York Times and The Wall Street Journal (national
edition), notice that such money remains unclaimed and that, after a date specified therein, which
will not be less than 30 days from the date of such notification or publication, any unclaimed
balance of such money then remaining will be repaid to the Company.

Section 8.07
Reinstatement If the Trustee or Paying Agent is unable to apply any United States
dollars or other currency or non-callable Government Securities in accordance with Section 8.02 or
8.03 hereof, as the case may be, by reason of any order or judgment of any court or governmental
authority enjoining, restraining or otherwise prohibiting such application, then the Company’s
obligations under this Indenture and each applicable Series of Securities will be revived and
reinstated as though no deposit had occurred pursuant to Section 8.02 or 8.03 hereof until such
time as the Trustee or Paying Agent is permitted to apply all such money in accordance with Section
8.02 or 8.03 hereof, as the case may be; provided, however, that, if the Company makes any payment
of principal of, premium, if any, or interest on any Series of Securities following the
reinstatement of its obligations, the Company will be subrogated to the rights of the Holders of
such Series of Securities to receive such payment from the money held by the Trustee or Paying
Agent.

ARTICLE 9.

AMENDMENT, SUPPLEMENT AND WAIVER

Section 9.01
Without Consent of Holders of Securities Notwithstanding Section 9.02 of this
Indenture, the Company and the Trustee may amend or supplement this Indenture or any Series of
Securities without the consent of any Holder of Securities:

     (1) to evidence the succession of another Person to the Company or a Guarantor and the
assumption by any such successor of the covenants of the Company or such Guarantor herein,
in any Security Guarantee and in the Securities contained; provided that such succession is
otherwise in compliance with this Indenture and applicable law;

     (2) to add to the covenants of the Company or any Guarantor for the benefit of the
Holders of all or any Series of Securities (and, if such covenants are to be for the benefit
of less than all Series of Securities, stating that such covenants are expressly being
included solely for the benefit of such Series) or to surrender any right or power herein
conferred upon the Company or any Guarantor;

34

 

     (3) to add any additional Events of Default for the benefit of the Holders of all or
any Series of Securities (and if such Events of Default are to be for the benefit of less
than all Series of Securities, stating that such Events of Default are expressly being
included solely for the benefit of such Series); provided, however, that in respect of any
such additional Events of Default such supplemental indenture may provide for a particular
period of grace after default (which period may be shorter or longer than that allowed in
the case of other defaults) or may provide for an immediate enforcement upon such default or
may limit the remedies available to the Trustee upon such default or may limit the right of
the Holders of a majority in aggregate principal amount of that or those Series of
Securities to which such additional Events of Default apply to waive such default;

     (4) to permit or facilitate the issuance of Securities in uncertificated form, provided
that any such action shall not adversely affect the interest of the Holders of Securities of
any Series in any material respect;

     (5) to add to, change or eliminate any of the provisions of this Indenture or any
Guarantee in respect of any Series of Securities, provided that any such addition, change or
elimination shall (i) neither (A) apply to any Security of any Series created prior to the
execution of such supplemental indenture and entitled to the benefit of such provision, nor
(B) modify the rights of the Holder of any such Security with respect to such provision; or
(ii) become effective only when there is no Security Outstanding;

     (6) to secure the Securities of any Series;

     (7) to establish the form or terms of Securities of any Series as permitted by Sections
2.01 and 2.02, including the provisions and procedures relating to Securities convertible
into or exchangeable for other securities or property of the Company;

     (8) 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 or change any of the
provisions of the Indenture or any Guarantee as shall be reasonable and necessary solely to
provide for or facilitate the administration of the trusts hereunder by more than one
Trustee; provided that such succession is otherwise in compliance with this Indenture and
applicable law;

     (9) to cure any ambiguity, defect or inconsistency;

     (10) to provide for uncertificated Securities in addition to or in place of
certificated Securities or to alter the provisions of Article 2 hereof (including the
related definitions) in a manner that does not materially adversely affect any Holder of any
Series of Securities;

     (11) to provide for the assumption of the Company’s obligations to the Holders of each
Series of Securities by a successor to the Company pursuant to Article 5 hereof;

     (12) to make any change that would provide any additional rights or benefits to the
Holders of each Series of Securities or that does not adversely affect the legal rights
hereunder of any Holder of any Series of Securities; or

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

35

 

     Upon the request of the Company accompanied by a resolution of the Board of Directors
authorizing the execution of any such amended or supplemental Indenture, and upon receipt by the
Trustee of the documents described in Section 7.02 hereof, the Trustee will join with the Company
in the execution of any amended or supplemental Indenture authorized or permitted by the terms of
this Indenture and to make any further appropriate agreements and stipulations that may be therein
contained, but the Trustee will not be obligated to enter into such amended or supplemental
Indenture that affects its own rights, duties or immunities under this Indenture or otherwise.

Section 9.02
With Consent of Holders of Securities Except as provided below in this Section
9.02, the Company and the Trustee may amend or supplement this Indenture and the Securities of an
affected Series with the consent of the Holders of at least a majority in principal amount of the
Securities of such affected Series then outstanding, voting as a separate class, (including,
without limitation, consents obtained in connection with a tender offer or exchange offer for, or
purchase of, the Securities of each affected Series). Subject to Sections 6.04 and 6.07 hereof,
any existing Default or Event of Default with respect to a Series of Securities (other than a
Default or Event of Default in the payment of the principal of, premium, if any, or interest on the
Securities of such Series, except a payment default resulting from an acceleration that has been
rescinded) or compliance with any provision of this Indenture or the Securities of such Series may
be waived with the consent of the Holders of a majority in principal amount of the then outstanding
Securities of such Series voting as a single class (including consents obtained in connection with
a tender offer or exchange offer for, or purchase of, the Securities of such Series). Section 2.08
hereof shall determine which Securities are considered to be “outstanding” for purposes of this
Section 9.02.

     Upon the request of the Company accompanied by a Board Resolution authorizing the execution of
any such amended or supplemental Indenture, and upon the filing with the Trustee of evidence
satisfactory to the Trustee of the consent of the Holders of Securities of each required Series as
aforesaid, and upon receipt by the Trustee of the documents described in Section 7.02 hereof, the
Trustee will join with the Company in the execution of such amended or supplemental Indenture
unless such amended or supplemental Indenture directly affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but
will not be obligated to, enter into such amended or supplemental Indenture.

     It is not be necessary for the consent of the Holders of Securities of any Series under this
Section 9.02 to approve the particular form of any proposed amendment or waiver, but it is
sufficient if such consent approves the substance thereof.

     After an amendment, supplement or waiver under this Section 9.02 becomes effective, the
Company will mail to the Holders of Securities of each Series affected thereby a notice briefly
describing the amendment, supplement or waiver. Any failure of the Company to mail such notice, or
any defect therein, will not, however, in any way impair or affect the validity of any such amended
or supplemental Indenture or waiver. Subject to Sections 6.04 and 6.07 hereof, the Holders of a
majority in aggregate principal amount of the Securities of any Series then outstanding voting as a
single class may waive compliance in a particular instance by the Company with any provision of
this Indenture with respect to such Series or such Series of Securities. However, without the consent of each Holder
affected, an amendment or waiver under this Section 9.02 may not (with respect to any Securities
held by a non-consenting Holder):

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

36

 

     (2) reduce the principal of or change the fixed maturity of any Security or alter or
waive any of the provisions with respect to the redemption of the Securities;

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

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

     (5) make any Security payable in currency other than that stated in the Securities;

     (6) make any change in the provisions of this Indenture relating to waivers of past
Defaults or the rights of Holders of Securities to receive payments of principal of, or
interest or premium, if any, on the Securities;

     (7) waive a redemption payment, if any, with respect to any Securities or change any of
the provisions with respect to the redemption of any Securities; or

     (8) make any change in the foregoing amendment and waiver provisions.

Section 9.03
Compliance with Trust Indenture Act Every amendment or supplement to this
Indenture or the Securities will be set forth in a amended or supplemental Indenture that complies
with the TIA as then in effect.

Section 9.04
Revocation and Effect of Consents Until an amendment, supplement or waiver becomes
effective, a consent to it by a Holder of a Security is a continuing consent by the Holder of a
Security 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 of a Security or subsequent Holder of a Security may revoke the
consent as to its Security if the Trustee receives written notice of revocation before the date the
waiver, supplement or amendment becomes effective. An amendment, supplement or waiver becomes
effective in accordance with its terms and thereafter binds every Holder.

Section 9.05 Notation on or Exchange of Securities. The Trustee may place an appropriate
notation about an amendment, supplement or waiver on any Security thereafter authenticated. If the
Company so determines, the Company in exchange for all Securities of a Series may issue and the
Trustee shall, upon receipt of an Authentication Order, authenticate new Securities of such Series
that reflect the amendment, supplement or waiver.

     Failure to make the appropriate notation or issue a new Security will not affect the validity
and effect of such amendment, supplement or waiver.

Section 9.06 Trustee to Sign Amendments, etc.

     The Trustee will sign any amended or supplemental Indenture authorized pursuant to this
Article 9 if the amendment or supplement does not adversely affect the rights, duties, liabilities
or immunities of the Trustee. The Company may not sign an amendment or supplemental Indenture
until the Board of Directors approves it. In executing any amended or supplemental indenture, the
Trustee will be entitled

37

 

to receive and (subject to Section 7.01 hereof) will be fully protected in
relying upon, in addition to the documents required by Section 12.04 hereof, an Officers’
Certificate and an Opinion of Counsel stating that the execution of such amended or supplemental
Indenture is authorized or permitted by this Indenture.

ARTICLE 10.

GUARANTEES

Section 10.01 Guarantees.

     (a) If, pursuant to Section 2.02, provision is made for the Guarantee of the Securities of a
Series, then subject to this Article 10, each of the Guarantors hereby, jointly and severally,
unconditionally guarantees to each Holder of a Security of such Series authenticated and delivered
by the Trustee and to the Trustee and its successors and assigns, irrespective of the validity and
enforceability of this Indenture, the Securities of such Series or the obligations of the Company
hereunder or thereunder, that:

     (1) the principal of, premium, and interest on such Securities will be promptly paid in
full when due, whether at maturity, by acceleration, redemption or otherwise, and interest
on the overdue principal of and interest on such Securities, if any, if lawful, and all
other obligations of the Company to the Holders of Securities of such Series or the Trustee
hereunder or thereunder will be promptly paid in full or performed, all in accordance with
the terms hereof and thereof; and

     (2) in case of any extension of time of payment or renewal of any such Securities or
any of such other obligations, that same will be promptly paid in full when due or performed
in accordance with the terms of the extension or renewal, whether at stated maturity, by
acceleration or otherwise.

     Failing payment when due of any amount so guaranteed or any performance so guaranteed for
whatever reason, the Guarantors will be jointly and severally obligated to pay the same
immediately. Each Guarantor agrees that this is a guarantee of payment and not a guarantee of
collection.

     (b) The Guarantors hereby agree that their obligations hereunder are unconditional,
irrespective of the validity, regularity or enforceability of the Securities or this Indenture, the
absence of any action to enforce the same, any waiver or consent by any Holder of the Securities
with respect to any provisions hereof or thereof, the recovery of any judgment against the Company,
any action to enforce the same or any other circumstance which might otherwise constitute a legal
or equitable discharge or defense of a guarantor. Each Guarantor hereby waives diligence,
presentment, demand of payment, filing of claims with a court in the event of insolvency or
bankruptcy of the Company, any right to require a proceeding first against the Company, protest,
notice and all demands whatsoever and covenant that the Security Guarantee will not be discharged except by complete performance of the obligations
contained in such Securities and this Indenture.

     (c) If any Holder or the Trustee is required by any court or otherwise to return to the
Company, the Guarantors or any custodian, trustee, liquidator or other similar official acting in
relation to either the Company or the Guarantors, any amount paid by either to the Trustee or such
Holder, the Security Guarantee, to the extent theretofore discharged, will be reinstated in full
force and effect.

     (d) Each Guarantor agrees that it will not be entitled to any right of subrogation in relation
to the Holders in respect of any obligations guaranteed hereby until payment in full of all
obligations

38

 

guaranteed hereby. Each Guarantor further agrees that, as between the Guarantors, on
the one hand, and the Holders and the Trustee, on the other hand, (1) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article 6 hereof for the purposes
of the Security Guarantee, notwithstanding any stay, injunction or other prohibition preventing
such acceleration in respect of the obligations guaranteed hereby, and (2) in the event of any
declaration of acceleration of such obligations as provided in Article 6 hereof, such obligations
(whether or not due and payable) will forthwith become due and payable by the Guarantors for the
purpose of the Security Guarantee. The Guarantors will have the right to seek contribution from
any non-paying Guarantor so long as the exercise of such right does not impair the rights of the
Holders under the Security Guarantee.

Section 10.02 Limitation on Guarantor Liability.

     Each Guarantor, and by its acceptance of Securities, each Holder, hereby confirms that it is
the intention of all such parties that the Security Guarantee of such Guarantor not constitute a
fraudulent transfer or conveyance for purposes of Bankruptcy Law, the Uniform Fraudulent Conveyance
Act, the Uniform Fraudulent Transfer Act or any similar federal or state law to the extent
applicable to any Security Guarantee. To effectuate the foregoing intention, the Trustee, the
Holders and the Guarantors hereby irrevocably agree that the obligations of such Guarantor under
its Security Guarantee and this Article 10 shall be limited to the maximum amount as will, after
giving effect to such maximum amount and all other contingent and fixed liabilities of such
Guarantor that are relevant under such laws, and after giving effect to any collections from,
rights to receive contribution from or payments made by or on behalf of any other Guarantor in
respect of the obligations of such other Guarantor under this Article 10, result in the obligations
of such Guarantor under its Security Guarantee not constituting a fraudulent transfer or
conveyance.

Section 10.03 Execution and Delivery of Security Guarantee.

     To evidence its Security Guarantee set forth in Section 10.01, each Guarantor hereby agrees
that a notation of such Security Guarantee will be endorsed by an Officer of such Guarantor on each
Security of a guaranteed Series authenticated and delivered by the Trustee and that this Indenture
will be executed on behalf of such Guarantor by one of its Officers.

     Each Guarantor hereby agrees that its Security Guarantee set forth in Section 10.01 will
remain in full force and effect notwithstanding any failure to endorse on each Security of a
guaranteed Series a notation of such Security Guarantee.

     If an Officer whose signature is on this Indenture or on the Security Guarantee no longer
holds that office at the time the Trustee authenticates the Security on which a Security Guarantee
is endorsed, the Security Guarantee will be valid nevertheless.

     The delivery of any Security of a guaranteed Series by the Trustee, after the authentication
thereof hereunder, will constitute due delivery of the Security Guarantee set forth in this
Indenture on behalf of the Guarantors.

Section 10.04 Guarantors May Consolidate, etc., on Certain Terms.

     Except as otherwise provided in Section 10.05, no Guarantor may sell or otherwise dispose of
all or substantially all of its assets to, or consolidate with or merge with or into (whether or
not such Guarantor is the surviving Person) another Person, other than the Company or another
Guarantor, unless:

39

 

     (1) immediately after giving effect to such transaction, no Default or Event of Default
exists; and

     (2) subject to Section 10.05 hereof, the Person acquiring the property in any such sale
or disposition or the Person formed by or surviving any such consolidation or merger
unconditionally assumes all the obligations of that Guarantor, pursuant to a supplemental
indenture in form and substance reasonably satisfactory to the Trustee, under the Securities
of a guaranteed Series, this Indenture and the Security Guarantee on the terms set forth
herein or therein.

     In case of any such consolidation, merger, sale or conveyance and upon the assumption by the
successor Person, by supplemental indenture, executed and delivered to the Trustee and satisfactory
in form to the Trustee, of the Security Guarantee endorsed upon the Securities of a guaranteed
Series and the due and punctual performance of all of the covenants and conditions of this
Indenture to be performed by the Guarantor, such successor Person will succeed to and be
substituted for the Guarantor with the same effect as if it had been named herein as a Guarantor.
Such successor Person thereupon may cause to be signed any or all of the Security Guarantees to be
endorsed upon all of the Securities of a guaranteed Series issuable hereunder which theretofore
shall not have been signed by the Company and delivered to the Trustee. All the Security
Guarantees so issued will in all respects have the same legal rank and benefit under this Indenture
as the Security Guarantees theretofore and thereafter issued in accordance with the terms of this
Indenture as though all of such Security Guarantees had been issued at the date of the execution
hereof.

     Except as set forth in Articles 4 and 5 hereof, nothing contained in this Indenture or in any
of the Securities will prevent any consolidation or merger of a Guarantor with or into the Company
or another Guarantor, or will prevent any sale or conveyance of the property of a Guarantor as an
entirety or substantially as an entirety to the Company or another Guarantor.

Section 10.05 Releases Following Sale of Assets.

     In the event of any sale or other disposition of all or substantially all of the assets of any
Guarantor, by way of merger, consolidation or otherwise, or a sale or other disposition of all to
the Capital Stock of any Guarantor, in each case to a Person that is not (either before or after
giving effect to such transactions) a wholly-owned Subsidiary of the Company, then such Guarantor
(in the event of a sale or other disposition, by way of merger, consolidation or otherwise, of all
of the capital stock of such Guarantor) or the corporation acquiring the property (in the event of
a sale or other disposition of all or substantially all of the assets of such Guarantor) will be
released and relieved of any obligations under its Security Guarantee; provided that the net
proceeds of such sale or other disposition are applied in accordance with applicable provisions of
this Indenture, if any. Upon delivery by the Company to the Trustee of an Officers’ Certificate
and an Opinion of Counsel to the effect that such sale or other disposition was made by the Company
in accordance with the provisions of this Indenture, the Trustee will execute any documents reasonably required in order to evidence the release of any
Guarantor from its obligations under its Security Guarantee.

     Any Guarantor not released from its obligations under its Security Guarantee will remain
liable for the full amount of principal of and interest on the Securities of a Series that it has
guaranteed and for the other obligations of any Guarantor of Securities of a Series that it has
guaranteed under this Indenture as provided in this Article 10.

40

 

ARTICLE 11.

SATISFACTION AND DISCHARGE

Section 11.01
Satisfaction and Discharge This Indenture will be discharged and will cease to be
of further effect as to all Securities of a Series issued hereunder, when:

     (1) either:

     (a) all Securities of such Series that have been authenticated (except lost, stolen or
destroyed Securities that have been replaced or paid and Securities for whose payment money
has theretofore been deposited in trust and thereafter repaid to the Company) have been
delivered to the Trustee for cancellation; or

     (b) all Securities of such Series that have not been delivered to the Trustee for
cancellation have become due and payable by reason of the making of a notice of redemption
or otherwise or will become due and payable within one year and the Company has irrevocably
deposited or caused to be deposited with the Trustee as trust funds in trust solely for the
benefit of the Holders of such Series, cash in U.S. dollars, non-callable Government
Securities, or a combination thereof, in such amounts as will be sufficient without
consideration of any reinvestment of interest to pay and discharge the entire indebtedness
on the Securities of such Series not delivered to the Trustee for cancellation for
principal, premium, if any, and accrued interest to the date of maturity or redemption;

     (2) no Default or Event of Default has occurred and is continuing on the date of such
deposit or will occur as a result of such deposit and such deposit will not result in a
breach or violation of, or constitute a default under, any other instrument to which the
Company is a party or by which the Company is bound;

     (3) the Company has paid or caused to be paid all sums payable by it under this
Indenture; and

     (4) the Company has delivered irrevocable instructions to the Trustee under this
Indenture to apply the deposited money toward the payment of the Securities of such Series
at maturity or the redemption date, as the case may be.

     In addition, the Company must deliver an Officers’ Certificate and an Opinion of Counsel to
the Trustee stating that all conditions precedent to satisfaction and discharge have been
satisfied.

     Notwithstanding the satisfaction and discharge of this Indenture as to all Securities of any
Series under this Indenture, if money has been deposited with the Trustee pursuant to subclause (b)
of clause (1) of this Section with respect to a Series of Securities, the provisions of Section
11.02 and Section 8.06 will survive with respect to such Series of Securities. In addition, nothing in this Section 11.01
will be deemed to discharge those provisions of Section 7.07 hereof, that, by their terms, survive
the satisfaction and discharge of this Indenture.

Section 11.02
Application of Trust Money Subject to the provisions of Section 8.06, all money
deposited with the Trustee pursuant to Section 11.01 shall be held in trust and applied by it, in
accordance with the provisions of the Securities of such Series and this Indenture, to the payment,
either directly or through any Paying Agent (including the Company acting as its own Paying Agent)
as the Trustee may determine, to the Persons entitled thereto, of the principal (and premium, if
any) and interest for whose payment such

41

 

money has been deposited with the Trustee; but such money
need not be segregated from other funds except to the extent required by law.

     If the Trustee or Paying Agent is unable to apply any money or Government Securities in
accordance with Section 11.01 by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the Company’s obligations under this Indenture and the Securities of such Series
shall be revived and reinstated as though no deposit had occurred pursuant to Section 11.01;
provided that if the Company has made any payment of principal of, premium, if any, or interest on
any Securities of such Series because of the reinstatement of its obligations, the Company shall be
subrogated to the rights of the Holders of Securities of such Series to receive such payment from
the money or Government Securities held by the Trustee or Paying Agent.

     The Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed
or assessed against the Trustee with respect to the money deposited with the Trustee pursuant to
Section 11.01 hereof.

ARTICLE 12.

MISCELLANEOUS

Section 12.01
Trust Indenture Act Controls If any provision of this Indenture limits, qualifies
or conflicts with the duties imposed by TIA §318(c), the imposed duties will control.

Section 12.02
Notices Any notice or communication by the Company or the Trustee to the others
is duly given if in writing and delivered in Person or mailed by first class mail (registered or
certified, return receipt requested), telex, telecopier or overnight air courier guaranteeing next
day delivery, to the others’ address:

If to the Company:

Education Realty Trust, Inc.

530 Oak Court Drive, Suite 300

Memphis Tennessee 38117

With a copy to:

Bass, Berry & Sims PLC

The Tower at Peabody Place

100 Peabody Place Suite 900

Memphis, Tennessee 38103

Telecopier No.: (901) 543-5999

Attention: Robert J. DelPriore

If to the Trustee:

U.S. Bank National Association

Corporate Trust Services

EP-MN-WS3C

60 Livingston Avenue

St. Paul MN 55107-2292

Telecopier No.: _____________

Attention: _________________

42

 

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

     All notices and communications (other than those sent to Holders) will be deemed to have been
duly given: at the time delivered by hand, if personally delivered; five Business Days after being
deposited in the mail, postage prepaid, if mailed; when answered back, if telexed; when receipt
acknowledged, if telecopied; and the next Business Day after timely delivery to the courier, if
sent by overnight air courier guaranteeing next day delivery.

     Any notice or communication to a Holder will be mailed by first class mail, certified or
registered, return receipt requested, or by overnight air courier guaranteeing next day delivery to
its address shown on the register kept by the Registrar. Any notice or communication will also be
so mailed to any Person described in TIA § 313(c), to the extent required by the TIA. Failure to
mail a notice or communication to a Holder or any defect in it will not affect its sufficiency with
respect to other Holders.

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

     If the Company mails a notice or communication to Holders of a Series of Securities, it will
mail a copy to the Trustee and each Agent for such Series of Securities at the same time.

Section 12.03 Communication by Holders of Securities with Other Holders of Securities

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

Section 12.04 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:

     (1) an Officers’ Certificate in form and substance reasonably satisfactory to the
Trustee (which must include the statements set forth in Section 12.05 hereof) stating that,
in the opinion of the signers, all conditions precedent and covenants, if any, provided for in
this Indenture relating to the proposed action have been satisfied; and

     (2) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
(which must include the statements set forth in Section 12.05 hereof) stating that, in the
opinion of such counsel, all such conditions precedent and covenants have been satisfied.

Section 12.05 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 § 314(a)(4)) must comply
with the provisions of TIA § 314(e) and must include:

     (1) a statement that the Person making such certificate or opinion has read such
covenant or condition;

43

 

     (2) 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;

     (3) a statement that, in the opinion of such Person, he or she has made such
examination or investigation as is necessary to enable him or her to express an informed
opinion as to whether or not such covenant or condition has been satisfied; and

     (4) a statement as to whether or not, in the opinion of such Person, such condition or
covenant has been satisfied.

     In giving an Opinion of Counsel, counsel may rely as to factual matters on an Officers’
Certificate or certificates of public officials.

Section 12.06 Rules by Trustee and Agents

     The Trustee may make reasonable rules for action by or at a meeting of Holders. The Registrar
or Paying Agent may make reasonable rules and set reasonable requirements for its functions.

Section 12.07 No Personal Liability of Directors, Officers, Employees and Stockholders

     No past, present or future director, officer, employee, incorporator or stockholder of the
Company, as such, will have any liability for any obligations of the Company under the Securities,
this Indenture, or for any claim based on, in respect of, or by reason of, such obligations or
their creation. Each Holder of Securities by accepting a Security waives and releases all such
liability. The waiver and release are part of the consideration for issuance of the Securities.
The waiver may not be effective to waive liabilities under the federal securities laws.

Section 12.08 Governing Law

     THE INTERNAL LAW OF THE STATE OF [___] WILL GOVERN AND BE USED TO CONSTRUE THIS
INDENTURE AND THE SECURITIES WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO
THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

Section 12.09 No Adverse Interpretation of Other Agreements

     This Indenture may not be used to interpret any other indenture, loan or debt agreement of the
Company or its Subsidiaries or of any other Person. Any such indenture, loan or debt agreement may
not be used to interpret this Indenture.

Section 12.10 Successors

     All agreements of the Company in this Indenture and the Securities will bind its successors.
All agreements of the Trustee in this Indenture will bind its successors.

Section 12.11 Severability

     In case any provision in this Indenture or in the Securities is invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions will not in
any way be affected or impaired thereby.

44

 

Section 12.12 Counterpart Originals

     The parties may sign any number of copies of this Indenture. Each signed copy will be an
original, but all of them together represent the same agreement.

Section 12.13 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 of
this Indenture and will in no way modify or restrict any of the terms or provisions hereof.

45

 

SIGNATURES

Dated as of                                     , 2006

	 	 	 	 	 
	 	Education Realty Trust, Inc.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	Guarantors:

[                             ]

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

	 	 	 	 	 
	 	[                             ]

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	

each as a Guarantor 	 
	 

	 	 	 	 	 
	 	Trustee:

U.S. Bank National Association

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

46

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