Document:

AIMCO - The Knolls - Purchase Contract

EXHIBIT 10.64

 

 

 

 

 

 

PURCHASE AND SALE
CONTRACT

 

 

 

BETWEEN

 

 

 

CCIP KNOLLS,
L.L.C.,

a Delaware limited liability
company

 

 

 

AS SELLER

 

 

 

 

 

 

AND

 

 

 

 

HAMILTON ZANZE &
COMPANY,

a California
corporation

 

 

 

AS PURCHASER

 

 

The Knolls 
1510 Gatehouse
Circle S
Colorado Springs, Colorado 80904

 

TABLE OF CONTENTS

	
ARTICLE
I 
	
DEFINED
TERMS
	
1

	
ARTICLE
II 
	
PURCHASE
AND SALE, PURCHASE PRICE & DEPOSIT
	
2

	
      
2.1
	
Purchase
and Sale
	
2

	
      
2.2
	
Purchase
Price and Deposit
	
2

	
      
2.3
	
Escrow
Provisions Regarding Deposit
	
3

	
ARTICLE
III
	
FEASIBILITY
PERIOD
	
5

	
      
3.1
	
Feasibility
Period
	
5

	
      
3.2
	
Expiration
of Feasibility Period
	
6

	
      
3.3
	
Conduct
of Investigation
	
6

	
      
3.4
	
Purchaser
Indemnification
	
7

	
      
3.5
	
Property
Materials
	
8

	
      
3.6
	
Property
Contracts
	
10

	
ARTICLE
IV
	
TITLE
	
11

	
     
4.1
	
Title
Documents
	
11

	
     
4.2
	
Survey
	
11

	
4.3
	
Objection
and Response Process
	
12

	
4.4
	
Permitted
Exceptions
	
13

	
4.5
	
Existing
Deed of Trust
	
13

	
4.6
	
Subsequently
Disclosed Exceptions
	
14

	
4.7
	
Purchaser
Financing
	
14

	
4.8
	
Housing
Assistance Program Vouchers
	
8

	
ARTICLE
V
	
CLOSING
	
16

	
5.1
	
Closing
Date
	
16

	
5.2
	
Seller
Closing Deliveries
	
16

	
5.3
	
Purchaser
Closing Deliveries
	
18

	
5.4
	
Closing
Prorations and Adjustments
	
19

	
5.5
	
Post
Closing Adjustments
	
24

	
ARTICLE
VI
	
REPRESENTATIONS
AND WARRANTIES OF SELLER AND PURCHASER
	
 

24

	
6.1
	
Seller’s
Representations
	
25

	
6.2
	
AS-IS
	
27

	
6.3
	
Survival
of Seller’s Representations
	
29

	
6.4
	
Definition
of Seller’s Knowledge
	
29

	
6.5
	
Representations
and Warranties of Purchaser
	
30

	
6.6
	
Definition
of Purchaser’s Knowledge
	
31

	
ARTICLE
VII
	
OPERATION
OF THE PROPERTY
	
32

	
7.1
	
Leases
and Property Contracts
	
32

	
7.2
	
General
Operation of Property
	
33

	
7.3
	
Liens
	
33

	
ARTICLE
VIII
	
CONDITIONS
PRECEDENT TO CLOSING
	
33

	
8.1
	
Purchaser’s
Conditions to Closing
	
33

	
8.2
	
Seller’s
Conditions to Closing
	
35

	
ARTICLE
IX
	
BROKERAGE
	
36

	
9.1
	
Indemnity
	
36

	
9.2
	
Broker
Commission
	
36

	
ARTICLE X
	
DEFAULTS
AND REMEDIES
	
37

	
10.1
	
Purchaser
Default
	
37

	
10.2
	
Seller
Default
	
38

	
ARTICLE
XI
	
RISK
OF LOSS OR CASUALTY
	
40

	
11.1
	
Major
Damage
	
40

	
11.2
	
Minor
Damage
	
40

	
11.3
	
Closing
	
40

	
11.4
	
Repairs
	
41

	
ARTICLE
XII
	
EMINENT
DOMAIN
	
41

	
12.1
	
Eminent
Domain
	
41

	
ARTICLE
XIII
	
MISCELLANEOUS
	
42

	
13.1
	
Binding
Effect of Contract
	
42

	
13.2
	
Exhibits
and Schedules
	
42

	
13.3
	
Assignability
	
42

	
13.4
	
Captions
	
43

	
13.5
	
Number
and Gender of Words
	
43

	
13.6
	
Notices
	
43

	
13.7
	
Governing
Law and Venue
	
46

	
13.8
	
Entire
Agreement
	
47

	
13.9
	
Amendments
	
47

	
13.10
	
Severability
	
47

	
13.11
	
Multiple
Counterparts/Facsimile Signatures
	
47

	
13.12
	
Construction
	
47

	
13.13
	
Confidentiality
	
48

	
13.14
	
Time
of the Essence
	
48

	
13.15
	
Waiver
	
48

	
13.16
	
Attorneys
Fees
	
49

	
13.17
	
Time
Zone/Time Periods
	
49

	
13.18
	
1031
Exchange
	
49

	
13.19
	
No
Personal Liability of Officers, Trustees or Directors of Seller’s
Partners
	
 

50

	
13.20
	
Intentionally
Omitted
	
50

	
13.21
	
ADA
Disclosure
	
50

	
13.22
	
No
Recording
	
50

	
13.23
	
Relationship
of Parties
	
51

	
13.24
	
Dispute
Resolution
	
51

	
13.25
	
AIMCO
Marks
	
52

	
13.26
	
Non-Solicitation
of Employees
	
52

	
13.27
	
Survival
	
52

	
13.28
	
Multiple
Purchasers
	
53

	
ARTICLE
XIV
	
LEAD-BASED
PAINT DISCLOSURE
	
53

	
14.1
	
Disclosure
	
53

	
14.2
	
Consent
Agreement
	
30

 

 

 

PURCHASE AND SALE CONTRACT

 

THIS
PURCHASE AND SALE CONTRACT (this "Contract") is entered
into as of the 10th day of October, 2008 (the "Effective
Date"), by and between CCIP KNOLLS, L.L.C., a Delaware limited
liability company, having an address at 4582 South Ulster Street Parkway, Suite
1100, Denver, Colorado 80237 ("Seller"), and HAMILTON ZANZE
& COMPANY, a California corporation, having a principal address at 37
Graham Street, Suite 200B, San Francisco, California 94129
("Purchaser").

           
NOW, THEREFORE, in consideration of mutual covenants set forth herein, Seller
and Purchaser hereby agree as follows:

RECITALS

 

A.       
Seller owns the real estate located in El Paso County, as more particularly
described in Exhibit A attached hereto and made a part hereof, and the
improvements thereon, commonly known as The Knolls and having an address at 1510
Gatehouse Circle S, Colorado Springs, CO 80904.

B.        
Purchaser desires to purchase, and Seller desires to sell, such land,
improvements and certain associated property, on the terms and conditions set
forth below.

Article I
DEFINED TERMS

Unless
otherwise defined herein, any term with its initial letter capitalized in this
Contract shall have the meaning set forth in Schedule 1 attached hereto
and made a part hereof. 

Article
II
PURCHASE AND SALE,
PURCHASE PRICE & DEPOSIT

2.1       Purchase and
Sale.

 
Seller agrees to sell and convey the Property to Purchaser and Purchaser agrees
to purchase the Property from Seller, all in accordance with the terms and
conditions set forth in this Contract.

2.2       Purchase Price
and Deposit.

 
The total purchase price ("Purchase Price") for the Property shall
be an amount equal to $16,000,000, payable by Purchaser, as follows:

2.2.1         
Within 2 Business Days following the Effective Date, Purchaser shall deliver to
Stewart Title Insurance Company, 1980 Post Oak Boulevard, Suite 610, Houston,
Texas 77056, Attention Wendy Howell, Telephone: (713) 625-8161; Fax: (713)
552-1703 ("Escrow Agent" or "Title Insurer") an
initial deposit (the "Initial Deposit") of $160,000 by wire
transfer of immediately available funds ("Good Funds"). 

2.2.2         
Within 1 Business Day after the day that the Feasibility Period expires,
Purchaser shall deliver to Escrow Agent an additional deposit (the
"Additional Deposit") of $160,000 by wire transfer of Good
Funds.  

2.2.3         
The balance of the Purchase Price for the Property shall be paid to and received
by Escrow Agent by wire transfer of Good Funds no later than 10:00 a.m. (Central
Standard Time) on the Closing Date.

2.2.4         
Seller and Purchaser acknowledge and agree that (i) the Fixtures and Tangible
Personal Property are incidental to the use and operation of the Property, and
(ii) no portion of the Purchase Price is allocable to the Fixtures and Tangible
Personal Property. 

2.2.5         
Any and all provisions of this Contract which provide that the Deposit shall be
nonrefundable are subject to the other provisions of this Contract which set
forth limited circumstances under which the Deposit may become refundable which
are the following:  (i) Section 3.2 (which provides that the
Initial Deposit is refundable if the Contract is timely terminated on or before
the expiration of the Feasibility Period); (ii) Section 8.1 (which grants
Purchaser the right to terminate this Contract in the event that a condition
precedent to Purchaser’s obligation to close is not satisfied and to obtain a
refund of the Deposit); (iii) Section 10.2 (which grants Purchaser the
right to terminate this Contract on account of a default by Seller and recover
the Deposit); (iv) Section 11.1 (which grants Purchaser the right to
terminate this Contract as a result of Major Damage and recover the Deposit);
and (v) Section 12.1 (which grants Purchaser the right to terminate this
Contract as a result of the exercise of a right of eminent domain and recover
the Deposit).

2.3       Escrow
Provisions Regarding Deposit.

 

2.3.1         
Escrow Agent shall hold the Deposit and make delivery of the Deposit to the
party entitled thereto under the terms of this Contract.  Escrow Agent
shall invest the Deposit in such short-term, high-grade securities,
interest-bearing bank accounts, money market funds or accounts, bank
certificates of deposit or bank repurchase contracts as Escrow Agent, in its
discretion, deems suitable, and all interest and income thereon shall become
part of the Deposit and shall be remitted to the party entitled to the Deposit
pursuant to this Contract.

2.3.2         
Escrow Agent shall hold the Deposit until the earlier occurrence of (i) the
Closing Date, at which time the Deposit shall be applied against the Purchase
Price, or released to Seller pursuant to Section 10.1, or (ii) the date
on which Escrow Agent shall be authorized to disburse the Deposit as set forth
in Section 2.3.3.  The tax identification numbers of the parties
shall be furnished to Escrow Agent upon request.

2.3.3         
If prior to the Closing Date either party makes a written demand upon Escrow
Agent for payment of the Deposit, Escrow Agent shall give written notice to the
other party of such demand.  If Escrow Agent does not receive a written
objection from the other party to the proposed payment within 5 Business Days
after the giving of such notice, Escrow Agent is hereby authorized to make such
payment.  If Escrow Agent does receive such written objection within such
5-Business Day period, Escrow Agent shall continue to hold such amount until
otherwise directed by written instructions from the parties to this Contract or
a final judgment or arbitrator's decision.  However, Escrow Agent shall
have the right at any time to deliver the Deposit and interest thereon, if any,
with a court of competent jurisdiction in the state in which the Property is
located.  Escrow Agent shall give written notice of such deposit to Seller
and Purchaser.  Upon such deposit, Escrow Agent shall be relieved and
discharged of all further obligations and
responsibilities hereunder.  Any return of the Deposit to Purchaser
provided for in this Contract shall be subject to Purchaser’s obligations set
forth in Section 3.5.2.

2.3.4         
The parties acknowledge that Escrow Agent is acting solely as a stakeholder at
their request and for their convenience, and that Escrow Agent shall not be
deemed to be the agent of either of the parties for any act or omission on its
part unless taken or suffered in bad faith in willful disregard of this Contract
or involving gross negligence.  Seller and Purchaser jointly and severally
shall indemnify and hold Escrow Agent harmless from and against all costs,
claims and expenses, including reasonable attorney's fees, incurred in
connection with the performance of Escrow Agent's duties hereunder, except with
respect to actions or omissions taken or suffered by Escrow Agent in bad faith,
in willful disregard of this Contract or involving gross negligence on the part
of the Escrow Agent.

2.3.5         
The parties shall deliver to Escrow Agent an executed copy of this Contract,
which shall constitute the sole instructions to Escrow Agent.  Escrow Agent
shall execute the signature page for Escrow Agent attached hereto solely with
respect to the provisions of this Section 2.3.

2.3.6         
Escrow Agent, as the person responsible for closing the transaction within the
meaning of Section 6045(e)(2)(A) of the Internal Revenue Code of 1986, as
amended (the "Code"), shall file all necessary information,
reports, returns, and statements regarding the transaction required by the Code
including, but not limited to, the tax reports required pursuant to Section 6045
of the Code.  Further, Escrow Agent agrees to indemnify and hold Purchaser,
Seller, and their respective attorneys and brokers harmless from and against any
Losses resulting from Escrow Agent's failure to file the reports Escrow Agent is
required to file pursuant to this section.

Article
III
FEASIBILITY PERIOD

3.1       Feasibility
Period.

 
The Feasibility Period begins on the Effective Date and continues up to and
including November 21, 2008 (the "Feasibility Period"). Subject to
the terms of Section 3.3 and 3.4 and the rights of Tenants under the
Leases, Purchaser, and its agents, contractors, engineers, surveyors, attorneys,
and employees (collectively, "Consultants") shall, at no cost or
expense to Seller, have the right from and after the Effective Date to enter
onto the Property to conduct and make any and all customary studies, tests,
examinations, inquiries, inspections and investigations  of or concerning
the Property, review the Materials and otherwise confirm any and all matters
which Purchaser may reasonably desire to confirm with respect to the Property
and Purchaser’s intended use thereof (collectively, the
“Inspections”).  

3.2       Expiration of
Feasibility Period.

 
If any of the matters in Section 3.1 or any other title or survey matters
are unsatisfactory to Purchaser for any reason, or for no reason whatsoever, in
Purchaser's sole and absolute discretion, then Purchaser shall have the right to
terminate this Contract by giving written notice to that effect to Seller and
Escrow Agent no later than 5:00 p.m. on or before the date of expiration of the
Feasibility Period.  If Purchaser provides such notice, this Contract shall
terminate and be of no further force and effect subject to and except for the
Survival Provisions, and Escrow Agent shall return the Initial Deposit to Purchaser.  If Purchaser fails to provide Seller with
written notice of termination prior to the expiration of the Feasibility Period,
Purchaser's right to terminate under this Section 3.2 shall be
permanently waived and this Contract shall remain in full force and effect, the
Deposit shall be non-refundable, and Purchaser's obligation to purchase the
Property shall be conditional only as provided in Section 8.1.

3.3       Conduct of
Investigation.

 
Purchaser shall not permit any mechanics' or materialmens’ liens or any other
liens to attach to the Property by reason of the performance of any work or the
purchase of any materials by Purchaser or any other party in connection with any
Inspections conducted by or for Purchaser.  Purchaser shall give reasonable
advanced notice to Seller prior to any entry onto the Property and shall permit
Seller to have a representative present during all Inspections conducted at the
Property.  Purchaser shall take all reasonable actions and implement all
protections necessary to ensure that all actions taken in connection with the
Inspections, and all equipment, materials and substances generated, used or
brought onto the Property pose no material threat to the safety of persons,
property or the environment.  

3.4       Purchaser
Indemnification.

 

3.4.1         
Purchaser shall indemnify, hold harmless and, if requested by Seller (in
Seller's sole discretion), defend (with counsel approved by Seller) Seller,
together with Seller's affiliates, parent and subsidiary entities, successors,
assigns, partners, managers, members, employees, officers, directors, trustees,
shareholders, counsel, representatives, agents, Property Manager, Regional
Property Manager, and AIMCO (collectively, including Seller, "Seller's
Indemnified Parties"), from and against any and all damages, mechanics'
liens, liabilities, penalties, interest, losses, demands, actions, causes of
action, claims, costs and expenses (including reasonable attorneys' fees,
including the cost of in-house counsel and appeals) (collectively,
"Losses") arising from or related to Purchaser's or its
Consultants' entry onto the Property, and any Inspections or other acts by
Purchaser or Purchaser’s Consultants with respect to the Property during the
Feasibility Period or otherwise.

3.4.2         
Notwithstanding anything in this Contract to the contrary, Purchaser shall not
be permitted to perform any invasive tests on the Property without Seller's
prior written consent, which consent may be withheld in Seller's sole
discretion.  Further, Seller shall have the right, without limitation, to
disapprove any and all entries, surveys, tests (including, without limitation, a
Phase II environmental study of the Property), investigations and other matters
that in Seller's reasonable judgment could result in any injury to the Property
or breach of any contract, or expose Seller to any Losses or violation of
applicable law, or otherwise adversely affect the Property or Seller's interest
therein.  Purchaser shall use reasonable efforts to minimize disruption to
Tenants in connection with Purchaser's or its Consultants' activities pursuant
to this Section.  No consent by the Seller to any such activity shall be
deemed to constitute a waiver by Seller or assumption of liability or risk by
Seller.  Purchaser hereby agrees to restore, at Purchaser's sole cost and
expense, the Property to the same condition existing immediately prior to
Purchaser's exercise of its rights pursuant to this Article III, provided the foregoing
shall not require Purchaser to repair or remediate any pre-existing conditions
on the Property that are merely discovered by Purchaser in the course of its
investigations.  Purchaser shall maintain and cause its third party
consultants to maintain (a) casualty insurance and commercial general liability
insurance with coverages of not less than $1,000,000.00 for injury or death to
any one person and $3,000,000.00 for injury or death to
more than one person and $1,000,000.00 with respect to property damage, and (b)
worker's compensation insurance for all of their respective employees in
accordance with the law of the state in which the Property is located. 
Purchaser shall deliver proof of the insurance coverage required pursuant to
this Section 3.4.2 to Seller (in the form of a certificate of insurance)
prior to the earlier to occur of (i) Purchaser's or Purchaser's Consultants'
entry onto the Property, or (ii) the expiration of 5 days after the Effective
Date.  

3.5       Property
Materials.

 

3.5.1         
Within 5 Business Days after the Effective Date, and to the extent the same
exist and are in Seller’s possession or reasonable control (subject to
Section 3.5.2), Seller agrees to make the documents set forth on
Schedule 3.5 (together with any other documents or information provided
by Seller or its agents to Purchaser with respect to the Property, the
“Materials”) available at the Property for review and copying by
Purchaser at Purchaser’s sole cost and expense.  In the alternative, at
Seller’s option and within the foregoing time period, Seller may deliver some or
all of the Materials to Purchaser, or make the same available to Purchaser on a
secure web site (Purchaser agrees that any item to be delivered by Seller under
this Contract shall be deemed delivered to the extent available to Purchaser on
such secured web site).  To the extent that Purchaser determines that any
of the Materials have not been made available or delivered to Purchaser pursuant
to this Section 3.5.1, Purchaser shall notify Seller and Seller shall use
commercially reasonable efforts to deliver the same to Purchaser within 5
Business Days after such notification is received by Seller; provided, however,
that under no circumstances will the Feasibility Period be extended and
Purchaser’s sole remedy will be to terminate this Contract pursuant to
Section 3.2.

3.5.2         
In providing the Materials to Purchaser, other than Seller’s Representations,
Seller makes no representation or warranty, express, written, oral, statutory,
or implied, and all such representations and warranties are hereby expressly
excluded and disclaimed.  All Materials are provided for informational
purposes only and, together with all Third-Party Reports, shall be returned by
Purchaser to Seller (or the destruction thereof shall be certified in writing by
Purchaser to Seller) as a condition to return of the Deposit to Purchaser if
this Contract is terminated for any reason.  Recognizing that the Materials
delivered or made available by Seller pursuant to this Contract may not be
complete or constitute all of such documents which are in Seller’s possession or
control, but are those that are readily and reasonably available to Seller,
Purchaser shall not in any way be entitled to rely upon the completeness or
accuracy of the Materials and will instead in all instances rely exclusively on
its own Inspections and Consultants with respect to all matters which it deems
relevant to its decision to acquire, own and operate the Property. 

3.5.3         
In addition to the items set forth on Schedule 3.5, no later than 5
Business Days after the Effective Date, Seller shall deliver to Purchaser (or
otherwise make available to Purchaser as provided under Section 3.5.1)
the most recent rent roll for the Property listing the move-in date, monthly
base rent payable, lease expiration date and unapplied security deposit for each
Lease (the “Rent Roll”).  Seller makes no representations or
warranties regarding the Rent Roll other than the express representation set
forth in Section 6.1.6.  

3.5.4          In
addition to the items set forth on Schedule 3.5, no later than 5 Business
Days after the Effective Date, Seller shall deliver to Purchaser (or otherwise
make available to Purchaser as provided under Section 3.5.1) a list of
all current Property Contracts (the "Property Contracts List").
Seller makes no representations or warranties regarding the Property Contracts
List other than the express representations set forth in Section
6.1.7.  

3.6       Property
Contracts.

 
On or before the expiration of the Feasibility Period, Purchaser may deliver
written notice to Seller (the "Property Contracts Notice")
specifying any Property Contracts which Purchaser desires to terminate at the
Closing (the "Terminated Contracts"); provided that (a) the
effective date of such termination on or after Closing shall be subject to the
express terms of such Terminated Contracts, (b) if any such Property Contract
cannot by its terms be terminated at Closing, it shall be assumed by Purchaser
and not be a Terminated Contract, and (c) to the extent that any such Terminated
Contract requires payment of a penalty, premium, or damages, including
liquidated damages, for cancellation, Purchaser shall be solely responsible for
the payment of any such cancellation fees, penalties, or damages, including
liquidated damages.  If Purchaser fails to deliver the Property Contracts
Notice on or before the expiration of the Feasibility Period, there shall be no
Terminated Contracts and Purchaser shall assume all Property Contracts at the
Closing.  To the extent that any Property Contract to be assigned to
Purchaser requires vendor consent, then, prior to the Closing, Purchaser may
attempt to obtain from each applicable vendor a consent (each a "Required
Assignment Consent") to such assignment.  Seller shall, at no cost
and expense to Seller, cooperate reasonably with Purchaser in Purchaser’s
efforts to obtain any Required Assignment Consent.  Purchaser shall
indemnify, hold harmless and, if requested by Seller (in Seller's sole
discretion), defend (with counsel approved by Seller) Seller's Indemnified
Parties from and against any and all Losses arising from or related to
Purchaser's failure to obtain any Required Assignment Consent. Additionally, in
respect of any commercial lease affecting the Property, including, without
limitation, any lease for laundry equipment, Seller shall, at no cost or expense
to Seller, cooperate reasonably with Purchaser in Purchaser’s efforts to obtain
on or before Closing any subordination, nondisturbance and attornment agreement
(“Subordination Agreement”) that may be required by any lender to
Purchaser as a condition to funding any loan to be secured by the Property. It
is understood and agreed by Seller and Purchaser that the receipt by Purchaser
of such Subordination Agreement from any such commercial tenant shall not be a
condition to Closing hereunder.

Article
IV
TITLE

4.1       Title
Documents.

 
Within 5 days after the Effective Date, Seller shall cause to be delivered to
Purchaser a standard form commitment ("Title Commitment") to
provide an extended coverage American Land Title Association owner’s title
insurance policy for the Property, using the current policy jacket customarily
provided by the Title Insurer, in an amount equal to the Purchase Price (the
"Title Policy"), together with copies of all instruments
identified as exceptions therein (together with the Title Commitment, referred
to herein as the "Title Documents").  Seller shall be
responsible only for payment of the basic premium for the Title Policy. 
Purchaser shall be solely responsible for payment of all other costs relating to
procurement of the Title Commitment, the Title Policy, and any requested
endorsements.  

4.2      
Survey.

 
Subject to Section 3.5.2, within 5 days after the Effective Date, Seller
shall deliver to Purchaser or make available at the Property any existing survey
of the Property (the "Existing Survey").  Purchaser may, at
its sole cost and expense, order a new or updated survey of the Property either
before or after the Effective Date (such new or updated survey, together with
the Existing Survey, is referred to herein as the "Survey"). 

4.3       Objection and
Response Process.

 
On or before November 11, 2008 (the "Objection Deadline"),
Purchaser shall give written notice (the "Objection Notice") to
the attorneys for Seller of any matter set forth in the Title Documents or the
Survey to which Purchaser objects (the "Objections").  If
Purchaser fails to tender an Objection Notice on or before the Objection
Deadline, Purchaser shall be deemed to have approved and irrevocably waived any
objections to any matters covered by the Title Documents and the Survey. 
On or before November 17, 2008 (the "Response Deadline"), Seller
may, in Seller's sole discretion, give Purchaser notice (the "Response
Notice") of those Objections which Seller is willing to cure, if
any.  Seller shall be entitled to reasonable adjournments of the Closing
Date to cure the Objections.  If Seller fails to deliver a Response Notice
by the Response Deadline, Seller shall be deemed to have elected not to cure or
otherwise resolve any matter set forth in the Objection Notice.  If
Purchaser is dissatisfied with the Response Notice or the lack of Response
Notice, Purchaser may, as its exclusive remedy, exercise its right to terminate
this Contract prior to the expiration of the Feasibility Period in accordance
with the provisions of Section 3.2.  If Purchaser fails to timely
exercise such right, Purchaser shall be deemed to accept the Title Documents and
Survey with resolution, if any, of the Objections set forth in the Response
Notice (or if no Response Notice is tendered, without any resolution of the
Objections) and without any reduction or abatement of the Purchase Price.

4.4       Permitted
Exceptions.

 
The Deed delivered pursuant to this Contract shall be subject to the following,
all of which shall be deemed "Permitted Exceptions":

4.4.1         
All matters shown in the Title Documents and the Survey, other than (a) those
Objections, if any, which Seller has agreed to cure pursuant to the Response
Notice under Section 4.3, (b) mechanics' liens and taxes due and payable
with respect to the period preceding Closing, (c) the standard exception
regarding the rights of parties in possession, which shall be limited to those
parties in possession pursuant to the Leases, and (d) the standard exception
pertaining to taxes, which shall be limited to taxes and assessments payable in
the year in which the Closing occurs and subsequent taxes and assessments;

4.4.2         
All Leases;

4.4.3         
Applicable zoning and governmental regulations and ordinances;

4.4.4         
Any defects in or objections to title to the Property, or title exceptions or
encumbrances, arising by, through or under Purchaser; and

4.4.5         
The terms and conditions of this Contract.

4.5       Existing Deed
of Trust.

 
It is understood and agreed that, whether or not Purchaser gives an Objection
Notice with respect thereto, any deeds of trust and/or mortgages which secure
the Note (collectively, the "Deed of Trust") shall not be deemed
Permitted Exceptions, whether Purchaser gives further
written notice of such or not, and shall be paid off, satisfied, discharged
and/or cured from proceeds of the Purchase Price at Closing.

4.6       Subsequently
Disclosed Exceptions.

 
If at any time after the expiration of the Feasibility Period, any update to the
Title Commitment discloses any additional item that materially adversely affects
title to the Property which was not disclosed on any version of the Title
Commitment delivered to Purchaser during the Feasibility Period (the "New
Exception"), Purchaser shall have a period of 5 days from the date of
its receipt of such update (the "New Exception Review Period") to
review and notify Seller in writing of Purchaser's approval or disapproval of
the New Exception.  If Purchaser disapproves of the New Exception, Seller
may, in Seller's sole discretion, notify Purchaser as to whether it is willing
to cure the New Exception.  If Seller elects to cure the New Exception,
Seller shall be entitled to reasonable adjournments of the Closing Date to cure
the New Exception.  If Seller fails to deliver a notice to Purchaser within
3 days after the expiration of the New Exception Review Period, Seller shall be
deemed to have elected not to cure the New Exception.  If Purchaser is
dissatisfied with Seller's response, or lack thereof, Purchaser may, as its
exclusive remedy elect either:  (i) to terminate this Contract, in which
event the Deposit shall be promptly returned to Purchaser or (ii) to waive the
New Exception and proceed with the transactions contemplated by this Contract,
in which event Purchaser shall be deemed to have approved the New
Exception.  If Purchaser fails to notify Seller of its election to
terminate this Contract in accordance with the foregoing clause within 6 days
after the expiration of the New Exception Review Period, Purchaser shall be
deemed to have elected to approve and irrevocably waive any objections to the
New Exception.

4.7       Purchaser
Financing.

 
Purchaser assumes full responsibility to obtain the funds required for
settlement, and Purchaser's acquisition of such funds shall not be a
contingency to the Closing.

4.8       Housing Assistance Program
Vouchers.

 
Purchaser recognizes and agrees that the Property is and may become the subject
of one or more Housing Assistance Payment voucher (tenant based) contracts
(collectively, the “HAP Contracts”), which regulate Section 8
payments to the Property under existing vouchers administered by the local
housing authorities (collectively, the “Housing Authority”).
Within 5 calendar days after the Effective Date, Seller agrees to deliver or
make available to Purchaser as part of the Materials, copies of the HAP
Contracts which are in Seller’s possession or reasonable control (subject to
Section 3.5.2).  At Closing, Purchaser either (a) shall assume all
obligations under the HAP Contracts and accept title to the Property subject to
the same, or (b) the existing HAP Contracts shall be terminated, and Purchaser
shall enter into replacement Housing Assistance Payment contracts which are
acceptable to the Housing Authority (either (a) or (b) meaning the “HAP
Assumption”).  No later than 15 days after the Effective Date,
Purchaser, at its sole cost and expense, shall submit all applications,
documents, information, materials, and fees to the Housing Authority, required
in order for the Housing Authority to approve Purchaser’s request for
pre-approval as an entity qualified to assume the HAP Contracts, and shall
diligently proceed using its best efforts to obtain such pre-approval as soon as
possible. Purchaser agrees to provide Seller with copies of such applications no
later than 5 Business Days after submittal thereof to the Housing
Authority.  Purchaser shall make such filings with the Housing Authority,
deliver such documents, pay such fees and costs (if any), and pay such reserves,
impounds, escrows and other amounts (if any) post-Closing as required by the
Housing Authority with respect to the HAP Contracts (which may include, but not be limited to, a change in ownership
form, name of the new owner, name of the property manager, evidence that title
to the applicable Property has transferred and an IRS form W-9). From and after
the Effective Date, Seller shall promptly deliver to Purchaser copies of any new
HAP Contracts entered into by Seller after the Effective Date with respect to
the Property.  The provisions of this Section 4.8 shall survive
Closing, and Purchaser shall accomplish the HAP Assumption after the Closing and
Seller shall have no obligations with respect to such HAP Assumption; provided,
however Seller agrees to reasonably cooperate with Purchaser to accomplish the
HAP Assumption (to the extent necessary) at no out of pocket cost to Seller.

Article V
CLOSING

5.1       Closing
Date.

 
On or before the expiration of the Feasibility Period, Seller shall deliver to
Purchaser a written notice setting forth the date that the Closing shall occur
(such date, the "Closing Date"); provided, however,
that the Closing Date shall be a Business Day that is not earlier than December
2, 2008 and not later than January 15, 2009.  The Closing shall occur
through an escrow with Escrow Agent, whereby the Seller, Purchaser and their
attorneys need not be physically present at the Closing and may deliver
documents by overnight air courier or other means.  

5.2       Seller Closing
Deliveries.

 
No later than 1 Business Day prior to the Closing Date, Seller shall deliver to
Escrow Agent, each of the following items:

5.2.1         
Special Warranty Deed (the "Deed") in the form attached as
Exhibit B to Purchaser, subject to the Permitted Exceptions.

5.2.2          A
Bill of Sale in the form attached as Exhibit C.

5.2.3         
Two (2) originals of a General Assignment in the form attached as Exhibit
D (the "General Assignment").

5.2.4         
Two (2) originals of an Assignment of Leases and Security Deposits in the form
attached as Exhibit E (the "Leases Assignment").

5.2.5          A
letter in the form attached hereto as Exhibit F prepared and
addressed by Purchaser, and countersigned by Seller, to each of the vendors
under the Terminated Contracts informing them of the termination of such
Terminated Contract as of the Closing Date (subject to any delay in the
effectiveness of such termination pursuant to the express terms of each
applicable Terminated Contract) (the "Vendor
Terminations").

5.2.6         
Seller's closing statement.

5.2.7          A
title affidavit or an indemnity form reasonably acceptable to Seller, which is
sufficient to enable Title Insurer to delete the standard pre-printed exceptions
to the title insurance policy to be issued pursuant to the Title
Commitment.

5.2.8          A
certification of Seller's non-foreign status pursuant to Section 1445 of the
Internal Revenue Code of 1986, as amended.

5.2.9         
Resolutions, certificates of good standing, and such other organizational
documents as Title Insurer shall reasonably require evidencing Seller's
authority to consummate this transaction.

5.2.10        An updated
Rent Roll effective as of a date no more than 3 Business Days prior to the
Closing Date; provided, however, that the content of such updated Rent Roll
shall in no event expand or modify the conditions to Purchaser's obligation to
close as specified under Section 8.1.

5.2.11       
Intentionally Omitted. 

5.2.12        An updated
Property Contracts List effective as of a date no more than 3 Business Days
prior to the Closing Date; provided, however, that the content of such updated
Property Contracts List shall in no event expand or modify the conditions to
Purchaser's obligation to close as specified under Section 8.1.

5.3       Purchaser
Closing Deliveries.

 
No later than 1 Business Day prior to the Closing Date (except for the balance
of the Purchase Price which is to be delivered at the time specified in
Section 2.2.3), Purchaser shall deliver to the Escrow Agent (for
disbursement to Seller upon the Closing) the following items:

5.3.1         
The full Purchase Price (with credit for the Deposit), plus or minus the
adjustments or prorations required by this Contract.

5.3.2          A
title affidavit or an indemnity form (pertaining to Purchaser's activity on the
Property prior to Closing), reasonably acceptable to Purchaser, which is
sufficient to enable Title Insurer to delete the standard pre-printed exceptions
to the title insurance policy to be issued pursuant to the Title
Commitment.  

5.3.3         
Any declaration or other statement which may be required to be submitted to the
local assessor.

5.3.4         
Purchaser's closing statement.

5.3.5         
Two (2) countersigned counterparts of the General Assignment.

5.3.6         
Two (2) countersigned counterparts of the Leases Assignment.

5.3.7         
Notification letters to all Tenants prepared and executed by Purchaser in the
form attached hereto as Exhibit G.

5.3.8         
The Vendor Terminations.

5.3.9         
Any cancellation fees or penalties due to any vendor under any Terminated
Contract as a result of the termination thereof.

5.3.10        Resolutions,
certificates of good standing, and such other organizational documents as Title
Insurer shall reasonably require evidencing Purchaser's authority to consummate
this transaction.

5.3.11        Any
applicable transfer tax forms or conveyance forms, including, without
limitation, the Real Property Transfer Declaration (TD-1000).

5.4       Closing
Prorations and Adjustments.

 

5.4.1         
General.  All normal and customarily proratable items, including,
without limitation, collected rents, operating expenses, personal property
taxes, other operating expenses and fees, shall be prorated as of the Closing
Date, Seller being charged or credited, as appropriate, for all of same
attributable to the period up to the Closing Date (and credited for any amounts
paid by Seller attributable to the period on or after the Closing Date, if
assumed by Purchaser) and Purchaser being responsible for, and credited or
charged, as the case may be, for all of the same attributable to the period on
and after the Closing Date.  Seller shall prepare a proration schedule (the
"Proration Schedule") of the adjustments described in this
Section 5.4 and shall deliver such Proration Schedule to both Purchaser
and the Escrow Agent no later than three (3) Business Days prior to the
scheduled Closing Date.  

5.4.2         
Operating Expenses.  All of the operating, maintenance, taxes (other
than real estate taxes), and other expenses incurred in operating the Property
that Seller customarily pays, and any other costs incurred in the ordinary
course of business for the management and operation of the Property, shall be
prorated on an accrual basis.  Seller shall pay all such expenses that
accrue prior to the Closing Date and Purchaser shall pay all such expenses that
accrue from and after the Closing Date.

5.4.3         
Utilities.  The final readings and final billings for utilities will
be made if possible as of the Closing Date, in which case Seller shall pay all
such bills as of the Closing Date and no proration shall be made at the Closing
with respect to utility bills.  Otherwise, a proration shall be made based
upon the parties' reasonable good faith estimate.  Seller shall be entitled
to the return of any deposit(s) posted by it with any utility company, and
Seller shall notify each utility company serving the Property to terminate
Seller's account, effective as of noon on the Closing Date.

5.4.4         
Real Estate Taxes.  Any real estate ad valorem or similar taxes for
the Property, or any installment of assessments payable in installments which
installment is payable in the calendar year of Closing, shall be prorated to the
date of Closing, based upon actual days involved.  The proration of real
property taxes or installments of assessments shall be based upon the assessed
valuation and tax rate figures (assuming payment at the earliest time to allow
for the maximum possible discount) for the year in which the Closing occurs to
the extent the same are available; provided, however, that in the event that
actual figures (whether for the assessed value of the Property or for the tax
rate) for the year of Closing are not available at the Closing Date, the
proration shall be made using figures from the preceding year (assuming payment
at the earliest time to allow for the maximum possible discount).  The
proration of real property taxes or installments of assessments shall be final
and not subject to re-adjustment after Closing.  

5.4.5         
Property Contracts.  Purchaser shall assume at Closing the
obligations under the Property Contracts assumed by Purchaser (other than the
Terminated Contacts, if any); however, operating expenses shall be prorated
under Section 5.4.2.

5.4.6         
Leases.

5.4.6.1       All collected
rent (whether fixed monthly rentals, additional rentals, escalation rentals,
retroactive rentals, operating cost pass-throughs or other sums and charges
payable by Tenants under the Leases), income and expenses from any portion of
the Property shall be prorated as of the Closing Date.  Purchaser shall
receive all collected rent and income attributable to dates from and after the
Closing Date.  Seller shall receive all collected rent and income
attributable to dates prior to the Closing Date.  Notwithstanding the
foregoing, no prorations shall be made in relation to either (a) non-delinquent
rents which have not been collected as of the Closing Date, or (b) delinquent
rents existing, if any, as of the Closing Date (the foregoing (a) and (b)
referred to herein as the “Uncollected Rents”).  In adjusting
for Uncollected Rents, no adjustments shall be made in Seller’s favor for rents
which have accrued and are unpaid as of the Closing, but Purchaser shall pay
Seller such accrued Uncollected Rents as and when collected by Purchaser.
 Purchaser agrees to bill Tenants of the Property for all Uncollected Rents
and to take reasonable actions to collect Uncollected Rents. 
Notwithstanding the foregoing, Purchaser’s obligation to collect Uncollected
Rents shall be limited to Uncollected Rents of not more than 90 days past due,
and Purchaser’s collection of rents shall be applied, first, towards current
rent due and owing under the Leases, and, second, to Uncollected Rents. 
After the Closing, Seller shall continue to have the right, but not the
obligation, in its own name, to demand payment of and to collect Uncollected
Rents owed to Seller by any Tenant, which right shall include, without
limitation, the right to continue or commence legal actions or proceedings
against any Tenant and the delivery of the Leases Assignment shall not
constitute a waiver by Seller of such right; provided however, that the
foregoing right of Seller shall be limited to actions seeking monetary damages
and, in no event, shall Seller seek to evict any Tenants in any action to
collect Uncollected Rents.  Purchaser agrees to cooperate reasonably with
Seller in connection with all efforts by Seller to collect such Uncollected
Rents and to take all steps, whether before or after the Closing Date, as may be
reasonably necessary to carry out the intention of the foregoing, including,
without limitation, the delivery to Seller, within 7 days after a written
request, of any relevant books and records (including, without limitation, rent
statements, receipted bills and copies of tenant checks used in payment of such
rent), the execution of any and all consents or other documents, and the
undertaking of any act reasonably necessary for the collection of such
Uncollected Rents by Seller; provided, however, that Purchaser’s obligation to
cooperate with Seller pursuant to this sentence shall not obligate Purchaser to
terminate any Tenant lease with an existing Tenant or evict any existing Tenant
from the Property.

5.4.6.2       At Closing,
Purchaser shall receive a credit against the Purchase Price in an amount equal
to the received and unapplied balance of all cash (or cash equivalent) Tenant
Deposits, including, but not limited to, security, damage or other refundable
deposits paid by any of the Tenants to secure their respective obligations under
the Leases, together, in all cases, with any interest payable to the Tenants
thereunder as may be required by their respective Tenant Lease or state law (the
“Tenant Security Deposit Balance”).  Any cash (or cash
equivalents) held by Seller which constitutes the Tenant Security Deposit
Balance shall be retained by Seller in exchange for
the foregoing credit against the Purchase Price and shall not be transferred by
Seller pursuant to this Contract (or any of the documents delivered at Closing),
but the obligation with respect to the Tenant Security Deposit Balance
nonetheless shall be assumed by Purchaser.  The Tenant Security Deposit
Balance shall not include any non-refundable deposits or fees paid by Tenants to
Seller, either pursuant to the Leases or otherwise.  

5.4.7         
Insurance.  No proration shall be made in relation to insurance
premiums and insurance policies will not be assigned to Purchaser.  Seller
shall have the risk of loss of the Property until 11:59 p.m. the day prior to
the Closing Date, after which time the risk of loss shall pass to Purchaser and
Purchaser shall be responsible for obtaining its own insurance
thereafter.

5.4.8         
Employees.  All of Seller's and Seller's manager's on-site employees
shall have their employment at the Property terminated as of the Closing
Date.

5.4.9         
Closing Costs.  Purchaser shall pay any transfer (including, without
limitation, the State documentary fee), sales, use, gross receipts or similar
taxes, the cost of recording any instruments required to discharge any liens or
encumbrances against the Property, any fees for recording the Deed and any other
conveyance forms required to be recorded or filed under local law or custom, any
premiums or fees required to be paid by Purchaser with respect to the Title
Policy pursuant to Section 4.1 (other than the base premium for the Title
Policy), and one-half of the customary closing costs of the Escrow Agent. 
Seller shall pay the base premium for the Title Policy and one-half of the
customary closing costs of the Escrow Agent.  

5.4.10        Utility
Contracts.  If Seller has entered into an agreement for the purchase of
electricity, gas or other utility service for the Property or a group of
properties (including the Property) (a "Utility Contract"), or an
affiliate of Seller has entered into a Utility Contract, then, at the option of
Seller, either (a) Purchaser either shall assume the Utility Contract with
respect to the Property, or (b) the reasonably calculated costs of the Utility
Contract attributable to the Property from and after the Closing shall be paid
to Seller at the Closing and Seller shall remain responsible for payments under
the Utility Contract. 

5.4.11       
Possession.  Possession of the Property, subject to the Leases,
Property Contracts, other than Terminated Contracts, and Permitted Exceptions,
shall be delivered to Purchaser at the Closing upon release from escrow of all
items to be delivered by Purchaser pursuant to Section 5.3.  To the extent
reasonably available to Seller, originals or copies of the Leases and Property
Contracts, lease files, warranties, guaranties, operating manuals, keys to the
property, and Seller's books and records (other than proprietary information)
(collectively, "Seller's Property-Related Files and Records")
regarding the Property shall be made available to Purchaser at the Property
after the Closing.  Purchaser agrees, for a period of not less than three
(3) years after the Closing (the "Records Hold Period"), to (a)
provide and allow Seller reasonable access to Seller's Property-Related Files
and Records for purposes of inspection and copying thereof at Seller’s sole cost
and expense, and (b) reasonably maintain and preserve Seller's Property-Related
Files and Records.  If at any time after the Records Hold Period, Purchaser
desires to dispose of Seller's Property-Related Files and Records, Purchaser
must first provide Seller prior written notice (the "Records Disposal
Notice").  Seller shall have a period of 30 days after receipt of
the Records Disposal Notice to enter the Property (or such other location where such records are then stored) and remove or
copy, at Seller’s sole cost and expense, those of Seller's Property-Related
Files and Records that Seller desires to retain. 

5.5       Post Closing
Adjustments.

 
Purchaser or Seller may request that Purchaser and Seller undertake to re-adjust
any item on the Proration Schedule (or any item omitted therefrom), with the
exception of real property taxes which shall be final and not subject to
readjustment, in accordance with the provisions of Section 5.4 of this
Contract; provided, however, that neither party shall have any obligation to
re-adjust any items (a) after the expiration of 60 days after Closing, or (b)
subject to such 60-day period, unless such items exceed $5,000.00 in magnitude
(either individually or in the aggregate).  

Article
VI
REPRESENTATIONS AND
WARRANTIES OF SELLER AND PURCHASER

6.1       Seller's
Representations.

 
Except, in all cases, for any fact, information or condition disclosed in the
Title Documents, the Permitted Exceptions, the Property Contracts, or the
Materials, or which is otherwise known by Purchaser prior to the Closing, Seller
represents and warrants to Purchaser the following (collectively, the
"Seller's Representations") as of the Effective Date and as of the
Closing Date; provided that Purchaser's remedies if any such Seller's
Representations are untrue as of the Closing Date are limited to those set forth
in Section 8.1:

6.1.1         
Seller is validly existing and in good standing under the laws of the state of
its formation set forth in the initial paragraph of this Contract; and, subject
to Section 8.2.4, has or at the Closing shall have the entity power and
authority to sell and convey the Property and to execute the documents to be
executed by Seller and prior to the Closing will have taken as applicable, all
corporate, partnership, limited liability company or equivalent entity actions
required for the execution and delivery of this Contract, and the consummation
of the transactions contemplated by this Contract.  The compliance with or
fulfillment of the terms and conditions hereof will not conflict with, or result
in a breach of, the terms, conditions or provisions of, or constitute a default
under, any contract to which Seller is a party or by which Seller is otherwise
bound, which conflict, breach or default would have a material adverse affect on
Seller’s ability to consummate the transaction contemplated by this Contract or
on the Property.  Subject to Section 8.2.4, this Contract is a valid
and binding agreement against Seller in accordance with its terms;

6.1.2         
Seller is not a “foreign person,” as that term is used and defined in the
Internal Revenue Code, Section 1445, as amended;

6.1.3         
Except for (a) any actions by Seller to evict Tenants under the Leases, or (b)
any matter covered by Seller’s current insurance policy(ies), to Seller’s
knowledge, there are no material actions, proceedings, litigation or
governmental investigations or condemnation actions either pending or threatened
against the Property, which will adversely impact Seller’s ability to convey the
Property;

6.1.4         
To Seller's knowledge, Seller has not received any written notice from a
governmental agency of any uncured material violations of any federal, state,
county or municipal law, ordinance, order, regulation or requirement affecting
the Property; 

6.1.5         
To Seller's knowledge, Seller has not received any written notice of any
material default by Seller under any of the Property Contracts that will not be
terminated on the Closing Date;

6.1.6         
To Seller's knowledge, the Rent Roll (as updated pursuant to Section
5.2.10) is accurate in all material respects;

6.1.7         
To Seller's knowledge, the Property Contracts List (as updated pursuant to
Section 5.2.12) is accurate in all material respects;

6.1.8         
Seller has not, and, as of the Closing, shall not have (A) made a general
assignment for the benefit of creditors, (B) filed any voluntary petition in
bankruptcy or suffered the filing of any involuntary petition by Seller’s
creditors, (C) suffered the appointment of a receiver to take possession of all,
or substantially all, of Seller’s assets, which remains pending as of such time,
(D) suffered the attachment or other judicial seizure of all, or substantially
all, of Seller’s assets, which remains pending as of such time, (E) admitted in
writing its inability to pay its debts as they come due, or (F) made an offer of
settlement, extension or composition to its creditors generally; and

6.1.9         
To Seller’s knowledge, there are no condemnation proceedings pending or
threatened that would result in the taking of any portion of the Property. 
To Seller’s knowledge, Seller has not received any written notice of any special
assessment proceedings affecting the Property.

6.2      
AS-IS.

 
Except for Seller's Representations, the Property is expressly purchased and
sold "AS IS," "WHERE IS," and "WITH ALL FAULTS."  The Purchase Price and
the terms and conditions set forth herein are the result of arm's-length
bargaining between entities familiar with transactions of this kind, and said
price, terms and conditions reflect the fact that Purchaser shall have the
benefit of, and, except for Seller’s Representations, is not relying upon, any
information provided by Seller or Broker or statements, representations or
warranties, express or implied, made by or enforceable directly against Seller
or Broker, including, without limitation, any relating to the value of the
Property, the physical or environmental condition of the Property, any state,
federal, county or local law, ordinance, order or permit; or the suitability,
compliance or lack of compliance of the Property with any regulation, or any
other attribute or matter of or relating to the Property (other than any
covenants of title contained in the Deed conveying the Property and Seller's
Representations).  Purchaser agrees that Seller shall not be responsible or
liable to Purchaser for any defects, errors or omissions, or on account of any
conditions affecting the Property.  Purchaser, its successors and assigns,
and anyone claiming by, through or under Purchaser, hereby fully releases
Seller's Indemnified Parties from, and irrevocably waives its right to maintain,
any and all claims and causes of action that it or they may now have or
hereafter acquire against Seller's Indemnified Parties with respect to any and
all Losses arising from or related to any defects, errors, omissions or other
conditions affecting the Property except, subject to the terms of set forth in
Section 6.3 below, for claims or causes of action arising from the fraud
or misrepresentation of Seller.  Purchaser represents and warrants that, as
of the date hereof and as of the Closing Date, it has and shall have reviewed
and conducted such independent analyses, studies (including, without limitation,
environmental studies and analyses concerning the presence of lead, asbestos,
water intrusion and/or fungal growth and any resulting damage, PCBs and radon in and about the Property), reports,
investigations and inspections as it deems appropriate in connection with the
Property.  If Seller  provides or has provided any documents,
summaries, opinions or work product of consultants, surveyors, architects,
engineers, title companies, governmental authorities or any other person or
entity with respect to the Property, including, without limitation, the offering
prepared by Broker, Purchaser and Seller agree that Seller has done so or shall
do so only for the convenience of both parties, subject to Seller’s
Representations, Purchaser shall not rely thereon and the reliance by Purchaser
upon any such documents, summaries, opinions or work product shall not create or
give rise to any liability of or against Seller's Indemnified Parties. 
Purchaser acknowledges and agrees that, except for Seller’s Representations, no
representation has been made and no responsibility is assumed by Seller with
respect to current and future applicable zoning or building code requirements or
the compliance of the Property with any other laws, rules, ordinances or
regulations, the financial earning capacity or expense history of the Property,
the continuation of contracts, continued occupancy levels of the Property, or
any part thereof, or the continued occupancy by tenants of any Leases or,
without limiting any of the foregoing, occupancy at Closing.  Prior to
Closing, Seller shall have the right, but not the obligation, to enforce its
rights against any and all Property occupants, guests or tenants. 
Purchaser agrees that the departure or removal, prior to Closing, of any of such
guests, occupants or tenants shall not be the basis for, nor shall it give rise
to, any claim on the part of Purchaser, nor shall it affect the obligations of
Purchaser under this Contract in any manner whatsoever; and Purchaser shall
close title and accept delivery of the Deed with or without such tenants in
possession and without any allowance or reduction in the Purchase Price under
this Contract.  Purchaser hereby releases Seller from any and all claims
and liabilities relating to the foregoing matters, except, subject to the terms
of set forth in Section 6.3 below, for claims and liabilities arising
from or in any way connected with the fraud or misrepresentation of
Seller.  

6.3       Survival of
Seller's Representations.

 
Seller and Purchaser agree that Seller's Representations shall survive Closing
for a period of 6 months (the "Survival Period").  Seller
shall have no liability after the Survival Period with respect to Seller's
Representations contained herein except to the extent that Purchaser has
requested arbitration against Seller during the Survival Period for breach of
any of Seller's Representations.  Under no circumstances shall Seller be
liable to Purchaser for more than $150,000 in any individual instance or in the
aggregate for all breaches of Seller's Representations, nor shall Purchaser be
entitled to bring any claim for a breach of Seller's Representations unless the
claim for damages (either in the aggregate or as to any individual claim) by
Purchaser exceeds $5,000.  In the event that Seller breaches any
representation contained in Section 6.1 and Purchaser had knowledge of
such breach prior to the Closing Date, and elected to close regardless,
Purchaser shall be deemed to have waived any right of recovery, and Seller shall
not have any liability in connection therewith.

6.4       Definition of
Seller's Knowledge.

 
Any representations and warranties made "to the knowledge of Seller" shall not
be deemed to imply any duty of inquiry.  For purposes of this Contract, the
term Seller's "knowledge" shall mean and refer only to actual
knowledge of the Designated Representative of the Seller and shall not be
construed to refer to the knowledge of any other partner, officer, director,
agent, employee or representative of the Seller, or any affiliate of the Seller,
or to impose upon such Designated Representative any duty to investigate the
matter to which such actual knowledge or the absence thereof pertains, or to
impose upon such Designated Representative any individual
personal liability.  As used herein, the term Designated Representative
shall refer to Kendra Miller, who is the Regional Property Manager handling this
Property (the "Regional Property Manager").  

6.5       Representations
and Warranties of Purchaser.

 
For the purpose of inducing Seller to enter into this Contract and to consummate
the sale and purchase of the Property in accordance herewith, Purchaser
represents and warrants to Seller the following as of the Effective Date and as
of the Closing Date:

6.5.1         
Purchaser is a corporation duly organized, validly existing and in good standing
under the laws of the State of California.

6.5.2         
Purchaser, acting through any of its or their duly empowered and authorized
officers or members, has all necessary entity power and authority to own and use
its properties and to transact the business in which it is engaged, and has full
power and authority to enter into this Contract, to execute and deliver the
documents and instruments required of Purchaser herein, and to perform its
obligations hereunder; and no consent of any of Purchaser's partners, directors,
officers or members are required to so empower or authorize Purchaser.  The
compliance with or fulfillment of the terms and conditions hereof will not
conflict with, or result in a breach of, the terms, conditions or provisions of,
or constitute a default under, any contract to which Purchaser is a party or by
which Purchaser is otherwise bound, which conflict, breach or default would have
a material adverse affect on Purchaser's ability to consummate the transaction
contemplated by this Contract.  This Contract is a valid and binding
agreement against Purchaser in accordance with its terms.

6.5.3         
No pending or, to the knowledge of Purchaser, threatened litigation exists which
if determined adversely would restrain the consummation of the transactions
contemplated by this Contract or would declare illegal, invalid or non-binding
any of Purchaser's obligations or covenants to Seller.

6.5.4         
Other than Seller's Representations, Purchaser has not relied on any
representation or warranty made by Seller or any representative of Seller
(including, without limitation, Broker) in connection with this Contract and the
acquisition of the Property.

6.5.5         
The Broker and its affiliates do not, and will not at the Closing, have any
direct or indirect legal, beneficial, economic or voting interest in Purchaser
(or in an assignee of Purchaser, which pursuant to Section 13.3, acquires
the Property at the Closing), nor has Purchaser or any affiliate of Purchaser
granted (as of the Effective Date or the Closing Date) the Broker or any of its
affiliates any right or option to acquire any direct or indirect legal,
beneficial, economic or voting interest in Purchaser.

6.5.6         
Purchaser is not a Prohibited Person.

6.5.7         
To Purchaser's knowledge, none of its investors, affiliates or brokers or other
agents (if any), acting or benefiting in any capacity in connection with this
Contract is a Prohibited Person.

6.5.8         
The funds or other assets Purchaser will transfer to Seller under this Contract
are not the property of, or beneficially owned, directly or indirectly, by a
Prohibited Person. 

6.5.9         
The funds or other assets Purchaser will transfer to Seller under this Contract
are not the proceeds of specified unlawful activity as defined by 18 U.S.C. §
1956(c)(7).

6.6       Definition
of Purchaser’s Knowledge.

 
Any representations and warranties made “to the knowledge of Purchaser” shall
not be deemed to imply any duty of inquiry.  For purposes of this Contract,
including, without limitation, the provisions of Section 6.5 above, the
term Purchaser’s “knowledge” shall mean and refer only to actual knowledge of
Kurt E. Houtkooper or David Nelson and shall not be construed to refer to the
knowledge of any other partner, officer, director, agent, employee or
representative of Purchaser, or any affiliate of Purchaser, or to impose upon
Kurt E. Houtkooper or David Nelson any duty to investigate the matter to which
such actual knowledge or the absence thereof pertains, or to impose upon Kurt E.
Houtkooper or upon David Nelson any individual personal liability.

Article
VII
OPERATION OF THE PROPERTY

7.1       Leases and
Property Contracts.

 
During the period of time from the Effective Date to the Closing Date, in the
ordinary course of business Seller may enter into new Property Contracts, new
Leases, renew existing Leases or modify, terminate or accept the surrender or
forfeiture of any of the Leases, modify any Property Contracts, or institute and
prosecute any available remedies for default under any Lease or Property
Contract without first obtaining the written consent of Purchaser; provided,
however, Seller agrees that (a) Seller may only enter into any such new Property
Contract if it is terminable on not more than thirty (30) days’ prior notice,
and (b) no new or renewed Leases shall have a term in excess of 1 year without
the prior written consent of Purchaser, which consent shall not be unreasonably
withheld, conditioned or delayed.   Seller shall terminate at or prior
to the Closing, at no cost or expense to Purchaser, any and all management
agreements affecting the Property.  Seller shall use commercially
reasonable efforts to deliver all apartment units which are vacant as of the
Closing Date (each, a "Vacant Unit") in Rent Ready Condition (as
hereinafter defined).  Not less than three (3) Business Days prior to
the Closing Date, Seller and Purchaser shall jointly inspect the Property and
shall mutually agree on a list of the Vacant Units, which list shall specify
those Vacant Units that are not in Rent Ready Condition. At Closing, Purchaser
shall receive a credit against the Purchase Price in the amount of Five Hundred
Dollars ($500) for each Vacant Unit which is not in Rent Ready Condition as of
the Closing. For purposes hereof, the term "Rent Ready Condition"
shall mean interior carpets have been shampooed, interior walls have been
freshly painted, kitchen appliances (and water heaters and HVAC to the extent
such items serve only the individual Vacant Unit(s)) are in working order, and
there is no material damage to the doors, walls, ceilings, floors and windows
inside such Vacant Units..

7.2       General
Operation of Property.

 
Except as specifically set forth in this Article VII, Seller shall operate the
Property after the Effective Date in the ordinary course of business, and except
as necessary in the Seller's sole discretion to address (a) any life or safety
issue at the Property or (b) any other matter which in
Seller's reasonable discretion materially adversely affects the use, operation
or value of the Property, Seller will not make any material alterations to the
Property or remove any material Fixtures and Tangible Personal Property without
the prior written consent of Purchaser which consent shall not be unreasonably
withheld, denied or delayed.

7.3      
Liens.

 
Other than utility easements and temporary construction easements granted by
Seller in the ordinary course of business, Seller covenants that it will not
voluntarily create or cause any lien or encumbrance to attach to the Property
between the Effective Date and the Closing Date (other than Leases and Property
Contracts as provided in Section 7.1) unless Purchaser approves such lien
or encumbrance in writing, which approval shall not be unreasonably withheld or
delayed.  If Purchaser approves any such subsequent lien or encumbrance,
the same shall be deemed a Permitted Encumbrance for all purposes
hereunder.  

Article
VIII
CONDITIONS PRECEDENT
TO CLOSING

8.1       Purchaser's
Conditions to Closing.

 
Without limiting the rights of Purchaser elsewhere provided for in this
Contract, Purchaser's obligation to close under this Contract, shall be subject
to and conditioned upon the fulfillment of the following conditions
precedent:

8.1.1         
All of the documents required to be delivered by Seller to Purchaser at the
Closing pursuant to the terms and conditions hereof shall have been
delivered;

8.1.2         
Each of Seller's Representations shall be true in all material respects as of
the Closing Date;

8.1.3         
Seller shall have complied with, fulfilled and performed in all material
respects each of the covenants, terms and conditions to be complied with,
fulfilled or performed by Seller hereunder; and

8.1.4         
Neither Seller nor Seller's member shall be a debtor in any bankruptcy
proceeding nor shall have been in the last 6 months a debtor in any bankruptcy
proceeding.

8.1.5         
There shall not be pending or, to the knowledge of either Purchaser or Seller,
any litigation or threatened litigation which, if determined adversely, would
restrain, in all material respects,  the consummation of any of the
transactions contemplated by this Contract or declare illegal, invalid or
nonbinding any of the material covenants or material obligations of
Seller.

Notwithstanding
anything to the contrary, there are no other conditions on Purchaser's
obligation to Close except as expressly set forth in this Section
8.1.  If any condition set forth in Sections 8.1.1, 8.1.3 or
8.1.4 is not met, Purchaser may (a) waive any of the foregoing conditions
and proceed to Closing on the Closing Date with no offset or deduction from the
Purchase Price, or (b) if such failure constitutes a default by Seller, exercise
any of its remedies pursuant to Section 10.2.  If the condition set
forth in Section 8.1.2 or 8.1.5 is not met, Seller shall not be in
default pursuant to Section 10.2, and Purchaser may, as its sole and
exclusive remedy, (i) notify Seller of Purchaser's election to terminate this
Contract and receive a return of the Deposit from the
Escrow Agent, or (ii) waive such condition and proceed to Closing on the Closing
Date with no offset or deduction from the Purchase Price.  

8.2       Seller's
Conditions to Closing.

 
Without limiting any of the rights of Seller elsewhere provided for in this
Contract, Seller's obligation to close with respect to conveyance of the
Property under this Contract shall be subject to and conditioned upon the
fulfillment of the following conditions precedent:

8.2.1         
All of the documents and funds required to be delivered by Purchaser to Seller
at the Closing pursuant to the terms and conditions hereof shall have been
delivered;

8.2.2         
Each of the representations, warranties and covenants of Purchaser contained
herein shall be true in all material respects as of the Closing Date;

8.2.3         
Purchaser shall have complied with, fulfilled and performed in all material
respects each of the covenants, terms and conditions to be complied with,
fulfilled or performed by Purchaser hereunder;

8.2.4         
Seller shall have received all consents, documentation and approvals necessary
to consummate and facilitate the transactions contemplated hereby, including,
without limitation, a tax free exchange pursuant to Section 13.18 (and
the amendment of Seller's (or Seller's affiliates') partnership or other
organizational documents in connection therewith), (a) from Seller's partners,
members, managers, shareholders or directors to the extent required by Seller's
(or Seller's affiliates') organizational documents, and (b) as required by
law;

8.2.5         
There shall not be pending or, to the knowledge of either Purchaser or Seller,
any litigation or threatened litigation which, if determined adversely, would
restrain the consummation of any of the transactions contemplated by this
Contract or declare illegal, invalid or nonbinding any of the covenants or
obligations of the Purchaser; and

If any of the foregoing conditions to Seller's obligation to
close with respect to conveyance of the Property under this Contract are not
met, Seller may (a) waive any of the foregoing conditions and proceed to Closing
on the Closing Date, or (b) terminate this Contract, and, if such failure
constitutes a default by Purchaser, exercise any of its remedies under
Section 10.1.  

Article
IX
BROKERAGE

9.1      
Indemnity.

 
Seller represents and warrants to Purchaser that it has dealt only with CB
Richard Ellis-Capital Markets, 2415 E. Camelback Road, Phoenix, AZ 85016,
Attention: Sean Cunningham ("Broker") in connection with this
Contract.  Seller and Purchaser each represents and warrants to the other
that, other than Broker, it has not dealt with or utilized the services of any
other real estate broker, sales person or finder in connection with this
Contract, and each party agrees to indemnify, hold harmless, and, if requested
in the sole and absolute discretion of the indemnitee, defend (with counsel
approved by the indemnitee) the other party from and against all Losses relating
to brokerage commissions and finder's fees arising from or attributable to the
acts or omissions of the indemnifying party.  

9.2       Broker
Commission.

 
If the Closing occurs, Seller agrees to pay Broker a commission according to the
terms of a separate contract.  Broker shall not be deemed a party or third
party beneficiary of this Contract.  As a condition to Seller's obligation
to pay the commission, Broker shall execute the signature page for Broker
attached hereto solely for purposes of confirming the matters set forth
therein.

Article X
DEFAULTS AND REMEDIES

10.1     Purchaser
Default.

 
If Purchaser defaults in its obligations hereunder to (a) deliver the Initial
Deposit or Additional Deposit (or any other deposit or payment required of
Purchaser hereunder), (b) deliver to the Seller the deliveries specified under
Section 5.3 on the date required thereunder, or (c) deliver the Purchase
Price at the time required by Section 2.2.3 and close on the purchase of
the Property on the Closing Date, then, immediately and without the right to
receive notice or to cure pursuant to Section 2.3.3, Purchaser shall
forfeit the Deposit, and the Escrow Agent shall deliver the Deposit to Seller,
and neither party shall be obligated to proceed with the purchase and sale of
the Property.  If, Purchaser defaults in any of its other representations,
warranties or obligations under this Contract, and such default continues for
more than 10 days after written notice from Seller, then Purchaser shall forfeit
the Deposit, and the Escrow Agent shall deliver the Deposit to Seller, and
neither party shall be obligated to proceed with the purchase and sale of the
Property.  The Deposit is liquidated damages and recourse to the Deposit
is, except for Purchaser's indemnity and confidentiality obligations hereunder,
Seller's sole and exclusive remedy for Purchaser's failure to perform its
obligation to purchase the Property or breach of a representation or
warranty.  Seller expressly waives the remedies of specific performance and
additional damages for such default by Purchaser.  SELLER AND PURCHASER
ACKNOWLEDGE THAT SELLER'S DAMAGES WOULD BE DIFFICULT TO DETERMINE, AND THAT THE
DEPOSIT IS A REASONABLE ESTIMATE OF SELLER'S DAMAGES RESULTING FROM A DEFAULT BY
PURCHASER IN ITS OBLIGATION TO PURCHASE THE PROPERTY.  SELLER AND PURCHASER
FURTHER AGREE THAT THIS SECTION 10.1 IS INTENDED TO AND DOES LIQUIDATE
THE AMOUNT OF DAMAGES DUE SELLER, AND SHALL BE SELLER'S EXCLUSIVE REMEDY AGAINST
PURCHASER, BOTH AT LAW AND IN EQUITY, ARISING FROM OR RELATED TO A BREACH BY
PURCHASER OF ITS OBLIGATION TO CONSUMMATE THE TRANSACTIONS CONTEMPLATED BY THIS
CONTRACT, OTHER THAN WITH RESPECT TO PURCHASER'S INDEMNITY AND CONFIDENTIALITY
OBLIGATIONS HEREUNDER.

10.2     Seller
Default.

 
If Seller, prior to the Closing, defaults in its covenants, or obligations under
this Contract, including to sell the Property as required by this Contract and
such default continues for more than 10 days after written notice from
Purchaser, then, at Purchaser's election and as Purchaser's sole and exclusive
remedy, either (a) this Contract shall terminate, and all payments and things of
value, including the Deposit, provided by Purchaser hereunder shall be returned
to Purchaser and Purchaser may recover, as its sole recoverable damages (but
without limiting its right to receive a refund of the Deposit), its direct and
actual out-of-pocket expenses and costs (documented by paid invoices to third
parties) in connection with this transaction, which damages shall not exceed
$35,000 in aggregate, provided, however, (i) if such default is solely as a
result of Seller’s failure to obtain by the Closing Date the consent of the required number of members or limited partners, as the
case may be, to consummate the transactions contemplated herein and (ii)
Purchaser is not otherwise in default under this Contract and is ready, willing
and able to consummate the Closing on the Closing Date, then the amount of
direct and actual out-of-pocket expenses and costs that Purchaser may recover as
a result of such default shall not exceed $150,000 in the aggregate, or (b)
subject to the conditions below, Purchaser may seek specific performance of
Seller’s obligation to deliver the Deed pursuant to this Contract (but not
damages).  Purchaser may seek specific performance of Seller's obligation
to deliver the Deed pursuant to this Contract only if, as a condition precedent
to initiating such litigation for specific performance, Purchaser first shall
(i) deliver all Purchaser Closing documents to Escrow Agent in accordance with
the requirements of this Contract, including, without limitation, Sections
2.2.3 and 5.3 (with the exception of Section 5.3.1); (ii) not
otherwise be in default under this Contract; and (iii) file suit therefor with
the court on or before the 90th day after the Closing Date; if Purchaser fails
to file an action for specific performance within 90 days after the Closing
Date, then Purchaser shall be deemed to have elected to terminate the Contract
in accordance with subsection (a) above.  Purchaser agrees that it shall
promptly deliver to Seller an assignment of all of Purchaser's right, title and
interest in and to (together with possession of) all plans, studies, surveys,
reports, and other materials paid for with the out-of-pocket expenses reimbursed
by Seller pursuant to the foregoing sentence.  SELLER AND PURCHASER FURTHER
AGREE THAT THIS SECTION 10.2 IS INTENDED TO AND DOES LIMIT THE AMOUNT OF
DAMAGES DUE PURCHASER AND THE REMEDIES AVAILABLE TO PURCHASER, AND SHALL BE
PURCHASER'S EXCLUSIVE REMEDY AGAINST SELLER, BOTH AT LAW AND IN EQUITY ARISING
FROM OR RELATED TO A BREACH BY SELLER OF ITS REPRESENTATIONS, WARRANTIES, OR
COVENANTS OR ITS OBLIGATION TO CONSUMMATE THE TRANSACTIONS CONTEMPLATED BY THIS
CONTRACT.  UNDER NO CIRCUMSTANCES MAY PURCHASER SEEK OR BE ENTITLED TO
RECOVER ANY SPECIAL, CONSEQUENTIAL, PUNITIVE, SPECULATIVE OR INDIRECT DAMAGES,
ALL OF WHICH PURCHASER SPECIFICALLY WAIVES, FROM SELLER FOR ANY BREACH BY
SELLER, OF ITS REPRESENTATIONS, WARRANTIES, OR COVENANTS OR ITS OBLIGATIONS
UNDER THIS CONTRACT.  PURCHASER SPECIFICALLY WAIVES THE RIGHT TO FILE ANY
LIS PENDENS OR ANY LIEN AGAINST THE PROPERTY UNLESS AND UNTIL IT HAS IRREVOCABLY
ELECTED TO SEEK SPECIFIC PERFORMANCE OF THIS CONTRACT AND HAS FILED AN ACTION
SEEKING SUCH REMEDY.

Article
XI
RISK OF LOSS OR
CASUALTY

11.1     Major
Damage.

 
In the event that the Property is damaged or destroyed by fire or other casualty
prior to Closing, and the cost for demolition, site cleaning, restoration,
replacement, or other repairs (collectively, the "Repairs") is
more than $250,000, then Seller shall have no obligation to make such Repairs,
and shall notify Purchaser in writing of such damage or destruction (the
"Damage Notice").  Within 10 days after Purchaser's receipt
of the Damage Notice, Purchaser may elect at its option to terminate this
Contract by delivering written notice to Seller in which event the Deposit shall
be refunded to Purchaser.  In the event Purchaser fails to terminate this
Contract within the foregoing 10-day period, this transaction shall be closed in
accordance with Section 11.3 below.

11.2    
Minor Damage.

 
In the event that the Property is damaged or destroyed by fire or other casualty
prior to the Closing, and the cost of Repairs is equal to or less than $250,000,
this transaction shall be closed in accordance with Section 11.3,
notwithstanding such casualty.  In such event, Seller may at its election
endeavor to make such Repairs to the extent of any recovery from insurance
carried on the Property, if such Repairs can be reasonably effected before the
Closing.  Regardless of Seller's election to commence such Repairs, or
Seller's ability to complete such Repairs prior to Closing, this transaction
shall be closed in accordance with Section 11.3 below. 

11.3     Closing.

 
In the event Purchaser fails to terminate this Contract following a casualty as
set forth in Section 11.1, or in the event of a casualty as set forth in
Section 11.2, then this transaction shall be closed in accordance with
the terms of this Contract, at Seller's election, either (i) for the full
Purchase Price, notwithstanding any such casualty, in which case Purchaser
shall, at Closing, execute and deliver an assignment and assumption (in a form
reasonably required by Seller) of Seller's rights and obligations with respect
to the insurance claim related to such casualty, and thereafter Purchaser shall
receive all insurance proceeds pertaining to such claim, less any amounts which
may already have been spent by Seller for Repairs (plus a credit against the
Purchase Price at Closing in the amount of any deductible payable by Seller in
connection therewith); or (ii) for the full Purchase Price less a credit to
Purchaser in the amount necessary to complete such Repairs (less any amounts
which may already have been spent by Seller for Repairs). 

11.4.    Repairs.

 
To the extent that Seller elects to commence any Repairs prior to Closing, then
Seller shall be entitled to receive and apply available insurance proceeds to
any portion of such Repairs completed or installed prior to Closing, with
Purchaser being responsible for completion of such Repairs after Closing. 
To the extent that any Repairs have been commenced prior to Closing, then the
Property Contracts shall include, and Purchaser shall assume at Closing, all
construction and other contracts entered into by Seller in connection with such
Repairs.  

Article
XII
EMINENT
DOMAIN

12.1     Eminent
Domain.

 
In the event that, at the time of Closing, any material part of the Property is
(or previously has been) acquired, or is about to be acquired, by any
governmental agency by the powers of eminent domain or transfer in lieu thereof
(or in the event that at such time there is any notice of any such acquisition
or intent to acquire by any such governmental agency), Purchaser shall have the
right, at Purchaser's option, to terminate this Contract by giving written
notice within 10 days after Purchaser's receipt from Seller of notice of the
occurrence of such event, and if Purchaser so terminates this Contract,
Purchaser shall recover the Deposit hereunder.  If Purchaser fails to
terminate this Contract within such 10-day period, this transaction shall be
closed in accordance with the terms of this Contract for the full Purchase Price
and Purchaser shall receive the full benefit of any condemnation award.  It
is expressly agreed between the parties hereto that this section shall in no way
apply to customary dedications for public purposes which may be necessary for
the development of the Property.

Article XIII
MISCELLANEOUS

13.1     Binding Effect of
Contract.

 
This Contract shall not be binding on either party until executed by both
Purchaser and Seller.  Neither the Escrow Agent's nor the Broker's
execution of this Contract shall be a prerequisite to its effectiveness. 
Subject to Section 13.3, this Contract shall be binding upon and inure to
the benefit of Seller and Purchaser, and their respective successors, heirs and
permitted assigns.

13.2     Exhibits and
Schedules.

 
All Exhibits and Schedules, whether or not annexed hereto, are a part of this
Contract for all purposes.

13.3    
Assignability.

 
Except to the extent required to comply with the provisions of Section
13.18 related to a 1031 Exchange, this Contract is not assignable by
Purchaser without first obtaining the prior written approval of the
Seller.  Notwithstanding the foregoing, Purchaser may assign this Contract,
without first obtaining the prior written approval of the Seller, to one or more
entities so long as (a) Purchaser is the managing member of, managing general
partner of or otherwise holds a controlling interest in the purchasing
entity(ies) or to a tenancy-in-common
structure in which Purchaser or one or more of its
affiliates are the sponsor, (b) Purchaser is not released from its
liability hereunder, (c) Purchaser provides written notice to Seller of any
proposed assignment no later than 10 days prior to the Closing Date and (d) in
the event this Contract is assigned to more than one entity, the assignees shall
be deemed to be jointly and severally liable with respect to the obligations of
the Purchaser.

13.4     Captions.

 
The captions, headings, and arrangements used in this Contract are for
convenience only and do not in any way affect, limit, amplify, or modify the
terms and provisions hereof.

13.5     Number and Gender of
Words.

 
Whenever herein the singular number is used, the same shall include the plural
where appropriate, and words of any gender shall include each other gender where
appropriate.

13.6     Notices.

 
All notices, demands, requests and other communications required or permitted
hereunder shall be in writing, and shall be (a) personally delivered with a
written receipt of delivery; (b) sent by a nationally-recognized overnight
delivery service requiring a written acknowledgement of receipt or providing a
certification of delivery or attempted delivery; (c) sent by certified or
registered mail, return receipt requested; or (d) sent by confirmed facsimile
transmission or electronic delivery with an original copy thereof transmitted to
the recipient by one of the means described in subsections (a) through (c) no
later than 3 Business Days thereafter.  All notices shall be deemed
effective when actually delivered as documented in a delivery receipt; provided,
however, that if the notice was sent by overnight courier or mail as aforesaid
and is affirmatively refused or cannot be delivered during customary business
hours by reason of the absence of a signatory to acknowledge receipt, or by
reason of a change of address with respect to which the addressor did not have
either knowledge or written notice delivered in accordance with this paragraph,
then the first attempted delivery shall be deemed to constitute delivery. 
Each party shall be entitled to change its address for notices from time to time
by delivering to the other party notice thereof in the manner herein provided
for the delivery of notices.  All notices shall be
sent to the addressee at its address set forth following its name below: 

To
Purchaser:

 

Hamilton
Zanze & Company

37
Graham Street

Suite
200B

San
Francisco, California 94129

Attention: 
David Nelson
Telephone:  415-561-6800 x 110

Facsimile: 
415-561-6801

 

with
a copy to:

 

Foley
& Lardner, LLP

555
South Flower Street

Suite
3500

Los
Angeles, CA 90071

Attention: 
Craig P. Wood, Esq.
Telephone:  213-972-4555

Facsimile: 
213-486-0065

 

To
Seller:

 

c/o
AIMCO

4582
South Ulster Street Parkway 

Suite
1100

Denver,
Colorado  80237

Attention:
Mark Reoch or Derik Hart

                       
Telephone: (303) 691-4337 

                       
Facsimile:  (303) 300-3261  

 

 

And:

 

c/o
AIMCO

4582
South Ulster Street Parkway 

Suite
1100

Denver,
Colorado  80237

Attention: 
Mr. Harry Alcock

Telephone: 
303-691-4344

Facsimile: 
303-300-3282

 

with
copy to:

 

AIMCO

4582 South Ulster Street Parkway 

Suite
1100

Denver,
Colorado  80237

Attention: 
John Spiegleman, Esq.

Telephone:
303-691-4303

Facsimile: 
303-300-3260

 

and
a copy to:

 

CB
Richard Ellis-Capital Markets
2415 E. Camelback Road
Phoenix, AZ
85016
Attention: Sean Cunningham

Telephone:
602-735-1740

Facsimile: 
602-735-5156

 

and
a copy to:

 

Bryan
Cave LLP

1290
Avenue of the Americas

New
York, New York 10104

Attention: 
Sandor Green, Esq.

Telephone:
212-541-2049

Facsimile: 
212-541-1449

 

Any notice required hereunder to be delivered to the Escrow Agent
shall be delivered in accordance with above provisions as follows:

           
Stewart Title Insurance
Company
                       
1980 Post Oak
Boulevard
                       
Suite
610
                       
Houston, Texas 
77056
                       
Attention:  Wendy
Howell
                       
Telephone:
713-625-8161
                       
Facsimile: 713-552-1703

 

Unless
specifically required to be delivered to the Escrow Agent pursuant to the terms
of this Contract, no notice hereunder must be delivered to the Escrow Agent in
order to be effective so long as it is delivered to the other party in
accordance with the above provisions.

13.7     Governing Law and
Venue.

 
The laws of the State of Colorado shall govern the validity, construction,
enforcement, and interpretation of this Contract, unless otherwise specified
herein except for the conflict of laws provisions thereof.  Subject to
Section 13.24, all claims, disputes and other matters in question arising
out of or relating to this Contract, or the breach thereof, shall be decided by
proceedings instituted and litigated in a court of competent jurisdiction in the state in which the Property is situated,
and the parties hereto expressly consent to the venue and jurisdiction of such
court.

13.8     Entire
Agreement.

 
This Contract embodies the entire Contract between the parties hereto concerning
the subject matter hereof and supersedes all prior conversations, proposals,
negotiations, understandings and contracts, whether written or oral.

13.9    
Amendments.

 
This Contract shall not be amended, altered, changed, modified, supplemented or
rescinded in any manner except by a written contract executed by all of the
parties; provided, however, that, (a) the signature of the Escrow Agent shall
not be required as to any amendment of this Contract other than an amendment of
Section 2.3, and (b) the signature of the Broker shall not be required as
to any amendment of this Contract.

13.10   Severability.

 
In the event that any part of this Contract shall be held to be invalid or
unenforceable by a court of competent jurisdiction, such provision shall be
reformed, and enforced to the maximum extent permitted by law.  If such
provision cannot be reformed, it shall be severed from this Contract and the
remaining portions of this Contract shall be valid and enforceable.

13.11   Multiple Counterparts/Facsimile
Signatures.

 
This Contract may be executed in a number of identical counterparts.  This
Contract may be executed by facsimile signatures or electronic delivery of
signatures which shall be binding on the parties hereto, with original
signatures to be delivered as soon as reasonably practical thereafter.

13.12   Construction.

 
No provision of this Contract shall be construed in favor of, or against, any
particular party by reason of any presumption with respect to the drafting of
this Contract; both parties, being represented by counsel, having fully
participated in the negotiation of this instrument.

13.13   Confidentiality.

 
Purchaser shall not disclose the terms and conditions contained in this Contract
and shall keep the same confidential, provided that Purchaser may disclose the
terms and conditions of this Contract (a) as required by law, (b) to consummate
the terms of this Contract, or any financing relating thereto, or (c) to
Purchaser's or Seller's lenders, attorneys and accountants.  Any
information obtained by Purchaser in the course of its inspection of the
Property, and any Materials provided by Seller to Purchaser hereunder, shall be
confidential and Purchaser shall be prohibited from making such information
public to any other person or entity other than its Consultants, without
Seller's prior written authorization, which may be granted or denied in Seller's
sole discretion.  In addition, Purchaser shall use its reasonable efforts
to prevent its Consultants from divulging any such confidential information to
any unrelated third parties except as reasonably necessary to third parties
engaged by Purchaser for the limited purpose of analyzing and investigating such
information for the purpose of consummating the transaction contemplated by this
Contract.  Unless and until the Closing occurs, Purchaser shall not market
the Property (or any portion thereof) to any prospective purchaser or lessee
without the prior written consent of Seller, which consent may be withheld in
Seller's sole discretion.  Notwithstanding the provisions of Section
13.8, Purchaser agrees that the covenants, restrictions and agreements of
Purchaser contained in any confidentiality agreement executed by Purchaser prior to the Effective Date shall survive the execution of
this Contract and shall not be superseded hereby.

13.14   Time of the Essence.

 
It is expressly agreed by the parties hereto that time is of the essence with
respect to this Contract.

13.15   Waiver.

 
No delay or omission to exercise any right or power accruing upon any default,
omission, or failure of performance hereunder shall impair any right or power or
shall be construed to be a waiver thereof, but any such right and power may be
exercised from time to time and as often as may be deemed expedient.  No
waiver, amendment, release, or modification of this Contract shall be
established by conduct, custom, or course of dealing and all waivers must be in
writing and signed by the waiving party.

13.16   Attorneys Fees.

 
In the event either party hereto commences litigation or arbitration against the
other to enforce its rights hereunder, the substantially prevailing party in
such litigation shall be entitled to recover from the other party its reasonable
attorneys' fees and expenses incidental to such litigation and arbitration,
including the cost of in-house counsel and any appeals.

13.17   Time Zone/Time
Periods.

 
Except as otherwise expressly provided herein, any reference in this Contract to
a specific time shall refer to the time in the time zone where the Property is
located (for example, a reference to 3:00 p.m. refers to 3:00 p.m. MST if the
Property is located in Colorado Springs, CO).  Should the last day of a
time period fall on a weekend or legal holiday, the next Business Day thereafter
shall be considered the end of the time period.

13.18   1031 Exchange.

 
Seller and Purchaser acknowledge and agree that the purchase and sale of the
Property may be part of a tax-free exchange for either Purchaser or Seller
pursuant to Section 1031 of the Code, the regulations promulgated thereunder,
revenue procedures, pronouncements and other guidance issued by the Internal
Revenue Service.  Each party hereby agrees to cooperate with each other and
take all reasonable steps on or before the Closing Date to facilitate such
exchange if requested by the other party, provided that (a) no party making such
accommodation shall be required to acquire any substitute property, (b) such
exchange shall not affect the representations, warranties, liabilities and
obligations of the parties to each other under this Contract, (c) no party
making such accommodation shall incur any additional cost, expense or liability
in connection with such exchange (other than expenses of reviewing and executing
documents required in connection with such exchange), and (d) no dates in this
Contract will be extended as a result thereof, except as specifically provided
herein.  

13.19   No Personal Liability of Officers,
Trustees or Directors of Seller's Partners.

 
Purchaser acknowledges that this Contract is entered into by Seller which is a
Delaware limited liability company, and Purchaser agrees that none of Seller's
Indemnified Parties shall have any personal liability under this Contract or any
document executed in connection with the transactions contemplated by this
Contract.

13.20  
Intentionally Omitted.

13.21   ADA Disclosure.

 
Purchaser acknowledges that the Property may be subject to the federal Americans
With Disabilities Act (the "ADA") and the federal Fair Housing Act
(the "FHA").  The ADA requires, among
other matters, that tenants and/or owners of "public accommodations" remove
barriers in order to make the Property accessible to disabled persons and
provide auxiliary aids and services for hearing, vision or speech impaired
persons.  Seller makes no warranty, representation or guarantee of any type
or kind with respect to the Property's compliance with the ADA or the FHA (or
any similar state or local law), and Seller expressly disclaims any such
representations.  Nothing contained in this Section 13.21 shall be
deemed to limit or otherwise modify the Seller’s Representations set forth in
Section 6.1.4 above.

13.22   No Recording.

 
Purchaser shall not cause or allow this Contract or any contract or other
document related hereto, nor any memorandum or other evidence hereof, to be
recorded or become a public record without Seller's prior written consent, which
consent may be withheld at Seller's sole discretion.  If the Purchaser
records this Contract or any other memorandum or evidence thereof, Purchaser
shall be in default of its obligations under this Contract.  Purchaser
hereby appoints the Seller as Purchaser's attorney-in-fact to prepare and record
any documents necessary to effect the nullification and release of the Contract
or other memorandum or evidence thereof from the public records.  This
appointment shall be coupled with an interest and irrevocable.

13.23   Relationship of
Parties.

 
Purchaser and Seller acknowledge and agree that the relationship established
between the parties pursuant to this Contract is only that of a seller and a
purchaser of property.  Neither Purchaser nor Seller is, nor shall either
hold itself out to be, the agent, employee, joint venturer or partner of the
other party.

13.24   Dispute Resolution.

 
Any controversy, dispute, or claim of any nature arising out of, in connection
with, or in relation to the interpretation, performance, enforcement or breach
of this Contract (and any closing document executed in connection herewith),
including any claim based on contract, tort or statute, shall be resolved at the
written request of any party to this Contract by binding arbitration.  The
arbitration shall be administered in accordance with the then current Commercial
Arbitration Rules of the American Arbitration Association.  Any matter to
be settled by arbitration shall be submitted to the American Arbitration
Association in the state in which the Property is located.  The parties
shall attempt to designate one arbitrator from the American Arbitration
Association.  If they are unable to do so within 30 days after written
demand therefor, then the American Arbitration Association shall designate an
arbitrator.  The arbitration shall be final and binding, and enforceable in
any court of competent jurisdiction.  The arbitrator shall award attorneys'
fees (including those of in-house counsel) and costs to the substantially
prevailing party and charge the cost of arbitration to the party which is
not the substantially prevailing party.  Notwithstanding anything
herein to the contrary, this Section 13.24 shall not prevent Purchaser or
Seller from seeking and obtaining equitable relief on a temporary or permanent
basis, including, without limitation, a temporary restraining order, a
preliminary or permanent injunction or similar equitable relief, from a court of
competent jurisdiction located in the state in which the Property is located (to
which all parties hereto consent to venue and jurisdiction) by instituting a
legal action or other court proceeding in order to protect or enforce the rights
of such party under this Contract or to prevent irreparable harm and
injury.  The court's jurisdiction over any such equitable matter, however,
shall be expressly limited only to the temporary, preliminary, or permanent
equitable relief sought; all other claims initiated under this Contract between
the parties hereto shall be determined through final and binding arbitration in
accordance with this Section 13.24.

13.25   AIMCO Marks.

 
Purchaser agrees that Seller, the Property Manager or AIMCO, or their respective
affiliates, are the sole owners of all right, title and interest in and to the
AIMCO Marks (or have the right to use such AIMCO Marks pursuant to license
agreements with third parties) and that no right, title or interest in or to the
AIMCO Marks is granted, transferred, assigned or conveyed as a result of this
Contract.  Purchaser further agrees that Purchaser will not use the AIMCO
Marks for any purpose.

13.26   Non-Solicitation of
Employees.

 
Prior to the expiration of the Feasibility Period, Purchaser acknowledges and
agrees that, without the express written consent of Seller, neither Purchaser
nor any of Purchaser's employees, affiliates or agents shall solicit any of
Seller's employees or any employees located at the Property (or any of Seller's
affiliates' employees located at any property owned by such affiliates) for
potential employment.

13.27   Survival.

 
Except for (a) all of the provisions of this Article XIII (other than Sections
13.18); (b) Sections 2.3, 3.3, 3.4, 3.5, 4.8, 5.4, 5.5, 6.2, 6.5, 9.1, 11.4,
14.1 and 14.2; (c) any other provisions in this Contract, that by their express
terms survive the termination or Closing; and (d) any payment obligation of
Purchaser under this Contract (the foregoing (a), (b), (c) and (d) referred to
herein as the "Survival Provisions"), none of the terms and provisions of
this Contract shall survive the termination of this Contract, and if the
Contract is not so terminated, all of the terms and provisions of this Contract
(other than the Survival Provisions, which shall survive the Closing) shall be
merged into the Closing documents and shall not survive Closing. 

13.28   Multiple Purchasers.

 
As used in this Contract, the term "Purchaser" means all entities
acquiring any interest in the Property at the Closing, including, without
limitation, any assignee(s) of the original Purchaser pursuant to Section
13.3 of this Contract.  In the event that "Purchaser" has
any obligations or makes any covenants, representations or warranties under this
Contract, the same shall be made jointly and severally by all entities being a
Purchaser hereunder.  

Article XIV
LEAD–BASED PAINT DISCLOSURE

14.1    
Disclosure.

 
Seller and Purchaser hereby acknowledge delivery of the Lead Based Paint
Disclosure attached as Exhibit H hereto.  

14.2     Consent
Agreement.  

Testing
(the "Testing") has been performed at the Property with respect to
lead-based paint.  Law Engineering and Environmental Services, Inc.
performed the Testing and reported its findings in a report with a certification
date of May 14, 2001, a copy of which is attached hereto as Exhibit I
(the "Report").  The Report certifies the Property as
lead-based paint free.  By execution hereof, Purchaser acknowledges receipt
of a copy of the Report, the Lead-Based Paint Disclosure Statement attached
hereto as Exhibit H, and acknowledges receipt of that certain Consent
Agreement (the "Consent Agreement") by and among the United States
Environmental Protection Agency (executed December 19, 2001), the United States
Department of Housing and Urban Development (executed January 2, 2002), and
AIMCO (executed December 18, 2001).  Because the Property has been
certified as lead based paint free, Seller is not required under the Consent
Agreement to remediate or abate any lead-based paint
condition at the Property prior to the Closing.  Purchaser acknowledges and
agrees that (1) after Closing, the Purchaser and the Property shall be subject
to the Consent Agreement and the provisions contained herein related thereto and
(2) that Purchaser shall not be deemed to be a third party beneficiary to the
Consent Agreement.  

 

[Remainder of Page Intentionally Left Blank]

           
NOW, THEREFORE, the parties hereto have executed this Contract as of the date
first set forth above.

 

Seller:

 

                                                                       
CCIP KNOLLS, L.L.C.,

                                                                       
a Delaware limited liability company

 

                                                                       
By:      Consolidated Capital
Institutional           

                                                                                  
Properties, L.P., Series B, a
California
                                                                                  
limited
partnership,
                                                                                  
its sole member

 

                                                                                  
By:      ConCap Equities, Inc., a Delaware

                                                                                            
corporation, its general partner

 

                                                                                            
By: /s/ John Spiegleman

                                                                                   
         Name: John Spiegleman

                       
                                                           
         Title: Senior Vice President

 

 

Purchaser:

 

HAMILTON
ZANZE & COMPANY,

a
California corporation

 

 

By:
/s/ Kurt Houtkooper

Name:
Kurt Houtkooper

Title:
CIOforms3_nov08exh4-3.htm

    
      
        

         

        Exhibit
4.3 – Form of Indenture for Senior Notes

         

    

     

    

    

    STATE
BANCORP, INC.

     

    

    _____________________

     

    INDENTURE

     

    Dated
as of ____________

     

    ______________________

     

    _______________________,

     

    as
Trustee

     

    _______________________

     

    SENIOR
NOTES

     

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Table of
Contents

     

     Page

     

     

    ARTICLE
I

     

     

    DEFINITIONS

     

    
      	
               
      

            	
              Section
      1.01    Definitions                                                                             1

            

    

     

     

     

     

    ARTICLE
II

     

     

     

    NOTES

     

    
      	
               
      

            	
              Section
      2.01    Authentication
      and Dating; Title and
      Terms                                                                                                                                                                               7

            

    

    
      	
               
      

            	
              Section
      2.02    Forms
      Generally; Form of Trustee’s Certificate of
      Authentication                                                                                                                                        
      10

            

    

    
      	
               
      

            	
              Section
      2.03    Form of
      Note                                                                                                                                                                                                                                    11

            

    

    
      	
               
      

            	
              Section
      2.04    Execution of
      Notes                                                                                                                                                                                                                         
      11

            

    

    
      	
               
      

            	
              Section
      2.05    Legends                                                                                                                                                                                                                                           
      12

            

    

    
      	
               
      

            	
              Section
      2.06    Global
      Note                                                                                                                                                                                                                                     
      12

            

    

    
      	
               
      

            	
              Section
      2.07    Computation of
      Interest                                                                                                                                                                                                                
      14

            

    

    
      	
               
      

            	
              Section
      2.08    Transfer and
      Exchange                                                                                                                                                                                                                  
      15

            

    

    
      	
               
      

            	
              Section
      2.09    Mutilated,
      Destroyed, Lost or Stolen
      Notes                                                                                                                                                                               16

            

    

    
      	
               
      

            	
              Section
      2.10    Temporary
      Notes                                                                                                                                                                                                                            17

            

    

    
      	
               
      

            	
              Section
      2.11    Cancellation                                                                                                                                                                                                                                    
      17

            

    

    
      	
               
      

            	
              Section
      2.12    CUSIP
      Numbers                                                                                                                                                                                                                           
         18

            

    

     

     

     

     

    ARTICLE
III

     

     

     

    PARTICULAR
COVENANTS OF THE CORPORATION

     

    
      	
               
      

            	
              Section
      3.01    Payment of
      Principal and
      Interest                                                                                                                                                                                                
      18

            

    

    
      	
               
      

            	
              Section
      3.02    Offices for
      Notices and Payments,
      Etc.                                                                                                                                                                                      
      18

            

    

    
      	
               
      

            	
              Section
      3.03    Appointments to
      Fill Vacancies in Trustee’s
      Office                                                                                                                                                                 
      19

            

    

    
      	
               
      

            	
              Section
      3.04    Provision as to
      Paying
      Agent                                                                                                                                                                                                      
      19

            

    

    
      	
               
      

            	
              Section
      3.05    Certificate to
      Trustee                                                                                                                                                                                                                     
      20

            

    

    
      	
               
      

            	
              Section
      3.06    Compliance with
      Consolidation
      Provisions                                                                                                                                                                               
20

            

    

    
      	
               
      

            	
              Section
      3.07    Limitation on
      Dividends                                                                                                                                                                                                                
      20

            

    

    
      	
               
      

            	
              Section
      3.08    Payment Upon
      Resignation or
      Removal                                                                                                                                                                                     
      21

            

    

     

     

     

     

    ARTICLE
IV

     

     

     

    LIST OF
NOTEHOLDERS AND REPORTS BY THE CORPORATION AND THE TRUSTEE

     

    
      	
               
      

            	
              Section
      4.01    List of
      Noteholders                                                                                                                                                                                                                        
      21

            

    

    
      	
               
      

            	
              Section
      4.02    Preservation
      and Disclosure of
      Lists                                                                                                                                                                                          
      21

            

    

    
      	
               
      

            	
              Section
      4.03    Reports by the
      Corporation                                                                                                                                                                                                          
      22

            

    

    
      	
               
      

            	
              Section
      4.04    Reports by the
      Trustee                                                                                                                                                                                                                 
      23

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ARTICLE
V

     

     

     

    REMEDIES
OF THE TRUSTEE AND NOTEHOLDERS UPON EVENT OF DEFAULT

     

    
      	
               
      

            	
              Section
      5.01    Events of
      Default                                                                                                                                                                                                                           
      23

            

    

    
      	
               
      

            	
              Section
      5.02    Acceleration of
      Maturity                                                                                                                                                                                                              
      24

            

    

    
      	
               
      

            	
              Section
      5.03    Payment of
      Notes on Default; Suit
      Therefor                                                                                                                                                                              25

            

    

    
      	
               
      

            	
              Section
      5.04    Trustee May
      File Proofs of
      Claim                                                                                                                                                                                                
      25

            

    

    
      	
               
      

            	
              Section
      5.05    Application of
      Moneys Collected by
      Trustee                                                                                                                                                                            26

            

    

    
      	
               
      

            	
              Section
      5.06    Proceedings by
      Noteholders                                                                                                                                                                                                        
      26

            

    

    
      	
               
      

            	
              Section
      5.07    Proceedings by
      Trustee                                                                                                                                                                                                                 27

            

    

    
      	
               
      

            	
              Section
      5.08    Restoration of
      Rights and
      Remedies                                                                                                                                                                                           
      28

            

    

    
      	
               
      

            	
              Section
      5.09    Remedies
      Cumulative and
      Continuing                                                                                                                                                                                        
      28

            

    

    
      	
               
      

            	
              Section
      5.10    Direction of
      Proceedings and Waiver of Defaults by Majority of
      Noteholders                                                                                                                   28

            

    

    
      	
               
      

            	
              Section
      5.11    Notice of
      Defaults                                                                                                                                                                                                                          
      28

            

    

    
      	
               
      

            	
              Section
      5.12    Undertaking to
      Pay
      Costs                                                                                                                                                                                                              29

            

    

    
      	
               
      

            	
              Section
      5.13    Unconditional
      Right of Security Holders To Receive Principal, Premium and
      Interest                                                                                                       29

            

    

     

     

     

    ARTICLE
VI

     

     

     

    CONCERNING
THE TRUSTEE

     

    
      	
               
      

            	
              Section
      6.01    Duties and
      Responsibilities of
      Trustee                                                                                                                                                                                      
      30

            

    

    
      	
               
      

            	
              Section
      6.02    Reliance on
      Documents, Opinions,
      etc.                                                                                                                                                                                      
      31

            

    

    
      	
               
      

            	
              Section
      6.03    No
      Responsibility for Recitals,
      etc.                                                                                                                                                                                             
      32

            

    

    
      	
               
      

            	
              Section
      6.04    Trustee,
      Authenticating Agent, Paying Agents, Transfer Agents and Registrar May Own
      Notes                                                                                
      32

            

    

    
      	
               
      

            	
              Section
      6.05    Moneys to be
      Held in
      Trust                                                                                                                                                                                                         
      33

            

    

    
      	
               
      

            	
              Section
      6.06    Compensation
      and Expenses of
      Trustee                                                                                                                                                                                    
      33

            

    

    
      	
               
      

            	
              Section
      6.07    Officers’
      Certificate as
      Evidence                                                                                                                                                                                                  
      33

            

    

    
      	
               
      

            	
              Section
      6.08    Conflicting
      Interest of
      Trustee                                                                                                                                                                                                     
      34

            

    

    
      	
               
      

            	
              Section
      6.09    Eligibility of
      Trustee                                                                                                                                                                                                                       34

            

    

    
      	
               
      

            	
              Section
      6.10    Resignation or
      Removal of
      Trustee                                                                                                                                                                                             
      34

            

    

    
      	
               
      

            	
              Section
      6.11    Acceptance by
      Successor
      Trustee                                                                                                                                                                                              35

            

    

    
      	
               
      

            	
              Section
      6.12    Succession by
      Merger,
      etc.                                                                                                                                                                                                          
      37

            

    

    
      	
               
      

            	
              Section
      6.13    Limitation on
      Rights of Trustee as a
      Creditor                                                                                                                                                                             37

            

    

    
      	
               
      

            	
              Section
      6.14    Authenticating
      Agents                                                                                                                                                                                                                 
      37

            

    

     

     

     

     

    ARTICLE
VII

     

     

     

    CONCERNING
THE NOTEHOLDERS

     

    
      	
               
      

            	
              Section
      7.01    Action by
      Noteholders                                                                                                                                                                                                                 
      38

            

    

    
      	
               
      

            	
              Section
      7.02    Proof of
      Execution by
      Noteholders                                                                                                                                                                                             
      39

            

    

    
      	
               
      

            	
              Section
      7.03    Who Are Deemed
      Absolute
      Owners                                                                                                                                                                                          
      39

            

    

    
      	
               
      

            	
              Section
      7.04    Notes Owned by
      Corporation Deemed Not
      Outstanding                                                                                                                                                        
      39

            

    

    
      	
               
      

            	
              Section
      7.05    Revocation of
      Consents; Future Holders
      Bound                                                                                                                                                                      39

            

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    ARTICLE
VIII

     

     

     

    MEETINGS
OF NOTEHOLDERS

     

    
      	
               
      

            	
              Section
      8.01    Purposes of
      Meetings                                                                                                                                                                                                                   
      40

            

    

    
      	
               
      

            	
              Section
      8.02    Call of
      Meetings by
      Trustee                                                                                                                                                                                                         
      40

            

    

    
      	
               
      

            	
              Section
      8.03    Call of
      Meetings by Corporation or
      Noteholders                                                                                                                                                                      40

            

    

    
      	
               
      

            	
              Section
      8.04    Qualifications
      for
      Voting                                                                                                                                                                                                               
      41

            

    

    
      	
               
      

            	
              Section
      8.05    Regulations                                                                                                                                                                                                                                     
      41

            

    

    
      	
               
      

            	
              Section
      8.06    Voting                                                                                                                                                                                                                                              
      41

            

    

    
      	
               
      

            	
              Section
      8.07    Quorum;
      Actions                                                                                                                                                                                                                            42

            

    

     

     

     

     

    ARTICLE
IX

     

     

     

    SUPPLEMENTAL
INDENTURES

     

    
      	
               
      

            	
              Section
      9.01    Supplemental
      Indentures Without Consent of
      Noteholders                                                                                                                                                   42

            

    

    
      	
               
      

            	
              Section
      9.02    Supplemental
      Indentures With Consent of
      Noteholders                                                                                                                                                        
      43

            

    

    
      	
               
      

            	
              Section
      9.03    Compliance with
      Trust Indenture Act; Effect of Supplemental
      Indentures                                                                                                                          
      44

            

    

    
      	
               
      

            	
              Section
      9.04    Notation on
      Notes                                                                                                                                                                                                                         
      45

            

    

    
      	
               
      

            	
              Section
      9.05    Evidence of
      Compliance of Supplemental Indenture to be Furnished to
      Trustee                                                                                                                45

            

    

     

     

     

     

    ARTICLE
X

     

     

     

    CONSOLIDATION,
MERGER, SALE, CONVEYANCE, TRANSFER AND LEASE

     

    
      	
               
      

            	
              Section
      10.01    Corporation May
      Consolidate, etc., on Certain
      Terms                                                                                                                                                           
      45

            

    

    
      	
               
      

            	
              Section
      10.02    Successor
      Person to be Substituted for
      Corporation                                                                                                                                                             
      45

            

    

    
      
        	
                 
      

              	
                Section
      10.03    Opinion of
      Counsel to be Given
      Trustee                                                                                                                                                                                  
  46

              

      

    

     

     

     

                                                                                                                                                                                                                                                                                                                             

       

      
        	                                                  ARTICLE
      XI                                                                                                                                                   
      46

      

       

    

     

     

    REDEMPTION
OF NOTES

     

    
      	
               
      

            	
              Section
      11.01    Applicability
      of
      Article                                                                                                                                                                                                                
      46

            

    

    
      	
               
      

            	
              Section
      11.02    Election to
      Redeem; Notice to
      Trustee                                                                                                                                                                                     
      46

            

    

    
      	
               
      

            	
              Section
      11.03    Selection by
      Trustee of Notes to be
      Redeemed                                                                                                                                                                      
      46

            

    

    
      	
               
      

            	
              Section
      11.04    Notice of
      Redemption                                                                                                                                                                                                                  
      47

            

    

    
      	
               
      

            	
              Section
      11.05    Deposit of
      Redemption
      Price                                                                                                                                                                                                      
      47

            

    

    
      	
               
      

            	
              Section
      11.06    Notes Payable
      on Redemption
      Date                                                                                                                                                                                          
      47

            

    

    
      	
               
      

            	
              Section
      11.07    Notes Redeemed
      in
      Part                                                                                                                                                                                                              
      48

            

    

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    ARTICLE
XII

     

     

     

    SATISFACTION
AND DISCHARGE OF INDENTURE

     

    
      	
               
      

            	
              Section
      12.01    Discharge of
      Indenture                                                                                                                                                                                                                48

            

    

    
      	
               
      

            	
              Section
      12.02    Deposited
      Moneys and U.S. Government Obligations to be Held in Trust by
      Trustee                                                                                                   
      49

            

    

    
      	
               
      

            	
              Section
      12.03    Paying Agent to
      Repay Moneys
      Held                                                                                                                                                                                      49

            

    

    
      	
               
      

            	
              Section
      12.04    Return of
      Unclaimed
      Moneys                                                                                                                                                                                                    
      49

            

    

    
      	
               
      

            	
              Section
      12.05    Defeasance Upon
      Deposit of Moneys or U.S. Government
      Obligations                                                                                                                            
      49

            

    

     

     

     

     

    ARTICLE
XIII

     

    

     

    IMMUNITY
OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

     

    
      	
               
      

            	
              Section
      13.01    Indenture and
      Notes Solely Corporate
      Obligations                                                                                                                                                                50

            

    

     

     

     

     

    ARTICLE
XIV

     

     

     

    MISCELLANEOUS
PROVISIONS

     

    
      	
               
      

            	
              Section
      14.01    Successors                                                                                                                                                                                                                                    
      50

            

    

    
      	
               
      

            	
              Section
      14.02    Official Acts
      by Successor
      Corporation                                                                                                                                                                                   
      51

            

    

    
      	
               
      

            	
              Section
      14.03    Surrender of
      Corporation
      Powers                                                                                                                                                                                              
      51

            

    

    
      	
               
      

            	
              Section
      14.04    Addresses for
      Notices,
      etc.                                                                                                                                                                                                        
      51

            

    

    
      	
               
      

            	
              Section
      14.05    Governing
      Law                                                                                                                                                                                                                              51

            

    

    
      	
               
      

            	
              Section
      14.06    Evidence of
      Compliance with Conditions
      Precedent                                                                                                                                                              
      51

            

    

    
      	
               
      

            	
              Section
      14.07    Business
      Days                                                                                                                                                                                                                              
      52

            

    

    
      	
               
      

            	
              Section
      14.08    Qualification
      of
      Indenture                                                                                                                                                                                                           
      52

            

    

    
      	
               
      

            	
              Section
      14.09    Trust Indenture
      Act to
      Control                                                                                                                                                                                                  
      52

            

    

    
      	
               
      

            	
              Section
      14.10    Table of
      Contents, Headings,
      etc.                                                                                                                                                                                             
      52

            

    

    
      	
               
      

            	
              Section
      14.11    Execution in
      Counterparts                                                                                                                                                                                                           52

            

    

    
      	
               
      

            	
              Section
      14.12    Separability                                                                                                                                                                                                                                    52

            

    

     

     

    
 

    EXHIBITS

     

    
      	
               
      

            	
              Exhibit
      A

            	
              Form
      of Note 

            	
                
      A-1

            

    

    
      	
               
      

            	
              Exhibit
      B

            	
              Form
      of Certificate of Officer of the Corporation 

            	
                
      B-1

            

    

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Cross
Reference Table

    

    

    Showing
Reflection of Certain Provisions

    Required
Pursuant to Section 310 through 318(a)

    of Trust
Indenture Act of 1939, as Amended, (Including

    Cross-References
to Provisions of Sections 310 through 318(a)

    which,
Pursuant to

    Section
318(c) of the Trust Indenture Act of 1939,

    as
Amended, are Part of and Govern Such Provisions

    of the
Indenture Whether or not Physically Contained Therein1

    

    

                    TIA                                                                                                                                                                                     Section

    

    SECTION
310      (a)(1)
........................................                                                                                                                           
6.09

                     (a)(2)
........................................                                                                                                                                        
6.09

                     (a)(3)
........................................                                                                                                                                        
Not Applicable

                     (a)(4)
........................................                                                                                                                                        
Not Applicable

                     (a)(5)
........................................                                                                                                                                         6.09

                     (b)
...........................................                                                                                                                                          6.08,

                                                6.10(a),

                                               
(b) and (d)

                     (c)
...........................................                                                                                                                                          
Not Applicable

    

    SECTION
311      (a)
...........................................                                                                                                                             
6.13

                     (b)
...........................................                                                                                                                                          
6.13

                     (c)
...........................................                                                                                                                                          
Not Applicable

    

    SECTION
312      (a)
...........................................                                                                                           
                                 4.01

                                                                                                                                                                                                              
4.02

                     (b)
...........................................                                                                                                                                         
4.02

                     (c)
...........................................                                                                                                                                          4.02

    

    SECTION
313      (a)
...........................................                                                                                                                            
4.04

                                                                                                                                                                                                              
4.04

                     (c)
...........................................                                                                                                                                          4.04

                                                                                                                                                                                                              
5.11

                     (d)
...........................................                                                                                                                                         
4.04

    

    SECTION
314(a)   (1), (2) and (3)
..............................                                                                                                                     4.03

                     (a)
(4)
.......................................                                                                                                                                         3.05

                     (b)
...........................................                                                                                                                                         
Not Applicable

                     (c)(1)
........................................                                                                                                                                        
13.06

                     (c)(2)
........................................                                                                                                                                        
13.06

                     (c)(3)
........................................                                                                                                                                        
Not Applicable

                     (d)
...........................................                                                                                                                                          Not
Applicable

                     (e)
...........................................                                                                                                                                          
13.06

                     (f)
...........................................                                                                                                                                          
Not Applicable

     

     

     

    1 This Table
is not a part of the Indenture.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    
 

    SECTION
315      (a)
...........................................                                                                                                                            
6.01

    

                     (b)
...........................................                                                                                                                                         
6.01

                     (c)
...........................................                                                                                                                                          6.01

                     (d)
...........................................                                                                                                                                         
6.01

                     (d)(1)
........................................                                                                                                                                        6.01

                     (d)(2)
........................................                                                                                                                                       
6.01

                     (d)(3)
........................................                                                                                                                                       
6.01

                     (e)
...........................................                                                                                                                                         
5.12

    

    SECTION
316      (a)(1)(A)

                                                                                                                                                                                                              
5.10

                     (a)(1)(B)
.....................................                                                                                                                                     
5.10

                     (a)(2)
........................................                                                                                                                                        
Not Applicable

                     (a)
last sentence
.............................                                                                                                                                7.04

                     (b)
...........................................                                                                                                                                         
5.13

    

    SECTION
317      (a)(1)
........................................                                                                                                                            5.03

                     (a)(2)
........................................                                                                                                                                        
5.04

                     (b)
...........................................                                                                                                                                         
6.05

    

    SECTION
318      (a)
...........................................                                                                                                                            
13.09

    

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

     

    THIS INDENTURE, dated as of
__________, between State Bancorp, Inc., a New York corporation (hereinafter
called the “Corporation”), and
___________, a ___________, as trustee (the “Trustee”).

     

    W I T N E S S E T H :

     

    In
consideration of the premises, and the purchase of the Notes (as defined below)
by the holders thereof, the Corporation covenants and agrees with the Trustee
for the equal and proportionate benefit of the respective holders from time to
time of the Notes or of any series thereof, as follows:

     

    ARTICLE
I

     

    

     

    DEFINITIONS

     

    Section
1.01 Definitions.  The
terms defined in this Section 1.01 (except as herein otherwise expressly
provided or unless the context otherwise requires) for all purposes of this
Indenture shall have the respective meanings specified in this Section 1.01. All
other terms used in this Indenture which are defined in the Trust Indenture Act,
or which are by reference therein defined in the Securities Act, shall (except
as herein otherwise expressly provided or unless the context otherwise requires)
have the meanings assigned to such terms in said Trust Indenture Act and in said
Securities Act as in force at the date of this Indenture as originally executed.
All accounting terms used herein and not expressly defined shall have the
meanings assigned to such terms in accordance with generally accepted accounting
principles, and the term “generally accepted accounting principles” means such
accounting principles as are generally accepted at the time of any computation.
The words “herein,” “hereof” and “hereunder” and other words of similar import
refer to this Indenture as a whole and not to any particular Article, Section or
other subdivision. Headings are used for convenience of reference only and do
not affect interpretation. The singular includes the plural and vice
versa.

     

    “Affiliate” shall have
the meaning given to that term in Rule 405 under the Securities Act or any
successor rule thereunder.

     

     “Applicable Depositary
Procedures” means, with respect to any transfer or transaction involving
a Book-Entry Interest or a Note of any series represented by a Global Note, the
rules and procedures of the Depositary for such Book-Entry Interest or Note
represented by a Global Note, in each case to the extent applicable to such
transaction and as in effect from time to time.

     

    “Authenticating Agent”
shall mean any agent or agents of the Trustee which at the time shall be
appointed and acting pursuant to Section 6.14.

     

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

     

    “Board of Directors”
shall mean either the Board of Directors of the Corporation or any duly
authorized committee of that board.

     

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

     

    “Board Resolution”
shall mean a copy of a resolution certified by the Secretary or an Assistant
Secretary of the Corporation to have been duly adopted by the Board of Directors
and to be in full force and effect on the date of such certification, and
delivered to the Trustee.

     

    “Book-Entry Interest”
shall mean a beneficial interest in a Global Note registered in the name of a
Clearing Agency or its nominee, ownership and transfers of which shall be
maintained and made through book entries by such Clearing Agency.

     

    “Business Day” shall
mean, with respect to any series of Notes, any day other than a Saturday, a
Sunday, or a day on which banking institutions in The City of New York or
_____________, are authorized or required by law, executive order or regulation
to close.

     

    “Clearing Agency”
means an organization registered as a “Clearing Agency” pursuant to Section 17A
of the Exchange Act that is acting as depositary for one or more series of the
Notes and in whose name or in the name of a nominee of that organization shall
be registered a Global Note and which shall undertake to effect book entry
transfers and pledges of beneficial interests in such Global Note.

     

    “Clearing Agency
Participant” means a broker, dealer, bank, other financial institution or
other Person for whom from time to time the Clearing Agency effects book entry
transfers and pledges of securities deposited with the Clearing
Agency.

     

    “Commission” shall
mean the Securities and Exchange Commission, or any successor agency of the
United States government having administrative authority with respect to the
federal securities laws.

     

    “Common Stock” shall
mean the Common Stock, par value $5.00 per share, of the Corporation or any
other class of stock resulting from changes or reclassifications of such Common
Stock consisting solely of changes in par value, or from par value to no par
value, or from no par value to par value.

     

    “Corporate Trust
Office” shall mean the Principal Office of the Trustee.

     

    “Corporation” shall
mean the person identified as the “Corporation” in the preamble to this
Indenture and, subject to the provisions of Article X, shall also include its
successors and assigns.

     

     “Corporation Order”
shall mean a written request or order signed in the name of the Corporation by
an Officer and delivered to the Trustee.

     

    “Custodian” shall mean
any receiver, trustee, assignee, liquidator, or similar official under any
Bankruptcy Law.

     

    “Defeasance Agent”
means another financial institution which is eligible to act as Trustee
hereunder and which assumes all of the obligations of the Trustee necessary to
enable the Trustee to act hereunder. In the event such a Defeasance Agent is
appointed pursuant to Section 12.05 of this Indenture, the following conditions
shall apply:

     

     

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

     

     

    (i) the
Trustee shall have approval rights over the document appointing such Defeasance
Agent and the document setting forth such Defeasance Agent’s rights and
responsibilities; and

     

    (ii) the
Defeasance Agent shall provide verification to the Trustee acknowledging receipt
of sufficient money and/or U.S. Government Obligations to meet the applicable
conditions set forth in Section 12.05.

     

     “Defaulted Interest”
has the meaning set forth in Section 2.07(c).

     

    “Definitive Notes”
means those Notes issued in fully registered certificated form.

     

    “Depositary” means,
with respect to any series of Notes that the Corporation determines shall be
issued as a Global Note, The Depository Trust Company, New York, New York, or
another organization registered as a “clearing agency” under the Exchange Act
that is designated as Depositary for the Global Note by the Corporation and in
whose name or in the name of a nominee of that organization shall be registered
a Global Note and which shall undertake to effect book-entry transfers of the
Global Note.

     

    “Depositary
Participant” means a broker, dealer, bank, other financial institution or
other Person for whom from time to time the Depositary effects book-entry
transfers and pledges of securities deposited with or on behalf of the
Depositary.

     

    “Discharged” means
that the Corporation shall be deemed to have paid and discharged the entire
indebtedness represented by, and obligations under, the Notes of any series and
to have satisfied all the obligations under this Indenture relating to the Notes
of such series (and the Trustee, at the expense of the Corporation, shall
execute proper instruments acknowledging the same), except (i) the rights of
holders of such Notes to receive, from the trust fund described in Section
12.05(a), payment of the principal of, premium, if any, and the interest on such
Notes when such payments are due; (ii) the Corporation’s obligations with
respect to such Notes under Sections 2.09, 2.11, 5.02 and 12.04; and (iii) the
rights, powers, trusts, duties and immunities of the Trustee
hereunder.

     

    “Dollars” means the
coin or currency of the United States of America as at the time of payment is
legal tender for the payment of public and private debts.

     

    “DTC” shall mean The
Depository Trust Company, the initial Clearing Agency.

     

    “Event of Default”
shall have the meaning specified in Section 5.01.

     

    “Exchange Act” shall
mean the Securities Exchange Act of 1934, as amended from time to time, or any
successor statute.

     

    “Foreign Currency”
means a currency issued by the government of any country other than the United
States.

     

    “Global Note” shall
mean, with respect to any series of Notes, a Note executed by the Corporation
and delivered by the Trustee to the Depository or pursuant to the Depository’s
instruction or, if no instructions are received, then held by the Trustee as
custodian for the Depository, all in accordance with this Indenture, which Note
shall be registered in the name of the Depository or its nominee.

     

     

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    “Indenture” shall mean
this instrument as originally executed or, if amended by one or more indentures
supplemental hereto as herein provided, as so amended.

     

    “Interest Payment
Date” shall mean, with respect to any series of Notes, the Stated
Maturity of an installment of interest on the Notes of such series, subject to
Section 14.07.

     

    “Interest Period”
shall have the meaning set forth in Section 2.07(b).

     

    “Interest Rate” shall
have the meaning set forth in Section 2.01.

     

    “Issue Date” shall
have the meaning set forth in Section 2.01.

     

    “Maturity Date” shall
mean, with respect to any series of Notes, the date on which the principal of
such Note becomes due and payable as therein or herein provided.

     

     “Noteholder,” “holder of Notes,” or
other similar terms shall mean any Person in whose name at the time a particular
Note of any series is registered in the Note Register kept by the Corporation or
the Registrar for that purpose in accordance with the terms of this
Indenture.

     

    “Note Register” shall
mean the list of registered holders of Notes provided to the Trustee pursuant to
Section 4.01.

     

    “Note” or “Notes” means any note
or notes, bond or bonds, debenture or debentures, or any other evidences of
indebtedness, as the case may be, authenticated and delivered under this
Indenture; provided, however, that, if at
any time there is more than one Person acting as Trustee under this Indenture,
“Notes”, with respect to any such Person, shall mean Notes authenticated and
delivered under this Indenture, exclusive, however, of Notes of any series as to
which such Person is not Trustee.

     

    “Officer” shall mean
any of the Chief Executive Officer, the President, an Executive Vice President,
the Chief Financial Officer, or the General Counsel of the
Corporation.

     

    “Officers’
Certificate” shall mean a certificate signed by two Officers that
complies with the requirements of Section 314(c) of the TIA and is delivered to
the Trustee.

     

    “Opinion of Counsel”
shall mean a written opinion of counsel, who may be an employee of the
Corporation, and who shall be reasonably acceptable to the Trustee and that, if
required by the TIA, complies with the requirements of Section 314(c) of the TIA
and is delivered to the Trustee.

     

    “Outstanding” when
used with reference to any series of Notes, shall mean, as of any particular
time, all Notes authenticated and delivered by the Trustee or the Authenticating
Agent under this Indenture, except

     

     

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

     

    (a) Notes
theretofore canceled by the Trustee or the Authenticating Agent or delivered to
the Trustee for cancellation;

     

    (b) Notes, or
portions thereof, for the payment of which moneys in the necessary amount shall
have been deposited in trust with the Trustee or with any paying agent (other
than the Corporation) or shall have been set aside and segregated in trust by
the Corporation (if the Corporation shall act as its own paying
agent);

     

    (c) Notes in
lieu of or in substitution for which other Notes shall have been authenticated
and delivered pursuant to the terms of Section 2.08 unless proof satisfactory to
the Corporation and the Trustee is presented that any such Notes are held by
bona fide holders in due course; and

     

    (d) Notes
held by the Corporation or any Affiliate thereof.

     

    “Paying Agent” shall
have the meaning set forth in Section 3.02.

     

    “Person” shall mean
any individual, corporation, estate, partnership, joint venture, banking
association, association, joint-stock company, limited liability company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.

     

    “Predecessor Note” of
any particular Note shall mean every previous Note evidencing all or a portion
of the same debt as that evidenced by such particular Note; and, for the
purposes of this definition, any Note authenticated and delivered under Section
2.09 in lieu of a lost, destroyed or stolen Note shall be deemed to evidence the
same debt as the mutilated or destroyed, lost or stolen Note.

     

     “Principal Office of the
Trustee,” or other similar term, shall mean the office of the Trustee, at
which at any particular time its corporate trust business shall be
administered.

     

    “Redemption Date,”
when used with respect to any Note to be redeemed, means the date fixed for such
redemption by or pursuant to this Indenture.

     

    “Redemption Price,”
when used with respect to any Note to be redeemed, means the price at which it
is to be redeemed pursuant to this Indenture.

     

    “Registrar” shall have
the meaning set forth in Section 3.02.

     

    “Regular Record Date”
shall mean the 15th
calendar day prior to the applicable Interest Payment Date, whether or
not such day is a Business Day.

     

    “Responsible Officer”
shall mean any officer of the Trustee’s Corporate Capital Markets Division with
direct responsibility for the administration of the Indenture and also means,
with respect to a particular corporate trust matter, any other officer of the
Trustee to whom such matter is referred because of such officer’s knowledge of
and familiarity with the particular subject.

     

     

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

     

    “Securities Act” shall
mean the Securities Act of 1933, as amended from time to time, and any successor
statute.

     

     “Stated Maturity”
shall mean with respect to any series of Notes or any installment of principal
or interest thereon, the date specified in such Note as the fixed date on which
the principal of such Note or such installment of principal or interest is due
and payable.

     

    “Subsidiary” shall
mean with respect to any Person, (i) any corporation at least a majority of the
outstanding voting stock of which is owned, directly or indirectly, by such
Person or by one or more of its Subsidiaries, or by such Person and one or more
of its Subsidiaries, (ii) any general partnership, joint venture, limited
liability company or similar entity, at least a majority of whose outstanding
partnership, membership or similar interests shall at the time be owned by such
Person or by one or more of its Subsidiaries, or by such Person and one or more
of its Subsidiaries and (iii) any limited partnership of which such Person or
any of its Subsidiaries is a general partner. For the purposes of this
definition, “voting stock” means shares, interests, participations or other
equivalents in the equity interest (however designated) in such Person having
ordinary voting power for the election of a majority of the directors (or the
equivalent) of such Person, other than shares, interests, participations or
other equivalents having such power only by reason of the occurrence of a
contingency.

     

    “Temporary Notes”
shall mean temporary notes as such term is used in Section 2.10
herein.

     

    “Trustee” shall mean
the Person identified as “Trustee” in the preamble to this Indenture and,
subject to the provisions of Article VI hereof, shall also include its
successors and assigns, and thereafter “Trustee” shall mean each Person who is
then a Trustee hereunder; provided, however, that if at
any time there is more than one such Person, “Trustee” shall mean each such
Person and as used with respect to the Notes of any series, shall mean the
Trustee with respect to the Notes of such series.

     

    “Trust Indenture Act”
or “TIA” shall
mean the Trust Indenture Act of 1939, as amended from time to time, and any
successor statute.

     

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

     

     

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    ARTICLE
II

     

    

     

    NOTES

     

    Section
2.01 Authentication and Dating;
Title and Terms.  The aggregate principal amount of Notes that
may be authenticated, delivered and issued under this Indenture is $100,000,000,
as from time to time authorized by or pursuant to a Board
Resolution.

     

    The Notes
may be issued in one or more series. All Notes of each series issued under this
Indenture shall in all respects be equally and ratably entitled to the benefits
hereof with respect to such series without preference, priority or distinction
on account of the actual time or times of the authentication and delivery or
Maturity Date of the Notes of such series. With respect to any series of Notes
to be issued hereunder, there shall be established in or pursuant to a Board
Resolution, and set forth in an Officers' Certificate of the Corporation, or
established in one or more indentures supplemental hereto, which shall be
delivered to the Trustee prior to the issuance of such series of
Notes:

     

    (1) the form
of the Notes of the series;

     

    (2) the title
of the Notes of the series (which shall distinguish such Notes of the series
from all other Notes);

     

    (3) any limit
upon the aggregate principal amount of the Notes of the series which may be
authenticated and delivered under this Indenture (except for Notes authenticated
and delivered upon registration of transfer of, or in exchange for, or in lieu
of, other Notes of that series pursuant to this Article II);

     

    (4) the date
or dates on which the Notes of such series may be issued (the “Issue
Date”);

     

    (5) the date
or dates on which the Notes of such series will mature;

     

    (6) the date
or dates, which may be serial, on which the principal of, and premium, if any,
on the Notes of such series shall be payable;

     

    (7) the rate
or rates, or the method of determination thereof, at which the Notes of such
series shall bear interest, if any (the “Interest Rate”), the date or dates from
which such interest shall accrue, the Interest Payment Dates on which such
interest shall be payable, and the method of computation thereof.

     

    (8) the place
or places where the principal of, and premium, if any, and interest, if any, on
Notes of the series shall be payable if other than as provided in Section 3.02
hereof;

     

    (9) if other
than denominations of $1,000 and any integral multiple thereof, in Dollars or
the Foreign Currency or currency unit in which the Notes of such series are
denominated, the denominations in which Notes of such series shall be
issuable;

     

     

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

     

     

    (10) if other
than the principal amount thereof, the portion of the principal amount of Notes
of such series which shall be payable upon declaration of acceleration of the
Maturity Date thereof pursuant to Section 5.02 or provable in bankruptcy
pursuant to Section 5.04;

     

    (11) whether
payment of the principal of, premium, if any, and interest, if any, on the Notes
of such series shall be with or without deduction for taxes, assessments or
governmental charges, and with or without reimbursement of taxes, assessments or
governmental charges paid by Noteholders;

     

    (12) any
Events of Default with respect to the Notes of such series, if not set forth
herein;

     

    (13) in case
the Notes of such series do not bear interest, the applicable dates for the
purpose of clause (a) of Section 4.01;

     

    (14) a
description of any provisions providing for redemption, exchange or conversion
of the Notes of such series at the Corporation’s option, a Noteholder’s option
or otherwise, and the terms and provisions of such redemption, exchange or
conversion;

     

    (15) whether
the Notes of any series are entitled to the benefit of a sinking fund, and the
terms thereof;

     

    (16) the
currency or currencies, or currency unit or currency units, whether in Dollars
or a Foreign Currency or currency unit, in which the principal of, and premium,
if any, and interest, if any, on the Notes of such series or any other amounts
payable with respect thereto, and whether such principal, premium, if any, and
interest, if any, payable otherwise than in Dollars may, at the option of the
Noteholders of any Note of such series, also be payable in Dollars;

     

    (17) if other
than as set forth in Section 12.01, provisions for the satisfaction and
discharge of the indebtedness represented by the Notes of such
series;

     

    (18) whether
the Notes of such series are issuable as a Global Note and, in such case, the
identity of the Depositary for such series, if other than The Depository Trust
Company;

     

    (19) if the
amount of payment of principal of (and premium, if any) or interest on the Notes
of such series may be determined with reference to an index, formula or other
method based on a coin, currency or currency unit other than that in which the
Notes are stated to be payable or otherwise, the manner in which such amounts
shall be determined;

     

    (20) any other
terms of such series of Notes (which terms shall not be inconsistent with the
provisions of this Indenture); and

     

    (21) any
Trustees, Paying Agents, or Registrars with respect to the Notes of such series,
if other than the initial Trustee.

     

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

     

    Any
inconsistency between the terms set forth in this Indenture and the provisions
of a Board Resolution or an indenture supplemental hereto relating to the items
in (1) through (21) above shall be resolved in favor of such Board Resolution or
Supplemental Indenture.

     

    All Notes
of any one series need not be issued at the same time and, unless otherwise so
provided by the Corporation, a series may be reopened for issuances of
additional Notes of such series or to establish additional terms of such series
of Notes.

     

    If any of
the terms of the Notes of any series shall be established by action taken by or
pursuant to a Board Resolution, the Board Resolution shall be delivered to the
Trustee at or prior to the delivery of the Officers’ Certificate setting forth
the terms of such series.

     

    The
Trustee shall be entitled to receive and shall be fully protected in relying on,
in addition to the Opinion of Counsel to be furnished to the Trustee with the
Officers' Certificate or supplemental indenture relating to the issuance of any
series of Notes, an Opinion of Counsel stating that:

     

    (i) all
instruments furnished to the Trustee conform to the requirements of this
Indenture and constitute sufficient authority hereunder for the Trustee to
authenticate and deliver such Notes;

     

    (ii) all laws
and requirements with respect to the form and execution by the Corporation of
the supplemental indenture, if any, have been complied with and that the
execution and delivery of the supplemental indenture, if any, by the Trustee
will not violate this Indenture, the Corporation has corporate power to execute
and deliver any such supplemental indenture and have taken all necessary
corporate action for those purposes and any such supplemental indenture has been
executed and delivered and constitutes the legal, valid and binding obligation
of the Corporation enforceable in accordance with its terms (subject, as to
enforcement of remedies, to applicable bankruptcy, reorganization, insolvency,
moratorium or other laws affecting creditors' rights generally from time to time
in effect);

     

    (iii) the form
and terms of such Notes have been established in conformity with the provisions
of this Indenture;

     

    (iv) all laws
and requirements with respect to the execution and delivery by the Corporation
of such Notes has been complied with and the authentication and delivery of any
such Notes by the Trustee will not violate the terms of the Indenture, the
Corporation has the corporate power to issue such Notes and such Notes has been
duly authorized and delivered by the Corporation and, assuming due
authentication and delivery of such Notes by the Trustee, such Notes constitute
legal, valid and binding obligations of the Corporation, enforceable in
accordance with its terms (subject, as to enforcement of remedies to applicable
bankruptcy, reorganization, insolvency, moratorium or other laws affecting
creditors' rights generally from time to time in effect) and entitled to the
benefits of this Indenture, equally and ratably with all other Notes, if any, of
such series Outstanding;

     

    (v) the
amount of the Notes Outstanding, including such Notes, does not exceed the
amount at the time permitted by law;

     

     

     

    
      
         

      

      
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    (vi) no Event
of Default with respect to any series of Notes has occurred or is
continuing;

     

    (vii) this
Indenture is qualified under the Trust Indenture Act; and

     

    (viii) the
issuance of such Notes will not contravene the Articles of Incorporation or the
By-Laws of the Corporation or result in any violation of any of the terms or the
provisions of any indenture, mortgage or other agreement known to such counsel
by which the Corporation or any of its subsidiaries is bound.

     

    In
addition, the Opinion of Counsel and the Officers' Certificate will cover such
other matters as the Trustee may reasonably request.

     

    Section
2.02 Forms Generally; Form of
Trustee’s Certificate of Authentication.

     

    The Notes
of each series and the Trustee’s certificate of authentication on such Notes
shall be in substantially the form as shall be established pursuant to this
Article II in each case with such appropriate insertions, omissions,
substitutions and other variations as are required or permitted by this
Indenture, and may have such letters, numbers or other marks of identification
or designation and such legends or endorsements placed thereon as the
Corporation may deem appropriate and as are not inconsistent with the provisions
of this Indenture or as may be required to comply with any law or with any rules
or regulations made pursuant thereto or with any rules or regulations of any
securities exchange or as may, consistently herewith, be determined by the
officers executing such Notes, as evidenced by their execution of the
Notes.

     

    The
Definitive Notes of each series shall be printed, lithographed or engraved on
steel engraved borders or may be produced in any other manner, all as determined
by the officers executing such Notes as evidenced by their execution of such
Notes.

     

    The
Trustee’s certificate of authentication on all Notes shall be in substantially
the following form:

     

    

     

    
      
         

      

      
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    This
certificate represents Notes of the Corporation referred to in the
within-mentioned Indenture.

     

    
      	
               
      

            	
              ____________________________,

            

    

     

    
      	
               
      

            	
              not
      in its individual capacity

            

    

     

    
      	
               
      

            	
              but
      solely as Trustee

            

    

     

    By:  ____________________________                                                         

    Authorized
Officer

     

     

     

    Section
2.03 Form of
Note.  The Note of each series shall be substantially in the
form of Exhibit
A hereto, the terms of which are incorporated in and made a part of this
Indenture.  The Notes shall be issued, and may be transferred, only in
denominations having an aggregate principal amount of not less than $1,000 and
integral multiples of $1,000 in excess thereof.  The Notes shall be in
registered form without coupons and shall be numbered, lettered or otherwise
distinguished in such manner or in accordance with such plans as the officers
executing the same may determine with the approval of the Trustee as evidenced
by the execution and authentication thereof.

     

    Section
2.04 Execution of
Notes.  The Notes of each series shall be signed in the name
and on behalf of the Corporation by the manual or facsimile signature of its
President, Chief Executive Officer, Chief Financial Officer, one of its
Executive Vice Presidents, or General Counsel under its corporate seal (if
legally required) which may be affixed thereto or printed, engraved or otherwise
reproduced thereon, by facsimile or otherwise, and which need not be
attested.  Only such Notes as shall bear thereon a certificate of
authentication substantially in the form herein before recited, executed by the
Trustee or the Authenticating Agent by the manual or facsimile signature of an
authorized officer, shall be entitled to the benefits of this Indenture or be
valid or obligatory for any purpose.  Such certificate by the Trustee
or the Authenticating Agent upon any Note executed by the Corporation shall be
conclusive evidence that the Note so authenticated has been duly authenticated
and delivered hereunder and that the holder is entitled to the benefits of this
Indenture.

     

    In case
any officer of the Corporation who shall have signed any Note shall cease to be
such officer before the Note so signed shall have been authenticated and
delivered by the Trustee or the Authenticating Agent, or disposed of by the
Corporation, such Note nevertheless may be authenticated and delivered or
disposed of as though the Person who signed such Note had not ceased to be such
officer of the Corporation; and any Note may be signed on behalf of the
Corporation by such Persons as, at the actual date of the execution of such
Note, shall be the proper officers of the Corporation, although at the date of
the execution of this Indenture any such person was not such an
officer.

     

    Every
Note shall be dated the date of its authentication.

     

    In each
case where the Trustee is to authenticate and deliver Notes pursuant to the
terms of this Indenture, it shall receive a Corporation Order.

     

    If all
the Notes of any series are not to be issued at one time, it shall not be
necessary to deliver an Opinion of Counsel and an Officers’ Certificate at the
time of issuance of each Note, but such opinion and certificate, with
appropriate modifications, shall be delivered at or before the time of issuance
of the first Note of such series. After any such first delivery, any separate
request by the Corporation that the Trustee authenticate Notes of such series
for original issue will be deemed to be a certification by the Corporation that
all conditions precedent provided for in this Indenture relating to
authentication and delivery of such Notes continue to have been complied
with.

     

     

    
      
         

      

      
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    The
Trustee shall have the right to decline to authenticate and deliver any Notes
under this Section if the Trustee, being advised by counsel, determines that
such action may not lawfully be taken or if a Responsible Officer of the Trustee
in good faith shall determine that such action would expose the Trustee to
personal liability to existing Noteholders.

     

    Section
2.05 Legends.  Each
Note shall bear the applicable legends substantially in the form set forth in
Exhibit A
hereto.

     

    Section
2.06 Global
Note.

     

    (a) Each
Global Note for any series issued under this Indenture shall be registered in
the name of the Depositary designated by the Corporation for such Global Note or
a nominee of such Depositary and delivered to such Depositary or a nominee
thereof or custodian therefor, and each such Global Note shall represent the
aggregate amount of Outstanding Notes from time to time endorsed thereon for all
purposes of this Indenture.

     

    (b)           Notwithstanding
any other provision in this Indenture, no Global Note may be exchanged in whole
or in part for Definitive Notes, and no transfer of a Global Note in whole or in
part may be registered in the name of any Person other than the Depositary for
such Global Note or a nominee thereof unless (i) such Depositary notifies the
Trustee or the Corporation in writing that such Depositary is no longer willing
or able to properly discharge its responsibilities as Depositary with respect to
such Global Note, and no qualified successor is appointed by the Corporation
within ninety (90) days of receipt of such notice, (ii) the Corporation executes
and delivers to the Trustee a Corporation Order stating that the Corporation
elects to terminate the book-entry system through the Depositary, (iii) such
Depositary ceases to be a Clearing Agency registered under the Exchange Act and
no successor is appointed by the Corporation within ninety (90) days after
obtaining knowledge of such event or (iv) an Event of Default shall have
occurred and be continuing.  Upon a Responsible Officer having actual
knowledge of the occurrence of any event specified in clause (i), (ii), (iii) or
(iv) above, the Trustee shall notify the Depositary and instruct the Depositary
to notify all owners of beneficial interests in such Global Note of the
occurrence of such event and of the availability of Definitive Notes of the same
series to such beneficial owners requesting the same.  Upon the
issuance of such Definitive Notes and the registration in the Note Register of
such Notes in the names of the holders thereof, the Trustee shall recognize such
holders as holders of Notes for all purposes of this Indenture and the
Notes.

     

    (c)           If
any Global Note is to be exchanged for Definitive Notes of the same series or
cancelled in whole, it shall be surrendered by or on behalf of the Depositary or
its nominee to the Registrar for exchange or cancellation as provided in this
Article.  If any Global Note is to be exchanged for Definitive Notes
of the same series or canceled in part, then either (i) such Global Note shall
be so surrendered for exchange or cancellation as provided in this Article or
(ii) the principal amount of the Global Note or Global Notes, as the case may
be, shall be reduced or increased by an amount equal to the portion thereof to
be so exchanged or canceled, or equal to the principal amount of such Definitive
Notes to be so exchanged for beneficial interests therein, as the case may be,
by means of an appropriate adjustment made on the records of the Registrar,
whereupon the Trustee, in accordance with the Applicable Depositary Procedures,
shall instruct the Depositary or its authorized representative to make a
corresponding adjustment to its records.  Upon any such surrender or
adjustment of a Global Note by the Depositary, accompanied by registration
instructions, the Corporation shall execute and the Trustee shall authenticate
and deliver Definitive Notes of the same series issuable in exchange for such
Global Note (or any portion thereof) in accordance with the instructions of the
Depositary. The Trustee may conclusively rely on, and shall be fully protected
in relying on, such instructions.

     

     

    
      
         

      

      
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    (d)           Every
Note of any series authenticated and delivered upon registration of transfer of,
or in exchange for or in lieu of, a Global Note or any portion thereof shall be
authenticated and delivered in the form of, and shall be, a Global Note, unless
such Note is registered in the name of a Person other than the Depositary for
such Global Note or a nominee thereof.

     

    (e)           The
Depositary or its nominee, as the registered owner of a Global Note, shall be
the holder of such Global Note for all purposes under this Indenture and the
Notes, and owners of beneficial interests in a Global Note shall hold such
interests pursuant to the Applicable Depositary
Procedures.  Accordingly, any such owner’s beneficial interest in a
Global Note shall be shown only on, and the transfer of such interest shall be
effected only through, records maintained by the Depositary or its nominee or
its Depositary Participants.  The Registrar and the Trustee shall be
entitled to deal with the Depositary for all purposes of this Indenture relating
to a Global Note as the sole holder of the Note and shall have no obligation to
any beneficial owner of a Global Note. Neither the Trustee nor the Registrar
shall have any liability in respect of any transfers effected by the Depositary
or its Depositary Participants.

     

    (f)           The
rights of owners of beneficial interests in a Global Note shall be exercised
only through the Depositary and shall be limited to those established by law and
agreements between such owners and the Depositary and/or its Depositary
Participants.

     

    (g)           No
owner of any beneficial interest in any Global Note shall have any rights under
this Indenture with respect to such Global Note.  None of the
Corporation, the Trustee nor any agent of the Corporation or the Trustee will
have any responsibility or liability for any aspect of the records relating to
or payments made on account of beneficial ownership interests in a Global Note
or maintaining, supervising or reviewing any records relating to such beneficial
ownership interests. Notwithstanding the foregoing, nothing herein shall prevent
the Corporation, the Trustee or any agent of the Corporation or the Trustee from
giving effect to any written certification, proxy or other authorization
furnished by the Depositary or impair, as between the Depositary and such
beneficial owners, the operation of customary practices governing the exercise
of the rights of the Depositary or its nominee as holder of any
Note.

     

    

    
      
         

      

      
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    (h)           Global Notes shall bear the
following legend on the face thereof:

     

    THIS
NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED
TO AND IS REGISTERED IN THE NAME OF THE DEPOSITORY TRUST COMPANY (“DTC”) OR A
NOMINEE OF DTC.  THIS NOTE IS EXCHANGEABLE FOR NOTES REGISTERED IN THE
NAME OF A PERSON OTHER THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER
OF THIS NOTE AS A WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC
OR ANOTHER NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES
SPECIFIED IN THE INDENTURE.

     

    UNLESS
THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE COMPANY OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE, OR PAYMENT, AND ANY NOTE
ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE
TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED
REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     

    Section
2.07 Computation of
Interest.

     

    (a) The
amount of interest payable for any Interest Period (as defined below) in respect
of a series of Notes will be computed as provided in the Notes for such
series.

     

    (b) Each Note
of any series will bear interest at the Interest Rate (i) in the case of the
initial Interest Period, for the period from, and including, the date of
original issuance of such Note to, but excluding, the initial Interest Payment
Date and (ii) thereafter, for the period from, and including, the first day
following the end of the preceding Interest Period to, but excluding, the
applicable Interest Payment Date or, in the case of the last Interest Period,
the Maturity Date (each such period, an “Interest Period”), on the principal
thereof, on any overdue principal and (to the extent that payment of such
interest is enforceable under applicable law) on any overdue installment of
interest (including Defaulted Interest), payable on each Interest Payment Date
or the Maturity Date, as the case may be. Interest on any Note that is payable,
and is punctually paid or duly provided for by the Corporation, on any Interest
Payment Date shall be paid to the Person in whose name such Note (or one or more
Predecessor Notes) is registered at the close of business on the Regular Record
Date for such interest installment.

     

    (c) Any
interest on any series of Note that is payable, but is not punctually paid or
duly provided for by the Corporation, on any Interest Payment Date (herein
called “Defaulted Interest”) shall forthwith cease to be payable to the holder
on the relevant Regular Record Date by virtue of having been such holder, and
such Defaulted Interest shall be paid by the Corporation to the Persons in whose
names such Notes (or their respective Predecessor Notes) are registered at the
close of business on a special record date for the payment of such Defaulted
Interest, which shall be fixed in the following manner:  the
Corporation shall notify the Trustee in writing of the amount of Defaulted
Interest proposed to be paid on each such Note and the date of the proposed
payment, and at the same time the Corporation shall deposit with the Trustee an
amount of money equal to the aggregate amount proposed to be paid in respect of
such Defaulted Interest or shall make arrangements reasonably satisfactory to
the Trustee for such deposit prior to the date of the proposed payment, such
money when deposited to be held in trust for the benefit of the Persons entitled
to such Defaulted Interest as provided in this paragraph.  Thereupon
the Trustee shall fix a special record date for the payment of such Defaulted
Interest, which shall not be more than 15 nor less than 10 days prior
to the date of the proposed payment and not less than 10 days after the
receipt by the Trustee of the notice of the proposed payment.  The
Trustee shall promptly notify the Corporation of such special record date and,
in the name and at the expense of the Corporation, shall cause notice of the
proposed payment of such Defaulted Interest and the special record date therefor
to be mailed, first class postage prepaid, to each Noteholder at his or her
address as it appears in the Note Register, not less than 10 days prior to
such special record date.  Notice of the proposed payment of such
Defaulted Interest and the special record date therefor having been mailed as
aforesaid, such Defaulted Interest shall be paid to the Persons in whose names
such Notes (or their respective Predecessor Notes) are registered on such
special record date and thereafter the Corporation shall have no further payment
obligation in respect of the Defaulted Interest.

     

     

     

    
      
         

      

      
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    (d) The
Corporation may make payment of any Defaulted Interest on any series of Notes in
any other lawful manner not inconsistent with the requirements of any securities
exchange on which such Notes may be listed, and upon such notice as may be
required by such exchange, if, after notice given by the Corporation to the
Trustee of the proposed payment pursuant to this clause, such manner of payment
shall be deemed practicable by the Trustee.

     

    (e) Subject
to the foregoing provisions of this Section 2.07, each Note of a series
delivered under this Indenture upon registration of transfer of or in exchange
for or in lieu of any other Note of such series shall  carry the
rights to interest accrued and unpaid, and to accrue, that were carried by such
other Note.

     

    Section
2.08 Transfer and
Exchange.

     

    (a) The
Corporation shall cause to be kept, at the office or agency maintained for the
purpose of registration of transfer and for exchange, as provided in Section
3.02, the Note Register in which, subject to such reasonable regulations as it
may prescribe, the Corporation shall provide for the registration and transfer
of all Notes of each series as provided in this Article II.  The Note
Register shall be in written form or in any other form capable of being
converted into written form within a reasonable time.

     

    Notes of
any series to be exchanged may be surrendered at the Principal Office of the
Trustee or at any office or agency to be maintained by the Corporation for such
purpose as provided in Section 3.02, and the Corporation shall execute, the
Corporation or the Trustee shall register and the Trustee or the Authenticating
Agent shall authenticate and make available for delivery in exchange therefor,
the Note or Notes of such series which the Noteholder making the exchange shall
be entitled to receive.  Upon due presentment for registration of
transfer of a Note of any series at the Principal Office of the Trustee or at
any office or agency of the Corporation maintained for such purpose as provided
in Section 3.02, the Corporation shall execute, the Corporation or the Trustee
shall register and the Trustee or the Authenticating Agent shall authenticate
and make available for delivery in the name of the transferee or transferees, a
new Note of such series for a like aggregate principal
amount.  Registration or registration of transfer of a Note of any
series by the Trustee or by any agent of the Corporation appointed pursuant to
Section 3.02, and delivery of such Note, shall be deemed to complete the
registration or registration of transfer of such Note.

     

     

     

    
      
         

      

      
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    All Notes
of any series presented for registration of transfer or for exchange or payment
shall (if so required by the Corporation or the Trustee or the Authenticating
Agent) be duly endorsed by, or be accompanied by, a written instrument or
instruments of transfer in form satisfactory to the Corporation and either the
Trustee or the Authenticating Agent duly executed by, the holder or such
holder’s attorney duly authorized in writing.

     

    (b) To permit
registrations of transfers and exchanges, the Corporation shall execute and the
Trustee, upon receipt of a Corporation Order to do so, shall authenticate and
deliver Definitive Notes and Global Notes at the written request of the
Registrar for a series of Notes. All Definitive Notes and Global Notes issued
upon any registration of transfer or exchange of Definitive Notes or Global
Notes shall be the valid obligations of the Corporation, evidencing the same
debt, the same series and entitled to the same benefits under this Indenture, as
the Definitive Notes or Global Notes surrendered upon such registration of
transfer or exchange.

     

    No
service charge shall be made for any exchange or registration of transfer of
Notes, but the Corporation or the Trustee may require payment of a sum
sufficient to cover any tax, fee or other governmental charge that may be
imposed in connection therewith other than exchanges pursuant to Section 2.10 or
9.03 not involving any transfer.

     

    Prior to
due presentment for the registration of a transfer of any Note, the Trustee, the
Corporation and any agent of the Trustee or the Corporation may deem and treat
the Person in whose name such Note is registered as the absolute owner and
holder of such Note for the purpose of receiving payment of principal of and
premium, if any, and interest on such Note and none of the Trustee, the
Corporation or any agents of the Trustee or the Corporation shall be affected by
notice to the contrary.

     

    Section
2.09 Mutilated, Destroyed, Lost
or Stolen Notes.

     

    In case a
Note of any series shall become mutilated or be destroyed, lost or stolen, the
Corporation shall execute, and upon receipt of a Corporation Order to do so the
Trustee shall authenticate and deliver, a new Note of such series bearing a
number not contemporaneously outstanding, in exchange and substitution for the
mutilated Note, or in lieu of and in substitution for the Note so destroyed,
lost or stolen.  In every case the applicant for a substituted Note
shall furnish to the Corporation and the Trustee such security or indemnity as
may be reasonably required by them to save each of them harmless, and, in every
case of destruction, loss or theft, the applicant shall also furnish to the
Corporation and the Trustee evidence to their reasonable satisfaction of the
destruction, loss or theft of such Note and of the ownership
thereof.

     

    Upon the
issuance of any substituted Note, the Corporation may require the payment of a
sum sufficient to cover any tax or other governmental charge that may be imposed
in relation thereto and any other expenses connected therewith.  In
case any Note which has matured or is about to mature shall become mutilated or
be destroyed, lost or stolen, the Corporation may, instead of issuing a
substitute Note, pay or authorize the payment of the same (without surrender
thereof except in the case of a mutilated Note) if the applicant for such
payment shall furnish to the Corporation and the Trustee such security or
indemnity as may be reasonably required by them to save each of them harmless
and, in case of destruction, loss or theft, evidence reasonably satisfactory to
the Corporation and to the Trustee of the destruction, loss or theft of such
Note and of the ownership thereof.

     

     

    
      
         

      

      
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    Every
substituted Note issued pursuant to the provisions of this Section 2.09 by
virtue of the fact that any such Note is destroyed, lost or stolen shall
constitute an additional contractual obligation of the Corporation, whether or
not the destroyed, lost or stolen Note shall be found at any time, and shall be
entitled to all the benefits of this Indenture equally and proportionately with
any and all other Notes duly issued hereunder.  All Notes shall be
held and owned upon the express condition that, to the extent permitted by
applicable law, the foregoing provisions are exclusive with respect to the
replacement or payment of mutilated, destroyed, lost or stolen Notes and shall
preclude any and all other rights or remedies notwithstanding any law or statute
existing or hereafter enacted to the contrary with respect to the replacement or
payment of negotiable instruments or other notes without their
surrender.

     

    Section
2.10 Temporary
Notes.  Pending the preparation of Definitive Notes of any
series, the Corporation may execute and the Trustee shall authenticate and make
available for delivery Temporary Notes of such series that are typed, printed or
lithographed. Temporary Notes shall be issuable in any authorized denomination,
and substantially in the form of the Definitive Notes of the same series but
with such omissions, insertions and variations as may be appropriate for
Temporary Notes, all as may be determined by the Corporation.  Every
such Temporary Note shall be executed by the Corporation and be authenticated by
the Trustee upon the same conditions and in substantially the same manner, and
with the same effect, as the Definitive Notes of the same
series.  Without unreasonable delay, the Corporation will execute and
deliver to the Trustee or the Authenticating Agent Definitive Notes and
thereupon any or all Temporary Notes may be surrendered in exchange therefor, at
the Principal Office of the Trustee or at any office or agency maintained by the
Corporation for such purpose as provided in Section 3.02, and the Trustee or the
Authenticating Agent shall authenticate and make available for delivery in
exchange for such Temporary Notes a like aggregate principal amount of such
Definitive Notes of the same series.  Such exchange shall be made by
the Corporation at its own expense and without any charge therefor except that
in case of any such exchange involving a registration of transfer the
Corporation may require payment of a sum sufficient to cover any tax, fee or
other governmental charge that may be imposed in relation thereto. Until so
exchanged, the Temporary Notes shall in all respects be entitled to the same
benefits under this Indenture as Definitive Notes of the same series
authenticated and delivered hereunder.

     

    Section
2.11 Cancellation.  All Notes surrendered
for the purpose of payment, exchange or registration of transfer, shall, if
surrendered to the Corporation or any Paying Agent, be surrendered to the
Trustee and promptly canceled by it, or, if surrendered to the Trustee or any
Authenticating Agent, shall be promptly canceled by it, and no Notes shall be
issued in lieu thereof except as expressly permitted by any of the provisions of
this Indenture. All Notes canceled by any Authenticating Agent shall be
delivered to the Trustee. The Trustee shall destroy all canceled Notes unless
the Corporation otherwise directs the Trustee in writing, in which case the
Trustee shall dispose of such Notes as directed by the Corporation. If the
Corporation shall acquire any of the Notes, however, such acquisition shall not
operate as a redemption or satisfaction of the indebtedness represented by such
Notes unless and until the same are surrendered to the Trustee for
cancellation.

     

     

     

    
      
         

      

      
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    Section
2.12 CUSIP Numbers. The
Corporation in issuing the Notes of any series may use a “CUSIP” number (if then
generally in use). The Corporation will promptly notify the Trustee in writing
of any change in the CUSIP number.

     

    ARTICLE
III

     

    

     

    PARTICULAR
COVENANTS OF THE CORPORATION

     

    Section
3.01 Payment of Principal and
Interest.  The Corporation covenants and agrees for the benefit
of the holders of the Notes of any series that it will duly and punctually pay
or cause to be paid the principal of and interest on the Notes of such series at
the place, at the respective times and in the manner provided
herein.  Payment of the principal of and premium, if any, and interest
on the Notes of any series due on the Maturity Date will be made by the
Corporation in immediately available funds against presentation and surrender of
the Notes of such series.  At the option of the Corporation, each
installment of interest on the Notes of such series due on an Interest Payment
Date other than the Maturity Date may be paid (i) by mailing checks for such
interest payable to the order of the holders of Notes of such series entitled
thereto as they appear on the Note Register or (ii) by wire transfer of
immediately available funds to any account with a banking institution located in
the United States designated by such holder no later than the related Regular
Record Date.

     

    Section
3.02 Offices for Notices and
Payments, Etc.  So long as any of the Notes of any series
remain Outstanding, the Corporation will maintain in New York, New York or
_________, ________ (a) an office or agency where the Notes of such series may
be presented for payment (the “Paying Agent”), (b)
an office or agency where the Notes of such series may be presented for
registration of transfer (the “Registrar”) and (c)
an office or agency where notices and demands to or upon the Corporation in
respect of the Notes of such series or this Indenture may be served. The
Registrar shall keep a register of the Notes of each series and of their
transfer. The Corporation will appoint the Registrar and the Paying Agent and
may appoint one or more co-registrars or one or more additional Paying Agents in
such other locations as it shall determine. The term “Registrar” includes any
additional registrar, the term “Paying Agent” includes any additional Paying
Agent. The Corporation may change any Paying Agent, Registrar or co-registrar
without prior notice to any Noteholder. Any Agent shall be permitted to resign
upon 30 days’ written notice to the Corporation.  The Corporation
shall notify the Trustee of the name and address of any Agent not a party to
this Indenture.  If the Corporation fails to appoint or maintain
another entity as Registrar or Paying Agent, the Trustee shall act as such at
the Principal Office of the Trustee. The Corporation or any of its Affiliates
may act as Paying Agent or Registrar.  The Corporation will give to
the Trustee written notice of the location of any such office or agency and of
any change of location thereof. In case the Corporation shall fail to maintain
any such office or agency in New York, New York or __________, ___________ or
shall fail to give such notice of the location or of any change in the location
thereof, presentations and demands may be made and notices may be served at the
Principal Office of the Trustee.

     

    In
addition to any such office or agency, the Corporation may from time to time
designate one or more offices or agencies outside New York, New York and
___________, __________ where the Notes of any series may be presented for
payment or for registration of transfer and where notices and demands to or upon
the Corporation in respect of such Notes or this Indenture may be served in the
manner provided in this Indenture, and the Corporation may from time to time
rescind such designation, as the Corporation may deem desirable or expedient;
provided, however, that no such
designation or rescission shall in any manner relieve the Corporation of its
obligation to maintain any such office or agency in New York, New York or
___________, ___________ for the purposes above mentioned. The Corporation will
give to the Trustee prompt written notice of any such designation or rescission
thereof.

     

     

    
      
         

      

      
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    The
Corporation initially appoints the Trustee as Paying Agent and Registrar for the
Notes.

     

    Section
3.03 Appointments to Fill
Vacancies in Trustee’s Office.  The Corporation, whenever
necessary to avoid or fill a vacancy in the office of Trustee, will appoint, in
the manner provided in Section 6.10, a Trustee, so that there shall at all times
be a Trustee hereunder.

     

    Section
3.04 Provision as to Paying
Agent.

     

    (a) Whenever
the Corporation shall have one or more Paying Agents, it will, on or prior to
11:00 a.m. New York, New York time on each due date of the principal of or
interest on, the Notes of any series, deposit with a Paying Agent a sum
sufficient to pay the principal or interest so becoming due, such sum to be held
in trust for the benefit of the persons entitled to such principal or interest,
and unless such Paying Agent is the Trustee, the Paying Agent will promptly
notify the Trustee of the Corporation’s action or failure so to
act.

     

    (b) If the
Corporation shall appoint a Paying Agent other than the Trustee with respect to
the Notes of any series, it will cause such Paying Agent to execute and deliver
to the Trustee an instrument in which such agent shall agree with the Trustee,
subject to the provisions of this Section 3.04,

     

    (i) that it
will hold all sums held by it as such agent for the payment of the principal of,
premium, if any, or interest on the Notes of such series (whether such sums have
been paid to it by the Corporation or by any other obligor on such Notes) in
trust for the benefit of the holders of such Notes; and

     

    (ii) that it
will give the Trustee notice of any failure by the Corporation (or by any other
obligor on the Notes of such series) to make any payment of the principal of,
premium, if any, or interest on such Notes when the same shall be due and
payable.

     

    (c) If the
Corporation shall act as its own Paying Agent, it will, on or before each due
date of the principal of or interest on the Notes of any series, set aside,
segregate and hold in trust for the benefit of the holders of such Notes a sum
sufficient to pay such principal or interest so becoming due and will notify the
Trustee of any failure to take such action and of any failure by the Corporation
(or by any other obligor under such Notes) to make any payment of the principal
of, premium, if any, or interest on such Notes when the same shall become due
and payable.

     

    (d) Anything
in this Section 3.04 to the contrary notwithstanding, the Corporation may, at
any time, for the purpose of obtaining a satisfaction and discharge with respect
to the Notes of any series hereunder, or for any other reason, pay or cause to
be paid to the Trustee all sums payable with respect to such Notes, such sums to
be held by the Trustee upon the trusts herein contained.

     

     

    
      
         

      

      
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    (e) Anything
in this Section 3.04 to the contrary notwithstanding, the agreement to hold sums
in trust as provided in this Section 3.04 is subject to Sections 12.03 and
12.04.

     

    Section
3.05 Certificate to
Trustee.  The Corporation will deliver to the Trustee on or
before 120 days after the end of each fiscal year of the Corporation, commencing
with the first fiscal year ending after the date hereof, so long as Notes of any
series are Outstanding hereunder, an Officers’ Certificate in the form attached
hereto as Exhibit
B, one of the signers of which shall be the principal executive,
principal financial or principal accounting officer of the Corporation, stating
that in the course of the performance by the signers of their duties as officers
of the Corporation, they would normally have knowledge of any Event of Default
(or any event which after notice or the lapse of time or both, would be, an
Event of Default) with respect to such series by the Corporation in the
performance of any covenants contained herein, stating whether or not they have
knowledge of any such Event of Default (or event which after notice or the lapse
of time or both, would be, an Event of Default) and, if so, specifying each such
Event of Default or event of which the signers have knowledge, the nature
thereof and the action, if any, the Corporation intends to undertake as a result
of such Event of Default or event.

     

    The
Corporation will promptly notify the Trustee in writing, upon obtaining
knowledge of any default under this Indenture and shall comply with the
provisions of Section 314(a)(4) of the Trust Indenture Act.

     

    Section
3.06 Compliance with
Consolidation Provisions.  The Corporation will not, while any
of the Notes remain Outstanding, consolidate with, or merge into, or merge into
itself, or sell or convey all or substantially all of its property to any other
Person unless the provisions of Article X hereof are complied with.

     

    Section
3.07 Limitation on
Dividends.  The Corporation will not (a) declare or pay any
dividends or distributions on, or redeem, purchase, acquire, or make a
liquidation payment with respect to, any of the Corporation’s capital stock, (b)
make any payment of principal of, or interest on, or repay, repurchase or redeem
any debt securities of the Corporation that rank pari passu with or junior in
right of payment to the Notes other than such payments, repayments, repurchases
or redemptions of debt securities of the Corporation that rank equal with the
Notes that are made on a pro rata basis with payments, repayments or repurchases
on the Notes or (c) make any guarantee payments with respect to any guarantee by
the Corporation of the debt securities of any Subsidiary of the Corporation if
such guarantee ranks pari
passu with or junior in right of payment to the Notes (other than (i)
dividends or distributions in shares of, or options, warrants or rights to
subscribe for or purchase shares of, Common Stock, (ii) any declaration of a
dividend in connection with the implementation of a stockholders’ rights plan,
or the issuance of stock under any such plan in the future, or the redemption or
repurchase of any such rights pursuant thereto, (iii) as a result of a
reclassification of the Corporation’s capital stock or the exchange or
conversion of one class or series of the Corporation’s capital stock for another
class or series of the Corporation’s capital stock, (iv) the purchase of
fractional interests in shares of the Corporation’s capital stock pursuant to
the conversion or exchange provisions of such capital stock or the security
being converted or exchanged and (v) purchases of Common Stock related to the
issuance of Common Stock or rights under any of the Corporation’s benefit or
compensation plans for its directors, officers or employees or any of the
Corporation’s dividend reinvestment plans), if at such time there shall have
occurred any event, act or condition that (a) is an Event of Default (or any
event which, after notice or the lapse of time or both would become, an Event of
Default) and (b) in respect of which the Corporation shall not have taken
reasonable steps to cure.

     

     

     

    
      
         

      

      
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    Section
3.08 Payment Upon Resignation or
Removal.  Upon termination of this Indenture or the removal or
resignation of the Trustee, the Corporation shall pay to the Trustee all amounts
accrued and owing to the Trustee to the date of such termination, removal or
resignation.

     

    ARTICLE
IV

     

    

     

    LIST OF
NOTEHOLDERS AND REPORTS BY THE

     

    CORPORATION
AND THE TRUSTEE

     

    Section
4.01 List of
Noteholders.  The Corporation covenants and agrees that it will
furnish or cause to be furnished to the Trustee, in accordance with Section
312(a) of the Trust Indenture Act, (a) semiannually and not more than 10 days
after the Regular Record Date for each series, a list, in such form as the
Trustee may reasonably require, of the names and addresses of the Noteholders of
Notes of such series as of such date, and on dates to be determined pursuant to
Section 2.01 for non-interest bearing Notes of such series in each year, and (b)
at such other times as the Trustee may request in writing, within 30 days after
receipt by the Corporation of any such request, a list of similar form and
content as of a date not more than 15 days prior to the time such list is
furnished, except that, so long as the Trustee is Registrar, no such list need
be furnished.

     

    Section
4.02 Preservation and Disclosure
of Lists.

     

    (a) The
Trustee shall preserve, in as current a form as is reasonably practicable, all
information as to the names and addresses of the holders of the Notes (i)
contained in the most recent list furnished to it as provided in Section 4.01 or
(ii) received by it in its capacity as Registrar (if so acting) hereunder. The
Trustee may destroy any list furnished to it as provided in Section 4.01 upon
receipt of a new list so furnished.

     

    (b) In case
three or more holders of Notes of any series (hereinafter referred to as “applicants”) apply in
writing to the Trustee and furnish to the Trustee reasonable proof that each
such applicant has owned a Note of such series for a period of at least six
months preceding the date of such application, and such application states that
the applicants desire to communicate with other holders of Notes of such series
or with holders of all Notes with respect to their rights under this Indenture
and is accompanied by a copy of the form of proxy or other communication which
such applicants propose to transmit, then the Trustee shall, within five
Business Days after the receipt of such application, at its election,
either:

     

    (i) afford
such applicants access to the information preserved at the time by the Trustee
in accordance with the provisions of subsection (a) of this Section 4.02;
or

     

    (ii) inform
such applicants as to the approximate number of holders of all Notes whose names
and addresses appear in the information preserved at the time by the Trustee in
accordance with the provisions of subsection (a) of this Section 4.02, and as to
the approximate cost of mailing to such Noteholders the form of proxy or other
communication, if any, specified in such application.

     

     

    
      
         

      

      
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    If the
Trustee shall elect not to afford such applicants access to such information,
the Trustee shall, upon the written request of such applicants, mail to each
Noteholder whose name and address appear in the information preserved at the
time by the Trustee in accordance with the provisions of subsection (a) of this
Section 4.02 a copy of the form of proxy or other communication which is
specified in such request with reasonable promptness after a tender to the
Trustee of the material to be mailed and of payment, or provision for the
payment, of the reasonable expenses of mailing.

     

    (c) Each and
every holder of Notes, by receiving and holding the same, agrees with the
Corporation and the Trustee that neither the Corporation nor the Trustee nor any
Paying Agent shall be held accountable by reason of the disclosure of any such
information as to the names and addresses of the holders of Notes in accordance
with the provisions of subsection (b) of this Section 4.02, regardless of the
source from which such information was derived, and that the Trustee shall not
be held accountable by reason of mailing any material pursuant to a request made
under said subsection (b).

     

    (d) The
Trustee shall comply with the obligations imposed upon it pursuant to Section
312 of the Trust Indenture Act, subject to the exculpation from liability
contained in Section 312(c) of such Act.

     

    Section
4.03 Reports by the
Corporation.

     

    (a) The
Corporation covenants and agrees to provide to the Trustee, by hard copy or
electronic transmission, within 15 days after the date on which the
Corporation is required to file the same with the Commission, copies of the
annual reports and of the information, documents and other reports (or copies of
such portions of any of the foregoing as the Commission may from time to time by
rules and regulations prescribe) which the Corporation may be required to file
with the Commission pursuant to Section 13 or Section 15(d) of the
Exchange Act. In the event that the Corporation is not required or permitted to
file such reports, documents and information with the Commission pursuant to the
Exchange Act, the Corporation will nevertheless deliver a copy of such Exchange
Act information to the Trustee and the holders of the Notes as if the
Corporation were subject to the reporting requirements of Section 13 or 15(d) of
the Exchange Act within the time periods specified therein.  The
Corporation also covenants and agrees to comply with the provisions of
Section 314(a) of the Trust Indenture Act.

     

    (b) To the
extent applicable, the Corporation covenants and agrees to file with the Trustee
and the Commission, in accordance with the rules and regulations prescribed from
time to time by said Commission, such additional information, documents and
reports with respect to compliance by the Corporation with the conditions and
covenants provided for in this Indenture as may be required from time to time by
such rules and regulations.

     

    (c) To the
extent applicable, the Corporation covenants and agrees to transmit by mail to
all holders of Notes, as the names and addresses of such holders appear upon the
Note Register, within 30 days after the filing or submission thereof with the
Trustee, such summaries of any information, documents and reports provided by
the Corporation pursuant to subsections (a) and (b) of this Section
4.03.

     

     

     

    
      
         

      

      
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    (d) Delivery
of such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute
constructive notice of any information contained therein or determinable from
information contained therein, including the Corporation’s compliance with any
of its covenants hereunder (as to which the Trustee is entitled to rely
exclusively on Officers’ Certificates).

     

    (e) For
purposes of this Section 4.03, the Corporation will be deemed to have furnished
or delivered reports to the Trustee and the Noteholders if (i) such reports are
filed with the Commission via the EDGAR filing system, (ii) such reports are
currently available, and (iii) the Corporation electronically delivers to the
Trustee a link to the EDGAR filing each time the Corporation files such a
report.

     

    (f) The
Corporation shall comply with the provisions of Section 314(a)(1)(2) and (3) of
the Trust Indenture Act.

     

    Section
4.04 Reports by the
Trustee.

     

    (a) To the
extent applicable, the Trustee shall transmit to Noteholders such reports
concerning the Trustee and its actions under this Indenture as may be required
pursuant to the Trust Indenture Act at the times and in the manner provided
pursuant thereto. If required by Section 313(a) of the Trust Indenture Act, the
Trustee shall, within 60 days after the date hereof, and no later than the
anniversary date hereof in each succeeding year, deliver to Noteholders a brief
report, dated as of each such date which complies with the provisions of such
Section 313(a).

     

    (b) To the
extent applicable, a copy of each such report shall, at the time of such
transmission to Noteholders, be filed by the Trustee with each stock exchange,
if any, upon which the Notes are listed, with the Commission and with the
Corporation. The Corporation will promptly notify the Trustee when the Notes are
listed on any stock exchange.

     

    (c) Where
this Indenture provides for notice to Noteholders of any event, such notice
shall be sufficiently given (unless otherwise herein expressly provided) if in
the manner and the extent provided in Section 313(c) of the Trust Indenture
Act.

     

    ARTICLE
V

     

    

     

    REMEDIES
OF THE TRUSTEE AND

     

    NOTEHOLDERS
UPON EVENT OF DEFAULT

     

    Section
5.01 Events of
Default.  “Event of Default,” wherever used herein with respect
to the Notes of any series, means any one of the following events (whatever the
reason for such Event of Default and whether it shall be voluntary or
involuntary or be effected by operation of law or pursuant to any judgment,
decree or order of any court or any order, rule or regulation of any
administrative or governmental body), unless such event is specifically deleted
or modified in or pursuant to the supplemental indenture, Board Resolution or
Officers’ Certificate establishing the terms of such series of Notes pursuant to
this Indenture:

     

     

     

    
      
         

      

      
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    (a) default
in the payment of any interest on such series of Notes when due, and continuance
of such default for a period of 30 days; or

     

    (b) default
in the payment of any principal of such series of Notes when due, whether at
maturity, by acceleration of maturity or otherwise; or

     

                   
(c) default
in the performance, or breach, of any covenant, warranty or agreement of the
Corporation in this Indenture (other than a covenant or warranty a default in
whose performance or whose breach is elsewhere in this Section specifically
dealt with), and continuance of such default or breach for a period of 60 days
after there has been given, by registered or certified mail, to the Corporation
by the Trustee or to the Corporation and the Trustee by the holders of at least
25% in aggregate principal amount of the outstanding Notes of such series a
written notice specifying such default or breach and requiring it to be remedied
and stating that such notice is a “Notice of Events of Default” hereunder;
or

     

                                                   
(d) a court
having jurisdiction in the premises shall enter a decree or order for relief in
respect of the Corporation in an involuntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or
appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator
(or similar official) of the Corporation or for any substantial part of its
property, or ordering the winding-up or liquidation of its affairs and such
decree or order shall remain unstayed and in effect for a period of 60
consecutive days; or

     

                                                   
(e) the
Corporation shall commence a voluntary case under any applicable bankruptcy,
insolvency or other similar law now or hereafter in effect, shall consent to the
entry of an order for relief in an involuntary case under any such law, or shall
consent to the appointment of or taking possession by a receiver, liquidator,
assignee, trustee, custodian, sequestrator (or other similar official) of the
Corporation or of any substantial part of its property, or shall make any
general assignment for the benefit of creditors, or shall fail generally to pay
its debts as they become due.

     

    Section
5.02 Acceleration of
Maturity.

     

    (a) If an
Event of Default under Section 5.01(d) or (e) occurs and is continuing, then in
every such case the principal amount of all of the Notes shall become and be
immediately due and payable without any declaration or other action on the part
of the Trustee or any holder.

     

    (b) If an
Event of Default under Section 5.01 (a), (b) or (c) with respect to Notes of a
series at the time Outstanding occurs and is continuing, then in every such case
the Trustee or the Holders of not less than twenty-five percent (25%) in
principal amount of the Outstanding Notes of such series may declare the
principal amount of all the Notes of such series to be due and payable
immediately, by a notice in writing to the Corporation (and to the Trustee if
given by Holders); and upon any such declaration the principal amount of,
premium, if any, and the accrued interest on all the Notes of such series shall
become immediately due and payable.

     

     

     

    
      
         

      

      
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    Section
5.03 Payment of Notes on Default;
Suit Therefor.  The Corporation covenants that (i) in case
default shall be made in the payment of any installment of interest, on any of
the Notes of a series as and when the same shall become due and payable, and
such default shall have continued for a period of 30 days, or (ii) in case
default shall be made in the payment of the principal of the Notes of a series
as and when the same shall have become due and payable, whether at maturity of
the Notes of such series or by acceleration or otherwise, then, upon demand of
the Trustee, the Corporation will pay to the Trustee, for the benefit of the
holders of such series of Notes, the whole amount that then shall have become
due and payable on all such Notes for principal or interest or both, as the case
may be, with interest upon the overdue principal and (to the extent that payment
of such interest is enforceable under applicable law) upon the overdue
installments of interest at the rate borne by such Notes; and, in addition
thereto, such further amount as shall be sufficient to cover the costs and
expenses of collection, including reasonable compensation to the Trustee, its
agents, attorneys and counsel, and any other amount due to the Trustee pursuant
to Section 6.06.

     

    In case
the Corporation shall fail forthwith to pay such amounts upon such demand, the
Trustee, in its own name and as trustee of an express trust, shall be entitled
and empowered to institute any actions or proceedings at law or in equity for
the collection of the sums so due and unpaid, and may prosecute any such action
or proceeding to judgment or final decree, and may enforce any such judgment or
final decree against the Corporation or any other obligor on such series of
Notes and collect in the manner provided by law out of the property of the
Corporation or any other obligor on such series of Notes, wherever situated, the
moneys adjudged or decreed to be payable.

     

    Section
5.04 Trustee May File Proofs of
Claim.  In case there shall be pending proceedings for the
bankruptcy or for the reorganization of the Corporation or any other obligor on
the Notes under Title 11, United States Code, or any other applicable law, or in
case a receiver or trustee shall have been appointed for the property of the
Corporation or such other obligor, or in the case of any other similar judicial
proceedings relative to the Corporation or other obligor upon the Notes, or to
the creditors or property of the Corporation or such other obligor, the Trustee,
irrespective of whether the principal of the Notes shall then be due and payable
as therein expressed or by declaration or otherwise and irrespective of whether
the Trustee shall have made any demand pursuant to the provisions of this
Section 5.04, shall be entitled and empowered, by intervention in such
proceedings or otherwise, to file and prove a claim or claims for the whole
amount of principal and interest owing and unpaid in respect of the Notes and,
in case of any judicial proceedings, 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 amounts due to the Trustee pursuant to
Section 6.06) and of the Noteholders allowed in such judicial proceedings
relative to the Corporation or any other obligor on the Notes, or to the
creditors or property of the Corporation or such other obligor, unless
prohibited by applicable law and regulations, to vote on behalf of the holders
of the Notes in any election of a trustee or a standby trustee in arrangement,
reorganization, liquidation or other bankruptcy or insolvency proceedings or
person performing similar functions in comparable proceedings, and to collect
and receive any moneys or other property payable or deliverable on any such
claims, and to distribute the same after the deduction of its charges and
expenses; and any receiver, assignee or trustee in bankruptcy or reorganization
is hereby authorized by each of the Noteholders 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 Noteholders, to pay to the Trustee such amounts as
shall be sufficient to cover reasonable compensation to, and expenses of, the
Trustee, each predecessor Trustee and their respective agents, attorneys and
counsel, and all other amounts due to the Trustee pursuant to Section
6.06.

     

     

    
      
         

      

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

     

    All
rights of action and of asserting claims under this Indenture, or under any
series of the Notes, may be enforced by the Trustee without the possession of
any of the Notes of such series, or the production thereof on any trial or other
proceeding relative thereto, and any such suit or proceeding instituted by the
Trustee shall be brought in its own name as trustee of an express trust, and any
recovery of judgment shall, subject to the terms of this Indenture, be for the
ratable benefit of the holders of such series of Notes.

     

    In any
proceedings brought by the Trustee (and also any proceedings involving the
interpretation of any provision of this Indenture to which the Trustee shall be
a party), the Trustee shall be held to represent all the holders of the Notes,
and it shall not be necessary to make any holders of the Notes parties to any
such proceedings.

     

    Section
5.05 Application of Moneys
Collected by Trustee.  Any moneys collected by the Trustee
pursuant to this Article shall be applied in the following order, at the date or
dates fixed by the Trustee for the distribution of such moneys, upon
presentation of the Notes of a series in respect of which moneys have been
collected, and stamping thereon the payment, if only partially paid, and upon
surrender thereof if fully paid:

     

    First:  To
the payment of costs and expenses of collection applicable to the Notes of such
series and all other amounts due to the Trustee under Section 6.06;

     

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

     

    Third:  To
the Corporation.

     

    Section
5.06 Proceedings by
Noteholders.  No holder of any Note of a series shall have any
right by virtue of or by availing itself of any provision of this Indenture to
institute any suit, action or proceeding in equity or at law upon or under or
with respect to this Indenture or for the appointment of a receiver or trustee,
or for any other remedy hereunder, unless (a) such holder previously shall have
given to the Trustee written notice of an Event of Default with respect to such
series of Notes and of the continuance thereof with respect to such series of
Notes specifying such Event of Default, as hereinbefore provided, (b) the
holders of not less than 25% in aggregate principal amount of such series of
Notes then Outstanding shall have made written request upon the Trustee to
institute such action, suit or proceeding in its own name as Trustee hereunder,
(c) such holder or holders shall have offered to the Trustee such reasonable
indemnity as it may require against the costs, expenses and liabilities to be
incurred therein or thereby, (d) the Trustee for 60 days after its receipt of
such notice, request and offer of indemnity shall have failed to institute any
such action, suit or proceeding, and (e), no direction inconsistent with such
written request has been given to the Trustee during such 60-day period by the
Holders of a majority in aggregate principal amount of such series of Notes; it
being understood and intended, and being expressly covenanted by the taker and
holder of every Note of such series with every other taker and holder and the
Trustee, that no one or more holders of Notes of such series shall have any
right in any manner whatever by virtue of or by availing itself of any provision
of this Indenture to affect, disturb or prejudice the rights of any other holder
of Notes of such series, or to obtain or seek to obtain priority over or
preference to any other such holder, or to enforce any right under this
Indenture, except in the manner herein provided and for the equal, ratable and
common benefit of all holders of such series of Notes.

     

     

    
      
         

      

      
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    Notwithstanding
any other provisions in this Indenture, however, the right of any holder of any
Note to receive payment of the principal of, premium, if any, and interest on
such Note, on or after the same shall have become due and payable, or to
institute suit for the enforcement of any such payment, shall not be impaired or
affected without the consent of such holder, and by accepting a Note hereunder
it is expressly understood, intended and covenanted by the taker and holder of
every Note with every other such taker and holder and the Trustee, that no one
or more holders of Notes shall have any right in any manner whatsoever by virtue
or by availing itself of any provision of this Indenture to affect, disturb or
prejudice the rights of the holders of any other Notes, or to obtain or seek to
obtain priority over or preference to any other such holder, or to enforce any
right under this Indenture, except in the manner herein provided and for the
equal, ratable and common benefit of all holders of Notes. For the protection
and enforcement of the provisions of this Section, each and every Noteholder and
the Trustee shall be entitled to such relief as can be given either at law or in
equity.

     

    Section
5.07 Proceedings by
Trustee.

     

    (a) In case
an Event of Default occurs with respect to any series of Notes and is
continuing, the Trustee may in its discretion proceed to protect and enforce the
rights vested in it by this Indenture by such appropriate judicial proceedings
as the Trustee shall deem most effectual to protect and enforce any of such
rights, either by suit in equity or by action at law or by proceeding in
bankruptcy or otherwise, whether for the specific enforcement of any covenant or
agreement contained in this Indenture or in aid of the exercise of any power
granted in this Indenture, or to enforce any other legal or equitable right
vested in the Trustee by this Indenture or by law.

     

    (b) All
rights of action and claims under this Indenture or any series of Notes may be
prosecuted and enforced by the Trustee without the possession of any
of  the Notes of such series or the production thereof in any
proceeding relating thereto, and any such proceeding instituted by the Trustee
shall be brought in its own name as trustee of an express trust, and any
recovery of judgment shall, after provision for the payment of the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel, and all other amounts then due under Section 6.06, be for the
ratable benefit of the holders of such series of Notes in respect of which such
judgment has been recovered.

     

     

     

    
      
         

      

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

     

    Section
5.09 Remedies Cumulative and
Continuing.  All powers and remedies given by this Article V to
the Trustee or to the Noteholders shall, to the extent permitted by law, be
deemed cumulative and not exclusive of any other powers and remedies available
to the Trustee or the holders of the Notes, by judicial proceedings or
otherwise, to enforce the performance or observance of the covenants and
agreements contained in this Indenture or otherwise established with respect to
the Notes, and no delay or omission of the Trustee or of any holder of any of
the Notes to exercise any right or power accruing upon any Event of Default
occurring and continuing as aforesaid shall impair any such right or power, or
shall be construed to be a waiver of any such default or an acquiescence
therein; and, subject to the provisions of Section 5.06, every power and remedy
given by this Article V or by law to the Trustee or to the Noteholders may be
exercised from time to time, and as often as shall be deemed expedient, by the
Trustee or by the Noteholders.

     

    Section
5.10 Direction of Proceedings and
Waiver of Defaults by Majority of Noteholders.  The holders of
a majority in aggregate principal amount of a series of Notes at the time
Outstanding shall have the right to direct the time, method, and place of
conducting any proceeding for any remedy available to the Trustee, or exercising
any trust or power conferred on the Trustee with respect to such series; provided, however, that
(subject to the provisions of Section 6.01) the Trustee shall have the right to
decline to follow any such direction if the Trustee shall determine that the
action so directed would be unjustly prejudicial to the holders not taking part
in such direction or if the Trustee being advised by counsel determines that the
action or proceeding so directed may not lawfully be taken or if the Trustee in
good faith by one of its Responsible Officers shall determine that the action or
proceedings so directed would involve the Trustee in personal liability. The
holders of a majority in aggregate principal amount of a series of Notes at the
time Outstanding may on behalf of the holders of all of the Notes of such series
waive any existing Event of Default with respect to such series and its
consequences except a default (a) in the payment of principal of or interest on
any of the Notes of such series (unless such default has been cured and a sum
sufficient to pay all matured installments of interest and principal due
otherwise than by acceleration has been deposited with the Trustee) or (b) in
respect of covenants or provisions hereof which cannot be modified or amended
without the consent of the holder of each Note of such series affected. Upon any
such waiver, the Event of Default covered thereby shall be deemed to be cured
for all purposes of this Indenture and the Corporation, the Trustee and the
holders of the Notes of such series shall be restored to their former positions
and rights hereunder, respectively; but no such waiver shall extend to any
subsequent or other Event of Default  with respect to such series or
impair any right consequent thereon. Whenever any Event of Default hereunder
with respect to a series of Notes shall have been waived as permitted by this
Section 5.10, said Event of Default shall for all purposes of the series of
Notes and this Indenture be deemed to have been cured and to be not
continuing.

     

    Section
5.11 Notice of
Defaults.

     

     

     

    
      
         

      

      
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    (a) The
Trustee shall, within 90 days after the occurrence of a Default with respect to
a series of Notes actually known to a Responsible Officer of the Trustee, mail
to all Noteholders of such series, in the manner and to the extent provided in
Section 313(c) of the Trust Indenture Act and as the names and addresses of such
holders appear upon the Note Register for such series, notice of all such
Defaults, unless such Default(s) shall have been cured before the giving of such
notice (the term “Default” for the purpose of this Section 5.11 means any event
which is, or after notice or the lapse of time or both would become, an Event of
Default with respect to the Notes of such series); provided, however, that, except
in the case of Default in the payment of the principal of, premium, if any, or
interest on any of the Notes of such series, the Trustee shall be protected in
withholding such notice if and so long as the board of directors, the executive
committee, or a trust committee of directors and/or Responsible Officers of the
Trustee in good faith determines that the withholding of such notice is in the
interests of the Noteholders of such series; provided, further, that in the
case of any Event of Default of the character specified in clause (c) of Section
5.01, no such notice to Noteholders shall be given until at least 60 days after
the occurrence thereof, but shall be given within 90 days after such occurrence
..

     

    (b) Within
ten Business Days after the occurrence of any Event of Default with respect to a
series of Notes actually known to a Responsible Officer of the Trustee, the
Trustee shall mail to all Noteholders of such series, as the names and addresses
of such holders appear upon the Note Register for such series, notice of such
Event of Default, unless such Event of Default shall have been cured or waived
before the giving of such notice.

     

    Section
5.12 Undertaking to Pay
Costs.  All parties to this Indenture agree, and each holder of
any Note by its acceptance thereof shall be deemed to have agreed, that any
court may in its discretion require, in any suit for the enforcement of any
right or remedy under this Indenture, or in any suit against the Trustee for any
action taken or omitted by it as Trustee, the filing by any party litigant in
such suit of an undertaking to pay the costs of such suit, and that such court
may in its discretion assess reasonable costs, including reasonable attorneys’
fees and expenses, against any party litigant in such suit, having due regard to
the merits and good faith of the claims or defenses made by such party litigant;
but the provisions of this Section 5.12 shall not apply to any suit instituted
by the Trustee, to any suit instituted by any Noteholder, or group of
Noteholders of a series of Notes, holding in the aggregate more than 10% in
aggregate principal amount of the Notes of such series Outstanding, or to any
suit instituted by any Noteholder for the enforcement of the payment of the
principal of,  premium, if any, or interest on any Note against the
Corporation on or after the same shall have become due and payable.

     

    Section
5.13 Unconditional Right of
Security Holders To Receive Principal, Premium and
Interest.  Notwithstanding any other provision in this
Indenture, the Holder of any Note shall have the right which is absolute and
unconditional to receive payment of the principal of and premium, if any, and
(subject to Section 2.07) interest on such Note on the Maturity Date expressed
in such Note at the respective place, at the respective time, at the respective
rate, in the respective amount and in the coin, currency, or currency unit
therein and herein prescribed, and to institute suit for the enforcement of any
such payment, and such right shall not be impaired without the consent of such
Noteholder.

     

    

    
      
         

      

      
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    ARTICLE
VI

     

    

     

    CONCERNING
THE TRUSTEE

     

    Section
6.01 Duties and Responsibilities
of Trustee.  The Trustee shall comply with, and be subject to,
the provisions of Section 315 of the Trust Indenture Act. The duties and
responsibilities of the Trustee shall be as provided in the Trust Indenture Act
and as herein set forth. In case an Event of Default (of which, except for a
default in the payment of any principal or interest on the Notes under clauses
(a) and (b) of Section 5.01, a Responsible Officer of the Trustee has actual
knowledge) has occurred (which has not been cured or waived), the Trustee shall
exercise such of the rights and powers vested in it by this Indenture, and use
the same degree of care and skill in their exercise as a prudent person would
exercise or use under the circumstances in the conduct of his or her own
affairs.

     

    No
provision of this Indenture shall be construed to relieve the Trustee from
liability for its own negligent action, its own negligent failure to act or its
own willful misconduct, except that:

     

    (a) prior to
the occurrence of an Event of Default (of which, except for a default in the
payment of any principal or interest on the Notes under clauses (a) and (b) of
Section 5.01, a Responsible Officer of the Trustee has actual knowledge) and
after the curing or waiving of all such Events of Default which may have
occurred,

     

    (i) the
duties and obligations of the Trustee shall be determined solely by the express
provisions of this Indenture, and the Trustee shall not be liable except for the
performance of such duties and obligations as are specifically set forth in this
Indenture, and no implied covenants or obligations shall be read into this
Indenture against the Trustee; and

     

    (ii) in the
absence of bad faith on the part of the Trustee, the Trustee may conclusively
rely, as to the truth of the statements and the correctness of the opinions
expressed therein, upon any certificate or opinion furnished to the Trustee and
conforming to the requirements of this Indenture; but, in the case of any such
certificate or opinion which by any provision hereof is specifically required to
be furnished to the Trustee, the Trustee shall be under a duty to examine the
same to determine whether or not it conforms on its face to the requirements of
this Indenture.

     

    (b) the
Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer or Responsible Officers, unless it shall be proved that the
Trustee was negligent in ascertaining the pertinent facts; and

     

    (c) the
Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in good faith in accordance with the direction of the Noteholders
pursuant to Section 5.10, relating to the time, method and place of conducting
any proceeding for any remedy available to the Trustee, or exercising any trust
or power conferred upon the Trustee, under this Indenture.

     

     

     

    
      
         

      

      
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    None of
the provisions contained in this Indenture shall require the Trustee to expend
or risk its own funds or otherwise incur personal financial liability in the
performance of any of its duties or in the exercise of any of its rights or
powers, if it reasonably believes that the repayment of such funds or liability
is not reasonably assured to it under the terms of this Indenture or adequate
indemnity against such risk is not reasonably assured to it.

     

    In no
event shall the Trustee be liable for any indirect, special, punitive or
consequential loss or damage of any kind whatsoever, including, but not limited
to, lost profits, even if the Trustee has been advised of the likelihood of such
loss or damage and regardless of the form of action.

     

    In no
event shall the Trustee be liable for any failure or delay in the performance of
its obligations hereunder because of circumstances beyond its control,
including, but not limited to, acts of God, flood, war (whether declared or
undeclared), terrorism, fire, riot, embargo, government action, including any
laws, ordinances, regulations, governmental action or the like which delay,
restrict or prohibit the providing of the services contemplated by this
Indenture.

     

    Section
6.02 Reliance on Documents,
Opinions, etc.  Except as otherwise provided in Section
6.01:

     

    (a) the
Trustee may conclusively rely and shall be protected in acting or refraining
from acting upon any resolution, certificate, statement, instrument, opinion,
report, notice, request, consent, order, bond, note, debenture or other paper or
document reasonably believed by it to be genuine and to have been signed or
presented by the proper party or parties;

     

    (b) any
request, direction, order or demand of the Corporation mentioned herein may be
sufficiently evidenced by an Officers’ Certificate (unless other evidence in
respect thereof be herein specifically prescribed); and any Board Resolution may
be evidenced to the Trustee by a copy thereof certified by the Secretary or an
Assistant Secretary of the Corporation;

     

    (c) the
Trustee may consult with counsel of its selection and any advice or Opinion of
Counsel shall be full and complete authorization and protection in respect of
any action taken or suffered or omitted by it hereunder in good faith and in
accordance with such advice or Opinion of Counsel;

     

    (d) the
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture at the request, order or direction of any of the
Noteholders of any series, pursuant to the provisions of this Indenture, unless
such Noteholders shall have offered to the Trustee reasonable and sufficient
security or indemnity against the costs, expenses and liabilities which may be
incurred therein or thereby;

     

    (e) the
Trustee shall not be liable for any action taken or omitted by it in good faith
and reasonably believed by it to be authorized or within the discretion or
rights or powers conferred upon it by this Indenture; nothing contained herein
shall, however, relieve the Trustee of the obligation, upon the occurrence of an
Event of Default (of which, except for a default in the payment of any principal
or interest on the Notes under clauses (a) and (b) of Section 5.01, a
Responsible Officer of the Trustee has actual knowledge) that has not been cured
or waived, to exercise such of the rights and powers vested in it by this
Indenture, and to 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
his or her own affairs;

     

     

    
      
         

      

      
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    (f) the
Trustee shall not be bound to make any investigation into the facts or matters
stated in any resolution, certificate, statement, instrument, opinion, report,
notice, request, consent, order, approval, bond, debenture, coupon or other
paper or document, unless requested in writing to do so by the holders of a
majority in aggregate principal amount of a series of Outstanding Notes; provided, however, that if the
payment within a reasonable time to the Trustee of the costs, expenses or
liabilities likely to be incurred by it in the making of such investigation is,
in the opinion of the Trustee, not reasonably assured to the Trustee by the
security afforded to it by the terms of this Indenture, the Trustee may require
reasonable indemnity against such expense or liability as a condition to so
proceeding;

     

    (g) the
Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents (including any Authenticating
Agent) or attorneys, and the Trustee shall not be responsible for any misconduct
or negligence on the part of any such agent or attorney appointed by it with due
care;

     

    (h) the
Trustee shall not be charged with knowledge of any Event of Default with respect
to the Notes of any series unless (i) such Event of Default is a default in the
payment of any principal or interest on the Notes of such series under clauses
(a) and (b) of Section 5.01, (ii) a Responsible Officer shall have actual
knowledge of such Event of Default or (iii) written notice of such Event of
Default shall have been given to the Trustee by the Corporation or any other
obligor on the Notes of such series or by any holder of the Notes of such
series; and

     

    (i) the
Trustee shall not be liable for any action taken, suffered or omitted by it in
good faith, without negligence or willful misconduct and believed by it to be
authorized or within the discretion or rights or powers conferred upon it by
this Indenture.

     

    Section
6.03 No Responsibility for
Recitals, etc.  The recitals contained herein and in the Notes
(except in the certificate of authentication of the Trustee or the
Authenticating Agent) shall be taken as the statements of the Corporation, and
the Trustee and the Authenticating Agent assume no responsibility for the
correctness of the same. The Trustee and the Authenticating Agent make no
representations as to the validity or sufficiency of this Indenture or of the
Notes. The Trustee and the Authenticating Agent shall not be accountable for the
use or application by the Corporation of any Notes or the proceeds of any Notes
authenticated and delivered by the Trustee or the Authenticating Agent in
conformity with the provisions of this Indenture.

     

    Section
6.04 Trustee, Authenticating
Agent, Paying Agents, Transfer Agents and Registrar May Own Notes. The
Trustee or any Authenticating Agent or any Paying Agent or
any transfer agent or any Registrar for the Notes, in its individual or any
other capacity, may become the owner or pledgee of Notes with the same rights it
would have if it were not Trustee, Authenticating Agent, Paying Agent, transfer
agent or Registrar for the Notes.

     

     

    
      
         

      

      
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    Section
6.05 Moneys to be Held in
Trust.  Subject to the provisions of Section 12.04, all moneys
received by the Trustee or any Paying Agent shall, until used or applied as
herein provided, be held in trust for the purpose for which they were received,
but need not be segregated from other funds except to the extent required by
law. The Trustee and any Paying Agent shall be under no liability for interest
on any money received by it hereunder except as otherwise agreed in writing with
the Corporation. So long as no Event of Default shall have occurred and be
continuing, all interest allowed on any such moneys shall be paid from time to
time upon the written order of the Corporation, signed by an Officer
thereof.

     

    Section
6.06 Compensation and Expenses of
Trustee.  The Corporation, as issuer of Notes under this
Indenture, covenants and agrees to pay to the Trustee from time to time, and the
Trustee shall be entitled to, such compensation as shall be agreed to in writing
between the Corporation and the Trustee (which shall not be limited by any
provision of law in regard to the compensation of a trustee of an express
trust), and the Corporation will pay or reimburse the Trustee upon its request
for all reasonable expenses, disbursements and advances incurred or made by the
Trustee in accordance with any of the provisions of this Indenture (including
the reasonable compensation and the expenses and disbursements of its counsel
and of all persons not regularly in its employ), except to the extent any such
expense, disbursement or advance arises from its negligence, bad faith or
willful misconduct.

     

    The
Corporation covenants to indemnify each of the Trustee (including in its
individual capacity) and any predecessor Trustee (and its officers, agents,
directors and employees) for, and to hold it harmless against, any and all loss,
damage, claim, action, suit, liability or expense including taxes (other than
taxes based on the income of the Trustee) incurred without negligence, bad faith
or willful misconduct on the part of the Trustee and arising out of or in
connection with the acceptance or administration of this trust, including the
costs and expenses of defending itself against any claim of liability. The
obligations of the Corporation under this Section 6.06 to compensate and
indemnify the Trustee and to pay or reimburse the Trustee for expenses,
disbursements and advances shall constitute additional indebtedness hereunder.
Such additional indebtedness shall be secured by a lien prior to that of the
Notes upon all property and funds held or collected by the Trustee as such,
except funds held in trust for the benefit of the holders of particular
Notes.

     

    When the
Trustee incurs expenses or renders services in connection with an Event of
Default, the expenses (including the reasonable charges and expenses of its
counsel) and the compensation for its services are intended to constitute
expenses of administration under any applicable federal or state bankruptcy,
insolvency or other similar law.

     

    The
provisions of this Section 6.06 shall survive the resignation or removal of the
Trustee and the defeasance or other termination of this Indenture.

     

    Section
6.07 Officers’ Certificate as
Evidence.  Except as otherwise provided in Sections 6.01 and
6.02, whenever in the administration of the provisions of this Indenture the
Trustee shall deem it necessary or desirable that a matter be proved or
established prior to taking or omitting any action hereunder, such matter
(unless other evidence in respect thereof is herein specifically prescribed)
may, in the absence of negligence, bad faith or willful misconduct on the part
of the Trustee, be deemed to be conclusively proved and established by an
Officers’ Certificate delivered to the Trustee, and such Officers’ Certificate,
in the absence of negligence, bad faith or willful misconduct on the part of the
Trustee, shall be full warrant to the Trustee for any action taken or omitted by
it under the provisions of this Indenture in reliance thereon.

     

     

    
      
         

      

      
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    Section
6.08 Conflicting Interest of
Trustee.  If the Trustee has or shall acquire any “conflicting
interest” within the meaning of Section 310(b) of the Trust Indenture Act, the
Trustee and the Corporation shall in all respects comply with the provisions of
Section 310(b) of the Trust Indenture Act.

     

    Section
6.09 Eligibility of
Trustee.  The Indenture shall at all times have a Trustee that
satisfies the requirements of Section 310 of the Trust Indenture Act in all
respects. The Trustee hereunder shall at all times be a Person organized and
doing business under the laws of the United States of America or any state or
territory thereof or of the District of Columbia, or a corporation or other
Person permitted to act as trustee by the Commission authorized under such laws
to exercise corporate trust powers, having a combined capital and surplus of at
least fifty million U.S. dollars ($50,000,000) and subject to supervision or
examination by federal, state, territorial, or District of Columbia authority.
If such Person publishes reports of condition at least annually, pursuant to law
or to the requirements of the aforesaid supervising or examining authority, then
for the purposes of this Section 6.09, the combined capital and surplus of such
Person shall be deemed to be its combined capital and surplus as set forth in
its most recent report of condition so published.

     

    The
Corporation may not, nor may any Person directly or indirectly controlling,
controlled by, or under common control with the Corporation, serve as
Trustee.

     

    In case
at any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section 6.09, the Trustee shall resign immediately in the
manner and with the effect specified in Section 6.10.

     

    Section
6.10 Resignation or Removal of
Trustee.

     

    (a) The
Trustee, or any trustee or trustees hereafter appointed, may at any time resign
with respect to one or more series of Notes by giving written notice of such
resignation to the Corporation and by mailing notice thereof to the holders of
the Notes of such series at their addresses as they shall appear on the Note
Register for such series. Upon receiving such notice of resignation, the
Corporation shall promptly appoint a successor trustee or trustees, which
trustee shall be eligible in accordance with the provisions of Section 6.09, by
written instrument, in duplicate, one copy of which instrument shall be
delivered to the resigning Trustee and one copy to the successor trustee. If no
successor trustee shall have been so appointed and have accepted appointment
within 60 days after the mailing of such notice of resignation to the affected
Noteholders, the resigning Trustee may petition any court of competent
jurisdiction for the appointment of a successor trustee, or any Noteholder who
has been a bona fide holder of a Note for at least six months may, subject to
the provisions of Section 5.10, on behalf of himself and all others similarly
situated, petition any such court for the appointment of a successor trustee.
Such court may thereupon, after such notice, if any, as it may deem proper and
prescribe, appoint a successor trustee.

     

    (b) In case
at any time any of the following shall occur:

     

     

     

     

    
      
         

      

      
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    (i) the
Trustee shall fail to comply with the provisions of Section 6.08 after written
request therefor by the Corporation or by any Noteholder of any series who has
been a bona fide holder of a Note or Notes of such series for at least six
months; or

     

    (ii) the
Trustee shall cease to be eligible in accordance with the provisions of Section
6.09 and shall fail to resign after written request therefor by the Corporation
or by any Noteholder of any series; or

     

    (iii) the
Trustee shall become incapable of acting, or shall be adjudged a bankrupt or
insolvent, or a receiver of the Trustee or of its property shall be appointed,
or any public officer shall take charge or control of the Trustee or of its
property or affairs for the purpose of rehabilitation, conservation or
liquidation,

     

    then, in
any such case, the Corporation may remove the Trustee and appoint a successor
trustee, which trustee shall be eligible in accordance with the provisions of
Section 6.09, by written instrument, in duplicate, one copy of which instrument
shall be delivered to the Trustee so removed and one copy to the successor
trustee, or, subject to the provisions of Section 5.10, any Noteholder of such
series who has been a bona fide holder of a Note of such series for at least six
months may, on behalf of himself and all others similarly situated, petition any
court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor trustee. Such court may thereupon, after such notice,
if any, as it may deem proper and prescribe, remove the Trustee and appoint a
successor trustee.

     

    (c) The
holders of a majority in aggregate principal amount of the Notes of any series
at the time Outstanding may at any time remove the Trustee for such series and
nominate a successor trustee, which shall be deemed appointed as successor
trustee unless within 10 days after written notification of such nomination the
Corporation objects thereto, or if no successor trustee shall have been so
appointed and shall have accepted appointment within 30 days after such removal,
in which case the Trustee so removed or any Noteholder of such series, upon the
terms and conditions and otherwise as in subsection (a) of this Section 6.10,
may petition any court of competent jurisdiction for an appointment of a
successor trustee with respect to such series of Notes.

     

    (d) Any
resignation or removal of the Trustee and appointment of a successor trustee
pursuant to any of the provisions of this Section 6.10 shall become effective
upon acceptance of appointment by the successor trustee as provided in Section
6.11.

     

    Section
6.11 Acceptance by Successor
Trustee.  Any successor trustee appointed as provided in
Section 6.10 shall execute, acknowledge and deliver to the Corporation and to
its predecessor trustee an instrument accepting such appointment hereunder, and
thereupon the resignation or removal of the retiring trustee shall become
effective and such successor trustee, without any further act, deed or
conveyance, shall become vested with all the rights, powers, duties and
obligations of its predecessor hereunder, with like effect as if originally
named as trustee herein; but, nevertheless, on the written request of the
Corporation or of the successor trustee, the trustee ceasing to act shall, upon
payment of all amounts then due it pursuant to the provisions of Section 6.06,
execute and deliver an instrument transferring to such successor trustee all the
rights and powers of the trustee so ceasing to act and shall duly assign,
transfer and deliver to such successor trustee all property and money held by
such retiring trustee thereunder. Upon request of any such successor trustee,
the Corporation shall execute any and all instruments in writing for more fully
and certainly vesting in and confirming to such successor trustee all such
rights and powers. Any trustee ceasing to act shall, nevertheless, retain a lien
upon all property or funds held or collected by such trustee to secure any
amounts then due it pursuant to the provisions of Section 6.06.

     

     

     

    
      
         

      

      
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    No
successor trustee shall accept appointment as provided in this Section 6.11
unless at the time of such acceptance such successor trustee shall be qualified
under the provisions of Section 6.08 and eligible under the provisions of
Section 6.09.

     

    Upon the
appointment hereunder of any successor Trustee with respect to the Notes of one
or more (but not all) series, the Corporation, the retiring Trustee and such
successor Trustee shall execute and deliver an indenture supplemental hereto
wherein each successor Trustee shall accept such appointment and which (a) shall
contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, such successor Trustee all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Notes of that or
those series to which the appointment of such successor Trustee relates, (b) if
the retiring Trustee is not retiring with respect to all Notes, shall contain
such provisions as shall be deemed necessary or desirable to confirm that all
the rights, powers, trusts and duties of the retiring Trustee with respect to
the Notes of that or those series as to which the retiring Trustee is not
retiring shall continue to be vested in the retiring Trustee, and (c) shall add
to or change any of the provisions of this Indenture as shall be necessary to
provide for or facilitate the administration of the trusts hereunder by more
than one Trustee, it being understood that nothing herein or in such
supplemental indenture shall constitute such Trustees co-trustees of the same
trust, that each such Trustee shall be trustee of a trust or trusts hereunder
separate and apart from any trust or trusts hereunder administered by any other
such Trustee and that no Trustee shall be responsible for any notice given to,
or received by, or any act or failure to act on the part of any other Trustee
hereunder, and, upon the execution and delivery of such supplemental indenture,
the resignation or removal of the retiring Trustee shall become effective to the
extent provided therein, such retiring Trustee shall have no further
responsibility for the exercise of rights and powers or for the performance of
the duties and obligations vested in the Trustee under this Indenture with
respect to the Notes of that or those series to which the appointment of such
successor Trustee relates other than as hereinafter expressly set forth, and
such successor Trustee, without any further act, deed or conveyance, shall
become vested with all the rights, powers, trusts and duties of the retiring
Trustee with respect to the Notes of that or those series to which the
appointment of such successor Trustee relates; but, on request of the
Corporation or such successor Trustee, such retiring Trustee, upon payment of
its charges with respect to the Notes of that or those series to which the
appointment of such successor relates and subject to Sections 6.05 and 12.04
shall duly assign, transfer and deliver to such successor Trustee, to the extent
contemplated by such supplemental indenture, the property and money held by such
retiring Trustee hereunder with respect to the Notes of that or those series to
which the appointment of such successor Trustee relates, subject to its claim,
if any, provided for in Section 6.06.  If any supplemental indenture
contemplated by this Section 6.11 affects the rights and obligations of any
Trustee with respect to the Notes of one or more series other than the retiring
Trustee or Successor Trustee referred to herein, such other Trustee shall be a
party to such supplemental indenture.

     

     

    
      
         

      

      
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    Section
6.12 Succession by Merger,
etc.  Any Person into which the Trustee may be merged or
converted or with which it may be consolidated, or any Person resulting from any
merger, conversion or consolidation to which the Trustee shall be a party, or
any Person succeeding to all or substantially all of the corporate trust
business of the Trustee, shall be the successor of the Trustee hereunder,
provided such corporation shall be otherwise qualified under the provisions of
Section 6.08 and eligible under the provisions of Section 6.09, without the
execution or filing of any paper or any further act on the part of any of the
parties hereto.

     

    In case
any Notes shall have been authenticated but not delivered at the time such
successor to the Trustee shall succeed to the trusts created by this Indenture,
any such successor to the Trustee may adopt the certificate of authentication of
any predecessor trustee, and deliver such Notes so authenticated; and in case at
that time any of the Notes shall not have been authenticated, any successor to
the Trustee may authenticate such Notes either in the name of any predecessor
hereunder or in the name of the successor trustee; and in all such cases such
certificates shall have the full force which the Notes or this Indenture
elsewhere provides that the certificate of the Trustee shall have; provided, however, that the
right to adopt the certificate of authentication of any predecessor Trustee or
authenticate Notes in the name of any predecessor Trustee shall apply only to
its successor or successors by merger, conversion or consolidation.

     

    Section
6.13 Limitation on Rights of
Trustee as a Creditor.  The Trustee shall comply with Section
311(a) of the Trust Indenture Act, excluding any creditor relationship described
in Section 311(b) of the Trust Indenture Act. A Trustee who has resigned or been
removed shall be subject to Section 311(a) of the Trust Indenture Act to the
extent included therein.

     

    Section
6.14 Authenticating
Agents.  There may be one or more Authenticating Agents
appointed by the Trustee upon the request of the Corporation with respect to one
or more series of Notes with power to act on the Trustee’s behalf and subject to
the Trustee’s direction in the authentication and delivery of Notes of such
series issued upon exchange or transfer thereof as fully to all intents and
purposes as though any such Authenticating Agent had been expressly authorized
to authenticate and deliver Notes of such series; provided, however, that the
Trustee shall have no liability to the Corporation for any acts or omissions of
the Authenticating Agent with respect to the authentication and delivery of
Notes of such series.  Any such Authenticating Agent shall at all
times be a Person organized and doing business under the laws of the United
States or of any state or territory thereof or of the District of Columbia
authorized under such laws to act as Authenticating Agent, having a combined
capital and surplus of at least five million U.S. dollars ($5,000,000) and being
subject to supervision or examination by federal, state, territorial or District
of Columbia authority. If such Person publishes reports of condition at least
annually pursuant to law or the requirements of such authority, then for the
purposes of this Section 6.14 the combined capital and surplus of such Person
shall be deemed to be its combined capital and surplus as set forth in its most
recent report of condition so published. If at any time an Authenticating Agent
shall cease to be eligible in accordance with the provisions of this Section, it
shall resign immediately in the manner and with the effect herein specified in
this Section.

     

    Any
Person into which any Authenticating Agent may be merged, converted or with
which it may be consolidated, or any Person resulting from any merger or
consolidation to which any Authenticating Agent shall be a party, or any Person
succeeding to the corporate trust business of any Authenticating Agent, shall be
the successor of such Authenticating Agent hereunder, if such successor Person
is otherwise eligible under this Section 6.14 without the execution or filing of
any paper or any further act on the part of the parties hereto or such
Authenticating Agent.

     

     

    
      
         

      

      
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    Any
Authenticating Agent may at any time resign by giving written notice of
resignation to the Trustee and to the Corporation. The Trustee may at any time
terminate the agency of any Authenticating Agent by giving written notice of
termination to such Authenticating Agent and to the Corporation. Upon receiving
such a notice of resignation or upon such a termination, or in case at any time
any Authenticating Agent shall cease to be eligible under this Section 6.14, the
Trustee may, and upon the request of the Corporation shall, promptly appoint a
successor Authenticating Agent eligible under this Section 6.14, shall give
written notice of such appointment to the Corporation and shall mail notice of
such appointment to all Noteholders of the series with respect to which such
Authenticating Agent shall serve, as the names and addresses of such holders
appear on the Note Register for such series.  Any successor
Authenticating Agent upon acceptance of its appointment hereunder shall become
vested with all rights, powers, duties and responsibilities of its predecessor
hereunder, with like effect as if originally named as Authenticating Agent
herein.

     

    The
Corporation, as issuer of the Notes, agrees to pay to any Authenticating Agent
from time to time reasonable compensation for its services. Any Authenticating
Agent shall have no responsibility or liability for any action taken by it as
such in accordance with the directions of the Trustee.

     

    ARTICLE
VII

     

    

     

    CONCERNING
THE NOTEHOLDERS

     

    Section
7.01 Action by
Noteholders.  Any demand, request, notice, consent, waiver or
other action provided by this Indenture to be given or taken by the holders of a
specified percentage in aggregate principal amount of Notes of any series, may
be evidenced by: (a) any instrument (including by way of electronic
transmission) or any number of instruments of similar tenor executed by such
Noteholders in person or by agent or proxy appointed in writing, or (b) the
record of such holders of Notes of such series voting in favor thereof at any
meeting of such Noteholders duly called and held in accordance with the
provisions of Article VIII, or (c) a combination of such instrument or
instruments and any such record of such a meeting of such
Noteholders.

     

    If the
Corporation shall solicit from the Noteholders of such series any request,
demand, authorization, direction, notice, consent, waiver or other action, the
Corporation may, at its option, as evidenced by an Officers’ Certificate, fix in
advance a record date for the determination of such Noteholders entitled to give
such request, demand, authorization, direction, notice, consent, waiver or other
action, but the Corporation shall have no obligation to do so. If such a record
date is fixed, such request, demand, authorization, direction, notice, consent,
waiver or other action may be given before or after the record date, but only
the Noteholders of record of such series at the close of business on the record
date shall be deemed to be Noteholders for the purposes of determining whether
Noteholders of the requisite proportion of Outstanding Notes of such series have
authorized or agreed or consented to such request, demand, authorization,
direction, notice, consent, waiver or other action, and for that purpose the
Outstanding Notes of such series shall be computed as of the record
date.

     

     

     

    
      
         

      

      
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    Section
7.02 Proof of Execution by
Noteholders.  Subject to the provisions of Sections 6.01, 6.02
and 8.05, proof of the execution of any instrument by a Noteholder or his agent
or proxy shall be sufficient if made in accordance with such reasonable rules
and regulations as may be prescribed by the Trustee or in such manner as shall
be satisfactory to the Trustee. The ownership of Notes shall be proved by the
Note Register or by a certificate of the Registrar for the Notes. The Trustee
may require such additional proof of any matter referred to in this Section 7.02
as it shall deem necessary.

     

    The
record of any Noteholders’ meeting shall be proved in the manner provided in
Section 8.06.

     

    Section
7.03 Who Are Deemed Absolute
Owners.  Prior to due presentment for registration of transfer
of a Note of any series, the Corporation, the Trustee, any Authenticating Agent,
any Paying Agent, any transfer agent and any Registrar for the Notes of such
series may deem the person in whose name such Note shall be registered upon the
Note Register for such series to be, and may treat such person as, the absolute
owner of such Note (whether or not such Note shall be overdue) for the purpose
of receiving payment of or on account of the principal of and interest on such
Note and for all other purposes; and neither the Corporation nor the Trustee nor
any Authenticating Agent nor any Paying Agent nor any transfer agent nor any
Registrar for the Notes shall be affected by any notice to the contrary. All
such payments so made to any holder for the time being or upon such holder’s
order shall be valid and, to the extent of the sum or sums so paid, effectual to
satisfy and discharge the liability for moneys payable upon any such
Note.

     

    Section
7.04 Notes Owned by Corporation
Deemed Not Outstanding.  In determining whether the holders of
the requisite aggregate principal amount of Notes of a series have concurred in
any direction, consent or waiver under this Indenture, Notes of such series that
are owned by the Corporation or any other obligor on such series of Notes or by
any Person directly or indirectly controlling or controlled by or under direct
or indirect common control with the Corporation or any other obligor on such
series of Notes shall be disregarded and deemed not to be Outstanding for the
purpose of any such determination; provided, however, that for the
purposes of determining whether the Trustee shall be protected in relying on any
such direction, consent or waiver, only Notes of such series that a Responsible
Officer of the Trustee actually knows are so owned shall be so disregarded.
Notes of such series so owned which have been pledged in good faith may be
regarded as Outstanding for the purposes of this Section 7.04 if the pledgee
shall establish to the satisfaction of the Trustee the pledgee’s right to vote
such Notes and that the pledgee is not the Corporation or any such other obligor
or Person directly or indirectly controlling or controlled by or under direct or
indirect common control with the Corporation or any such other obligor. In the
case of a dispute as to such right, any decision by the Trustee taken upon the
advice of counsel shall be full protection to the Trustee.

     

    Section
7.05 Revocation of Consents;
Future Holders Bound.  At any time prior to (but not after) the
evidencing to the Trustee, as provided in Section 7.01, of the taking of any
action by the holders of the percentage in aggregate principal amount of the
Notes of a series in connection with such action, any holder of a Note of such
series (or any Note of such series issued in whole or in part in exchange or
substitution therefor), subject to Section 7.01, the serial number of which is
shown by the evidence to be included in the group of Notes of such series the
holders of which have consented to such action, may, by filing written notice
with the Trustee at its Corporate Trust Office and upon proof of holding as
provided in Section 7.02, revoke such action so far as concerns such Note (or so
far as concerns the principal amount represented by any exchanged or substituted
Note). Except as aforesaid, any such action taken by the holder of a Note of a
series shall be conclusive and binding upon such holder and upon all future
holders and owners of such Note, and of any Note issued in exchange or
substitution therefor, irrespective of whether or not any notation in regard
thereto is made upon such Note or any Note issued in exchange or substitution
therefor.

     

     

    
      
         

      

      
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    ARTICLE
VIII

     

    

     

    MEETINGS
OF NOTEHOLDERS

     

    Section
8.01 Purposes of
Meetings.  A meeting of Noteholders of any series of Notes may
be called at any time and from time to time pursuant to the provisions of this
Article VIII for any of the following purposes:

     

    (a) to give
any notice to the Corporation or to the Trustee, or to give any directions to
the Trustee, or to consent to the waiving of any Event of Default (or any event
which, after notice or the lapse of time or both would become, an Event of
Default) hereunder with respect to such series and its consequences, or to take
any other action authorized to be taken by Noteholders of such series pursuant
to any of the provisions of Article V;

     

    (b) to remove
the Trustee and nominate a successor trustee of such series pursuant to the
provisions of Article VI;

     

    (c) to
consent to the execution of an indenture or indentures supplemental hereto
pursuant to the provisions of Section 9.02; or

     

    (d) to take
any other action authorized to be taken by or on behalf of the holders of any
specified aggregate principal amount of such series of Notes under any other
provision of this Indenture or under applicable law.

     

    Section
8.02 Call of Meetings by
Trustee.  The Trustee may at any time call a meeting of
Noteholders of any series to take any action specified in Section 8.01, to be
held at such time and at such place in New York, New York or __________,
_______ 
as the Trustee shall determine. Notice of every meeting of the Noteholders of
any series, setting forth the time and the place of such meeting and in general
terms the action proposed to be taken at such meeting, shall be mailed to
holders of Notes of such series at their addresses as they shall appear on the
Note Register. Such notice shall be mailed not less than 20 nor more than 180
days prior to the date fixed for the meeting.

     

    Section
8.03 Call of Meetings by
Corporation or Noteholders.  In case at any time the
Corporation, pursuant to a resolution of the Board of Directors, or the holders
of at least 25% in aggregate principal amount of the Notes of any series then
Outstanding, shall have requested the Trustee to call a meeting of Noteholders
of such series, by written request setting forth in reasonable detail the action
proposed to be taken at the meeting, and the Trustee shall not have mailed the
notice of such meeting within 20 days after receipt of such request, then the
Corporation or such Noteholders may determine the time and the place in New
York, New York or__________, __________ for such meeting and may call such
meeting to take any action authorized in Section 8.01, by mailing notice thereof
as provided in Section 8.02.

     

     

     

    
      
         

      

      
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    Section
8.04 Qualifications for
Voting.  To be entitled to vote at any meeting of Noteholders
of any series, a Person shall be (a) a holder of one or more Outstanding Notes
of such series or (b) a Person appointed by an instrument in writing as proxy by
a holder of one or more Outstanding Notes of such series. The only Persons who
shall be entitled to be present or to speak at any meeting of Noteholders of any
series shall be the Persons entitled to vote at such meeting and their counsel
and any representatives of the Trustee and its counsel and any representatives
of the Corporation and its counsel.

     

    Section
8.05 Regulations.  Notwithstanding
any other provisions of this Indenture, the Trustee may make such reasonable
regulations as it may deem advisable for any meeting of Noteholders of any
series, in regard to proof of the holding of Notes of such series and of the
appointment of proxies, and in regard to the appointment and duties of
inspectors of votes, the submission and examination of proxies, certificates and
other evidence of the right to vote, and such other matters concerning the
conduct of the meeting as it shall think fit.

     

    The
Trustee shall, by an instrument in writing, appoint a temporary chairman of the
meeting, unless the meeting shall have been called by the Corporation or by
Noteholders as provided in Section 8.03, in which case the Corporation or the
Noteholders calling the meeting, as the case may be, shall in like manner
appoint a temporary chairman. A permanent chairman and a permanent secretary of
the meeting shall be elected by majority vote of the meeting.

     

    Subject
to the provisions of Section 8.04, at any meeting each holder of Notes of any
series or proxy therefor shall be entitled to one vote for each $1,000 principal
amount of Notes of such series held or represented by such holder; provided, however, that no vote
shall be cast or counted at any meeting in respect of any Note of such series
challenged as not Outstanding and ruled by the chairman of the meeting to be not
Outstanding. The chairman of the meeting shall have no right to vote other than
by virtue of Notes held by him or instruments in writing as aforesaid duly
designating him as the person to vote on behalf of other Noteholders. Any
meeting of Noteholders duly called pursuant to the provisions of Section 8.02 or
8.03 may be adjourned from time to time by a majority in principal amount of
those present, and the meeting may be held as so adjourned without further
notice.

     

    Section
8.06 Voting.  The
vote upon any resolution submitted to any meeting of holders of Notes of any
series shall be by written ballots on which shall be subscribed the signatures
of such holders or of their representatives by proxy and the serial number or
numbers of the Notes of such series held or represented by them. The permanent
chairman of the meeting shall appoint two inspectors of votes who shall count
all votes cast at the meeting for or against any resolution and who shall make
and file with the secretary of the meeting their verified written reports in
triplicate of all votes cast at the meeting. A record in duplicate of the
proceedings of each meeting of Noteholders of any series shall be prepared by
the secretary of the meeting and there shall be attached to said record the
original reports of the inspectors of votes on any vote by ballot taken thereat
and affidavits by one or more persons having knowledge of the facts setting
forth a copy of the notice of the meeting and showing that said notice was
mailed as provided in Section 8.02. The record shall show the serial numbers of
the Notes of such series voting in favor of or against any resolution. The
record shall be signed and verified by the affidavits of the permanent chairman
and secretary of the meeting and one of the duplicates shall be delivered to the
Corporation and the other to the Trustee to be preserved by the Trustee, the
latter to have attached thereto the ballots voted at the meeting. Any record so
signed and verified shall be conclusive evidence of the matters therein
stated.

     

     

    
      
         

      

      
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    Section
8.07 Quorum;
Actions.  The Persons entitled to vote a majority in aggregate
principal amount of the Notes of any series then Outstanding shall constitute a
quorum for a meeting of Noteholders of such series; provided, however, that if any
action is to be taken at such meeting with respect to a consent, waiver,
request, demand, notice, authorization, direction or other action which may be
given by the holders of not less than a specified percentage in aggregate
principal amount of the Notes of such series then Outstanding, the Persons
holding or representing such specified percentage in aggregate principal amount
of the Notes of such series then Outstanding will constitute a
quorum.  In the absence of a quorum within 30 minutes of the time
appointed for any such meeting, the meeting shall, if convened at the request of
Noteholders of such series, be dissolved.  In any other case, the
meeting may be adjourned for a period of not less than 10 days as
determined by the permanent chairman of the meeting prior to the adjournment of
such meeting.  In the absence of a quorum at any such adjourned
meeting, such adjourned meeting may be further adjourned for a period of not
less than 10 days as determined by the permanent chairman of the meeting
prior to the adjournment of such adjourned meeting.  Notice of the
reconvening of any adjourned meeting shall be given as provided in
Section 8.02, except that such notice need be given only once not less than
five days prior to the date on which the meeting is scheduled to be
reconvened.  Notice of the reconvening of an adjourned meeting shall
state expressly the percentage, as provided above, of the aggregate principal
amount of the Notes of such series then Outstanding which shall constitute a
quorum.

     

    Except as
limited by the proviso in the first paragraph of Section 9.02, any
resolution presented to a meeting or adjourned meeting duly reconvened at which
a quorum is present as aforesaid may be adopted by the affirmative vote of the
holders of a majority in aggregate principal amount of the Notes of that series
then Outstanding; provided, however, that, except
as limited by the proviso in the first paragraph of Section 9.02, any
resolution with respect to any consent, waiver, request, demand, notice,
authorization, direction or other action that this Indenture expressly provides
may be given by the holders of not less than a specified percentage in principal
amount of the Notes of such series then Outstanding may be adopted at a meeting
or an adjourned meeting duly reconvened and at which a quorum is present as
aforesaid only by the affirmative vote of the holders of not less than such
specified percentage in aggregate principal amount of the Notes of such series
then Outstanding.

     

    Any
resolution passed or decision taken at any meeting of Noteholders of any series
duly held in accordance with this Section 8.07 shall be binding on all the
Noteholders of such series, whether or not present or represented at the
meeting.

     

    ARTICLE
IX

     

    

     

    SUPPLEMENTAL
INDENTURES

     

    Section
9.01 Supplemental Indentures
Without Consent of Noteholders. The Corporation and the Trustee may from
time to time and at any time enter into one or more indentures supplemental
hereto without the consent of the Noteholders, for one or more of the following
purposes:

     

    (a) to
evidence the succession of another Person to the Corporation, or successive
successions, and the assumption by the successor Person of the covenants,
agreements and obligations of the Corporation pursuant to Article X
hereof;

     

     

    
      
         

      

      
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    (b) to add to
the covenants of the Corporation such further covenants, restrictions or
conditions for the protection of the Noteholders of any series (as shall be
specified in such supplemental indenture or indentures) as the Board of
Directors and the Trustee shall consider to be for the protection of the
Noteholders of such series, and to make the occurrence, or the occurrence and
continuance, of a default in any of such additional covenants, restrictions or
conditions an Event of Default permitting the enforcement of all or any of the
remedies provided in this Indenture as herein set forth; provided, however, that in
respect of any such additional covenant, restriction or condition such
supplemental indenture or indentures 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;

     

    (c) to cure
any ambiguity or to correct or supplement any provision contained herein or in
any supplemental indenture which may be defective or inconsistent with any other
provision contained herein or in any supplemental indenture; or to make such
other provisions in regard to matters or questions arising under this Indenture,
provided that
any such action shall not materially adversely affect the interests of the
holders of the Notes of the affected series;

     

    (d) to
evidence and provide for the acceptance of appointment hereunder by a successor
trustee with respect to one or more series of Notes;

     

    (e) to
qualify or maintain qualification of this Indenture under the Trust Indenture
Act;

     

    (f) to make
any change that does not adversely affect the rights of any Noteholder in any
material respect; or

     

    (g) to
establish the form or terms of each series of senior notes.

     

    The
Trustee is hereby authorized to join with the Corporation in the execution of
any supplemental indenture to effect such amendment, to make any further
appropriate agreements and stipulations which may be therein contained and to
accept the conveyance, transfer and assignment of any property thereunder, but
the Trustee shall not be obligated to, but may in its discretion, enter into any
such supplemental indenture which affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise.

     

    Any
supplemental indenture to this Indenture authorized by the provisions of this
Section 9.01 may be executed by the Corporation and the Trustee without the
consent of the holders of any of the Notes of the affected series at the time
Outstanding, notwithstanding any of the provisions of Section 9.02.

     

    Section
9.02 Supplemental Indentures With
Consent of Noteholders.  With the consent (evidenced as
provided in Section 7.01) of the holders of a majority in aggregate principal
amount of the Notes of each series affected by such supplemental indenture at
the time Outstanding, the Corporation, when authorized by a Board Resolution,
and the Trustee may from time to time and at any time enter into any indenture
or indentures supplemental hereto for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Indenture or
of modifying in any manner the rights of the holders of the Notes of such
series; provided, however, that no such
supplemental indenture shall, without the consent of the holders of each Note
then Outstanding and affected thereby (a) change the Maturity Date of any Note
or provide for the redemption of any Note prior to the Maturity Date, or reduce
the rate or extend the time of payment of interest thereon, or reduce the
principal amount thereof or make the principal thereof or any interest thereon
payable in any coin or currency other than U.S. dollars, or impair or affect the
right of any Noteholder to institute suit for payment thereof, or (b) reduce the
aforesaid percentage of Notes, the holders of which are required to consent to
any such supplemental indenture.

     

     

    
      
         

      

      
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    Upon the
request of the Corporation accompanied by a copy of a resolution of the Board of
Directors certified by its Secretary or Assistant Secretary authorizing the
execution of any supplemental indenture effecting such amendment, and upon the
filing with the Trustee of evidence of the consent of Noteholders as aforesaid,
the Trustee shall join with the Corporation in the execution of such
supplemental indenture unless such supplemental indenture affects the Trustee’s
own rights, duties or immunities under this Indenture or otherwise, in which
case the Trustee may in its discretion, but shall not be obligated to, enter
into such supplemental indenture.

     

    Promptly
after the execution by the Corporation and the Trustee of any supplemental
indenture pursuant to the provisions of this Section, the Trustee shall transmit
by mail, first class postage prepaid, a notice, prepared by the Corporation,
setting forth in general terms the substance of such supplemental indenture, to
the Noteholders of the affected series as their names and addresses appear upon
the Note Register. Any failure of the Trustee to mail such notice, or any defect
therein, shall not, however, in any way impair or affect the validity of any
such supplemental indenture.

     

    A
supplemental indenture which changes or eliminates any covenant or other
provision of this Indenture which shall have been included expressly and solely
for the benefit of one or more particular series of Notes, or which modifies the
rights of the holders of Notes of such series with respect to such covenant or
other provision, shall be deemed not to affect the rights under this Indenture
of the holders of Notes of any other series.

     

    It shall
not be necessary for the consent of the Noteholders under this Section 9.02 to
approve the particular form of any proposed supplemental indenture, but it shall
be sufficient if such consent shall approve the substance thereof.

     

    Section
9.03 Compliance with Trust
Indenture Act; Effect of Supplemental Indentures.  Any
supplemental indenture executed pursuant to the provisions of this Article IX
shall comply with the Trust Indenture Act. Upon the execution of any
supplemental indenture pursuant to the provisions of this Article IX, this
Indenture shall be and be deemed to be modified and amended in accordance
therewith and the respective rights, limitations of rights, obligations, duties
and immunities under this Indenture of the Trustee, the Corporation and the
holders of Notes shall thereafter be determined, exercised and enforced
hereunder subject in all respects to such modifications and amendments, and all
the terms and conditions of any such supplemental indenture shall be and be
deemed to be part of the terms and conditions of this Indenture for any and all
purposes.

     

     

    
      
         

      

      
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    Section
9.04 Notation on
Notes.  Notes of any series authenticated and delivered after
the execution of any supplemental indenture pursuant to the provisions of this
Article IX may bear a notation in form approved by the Trustee as to any matter
provided for in such supplemental indenture. If the Corporation or the Trustee
shall so determine, new Notes of such series so modified as to conform, in the
opinion of the Trustee and the Board of Directors, to any modification of this
Indenture contained in any such supplemental indenture may be prepared and
executed by the Corporation, authenticated by the Trustee or the Authenticating
Agent and delivered in exchange for the Notes then Outstanding of such
series.

     

    Section
9.05 Evidence of Compliance of
Supplemental Indenture to be Furnished to Trustee.  The
Trustee, subject to the provisions of Sections 6.01 and 6.02, may receive an
Officers’ Certificate and an Opinion of Counsel as conclusive evidence that any
supplemental indenture executed pursuant hereto complies with the requirements
of this Article IX.

     

    ARTICLE
X

     

    

     

    CONSOLIDATION,
MERGER, SALE, CONVEYANCE, TRANSFER AND LEASE

     

    Section
10.01 Corporation May Consolidate,
etc., on Certain Terms.  Nothing contained in this Indenture or
in any of the Notes shall prevent any consolidation or merger of the Corporation
with or into any other Person (whether or not affiliated with the Corporation,
as the case may be), or successive consolidations or mergers in which the
Corporation or its successor or successors, as the case may be, shall be a party
or parties, or shall prevent any sale, conveyance, transfer or lease of the
property of the Corporation, or its successor or successors as the case may be,
as an entirety, or substantially as an entirety, to any other Person (whether or
not affiliated with the Corporation, or its successor or successors, as the case
may be) authorized to acquire and operate the same; provided, that (a)
the Corporation is the surviving Person, or the Person formed by or surviving
any such consolidation or merger (if other than the Corporation) or to which
such sale, conveyance, transfer or lease of property is made is a Person
organized and existing under the laws of the United States or any State thereof
or the District of Columbia, and (b) if the Corporation is not the surviving
Person, upon any such consolidation, merger, sale, conveyance, transfer or
lease, the due and punctual payment of the principal of, premium, if any, and
interest on the Notes according to their tenor and the due and punctual
performance and observance of all the covenants and conditions of this Indenture
and the Notes to be kept or performed by the Corporation shall be expressly
assumed by the surviving Person, by supplemental indenture (which shall conform
to the provisions of the Trust Indenture Act as then in effect) satisfactory in
form to the Trustee executed and delivered to the Trustee by the Person formed
by such consolidation, or into which the Corporation shall have been merged, or
by the Person which shall have acquired such property, as the case may be, and
(c) after giving effect to such consolidation, merger, sale, conveyance,
transfer or lease, no Event of Default (or any event which, after notice or the
lapse of time or both would become, an Event of Default) shall have occurred and
be continuing.

     

    Section
10.02 Successor Person to be
Substituted for Corporation.  In case of any such
consolidation, merger, sale, conveyance, transfer or lease, and upon the
assumption by the successor corporation, by supplemental indenture executed and
delivered to the Trustee and satisfactory in form to the Trustee, of the
obligation of due and punctual payment of the principal of, premium, if any, and
interest on all of the Notes and the due and punctual performance and observance
of all of the covenants and conditions of this Indenture to be performed or
observed by the Corporation, such successor Person shall succeed to and be
substituted for the Corporation, with the same effect as if it had been named
herein as a party hereto, and the Corporation thereupon shall be relieved of any
further liability or obligation hereunder or upon the Notes. Such successor
Person thereupon may cause to be signed, 

     

     

    
      
         

      

      
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    and may
issue either in its own name or in the name of the Corporation, any or all of
the Notes issuable hereunder which theretofore shall not have been signed by the
Corporation and delivered to the Trustee or the Authenticating Agent; and, upon
the order of such successor Person instead of the Corporation and subject to all
the terms, conditions and limitations in this Indenture prescribed, the Trustee
or the Authenticating Agent shall authenticate and deliver any Notes which
previously shall have been signed and delivered by any Officer of the
Corporation to the Trustee or the Authenticating Agent for authentication, and
any Notes which such successor Person thereafter shall cause to be signed and
delivered to the Trustee or the Authenticating Agent for that purpose. All the
Notes so issued shall in all respects have the same legal rank and benefit under
this Indenture as the Notes theretofore or thereafter issued in accordance with
the terms of this Indenture as though all of such Notes had been issued at the
date of the execution hereof.

     

    Section
10.03 Opinion of Counsel to be
Given Trustee.  The Trustee, subject to the provisions of
Sections 6.01 and 6.02, may receive an Opinion of Counsel as conclusive evidence
that any consolidation, merger, sale, conveyance, transfer or lease, and any
assumption, permitted or required by the terms of this Article X complies with
the provisions of this Article X.

     

    ARTICLE
XI

     

    REDEMPTION
OF NOTES

     

    Section
11.01 Applicability of
Article.  Notes of any series that are redeemable before their
Stated Maturity shall be redeemable in accordance with their terms and (except
as otherwise specified as contemplated by Section 2.01 for Notes of any series)
in accordance with this Article.

     

    Section
11.02 Election to Redeem; Notice
to Trustee.  The election of the Corporation to redeem any
Notes shall be evidenced by or pursuant to a Board Resolution.  In
case of any redemption at the election of the Corporation of less than all the
Notes of any series, the Corporation shall, not less than 35 nor more than 60
days prior to the Redemption Date fixed by the Corporation (unless a shorter
notice shall be satisfactory to the Trustee), notify the Trustee in writing of
such Redemption Date, of the principal amount of Notes of such series to be
redeemed and, if applicable, of the tenor of the Notes to be
redeemed.  In the case of any redemption of Notes in whole or in part
(1) prior to the expiration of any restriction on such redemption provided in
the terms of such Notes or elsewhere in this Indenture, or (2) pursuant to an
election of the Corporation that is subject to a condition specified in this
Indenture or the terms of such Notes, the Corporation shall furnish the Trustee
with an Officers’ Certificate evidencing compliance with such restriction or
condition.

     

    Section
11.03 Selection by Trustee of
Notes to be Redeemed.  If less than all the Notes of any series
are to be redeemed (unless all the Notes of such series and of a specified tenor
are to be redeemed), the particular Notes to be redeemed shall be selected not
more than 35 days prior to the Redemption Date by the Trustee, from the
Outstanding Notes of such series not previously called for redemption, on a
pro rata basis or by
any other method that the Trustee deems fair and appropriate and which complies
with any securities exchange or other applicable requirements for redemption of
portions (equal to the minimum authorized denomination for Notes of that series
or any integral multiple thereof) of the principal amount of Notes of such
series of a denomination larger than the minimum authorized denomination for
Notes of that series.

     

     

     

    
      
         

      

      
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    The
Trustee shall promptly notify the Corporation in writing of the Notes selected
for redemption and, in the case of any Notes selected for partial redemption,
the principal amount thereof to be redeemed.

     

    For all
purposes of this Indenture, unless the context otherwise requires, all
provisions relating to the redemption of Notes shall relate, in the case of any
Notes redeemed or to be redeemed only in part, to the portion of the principal
amount of such Notes which has been or is to be redeemed.

     

    Section
11.04 Notice of
Redemption.  Notice of redemption shall be given by first-class
mail (if international mail, by air mail), postage prepaid, mailed not less than
30 nor more than 60 days prior the Redemption Date, to each Holder of Notes to
be redeemed, at such Holder’s address appearing in the Note
Register.

     

    All
notices of redemption shall state:

     

    (1)           the
Redemption Date;

     

    (2)           the
Redemption Price;

     

    (3)           if
less than all the Outstanding Notes of any series and of a specified tenor are
to be redeemed, the identification (and, in the case of partial redemption of
any Notes, the principal amounts) of the particular Notes to be
redeemed;

     

    (4)           that
on the Redemption Date the Redemption Price will become due and payable upon
each such Note to be redeemed and that interest thereon will cease to accrue on
and after said date;

     

    (5)           the
place or places where such Notes are to be surrendered for payment of the
Redemption Price; and

     

    (6)           that
the redemption is for a sinking fund, if such is the case.

     

    Notice of
redemption of Notes to be redeemed shall be given by the Corporation or, at the
Corporation’s request, by the Trustee in the name and at the expense of the
Corporation.

     

    Section
11.05 Deposit of Redemption
Price.  On or prior to 10:00 a.m. (Eastern time) on any
Redemption Date, the Corporation shall deposit with the Trustee or with a Paying
Agent (or, if the Corporation is acting as its own Paying Agent, segregate and
hold in trust as provided in Section 3.04) an amount of money sufficient to pay
the Redemption Price of, and (except if the Redemption Date shall be an Interest
Payment Date) accrued interest on, all the Notes which are to be redeemed on
that date.

     

    Section
11.06 Notes Payable on Redemption
Date.  If notice of redemption has been given as provided in
section 11.04, the Notes so to be redeemed shall, on the Redemption Date, become
due and payable on the date and at the place or places stated in such notice at
the Redemption Price therein specified, and from and after such date (unless the
Corporation shall default in the payment of the Redemption Price and accrued
interest) such Notes shall cease to bear interest.  Upon surrender of
any such Note for redemption in accordance with said notice, such Note shall be
paid by the Corporation at the Redemption Price, together with accrued interest
to the Redemption Date; provided, however, that,
unless otherwise specified as contemplated by Section 2.01, installments of
interest whose Stated Maturity is on or prior to the Redemption Date shall be
payable to the Holders of such Notes, or one or more Predecessor Notes,
registered as such at the close of business on the relevant Record Dates
according to their terms.

     

     

     

    
      
         

      

      
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    If any
Note called for redemption shall not be so paid upon surrender thereof for
redemption, the principal and any premium shall, until paid, bear interest from
the Redemption Date at the rate prescribed thereof in the Note.

     

    Section
11.07 Notes Redeemed in
Part.  Any Note that is to be redeemed only in part shall be
surrendered at a Place of Payment thereof (with, if the Corporation or the
Trustee so requires, due endorsement by, or a written instrument of transfer in
form satisfactory to the Corporation and the Trustee duly executed by, the
Holder thereof or its attorney duly authorized in writing), and the Corporation
shall execute, and the Trustee shall authenticate and deliver to the Holder of
such Note without service charge, a new Note or Notes of the same series and of
like tenor, of any authorized denomination as requested by such Holder, in
aggregate principal amount equal to and in exchange for the unredeemed portion
of the principal of the Note so surrendered.

     

    ARTICLE
XII

     

    

     

    SATISFACTION
AND DISCHARGE OF INDENTURE

     

    Section
12.01 Discharge of
Indenture.  When (a) the Corporation shall deliver to the
Trustee for cancellation all Notes of a series theretofore authenticated (other
than any Notes of such series which shall have been destroyed, lost or stolen
and which shall have been replaced as provided in Section 2.09) and not
theretofore canceled, or (b) all the Notes of a series not theretofore canceled
or delivered to the Trustee for cancellation shall have become due and payable,
or are by their terms to become due and payable within one year, and the
Corporation shall deposit or cause to be deposited with the Trustee, in trust,
funds sufficient to pay on the Maturity Date all of the Notes of such series
(other than any Notes of such series which shall have been destroyed, lost or
stolen and which shall have been replaced as provided in Section 2.09) not
theretofore canceled or delivered to the Trustee for cancellation, including
principal and interest due or to become due to the Maturity Date, but excluding,
however, the amount of any moneys for the payment of principal of or interest on
the Notes of such series (i) theretofore repaid to the Corporation in accordance
with the provisions of Section 12.04, or (ii) paid to any State or to the
District of Columbia pursuant to its unclaimed property or similar laws, and if,
in either case the Corporation shall also pay or cause to be paid all other sums
payable hereunder by the Corporation, then this Indenture shall cease to be of
further effect with respect to such series except for the provisions of Sections
2.02, 2.07, 2.08, 3.01, 3.02, 3.04, 6.06, 6.10 and 12.04 hereof, which shall
survive until such Notes shall mature and be paid. Thereafter, Sections 6.06,
6.10 and 12.04 shall survive, and the Trustee, on demand of the Corporation
accompanied by any Officers’ Certificate and an Opinion of Counsel and at the
cost and expense of the Corporation, shall execute proper instruments
acknowledging satisfaction of and discharging this Indenture; the Corporation,
however, hereby agrees to reimburse the Trustee for any costs or expenses
thereafter reasonably and properly incurred by the Trustee in connection with
this Indenture or the Notes.

     

     

     

    
      
         

      

      
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    Section
12.02 Deposited Moneys and U.S.
Government Obligations to be Held in Trust by Trustee.  Subject
to the provisions of Section 12.04, all moneys and U.S. Government Obligations
deposited with the Trustee pursuant to Sections 12.01 or 12.05 shall be held in
trust and applied by it to the payment, either directly or through any paying
agent (including the Corporation if acting as its own paying agent), to the
holders of the particular Notes for the payment of which such moneys or U.S.
Government Obligations have been deposited with the Trustee, of all sums due and
to become due thereon for principal, premium, if any, and interest.

     

    The
Corporation shall pay and indemnify the Trustee against any tax, fee or other
charge imposed on or assessed against the U.S. Governmental Obligations
deposited pursuant to Section 12.05 or the principal and interest received in
respect thereof other than any such tax, fee or other charge for which by law
the holders of Outstanding Notes are liable.

     

    Section
12.03 Paying Agent to Repay Moneys
Held.  Upon the satisfaction and discharge of this Indenture
with respect to any series, all moneys then held by any paying agent of the
Notes of such series (other than the Trustee) shall, upon written demand of the
Corporation, be repaid to it or paid to the Trustee, and thereupon such paying
agent shall be released from all further liability with respect to such
moneys.

     

    Section
12.04 Return of Unclaimed
Moneys.  Any moneys deposited with or paid to the Trustee or
any paying agent for payment of the principal of, premium if any, or interest on
Notes of any series and not applied but remaining unclaimed by the holders of
Notes of such series for two years after the date upon which the principal of or
interest on such Notes, as the case may be, shall have become due and payable,
shall (unless otherwise required by mandatory provision of applicable escheat or
abandoned or unclaimed property law) upon Corporation Order be repaid to the
Corporation by the Trustee or such paying agent; and the holder of any of the
Notes of such series shall thereafter look only to the Corporation for any
payment which such holder may be entitled to collect and all liability of the
Trustee or such Paying Agent with respect to such moneys shall thereupon cease;
provided, that
the Trustee or such Paying Agent, before being required to make any such
repayment, may at the expense of the Corporation cause to be published once, in
a newspaper published in the English language, customarily published on each
Business Day and of general circulation in the Borough of Manhattan, The City of
New York, notice that such money remains unclaimed and that, after a date
specified therein, which shall not be less than thirty (30) days from the date
of such publication, any unclaimed balance of such money then remaining will be
repaid to the Corporation.

     

    Section
12.05 Defeasance Upon Deposit of
Moneys or U.S. Government Obligations.  The Corporation shall
be deemed to have been Discharged from its obligations with respect to the Notes
of any series on the 91st day after the applicable conditions set forth below
have been satisfied:

     

    (a) the
Corporation shall have deposited or caused to be deposited irrevocably with the
Trustee or the Defeasance Agent as trust funds in trust, specifically pledged as
security for, and dedicated solely to, the benefit of the holders of the Notes
of such series (i) money in an amount, or (ii) U.S. Government Obligations which
through the payment of interest and principal in respect thereof in accordance
with their terms will provide, not later than one day before the due date of any
payment, money in an amount, or (iii) a combination of (i) and (ii), sufficient,
in the opinion (with respect to (ii) and (iii)) of a nationally recognized firm
of independent public accountants expressed in a written certification thereof
delivered to the Trustee and the Defeasance Agent, if any, to pay and discharge
each installment of principal of and interest on the Outstanding Notes of such
series on the dates such installments of principal and interest are
due;

     

     

     

    
      
         

      

      
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    (b) if the
Notes of such series are then listed on any national securities exchange, the
Corporation shall have delivered to the Trustee and the Defeasance Agent, if
any, an Opinion of Counsel to the effect that the exercise of the option under
this Section 12.05 would not cause such Notes to be delisted from such
exchange;

     

    (c) no Event
of Default (or any event which, after notice or the lapse of time or both would
become, an Event of Default) with respect to the Notes of such series shall have
occurred and be continuing on the date of such deposit; and

     

    (d) the
Corporation shall have delivered to the Trustee and the Defeasance Agent, if
any, an Opinion of Counsel to the effect that holders of the Notes of such
series will not recognize income, gain or loss for United States federal income
tax purposes as a result of the exercise of the option under this Section 12.05
and will be subject to United States federal income tax on the same amount and
in the same manner and at the same times as would have been the case if such
option had not been exercised.

     

    ARTICLE
XIII

     

    

     

    IMMUNITY
OF INCORPORATORS, STOCKHOLDERS,

     

    OFFICERS
AND DIRECTORS

     

    Section
13.01 Indenture and Notes Solely
Corporate Obligations.  No recourse for the payment of the
principal of, premium, if any, or interest on any Note or for any claim based
thereon or otherwise in respect thereof, and no recourse under or upon any
obligation, covenant or agreement of the Corporation in this Indenture, or in
any Note, or because of the creation of any indebtedness represented thereby,
shall be had against any incorporator, stockholder, employee, officer or
director, as such, past, present or future, of the Corporation or of any
successor Person to the Corporation, either directly or through the Corporation
or any successor Person to the Corporation, whether by virtue of any
constitution, statute or rule of law, or by the enforcement of any assessment or
penalty or otherwise; it being expressly understood that all such liability is
hereby expressly waived and released as a condition of, and as a consideration
for, the execution of this Indenture and the issuance of the Notes.

     

    ARTICLE
XIV

     

    

     

    MISCELLANEOUS
PROVISIONS

     

    Section
14.01 Successors.  All
of the covenants, stipulations, promises and agreements of the Corporation
contained in this Indenture shall also bind the Corporation’s successors and
assigns whether so expressed or not.

     

     

     

    
      
         

      

      
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    Section
14.02 Official Acts by Successor
Corporation.  Any act or proceeding that, by any provision of
this Indenture, is authorized or required to be done or performed by any board,
committee or officer of the Corporation shall and may be done and performed with
like force and effect by the like board, committee or officer of any corporation
that shall at the time be the lawful sole successor of the
Corporation.

     

    Section
14.03 Surrender of Corporation
Powers. The Corporation by instrument in writing executed by authority of
2/3 (two-thirds) of its Board of Directors and delivered to the Trustee may
surrender any of the powers reserved to the Corporation hereunder, and thereupon
such power so surrendered shall terminate both as to the Corporation, as the
case may be, and as to any successor Person.

     

    Section
14.04 Addresses for Notices,
etc.  Any notice or demand which by any provision of this
Indenture is required or permitted to be given or served by the Trustee or by
the holders of Notes on the Corporation may be given or served by being
deposited postage prepaid by first class mail, registered or certified mail,
overnight courier service or conformed telecopy addressed (until another address
is filed by the Corporation with the Trustee for the purpose) to State Bancorp,
Inc. at Two Jericho Plaza, Jericho, New York, Attention: Brian K. Finneran,
Chief Financial Officer.  Any notice, direction, request or demand by
any Noteholder to or upon the Trustee shall be deemed to have been sufficiently
given or made, for all purposes, if given or made in writing at the office of
___________ at ___________, Attention: _______________ (unless another address
is provided by the Trustee to the Corporation for such purpose). Any notice or
communication to a Noteholder shall be mailed by first class mail to his or her
address shown on the Note Register kept by the Registrar for the Notes. Notices
required to be given to the Trustee or the Authenticating Agent shall be in
writing, personally delivered or mailed first class postage prepaid to each of
the foregoing, or at such other address as shall be designated by written notice
to the other parties.

     

    Section
14.05 Governing
Law.  This Indenture and the Notes shall each be governed by,
and construed in accordance with, the laws of the State of New York, without
regard to conflict of law principles of said State other than
Section 5-1401 of the New York General Obligations Law.

     

    Section
14.06 Evidence of Compliance with
Conditions Precedent.  Upon any application or demand by the
Corporation to the Trustee to take any action under any of the provisions of
this Indenture, the Corporation shall furnish to the Trustee an Officers’
Certificate stating that in the opinion of the signers all conditions precedent,
if any, provided for in this Indenture relating to the proposed action have been
complied with and an Opinion of Counsel stating that, in the opinion of such
counsel, all such conditions precedent have been complied with, except that no
such Opinion of Counsel shall be required in connection with the authentication
and issuance of the initial series of Notes.  Each certificate or
opinion provided for in this Indenture and delivered to the Trustee with respect
to compliance with a condition or covenant provided for in this Indenture
(except certificates delivered pursuant to Section 3.05) shall include (a) a
statement that the Person making such certificate or opinion has read such
covenant or condition; (b) a brief statement as to the nature and scope of the
examination or investigation upon which the statements or opinions contained in
such certificate or opinion are based; (c) a statement that, in the opinion of
such Person, he has made such examination or investigation as is necessary to
enable him to express an informed opinion as to whether or not such covenant or
condition has been complied with; and (d) a statement as to whether or not, in
the opinion of such person, such condition or covenant has been complied
with.

     

     

     

    
      
         

      

      
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    Section
14.07 Business
Days.  Except as provided otherwise in a supplemental
indenture, Board Resolution or Officers’ Certificate establishing the terms of a
series of Notes pursuant to this Indenture, in any case where the date of
payment of principal of or interest on the Notes is not a Business Day, the
payment of such principal of or interest on the Notes will not be made on such
date but will be made on the next succeeding Business Day, with the same force
and effect as if made on the original date of payment, and no interest shall
accrue for the period from and after such date.

     

    Section
14.08 Qualification of
Indenture.  The Corporation shall qualify this Indenture under
the Trust Indenture Act and shall pay all reasonable costs and expenses
(including attorneys’ fees for the Corporation, the Trustee and the holders of
the Notes) incurred in connection therewith, including, but not limited to,
costs and expenses of qualification of this Indenture and the Notes and printing
this Indenture and the Notes. The Trustee shall be entitled to receive from the
Corporation any such Officer’s Certificates, Opinions of Counsel or other
documentation as it may reasonably request in connection with any such
qualification of this Indenture under the Trust Indenture Act.

     

    Section
14.09 Trust Indenture Act to
Control.  If and to the extent that any provision of this
Indenture limits, qualifies or conflicts with the duties imposed by Sections 310
to 318, inclusive, of the Trust Indenture Act, such imposed duties shall
control.

     

    Section
14.10 Table of Contents, Headings,
etc.  The table of contents and the titles and headings of the
articles and sections of this Indenture have been inserted for convenience of
reference only, are not to be considered a part hereof, and shall in no way
modify or restrict any of the terms or provisions hereof.

     

    Section
14.11 Execution in
Counterparts.  This Indenture may be executed in any number of
counterparts, each of which shall be an original, but such counterparts shall
together constitute but one and the same instrument.

     

    Section
14.12 Separability.  In
case any one or more of the provisions contained in this Indenture or in the
Notes shall for any reason be held to be invalid, illegal or unenforceable in
any respect, such invalidity, illegality or unenforceability shall not affect
any other provisions of this Indenture or of the Notes, but this Indenture and
the Notes shall be construed as if such invalid or illegal or unenforceable
provision had never been contained herein or therein.

     

    

     

    
      
         

      

      
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    IN WITNESS WHEREOF, the
parties hereto have caused this Indenture to be duly executed by their
respective officers thereunto duly authorized, as of the day and year first
above written.

     

    

    
      	 
      	
              STATE
      BANCORP, INC.

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:

            	 
      
	 
      	
              Name:

            
	 
      	
              Title:

            
	 
      	 
      
	 
      	 
      
	 
      	
              ___________________________,

            
	 
      	
              as
      Trustee

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:

            	 
      
	 
      	
              Name:

            
	 
      	
              Title:

            

    

     

     

     

    
      
         

      

      
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    EXHIBIT
A

     

    (FORM OF
FACE OF NOTE)

     

    [IF
THIS NOTE IS A GLOBAL NOTE INSERT: THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING
OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE
DEPOSITORY TRUST COMPANY (“DTC”) OR A NOMINEE OF
DTC. THIS NOTE IS EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON
OTHER THAN DTC OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE
INDENTURE, AND NO TRANSFER OF THIS NOTE (OTHER THAN A TRANSFER OF THIS NOTE AS A
WHOLE BY DTC TO A NOMINEE OF DTC OR BY A NOMINEE OF DTC TO DTC OR ANOTHER
NOMINEE OF DTC) MAY BE REGISTERED EXCEPT IN LIMITED CIRCUMSTANCES.

     

    UNLESS
THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF DTC TO THE CORPORATION
(AS DEFINED BELOW) OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN
SUCH OTHER NAME AS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE
HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL IN AS MUCH AS THE
REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]

     

    ANY
PURCHASER OR HOLDER OF THE NOTES OR ANY INTEREST THEREIN WILL BE DEEMED TO HAVE
REPRESENTED AND WARRANTED BY ITS PURCHASE AND HOLDING THEREOF THAT EITHER (I) NO
PORTION OF THE ASSETS USED BY IT TO ACQUIRE AND HOLD THE NOTES CONSTITUTES
ASSETS OF ANY EMPLOYEE BENEFIT PLAN SUBJECT TO SECTION 406 OF THE U.S. EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), ANY PLAN,
ACCOUNT OR OTHER ARRANGEMENT SUBJECT TO SECTION 4975 OF THE U.S. INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR PROVISIONS
UNDER ANY FEDERAL, STATE, LOCAL, NON-U.S. OR OTHER LAWS OR REGULATIONS THAT ARE
SIMILAR TO SUCH PROVISIONS OF ERISA OR THE CODE (COLLECTIVELY, “SIMILAR LAWS”), OR
ANY ENTITY WHOSE UNDERLYING ASSETS ARE CONSIDERED TO INCLUDE “PLAN ASSETS” OF
ANY SUCH PLAN, ACCOUNT OR ARRANGEMENT OR (II) THE PURCHASE AND HOLDING OF THE
NOTES WILL NOT CONSTITUTE A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406
OF ERISA OR SECTION 4975 OF THE CODE OR A VIOLATION UNDER ANY APPLICABLE SIMILAR
LAW.

     

    

     

    
      
         

      

      
        A-1

        
          

        

      

      
         

      

    

    

     

    In all
circumstances, each Note shall bear the following legends:

     

    THE NOTES
WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN MINIMUM DENOMINATIONS OF $1,000
AND MULTIPLES OF $1,000 IN EXCESS THEREOF. ANY ATTEMPTED TRANSFER OF NOTES IN A
DENOMINATION OF LESS THAN $1,000 AND MULTIPLES OF $1,000 IN EXCESS THEREOF SHALL
BE DEEMED TO BE VOID AND OF NO LEGAL EFFECT WHATSOEVER. ANY SUCH PURPORTED
TRANSFEREE SHALL BE DEEMED NOT TO BE THE HOLDER OF SUCH NOTES FOR ANY PURPOSE,
INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF PAYMENTS ON SUCH NOTES, AND SUCH
PURPORTED TRANSFEREE SHALL BE DEEMED TO HAVE NO INTEREST WHATSOEVER IN SUCH
NOTES.

     

    THE NOTES DO NOT EVIDENCE SAVINGS
ACCOUNTS OR DEPOSITS AND ARE NOT INSURED BY THE FEDERAL DEPOSIT INSURANCE
CORPORATION OR ANY OTHER GOVERNMENTAL AGENCY.

     

    

     

    

     

    
      
         

      

      
        A-2

        
          

        

      

      
         

      

    

    

     

    STATE
BANCORP, INC.

     

    
      	
              CUSIP
      No.:

            
	 
      	
              $
      ________

            
	 
      	
              ______
      SENIOR NOTE DUE _____________

            

    

    

     

    Interest

     

    State
Bancorp, Inc., a New York corporation (the “Corporation,” which term includes
any successor Person under the Indenture hereinafter referred to), for value
received, hereby promises to pay to __________________ or registered assigns,
the principal sum of $_______________ (________________ Dollars) on ___________,
_____(the “Maturity Date”) and to pay interest on the outstanding principal
amount hereof from _______, ____ or from the most recent interest payment date
(each such date, an “Interest Payment Date”) to which interest has been paid or
duly provided for, semi-annually[/quarterly] in arrears on _________,
[__________], [_________] and __________ of each year, commencing
________________, at the rate of _____% per annum, until the principal hereof
shall have become due and payable, and on any overdue principal and on any
overdue installment of interest (without duplication and to the extent that
payment of such interest is enforceable under applicable law) at the same rate
per annum compounded semi-annually. The amount of interest payable hereon shall
be computed on the basis of____________________________.  If an
Interest Payment Date or the Maturity Date falls on a day that is not a Business
Day (as defined in the Indenture), the related payment of principal or interest
will be paid on the next Business Day, with the same force and effect as if made
on such date, and no interest on such payments will accrue from and after such
Interest Payment Date or Maturity Date, as the case may be.

    

    Method of
Payment

    

    The
interest installment so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, as provided in the Indenture, be paid to the
Person in whose name this Note (or one or more Predecessor Notes, as defined in
said Indenture) is registered at the close of business on the regular record
date for such interest installment, which shall be at the close of business on
the 15th calendar day (whether or not a Business Day) prior to the applicable
Interest Payment Date.  Any such interest installment not punctually
paid or duly provided for shall forthwith cease to be payable to the holders on
such Regular Record Date and may be paid to the Person in whose name this Note
(or one or more Predecessor Notes) is registered at the close of business on a
special record date to be fixed by the Trustee for the payment of such defaulted
interest, notice whereof shall be given to the holders of Notes of this series
not less than 10 days prior to such special record date, or may be paid at any
time in any other lawful manner not inconsistent with the requirements of any
securities exchange on which the Notes of this series may be listed, and upon
such notice as may be required by such exchange, all as more fully provided in
the Indenture.  Interest payable on the Maturity Date of the Notes of
this series will be paid to the registered holder to whom the principal is
payable.

     

     

    
      
         

      

      
        A-3

        
          

        

      

      
         

      

    

     

    Paying Agent and
Register

     

    The
principal of and interest on this Note shall be payable at the office or agency
of the Trustee maintained for that purpose in any coin or currency of the United
States of America that at the time of payment is legal tender for payment of
public and private debts; provided, however, that payment
of interest may be made at the option of the Corporation by (i) check mailed to
the holder at such address as shall appear in the Note Register or (ii) transfer
to an account maintained by the Person entitled thereto, provided that proper
written transfer instructions have been received by the relevant record
date.

     

    This Note
shall not be entitled to any benefit under the Indenture or be valid or become
obligatory for any purpose until the certificate of authentication hereon shall
have been signed by or on behalf of the Trustee.

     

    The
provisions of this Note are continued on the reverse side hereof and such
provisions shall for all purposes have the same effect as though fully set forth
at this place.

     

     

     

     

    
      
         

      

      
        A-4

        
          

        

      

      
         

      

    

     

     

     

    IN WITNESS WHEREOF, the
Corporation has caused this instrument to be duly executed this __________ day
of ____________, ______.

     

    

    
      	 
      	 
      	
              STATE
      BANCORP, INC.

            
	 
      	 
      	 
      
	 
      	 
      	
              By:

            	 
      
	 
      	 
      	
              Name:

            
	 
      	 
      	
              Title:

            
	 
      	 
      	 
      
	
              Attest:

            	 
      	 
      
	 
      	 
      	 
      
	
              By:

            	 
      	 
      	 
      
	
              Name:

            	 
      	 
      
	
              Title:

            	 
      	 
      

    

    

    

    

    CERTIFICATE
OF AUTHENTICATION

     

    This
represents Notes of State Bancorp, Inc. referred to in the within-mentioned
Indenture.

     

    

    
      	 
      	
              _____________________,

            
	 
      	
              not
      in its individual capacity but solely as

            
	 
      	
              Trustee

            
	 
      	 
      
	 
      	 
      
	 
      	
              By:

            	 
      
	 
      	 
      	
              Authorized
      Signatory

            
	 
      	 
      
	
              Dated:

            	 
      

    

     

     

     

    
      
         

      

      
        A-5

        
          

        

      

      
         

      

    

     

     

    
 

    (FORM OF
REVERSE OF NOTE)

     

    This Note
is one of the Notes of the Corporation (herein sometimes referred to as the
“Notes”), issued or to be issued in one or more series under and pursuant to an
Indenture, dated as of ______________ (the “Indenture”), duly executed and
delivered between the Corporation and _______________, as Trustee (the
“Trustee”), to which Indenture reference is hereby made for a description of the
rights, limitations of rights, obligations, duties and immunities thereunder of
the Trustee, the Corporation and the holders of the Notes. This Note is one of
the series designated on the face hereof.  Up to $100,000,000 in
aggregate principal amount of the Notes may be issued as specified in the
Indenture.

     

    Events of Default and
Remedies

     

    In case
an Event of Default (as defined in the Indenture) shall have occurred and be
continuing, the principal of all of the Notes of this series shall become due
and payable, in the manner, with the effect and subject to the conditions
provided in the Indenture.

     

    Amendment, Supplement and
Waiver

     

    The
Indenture contains provisions permitting the Corporation and the Trustee, with
the consent of the holders of a majority in aggregate principal amount of the
Notes of this series affected at the time Outstanding (as defined in the
Indenture), to execute supplemental indentures for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
the Indenture or of modifying in any manner the rights of the holders of the
Notes of this series; provided, however, that no such
supplemental indenture shall, without the consent of each holder of Notes then
Outstanding and affected thereby, (i) change the Maturity Date of any Note or
provide for the redemption of any Note prior to such Maturity Date, or reduce
the rate or extend the time of payment of interest thereon, or reduce the
principal amount thereof or make the principal thereof or any interest thereon
payable in any coin or currency other than U.S. dollars, or impair or affect the
right of any holder of Notes to institute suit for payment thereof, or (ii)
reduce the aforesaid percentage of Notes the holders of which are required to
consent to any such supplemental indenture. The Indenture also contains
provisions permitting the holders of a majority in aggregate principal amount of
the Notes of this series at the time Outstanding and affected thereby, on behalf
of all of the holders of the Notes of this series, to waive any past default in
the performance of any of the covenants contained in the Indenture, or
established pursuant to the Indenture, and its consequences, except a default in
the payment of the principal of, premium, if any, or interest on any of the
Notes of this series or a default in respect of any covenant or provision under
which the Indenture cannot be modified or amended without the consent of each
holder of Notes of this series then Outstanding. Any such consent or waiver by
the holder of this Note (unless revoked as provided in the Indenture) shall be
conclusive and binding upon such holder and upon all future holders and owners
of this Note and of any Note issued in exchange herefor or in place hereof
(whether by registration of transfer or otherwise), irrespective of whether or
not any notation of such consent or waiver is made upon this Note.

     

    No
reference herein to the Indenture and no provision of this Note or of the
Indenture shall alter or impair the obligation of the Corporation, which is
absolute and unconditional, to pay the principal of and interest on this Note at
the time and place and at the rate and in the money herein
prescribed.

     

     

     

    
      
         

      

      
        A-6

        
          

        

      

      
         

      

    

     

     

    Limitation on
Dividends

     

    The
Corporation has agreed that it will not (i) declare or pay any dividends or
distributions on, or redeem, purchase, acquire, or make a liquidation payment
with respect to, any of the Corporation’s capital stock, (ii) make any payment
of principal of or interest, if any, on or repay, repurchase or redeem any debt
securities of the Corporation that rank pari passu with or junior in right of
payment to the Notes other than such payments, repayments, repurchases or
redemptions of debt securities of the Corporation that rank equal with the Notes
that are made on a pro rata basis with payments, repayments or repurchases on
the Notes or (iii) make any guarantee payments with respect to any guarantee by
the Corporation of the debt securities of any Subsidiary of the Corporation if
such guarantee ranks pari passu with or junior in right of payment to the Notes
(other than (a) dividends or distributions in shares of, or options, warrants or
rights to subscribe for or purchase shares of, Common Stock, (b) any declaration
of a dividend in connection with the implementation of a stockholders’ rights
plan, or the issuance of stock under any such plan in the future, or the
redemption or repurchase of any such rights pursuant thereto, (c) as a result of
a reclassification of the Corporation’s capital stock or the exchange or
conversion of one class or series of the Corporation’s capital stock for another
class or series of the Corporation’s capital stock, (d) the purchase of
fractional interests in shares of the Corporation’s capital stock pursuant to
the conversion or exchange provisions of such capital stock or the security
being converted or exchanged and (e) purchases of Common Stock related to the
issuance of Common Stock or rights under any of the Corporation’s benefit or
compensation plans for its directors, officers or employees or any of the
Corporation’s dividend reinvestment plans), if at such time there shall have
occurred any event, act or condition that (a) is an Event of Default and (b) in
respect of which the Corporation shall not have taken reasonable steps to
cure.

     

    Denominations; Transfer;
Exchange

     

    The Notes
of this series are issuable only in registered form without coupons in minimum
denominations of $1,000 and multiples of $1,000 in excess thereof. As provided
in the Indenture, this Note is transferable by the holder hereof on the Note
Register of the Corporation, upon surrender of this Note for registration of
transfer at the office or agency of the Corporation in New York, New York or
___________, __________ accompanied by a written instrument or instruments of
transfer in form satisfactory to the Corporation or the Trustee duly executed by
the holder hereof or his or her attorney duly authorized in writing, and
thereupon one or more new Notes of this series of authorized denominations and
for the same aggregate principal amount will be issued to the designated
transferee or transferees.  No service charge will be made for any
such registration of transfer, but the Corporation may require payment of a sum
sufficient to cover any tax or other governmental charge payable in relation
thereto.

     

    Prior to
due presentment for registration of transfer of this Note, the Corporation, the
Trustee, any authenticating agent, any paying agent, any transfer agent and any
security registrar may deem and treat the holder hereof as the absolute owner
hereof (whether or not this Note shall be overdue and notwithstanding any notice
of ownership or writing hereon made by anyone other than the security registrar
for the Notes of this series) for the purpose of receiving payment of or on
account of the principal hereof and (subject to the Indenture) interest due
hereon and for all other purposes, and none of the Corporation, the Trustee, any
authenticating agent, any paying agent, any transfer agent or any security
registrar shall be affected by any notice to the contrary.

     

     

     

    
      
         

      

      
        A-7

        
          

        

      

      
         

      

    

     

     

    No Recourse Against
Others

     

    No
recourse shall be had for the payment of the principal of, premium, if any, or
interest on this Note, or for any claim based hereon, or otherwise in respect
hereof, or based on or in respect of the Indenture, against any incorporator,
stockholder, employee, officer or director, as such, past, present or future, as
such, of the Corporation or of any successor Person, whether by virtue of any
constitution, statute or rule of law, or by the enforcement of any assessment or
penalty or otherwise, all such liability being, by the acceptance hereof and as
part of the consideration for the issuance hereof, expressly waived and
released.

     

    All terms
used in this Note that are defined in the Indenture shall have the meanings
assigned to them in the Indenture.

     

    Governing
Law

     

    THE
INDENTURE AND THIS NOTE SHALL EACH BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICT OF LAW
PRINCIPLES OF SAID STATE OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL
OBLIGATIONS LAW.

     

    Abbreviations

     

    The
following abbreviations, when used in the inscription on the face of this
Certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

     

    
      	
              TEN
      CON - as tenants in common

            	 
      	
              TEN
      ENT - as tenants in the entireties

            
	 
      	 
      	 
      
	
              JT
      TEN - as joint tenants with right of survival

            	 
      	
              UNIF
      GIFT MIN ACT - under Uniform Gift to Minors Act and not as
      tenants

            
	 
      	 
      	 
      

    

    

    Additional
abbreviations may also be used though not in the above list.

     

     

     

     

    
      
         

      

      
        A-8

        
          

        

      

      
         

      

    

     

     

    [TO BE
ATTACHED TO GLOBAL NOTES]

     

    SCHEDULE
OF INCREASES AND DECREASES IN GLOBAL NOTE

     

    The
following increases and decreases in this Global Note have been
made:

     

    
      	
              
                Date
      of Decrease or Increase

              

            	 
      	
              
                Amount
      of decrease in Principal Amount of this Global Note

              

            	 
      	
              
                Amount
      of increase in Principal Amount of this Global Note

              

            	 
      	
              
                Principal
      Amount of this Global Note following such decrease or
      increase

              

            	 
      	
              
                Signature
      of authorized signatory of Trustee or Notes

                Custodian

              

            
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

    

     

     

     

     

    
      
         

      

      
        A-9

        
          

        

      

      
         

      

    

    
 

    

    ASSIGNMENT

     

    FOR VALUE RECEIVED, the
undersigned hereby assigns and transfers this Note to:

     

    
      	 
      
	
              (Assignee’s
      social security or tax identification number)

            
	 
      
	
              (Address
      and zip code of assignee)

            

    

    

    and
irrevocably appoints

    ____________________________________
agent

    

    to
transfer this Note on the books of the Corporation. The agent may substitute
another to act for him or her.

     

    
      	
              Date:

            	 
      
	 
      	 
      
	
              Signature:

            	 
      
	
              (Sign
      exactly as your name appears on the other side of this Note
      Certificate)

            
	 
      	 
      
	
              Signature
      Guarantee:

            	 
      
	 
      	 
      

    

    

    Signature
must be guaranteed by an “eligible guarantor institution” that is a bank,
stockbroker, savings and loan association or credit union meeting the
requirements of the Registrar, which requirements include membership or
participation in the Securities Transfer Agents Medallion Program (“STAMP”) or such other
“signature guarantee program” as may be determined by the Registrar in addition
to, or in substitution for, STAMP, all in accordance with the Securities
Exchange Act of 1934, as amended.

     

     

     

    
      
         

      

      
        A-10

        
          

        

      

      
         

      

    

     

     

     

    EXHIBIT
B

     

    

    FORM OF
CERTIFICATE OF OFFICER OF THE CORPORATION

    

    Pursuant to Section 3.05 of the
Indenture, dated as of May ___, 2007 (as amended or supplemented from time to
time, the “Indenture”), between State Bancorp, Inc., as issuer (the
“Corporation”), and _____________, as trustee, the undersigned certifies that
he/she is a [principal executive officer, principal financial officer or
principal accounting officer] of the Corporation and in the course of the
performance by the undersigned of his/her duties as an officer of the
Corporation, the undersigned would normally have knowledge of any default by the
Corporation in the performance of any covenants contained in the Indenture, and
the undersigned hereby further certifies that he/she has no knowledge of any
default for the fiscal year ending on __________, 20___ [, except as follows:
specify each such default and the nature thereof].

    

    Capitalized terms used herein, and not
otherwise defined herein, have the respective meanings assigned thereto in the
Indenture.

    

    IN WITNESS WHEREOF, the undersigned has
executed this Certificate as of

    ____________,
20____.

    

    ______________________________

    Name:

    Title:

    

    

    
      
         

      

      
        B-1

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