Document:

Exhibit
10.40

Medical Office Building Lease

1.             BASIC
TERMS.  This Section 1 contains the Basic Terms of this
lease between Landlord and Tenant, named below. 
Other Sections of the Lease referred to in this Section 1 explain and define the Basic
Terms and are to be read in conjunction with the Basic Terms.

1.1.         Effective Date of
Lease: August 31, 2006

1.2.         Landlord: Image
Properties, LLC, a South Carolina limited liability company.

1.3.         Tenant: [MedQuest
Entity]., a                 
corporation.

1.4.         Premises:
Approximately       rentable square feet in the
building commonly known as                        ,
            ,        
(the “Building”).

1.5.         Property: See Exhibit A.

1.6.         Lease Term:           (  ) months (the “Term”), commencing September 1, 2006 (the “Commencement Date”) and ending, subject to Section 2.3 and Exhibit B below,
                
(the “Expiration Date”).

1.7.         Permitted Uses (See Section 4.1):  Medical
office building, including, but not limited to, the operation of a diagnostic
imaging business or medical records storage, and subject to Landlord’s written
consent, not to be unreasonably conditioned, delayed or withheld, any other
lawful use.

1.8.         Tenant’s Guarantor:
MQ Associates, Inc., a Delaware corporation (form of Guaranty attached hereto
as Addendum 2).

1.9.         Initial Estimated
Additional Rent Payable by Tenant: $        
per month.

1.10.       Exhibits to Lease: The
following exhibits are attached to and made a part of this Lease: A (legal
description); B (Confirmation of Commencement Date); C (Insurance
Certificates); D (Termination Option Schedules); Addendum 1 (Renewal Option);
and Addendum 2 (Form of Guaranty).

1.11.       Tenant’s proportionate
share of Operating Expenses is        %.

2.             LEASE OF PREMISES;
RENT.

2.1.         Lease of
Premises for Lease Term.  Landlord
hereby leases the Premises to Tenant, and Tenant hereby rents the Premises from
Landlord, for the Term and subject to the conditions of this Lease.

 

2.2.         Types of
Rental Payments.  Tenant
shall pay net base rent to Landlord in monthly installments, in advance, on the
first day of each and every calendar month during the Term of this Lease (the “Base Rent”) in the amount of       
Thousand       Hundred          
and No/100ths Dollars ($  ,   .00); provided, however,
beginning January 1, 2009, and occurring again each January 1st thereafter for the remainder of the Lease Term
(January 1, 2009 and each January 1st thereafter during the Lease Term, collectively
and individually, the “Adjustment Date”),
the Base Rent shall be increased annually in the following manner:  subject to the limitations set forth herein,
the Base Rent provided for in this Section 2.2
shall be subject to being increased by the percentage of increase, if any, in
the United States Department of Labor, Bureau of Labor Statistics, Consumer
Price Index for Urban Wage Earners and Clerical Workers — U.S. City Average,
All Items (base year 1982-84=100) (“Index”).  If the Index has changed so that the base
year differs from that used in this Section, the Index shall be converted in
accordance with the conversion factor published by the United States Department
of Labor, Bureau of Labor Statistics, to the 1982-84 base.  If the Index is discontinued or revised
during the Term, such other government index or computation with which it is
replaced shall be used in order to obtain substantially the same result as
would be obtained if the Index had not been discontinued or revised.  If
the Index is discontinued and no government index or computation replaces it,
Landlord and Tenant shall in good faith agree upon a suitable substitute.

On each Adjustment Date, the Index published nearest to the then
current Adjustment Date shall be the “Adjustment
Index”.  The Index published
nearest to the immediately preceding Adjustment Date (or the Index published
nearest to January 1, 2008 for the first Adjustment Date) shall be the “Base Index”.  On each Adjustment
Date, the Base Rent shall be adjusted by multiplying the Base Rent payable
under this Lease immediately prior to such Adjustment Date by a fraction, the
numerator of which fraction is the applicable Adjustment Index and the
denominator of which fraction is the Base Index.  The amount so determined shall be the Base
Rent payable under Section 2.2 for
the Lease year beginning on the applicable Adjustment Date and continuing until
the following December 31st.

Tenant shall also pay (a) Operating Expenses
(as hereinafter defined), and (b) any other amounts owed by Tenant hereunder
(collectively, “Additional Rent”). 
In the event any monthly installment of Base Rent or Additional Rent, or both,
is not paid within five (5) days of the date when due, three (3) business days
after written notice from Landlord of such failure to pay, a one time late
charge in an amount equal to five percent (5%) of the then delinquent
installment of Base Rent and or Additional Rent (the “Late Charge”) shall be imposed with respect
to such delinquent payment.  For purposes of this Lease, the Late Charge,
Default Interest, as defined in Section 22.3
below, Base Rent and Additional Rent shall collectively be referred to as “Rent”; provided, however, without notice to
Tenant, Default Interest shall begin to accrue on any unpaid Rent on the date
which is three (3) days following the assessment of the Late Charge. Where
Default Interest is assessed on unpaid principal sums constituting delinquent
Base Rent and/or Additional Rent, Tenant shall receive an offset against such
assessed Default Interest in an amount equal to the total Late Charge assessed
against Tenant and specifically arising from Tenant’s failure to pay the
delinquent Base Rent and/or Additional Rent constituting such unpaid principal
sums.  All Rent shall be paid by Tenant to Landlord, c/o Thomas Gentry,
4300 North Point Parkway, Suite 350, Alpharetta, Georgia 30022 (or such other
entity designated as Landlord’s management agent, if any, and if Landlord so
appoints such a management agent, the 

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“Agent”),
or pursuant to such other directions as Landlord shall designate in this Lease
or otherwise in writing.

2.3.         Covenants
Concerning Rental Payments.  Tenant
shall pay the Rent promptly when due, without notice or demand, and without any
abatement, deduction or setoff.  No
payment by Tenant, or receipt or acceptance by Agent or Landlord, of a lesser
amount than the correct Rent shall be deemed to be other than a payment on
account, nor shall any endorsement or statement on any check or letter
accompanying any payment be deemed an accord or satisfaction, and Agent or
Landlord may accept such payment without prejudice to its right to recover the
balance due or to pursue any other remedy available to Landlord.  If the Commencement Date occurs on a day
other than the first day of a calendar month, the Rent due for the first
calendar month of the Term shall be prorated on a per diem basis (based on a
360 day, 12 month year) and paid to Landlord on the Commencement Date, and the
Term will be extended to terminate on the last day of the calendar month in
which the Expiration Date stated in Section 1.6 occurs.

3.             OPERATING EXPENSES.

3.1.         Definitional
Terms Relating to Additional Rent. 
For purposes of this Section and other relevant provisions of the
Lease:

3.1.1       Operating
Expenses.  The term “Operating Expenses” shall mean all costs and expenses paid
or incurred by Landlord with respect to, or in connection with, the ownership,
repair, maintenance and operation of the Property.  Operating Expenses may include, but are not
limited to, any or all of the following: (i) services provided directly by
employees of Landlord or Agent in connection with the operation, maintenance or
rendition of other services to or for the Property (including, but not limited
to, those areas of the Building in which multiple tenants, if any, have access
to for use (“Common Areas”)); (ii) to the
extent not separately metered, billed, or furnished, all charges for utilities
and services furnished to either or both of the Property and the Premises,
including, without limitation, the Common Areas (as hereinafter defined),
together with any taxes on such utilities; (iii) all market-based premiums for
commercial property, casualty, general liability, boiler, flood, earthquake,
terrorism and all other types of insurance provided by Landlord and relating to
the Property; (iv) any capital improvements made by, or on behalf of, Landlord
to the Property that are either or both (a) designed to reduce Operating
Expenses and actually do reduce Operating Expenses and (b) required to keep the
Property in compliance with all governmental laws, rules and regulations applicable
thereto, from time to time, the cost of which capital improvements shall be
reasonably amortized by Landlord over the useful life of the improvement, in
accordance with generally accepted accounting principles; (v) Taxes, as
hereinafter defined in Section 3.1.2;
(vi) dues, fees or other costs and expenses, of any nature, due and payable to
any association or comparable entity to which Landlord, as owner of the
Property, is a member or otherwise belongs and that governs or controls any
aspect of the ownership and operation of the Property; (vii) any real estate
taxes and common area maintenance expenses levied against, or attributable to,
the Property under any declaration of covenants, conditions and restrictions,
reciprocal easement agreement or comparable arrangement that encumbers and
benefits the Property and other real property (e.g., a business park); (viii)
all costs and expenses incurred to maintain, repair and replace all or any of
the Common Areas and (ix) any commercially reasonable professional fees 

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incurred by Landlord for the purpose of reducing Tenant’s monetary
obligations under this Lease, including, but not limited to, the costs of
commercially reasonable property tax valuation appeals.  Notwithstanding any provision to the
contrary, Operating Expenses shall exclude the following: (1) wages, salaries,
fees and fringe benefits paid to executive personnel or officers of Landlord or
Agent or officers or personnel of partners of Landlord or Agent above the
position of property manager; (2) any charge for depreciation of the Building
or equipment and any interest or other financing charge; (3) all costs relating
to activities for the solicitation, execution and/or enforcement of other
leases of space, if any, in the Building or Property; (4) all costs for which
Tenant or any other tenant in the Building is being or would be charged
separately; (5) the cost of any repair made by Landlord because of the total or
partial destruction of the Property or Building or the condemnation of a
portion of the Property or Building; (6) the cost of any items for which
Landlord is reimbursed by insurance or otherwise compensated by parties other
than tenants of the property or Building pursuant to clauses similar to this
provision; (7) the costs of any repairs, alterations, additions, changes,
replacements and other items which under generally accepted real estate
practice are properly classified as capital expenditures, except as permitted
pursuant to Section 3.1.1(iv) above; (8) any operating expenses representing an
amount paid to a related corporation, entity or person of Landlord that is in
excess of the amount that would be paid to a third-party vendor or service
provider, but only to the extent of such excess amount; (9) the costs of
overtime or any other expense to Landlord in curing its own defaults; (10) the
cost of alterations of tenant space in the Building, if any, leased or in
preparation for leasing to other tenants; (11) ground rent or similar payments
to a ground lessor; (12) all rebates, volume discounts and recoveries from
other tenants, if any, shall be netted against total Operating Expenses
attributable to the Property or Building; (13) repairs necessitated by the
negligence of Landlord or Agent; (14) administrative costs incurred in connection
with the procurement and implementation of insurance policies; (15) any
professional fees incurred by Landlord other than those expressly permitted in
the previous sentence; and (16) any and all management fees.

3.1.2       Taxes.  The term “Taxes,” as referred to in Section
3.1.1(v) above shall mean (i) all governmental taxes, assessments,
fees and charges of every kind or nature (other than Landlord’s income taxes),
whether general, special, ordinary or extraordinary, due at any time or from
time to time, during the Term and any extensions thereof, in connection with
the ownership, leasing, or operation of the Property, or of the personal
property and equipment located therein or used in connection therewith,
including, without limitation, any sales or use taxes assessed by governing
municipal or state authority against Tenant’s personal property; and (ii) any
reasonable expenses incurred by Landlord in contesting such taxes or
assessments and/or the assessed value of the Property.  For purposes hereof, Tenant shall be
responsible for any Taxes that are due and payable at any time or from time to time during the Term and for any
Taxes that are assessed, become a lien, or accrue during any Operating Year,
which obligation shall survive the termination or expiration of this
Lease.  Taxes shall not include any
corporate franchise, or estate, inheritance, income tax, gift tax, excess
profit tax, late payment charges and penalties (to the extent assessed due
solely to Landlord’s actions or inactions), special assessments levied against
property other than real estate (but only to the extent that such special
assessments do not relate directly to Tenant and may be paid in installments,
and only any installments payable after the Term of this Lease shall be
excluded pursuant to this provision), excise taxes, gross receipts taxes,
capital levies or tax imposed upon any transfer by Landlord of any portion of
its interest in this Lease or the Property or Building (or the Property or
Building itself) or any taxes to be paid directly by Tenant.

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3.1.3       Operating
Year.  The term “Operating Year” shall mean the calendar year commencing
January 1st of each year (including the calendar year within which the
Commencement Date occurs) during the Term.

3.2.         Payment
of Operating Expenses. 
Tenant shall pay, as Additional Rent and in accordance with the
requirements of Section 3.3, the full amount of
Operating Expenses as set forth in Section 3.3;
provided, however, in the case of multiple-tenant properties, Tenant shall pay
a percentage of Operating Expenses based on the square footage of the
applicable premises compared to the square footage of the entire building as
specified in Section 1.11.  Additional Rent commences to accrue upon the
Commencement Date.  Operating Expenses
payable hereunder for the Operating Years in which the Term begins and ends
shall be prorated to correspond to that portion of said Operating Years
occurring within the Term.  Operating
Expenses and any other sums due and payable under this Lease shall be adjusted
(as set forth in Section 3.3) upon
receipt of the actual bills therefor, and the obligations of this Section 3 shall survive the termination or expiration of the
Lease.

3.3.         Payment
of Additional Rent. 
Landlord shall have the right to reasonably estimate the Operating
Expenses for each Operating Year.  Upon
Landlord’s or Agent’s notice to Tenant of such estimated amount, Tenant shall
pay, on the first day of each month during that Operating Year, an amount (the “Estimated Additional Rent”) equal to the estimate of the Operating Expenses divided by 12 (or the
fractional portion of the Operating Year remaining at the time Landlord
delivers its notice of the estimated amounts due from
Tenant for that Operating Year). 
Landlord shall reconcile the Estimated Additional Rent and Tenant’s
actual liability for Operating Expenses for each Operating Year within sixty
(60) days of the conclusion of such Operating Year.  If the aggregate amount of Estimated Additional Rent actually paid by Tenant
during any Operating Year is less than Tenant’s actual liability for Operating
Expenses for that particular Operating Year, Tenant shall pay the deficiency
within thirty (30) days of Landlord’s written demand therefor.  If the aggregate amount of Estimated
Additional Rent actually paid by Tenant during a given Operating Year exceeds
Tenant’s actual liability for such Operating Year, the excess shall be credited
against the Estimated Additional Rent next due from Tenant during the
immediately subsequent Operating Year, except that in the event that such
excess is paid by Tenant during the final Lease Year, then upon the expiration
of the Term, Landlord or Agent shall pay Tenant the then-applicable excess
within thirty (30) days of the determination thereof, which determination shall
be made no later than sixty (60) days after such expiration.  Notwithstanding anything contained herein to
the contrary, Landlord shall have no obligation to hire, manage or arrange for
the provision of goods and services in support of operations at the Premises.  Tenant shall be responsible for negotiating
with third parties to provide maintenance or operating services to the
Premises. Notwithstanding anything to the contrary, in the event that the
Property has multiple tenants, Landlord shall be solely responsible for
maintenance and support of the Common Areas, with costs arising therefrom being
included in Operating Expenses on a pro-rata basis.

4.             USE OF PREMISES AND
COMMON AREA.

4.1.         Use of
Premises and Property. 
The Premises shall be used by the Tenant for the purpose set forth in Section 1.7 above and for no other purpose without the
written consent of Landlord, which consent shall not be unreasonably
conditioned, delayed or withheld.  

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Tenant shall have access to the Premises, Building and Property
twenty-four (24) hours a day, seven (7) days a week and may set its own
business hours in its sole discretion. 
Tenant shall not, at any time, use or occupy, or suffer or permit anyone
to use or occupy, the Premises, or do or permit anything to be done in the
Premises or the Property, in any manner that may (a) violate any Certificate of
Occupancy for the Premises or the Property; (b) cause injury to, or in any way
impair the value or proper utilization of, all or any portion of the Property
(including, but not limited to, the structural elements of the Property) or any
equipment, facilities or systems therein; (c) constitute a violation of the
laws and requirements of any
public authority or the rules and regulations of the Property, including any
covenant, condition or restriction affecting the Property; (d) exceed the load
bearing capacity of the floor of the Premises; (e) impair or tend to impair the
character, reputation or appearance of the Property; or (f) unreasonably and
knowingly annoy, inconvenience or disrupt the operations or tenancies of other
tenants or users of the
Property.  Landlord hereby stipulates
that as of the Commencement Date, Tenant is in full compliance with all of the
provisions of this Section 4.1.

4.2.         Signage.  Tenant shall not affix any sign of any size
or character to any portion of the Property, without prior written approval of
Landlord, which approval shall not be unreasonably withheld, conditioned or
delayed.  Tenant shall remove all signs
of Tenant upon the expiration or earlier termination of this Lease and
immediately repair any damage to either or both of the Property and the
Premises caused by, or resulting from, such removal.  Landlord hereby stipulates that as of the
Commencement Date, Tenant is in full compliance with all of the provisions of
this Section 4.2.

5.             CONDITION OF PREMISES.

5.1.         Condition
of Premises.  Tenant
agrees that Tenant is familiar with the condition of both the Premises and the
Property, and Tenant hereby accepts the foregoing on an “AS-IS,” “WHERE-IS”
basis.  Tenant acknowledges that neither
Landlord nor Agent, nor any representative of Landlord, has made any
representation as to the condition of the foregoing or the suitability of the
foregoing for Tenant’s intended use. 
Tenant represents and warrants that Tenant has made its own inspection
of the foregoing.  Neither Landlord nor
Agent shall be obligated to make any repairs, replacements or improvements
(whether structural or otherwise) of any kind or nature to the foregoing in
connection with, or in consideration of, this Lease, except as expressly and
specifically set forth in this Lease.

6.             SUBORDINATION;
ATTORNMENT.

6.1.         Subordination
and Attornment.  This
Lease is and shall be subject and subordinate at all times to (a) all ground
leases or underlying leases that may now exist or hereafter be executed
affecting either or both of the Premises and the Property and (b) any mortgage
or deed of trust that may now exist or hereafter be placed upon, and encumber,
any or all of (x) the Property; (y) any ground leases or underlying leases for
the benefit of the Property; and (z) all or any portion of Landlord’s interest
or estate in any of said items.  Tenant
shall execute and deliver, within ten (10) days of Landlord’s request, and in
the form reasonably requested by Landlord (or its lender), any documents
evidencing the subordination of this Lease. 
Tenant hereby covenants and agrees that Tenant shall attorn to any
successor to Landlord; provided that any Successor Landlord (as defined below)
stipulates and upholds Tenant’s right to 

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quiet enjoyment of the Premises, Building and Property under this Lease
and all of such Successor Landlord’s obligations under the Lease by executing a
Subordination and Non-Disturbance Agreement in a form reasonably satisfactory
to Tenant.

6.2.         Transfer
by Landlord.  In the event
of a sale or conveyance by Landlord of the Property, the same shall operate to
release Landlord from any future liability for any of the covenants or
conditions, express or implied, herein contained in favor of Tenant, and in
such event Tenant agrees to look solely to Landlord’s successor in interest (“Successor Landlord”) with respect thereto and agrees to
attorn to such successor; provided that any Successor Landlord stipulates and
upholds Tenant’s right to quiet enjoyment of the Premises and Property under
this Lease and all of such Successor Landlord’s obligations under the Lease by
executing a Subordination and Non-Disturbance Agreement in a form reasonably
satisfactory to Tenant.

7.             QUIET
ENJOYMENT.  Subject to the provisions of this
Lease, including, without limitation, Landlord’s rights under Section 16 of
this Lease, so long as Tenant pays all of the Rent and performs all of its
other obligations hereunder, Tenant shall not be disturbed in its possession
and/or use of the Premises by Landlord, Agent, Successor Landlord or any other
person lawfully claiming through or under Landlord.  This covenant shall be construed as a
covenant running with the Property and is not a personal covenant of Landlord.

8.             ASSIGNMENT AND SUBLETTING.  Tenant shall not (a) assign (whether
directly or indirectly), in whole or in part, this Lease, or (b) allow this
Lease to be assigned, in whole or in part, by operation of law or otherwise,
including, without limitation, by transfer of a controlling interest (i.e.
greater than a fifty percent (50%) interest) of stock, membership interests or
partnership interests, or by merger or dissolution, which transfer of a
controlling interest, merger or dissolution shall be deemed an assignment for
purposes of this Lease, or (c) mortgage or pledge the Lease, or (d) sublet the
Premises, in whole or in part, without (in the case of any or all of (a)
through (d) above) the prior written consent of Landlord, which consent shall
not be unreasonably withheld, conditioned or delayed.  Notwithstanding any provision to the
contrary, provided Tenant is not in default under this Lease, Tenant may assign
this Lease or sublet the Premises without Landlord’s consent: (i) to any
corporation or other entity that controls, is controlled by or is under common
control with Tenant; (ii) to any corporation or other entity resulting from a
merger, acquisition, consolidation or reorganization of or with Tenant; or
(iii) in connection with the sale of all or substantially all of the assets or
the stock of Tenant.  In no event shall
any sublease ever release Tenant or any guarantor from any obligation or
liability hereunder.  Except as otherwise
provided for herein, any purported assignment, mortgage, transfer, pledge or
sublease made without the prior written consent of Landlord shall be absolutely
null and void.  No assignment of this
Lease shall be effective and valid unless and until the assignee executes and
delivers to Landlord any and all documentation reasonably required by Landlord
in order to evidence assignee’s assumption of all obligations of Tenant
hereunder.  Regardless of whether or not
an assignee or sublessee executes and delivers any documentation to Landlord
pursuant to the preceding sentence, any assignee or sublessee shall be deemed
to have automatically attorned to Landlord in the event of any termination of
this Lease.  If this Lease is assigned,
or if the Premises (or any part thereof) are sublet or used or occupied by
anyone other than Tenant, whether or not in violation of this Lease, Landlord
or Agent may (without prejudice to, or waiver of its rights), collect Rent from
the assignee, subtenant or occupant.  With respect to the allocable portion of the
Premises sublet, in the event that the total 

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rent
and any other considerations received under any sublease by Tenant is greater
than (on a pro rata and proportionate basis) the total Rent required to be
paid, from time to time, under this Lease, Tenant shall pay to Landlord fifty
percent (50%) of such excess as received from any subtenant and such amount
shall be deemed a component of the Additional Rent.

9.             COMPLIANCE WITH LAWS.

9.1.         Compliance
with Laws.  Tenant shall,
at its sole expense (regardless of the cost thereof), comply with all local,
state and federal laws, rules, regulations and requirements now or hereafter in
force and all judicial and administrative decisions in connection with the
enforcement thereof (collectively, “Laws”),
pertaining to either or both of the Premises and Tenant’s use and occupancy
thereof, and including, but not limited to, all Laws concerning or addressing
matters of an environmental nature.  If
any license or permit is required for the conduct of Tenant’s business in the
Premises, Tenant, at its expense, shall procure such license prior to the
Commencement Date, and shall maintain such license or permit in good standing
throughout the Term.  Tenant shall give
prompt notice to Landlord of any written notice it receives of the alleged
violation of any Law or requirement of any governmental or administrative
authority with respect to either or both of the Premises and the use or
occupation thereof, except for any alleged violation related solely to Tenant’s
business.

9.2.         Hazardous
Materials.  If, at any time
or from time to time during the Term (or any extension thereof), any Hazardous
Material (defined below) is stored, used, treated or disposed of on or in
either or both of the Premises and the Property by, or as a result of any act
or omission of, any or all of Tenant and any or all of Tenant’s Parties
(defined below): (i) Tenant shall, at its own cost, at all times comply (and
cause all others to comply) with all Laws relating to Hazardous Materials, and
Tenant shall further, at its own cost, obtain and maintain in full force and
effect at all times all permits and other approvals required in connection
therewith; (ii) Tenant shall promptly provide Landlord or Agent with complete
copies of all material communications, permits or agreements with, from or issued
by any governmental authority or agency (federal, state or local) or any
private entity relating in any way to the presence, release, threat of release,
or placement of Hazardous Materials on or in the Premises or any portion of the
Property, or the generation, transportation, storage, use, treatment, or
disposal on or in the Premises, of any Hazardous Materials; (iii) Landlord,
Agent and their respective agents and employees shall have the right to either
or both (x) enter the Premises and (y) conduct appropriate tests, at Landlord’s
expense, following twenty-four (24) hours prior written notice and during
normal business hours for the purposes of ascertaining Tenant’s compliance with
all applicable Laws or permits relating in any way to the storage, use,
treatment, disposal or presence of Hazardous Materials on or in any portion of
either or both of the Premises and the Property; and (iv) upon written request
by Landlord or Agent, no more than once during the Term, or at any time if
Landlord notifies Tenant that Landlord has a reasonable, good faith belief that
Hazardous Materials (other than those customarily used in diagnostic imaging)
have been introduced on the Premises or Property, Tenant shall cause to be
performed, and shall provide Landlord with the results of, reasonably
appropriate tests of air, water or soil to demonstrate that Tenant has not
disposed of Hazardous Materials thereon. 
Tenant covenants to investigate, clean up and otherwise remediate, at Tenant’s
sole expense, any release of Hazardous Materials caused, contributed to, or
created by any or all of (A) Tenant and (B) any or all of Tenant’s officers,
directors, members, managers, partners, invitees, agents, employees,
contractors or 

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representatives (“Tenant Parties”) during the Term.  All remediation shall be performed in strict
compliance with Laws.  As used herein,
the term, “Hazardous Materials,” shall mean
any waste, material or substance (whether in the form of liquids, solids or
gases, and whether or not airborne) that is or may be deemed to be or include a
pesticide, petroleum, asbestos, polychlorinated biphenyl, radioactive material,
urea formaldehyde or any other pollutant or contaminant that is or may be
deemed to be hazardous, toxic, ignitable, reactive, corrosive, dangerous,
harmful or injurious, or that presents a risk to public health or to the
environment, and that is or becomes regulated by any Law.  The undertakings, covenants and obligations
imposed on Tenant under this Section 9.2
shall survive the termination or expiration of this Lease.  Tenant may use, and Landlord acknowledges and
approves of Tenant’s use of, any and all substances and products customarily
used in diagnostic imaging, which substances and products shall be stored and
disposed of in accordance with all applicable laws and regulations.

10.          INSURANCE.

10.1.       Insurance to be Maintained by Landlord.  Landlord shall maintain: (a) a commercial
property insurance policy covering the Property (at its full replacement cost),
but excluding Tenant’s personal property; (b) commercial general public
liability insurance covering Landlord for claims arising out of liability for
bodily injury, death, personal injury and property
damage occurring in and about the Property and otherwise resulting from any
acts, operations or omissions of Landlord, its agents and employees; (c) rent
loss insurance; and (d) any other insurance coverage reasonably deemed
appropriate by Landlord or required by Landlord’s lender.  All of the coverages described in (a) through
(d) shall be determined from time to time by Landlord, in its sole
discretion.  All insurance maintained by
Landlord shall be in addition to and not in lieu of the insurance required to
be maintained by the Tenant.

10.2.       Insurance
to be Maintained by Tenant. 
Tenant shall purchase, at its own expense, and keep in force at all
times during this Lease the policies of insurance, or substantially similar
policies of insurance as those, Tenant currently maintains as of the
Commencement Date with respect to the Premises and Property (collectively, “Tenant’s Policies”). 
Certificates reflecting such Tenant’s Policies are set forth on Exhibit
C attached hereto.

10.3.       Waiver of
Subrogation. 
Notwithstanding anything to the contrary in this Lease, Landlord and
Tenant mutually waive their respective rights of recovery against each other
and each other’s officers, directors, constituent partners, members, agents and
employees, and Tenant further waives such rights against (a) each lessor under
any ground or underlying lease encumbering the Property and (b) each lender
under any mortgage or deed of trust or other lien encumbering the Property (or
any portion thereof or interest therein), to the extent any loss is insured
against or required to be insured against under this Lease, including, but not
limited to, losses, deductibles or self-insured retentions covered by Landlord’s
or Tenant’s commercial property, general liability, automobile liability or
workers’ compensation policies described above. 
This provision is intended to waive, fully and for the benefit of each
party to this Lease, any and all rights and claims that might give rise to a
right of subrogation by any insurance carrier. 
Each party shall cause its respective insurance policy(ies) to be
endorsed to evidence compliance with such waiver.

 9
 

 

11.          ALTERATIONS.  Tenant
may, from time to time, at its expense, make alterations or improvements in and
to the Premises (hereinafter collectively referred to as “Alterations”), provided that Tenant first
obtains the written consent of Landlord, which consent shall not be
unreasonably withheld, conditioned or delayed. 
Landlord’s consent shall not be required for Alterations that (i) are
not structural in nature, (ii) are not visible from the exterior of the
Building, (iii) do not affect or require modification of the Building’s
electrical, mechanical, plumbing, HVAC or other systems, and (iv) do not cost
more than $10,000, collectively, during any twelve (12) month period.  All of the following shall apply with respect
to all Alterations: (a) the Alterations are non-structural and the structural
integrity of the Property shall not be affected; (b) the Alterations are to the
interior of the Premises; (c) the proper functioning of the mechanical,
electrical, heating, ventilating, air-conditioning (“HVAC”), sanitary and other
service systems of the Property shall not be affected; and (d) Tenant shall
have appropriate insurance coverage, reasonably satisfactory to Landlord,
regarding the performance and installation of the Alterations.  Additionally, before proceeding with any
Alterations, Tenant shall (i) at Tenant’s expense, obtain all necessary
governmental permits and certificates for the commencement and prosecution of
Alterations; (ii) if Landlord’s consent
is required for the planned Alteration, submit to Landlord, for its written
approval, working drawings, plans and specifications and all permits for the
work to be done and Tenant shall not proceed with such Alterations until it has
received Landlord’s approval (if required); (iii) cause those contractors,
materialmen and suppliers engaged to perform the Alterations to deliver to
Landlord certificates of insurance (in a form reasonably acceptable to
Landlord) evidencing policies of commercial general liability insurance with
commercially reasonable coverages and workers’ compensation insurance; and (iv)
cause those contractors, materialmen and suppliers engaged to perform the
Alterations to execute lien waivers in form and substance reasonably
satisfactory to Landlord, whereby the same shall waive any and all rights to
attach liens against the Premises to collect payment for services and materials
provided therein.  Such insurance
policies shall satisfy the obligations imposed under Section 10.2. Tenant shall cause the Alterations to be performed
in compliance with all applicable permits, Laws and requirements of public
authorities, and with Landlord’s reasonable rules and regulations or any other
restrictions that Landlord may reasonably impose on the Alterations.  Tenant shall cause the Alterations to be
diligently performed in a good and workmanlike manner, using new materials and
equipment at least equal in quality and class to the standards for the Property
established by Landlord.  With respect to
any and all Alterations for which Landlord’s consent is required, Tenant shall
provide Landlord with “as-built” plans, copies of all construction contracts,
governmental permits and certificates and proof of payment for all labor and
materials, including, without limitation, copies of paid invoices and final
lien waivers.  If Landlord’s consent to
any Alterations is required, and Landlord provides that consent, then at the
time Landlord so consents, Landlord shall also advise Tenant whether or not
Landlord shall require that Tenant remove such Alterations at the expiration or
termination of this Lease.  If Landlord
requires Tenant to remove the Alterations, then, during the remainder of the
Term, Tenant shall be responsible for the maintenance of appropriate commercial
property insurance (pursuant to Section 10.2)
therefor; however, if Landlord shall not require that Tenant remove
the Alterations, such Alterations shall constitute Landlord’s Property and
Landlord shall be responsible for the insurance thereof, pursuant to Section 10.1.  Landlord hereby stipulates that as of the
Commencement Date, Tenant is in full compliance with all of the provisions of
this Section 11, and none of the Alterations
(or any replacement thereof) previously completed within the Premises or
Property are required to be 

 10
 

 

removed upon the expiration or termination of this Lease.  In no event and
under no circumstance shall any of Tenant’s diagnostic imaging equipment be
considered or deemed to be an Alteration.

12.          LANDLORD’S AND TENANT’S PROPERTY.  All improvements and appurtenances
attached to, or built into, the Premises at the commencement of, or during the
Term, whether or not placed there by or at the expense of Tenant, shall become
and remain a part of the Premises; shall be deemed the property of Landlord
(the “Landlord’s Property”),
without compensation or credit to Tenant; and shall not be removed by Tenant at
the Expiration Date unless Landlord, as permitted by this Lease, requires their
removal (including, but not limited to, Alterations pursuant to Section 11); provided, that, Tenant’s
diagnostic imaging equipment shall at all times remain Tenant’s personal
property and at no time under any circumstances (even if built into or attached
to the Premises) shall such equipment be deemed, or become, Landlord’s Property.  In no event shall Tenant remove any of the
following materials or equipment without Landlord’s prior written consent
(which consent may be given or withheld in Landlord’s sole discretion): any
power wiring or power panels, lighting or lighting fixtures, wall or window
coverings, carpets or other floor coverings, heaters, air conditioners or any
other HVAC equipment, fencing or security gates, or other similar building
operating equipment and decorations.  At
or before the Expiration Date, or the date of any earlier termination, Tenant,
at its expense, shall remove from the Premises all of Tenant’s personal
property and any Alterations that Landlord requires be removed pursuant to Section 11; Tenant shall repair (to
Landlord’s reasonable satisfaction) any damage to the Premises or the Property
resulting from either or both such installation and removal; and Tenant shall
restore the Premises to a “broom clean” condition.  Any other items of Tenant’s personal property
(other than diagnostic imaging equipment) that remain in the Premises after the
Expiration Date, or following an earlier termination date, may, after Landlord
provides Tenant with thirty (30) days prior written notice, at the option of
Landlord, be deemed to have been abandoned, and in such case, such items may be
retained by Landlord as its property or be disposed of by Landlord, in Landlord’s
sole and absolute discretion and without accountability, at Tenant’s expense.

13.          REPAIRS AND
MAINTENANCE.

13.1.       Tenant
Repairs and Maintenance.

13.1.1     Tenant Responsibilities. 
Except for events of damage, destruction or casualty to the Premises or
Property (which are addressed in Section 18),
throughout the Term, Tenant shall, at its sole cost and expense: (i) both (x)
maintain and preserve, in the same condition as exists on the Commencement
Date, subject to normal and customary wear and tear (the “Same
Condition”), and (y) perform any and all repairs required in order
to so maintain and preserve, in the Same Condition, the Premises and the
fixtures and appurtenances therein (including, but not limited to, the Premises’
plumbing and HVAC systems (only in the event that Tenant is the sole tenant in
the Property), all doors, overhead or otherwise, glass and levelers located in
the Premises or otherwise available in the Property for Tenant’s sole use; and
excluding, however, only those specific components of the Premises for which
Landlord is expressly responsible under Section 13.2 or another tenant is responsible for);
and (ii) maintain, in full force and effect, a preventative maintenance and
service contract with a reputable service provider for maintenance of the HVAC
systems of the Premises (the “HVAC 

 11
 

 

Maintenance Contract”).  In addition to Tenant’s obligations under (i)
and (ii) above, Tenant shall also be responsible for all costs and expenses
incurred to perform any and all repairs and replacements (whether structural or
non-structural; interior or exterior; and ordinary or extraordinary), in and to
the Premises and the Property and the facilities and systems thereof, if and to
the extent that the need for such repairs or replacements arises directly from
any act, omission, misuse, or neglect of any or all of Tenant, any of its
subtenants or Tenant’s Parties utilizing
all or any portion of the Premises for any reason or purpose whatsoever,
including, but not limited to (a) the performance or existence of any
Alterations, (b) the installation, use or operation of Tenant’s personal
property in the Premises; and (c) the moving of Tenant’s personal property in
or out of the Property (collectively, “Tenant-Related Repairs”).  All such repairs or replacements required
under this Section
13.1.1 shall be subject to
the reasonable supervision and control of Landlord, and all repairs and
replacements shall be made with materials of equal or better quality than the
items being repaired or replaced.

13.2.       Landlord
Repairs.  Notwithstanding
anything to the contrary stated herein, Landlord shall repair, replace and
restore the foundation, exterior and interior load-bearing walls, roof
structure and roof covering of the Property and any Common Areas in
multi-tenant properties; provided, however, that: (i) all costs and expenses so
incurred by Landlord to repair and replace the above items shall constitute
Operating Expenses; provided, however, that with respect to any costs incurred
in the replacement context, those costs shall not constitute an Operating
Expense except to the extent that such costs so qualify under Section 3.1.1(iv); and (ii) notwithstanding (i) above, in
the event that any such repair and replacement is a Tenant-Related Repair, then
Tenant shall be required to reimburse Landlord for all costs and expenses that
Landlord reasonably incurs in order to perform such Tenant-Related Repair, and
such reimbursement shall be paid, in full, within ten (10) days after Landlord’s
delivery of demand therefor.

14.          UTILITIES.  Tenant shall purchase all utility
services and shall provide for scavenger, cleaning and extermination
services.  As provided in Section 3.1.1. above, utility charges may
be included within Operating Expenses; nevertheless, at Landlord’s election or
with Landlord’s consent, (a) Tenant may pay the utility charges for its
Premises directly to the utility or municipality providing such service, and in
that event all charges shall be paid by Tenant before they become delinquent;
and (b) Landlord may directly bill Tenant for its utility expenses when and as
such expenses are incurred, and in such event, such utilities shall not be
included in Operating Expenses.  Tenant
shall be solely responsible for the repair and maintenance of any meters
necessary in connection with such services. 
Tenant’s use of electrical energy in the Premises shall not, at any
time, exceed the capacity of either or both of (x) any of the electrical
conductors and equipment in or otherwise servicing the Premises; and (y) the
HVAC systems of either or both of the Premises and the Property.  Landlord shall ensure that Tenant has access
to 480 volt, 3-phase power at all times during the Term of the Lease; provided,
however, Tenant hereby acknowledges and agrees that Landlord has provided such
specified 480 volt, 3-phase power as of the date hereof.

15.          INVOLUNTARY CESSATION OF SERVICES.  Landlord reserves the right,
without any liability to Tenant and without affecting Tenant’s covenants and
obligations hereunder, to stop any other services required by Landlord under
this Lease, whenever and for so long as may be necessary by reason of (i)
accidents, emergencies, strikes, or the making of repairs or changes 

 12
 

 

which Landlord or
Agent, in good faith, deems necessary or (ii) any other cause beyond Landlord’s
reasonable control.  Further, it is also
understood and agreed that
Landlord or Agent shall have no liability or responsibility for a cessation of
services to the Premises or to the Property that occurs as a result of causes
beyond Landlord’s or Agent’s reasonable control.  No such interruption of service shall be
deemed an eviction or disturbance of Tenant’s use and possession of the Premises
or any part thereof, or render Landlord or Agent liable to Tenant for damages,
or relieve Tenant from performance of Tenant’s obligations under this Lease,
including, but not limited to, the obligation to pay Rent; provided, however,
that if any interruption of services persists for a period in excess of five
(5) consecutive business days Tenant shall be entitled to a proportionate
abatement of Rent to the extent, if any, of any actual loss of use of the
Premises by Tenant; provided further, that if any interruption of services
persists for a period in excess of thirty (30) consecutive business days or an
aggregate of thirty (30) business days in any ninety (90) day period, Tenant
shall have the right to terminate this Lease.

16.          LANDLORD’S RIGHTS.  Provided that they do not disturb or
otherwise disrupt or interfere with Tenant’s operation of its business,
Landlord, Agent and their respective agents, employees and representatives
shall have the right to enter and/or pass through the Premises during normal
business hours upon one (1) business day’s prior written notice (except in the
event of emergency): (a) to examine and inspect the Premises and to show them
to actual and prospective lenders, prospective purchasers or mortgagees of the
Property or providers of capital to Landlord and its affiliates; and in
connection with the foregoing, to install a sign at or on the Property to
advertise the Property for lease or sale; (b) to make such repairs,
alterations, additions and improvements in or to all or any portion of either
or both of the Premises and the Property, or the Property’s facilities and
equipment as Landlord is required or desires to make.  During the period of nine (9) months prior to
the Expiration Date (or at any time, if Tenant has vacated or abandoned the
Premises or is otherwise in default under this Lease), Landlord and its agents
may exhibit the Premises to prospective tenants.  Additionally, Landlord and Agent shall have
the following rights with respect to the Premises, exercisable without notice
to Tenant, without liability to Tenant, and without being deemed an eviction or
disturbance of Tenant’s use or possession of the Premises or giving rise to any
claim for setoff or abatement of Rent: (i) to have pass keys, access cards, or
both, to the Premises; and (ii) to decorate, remodel, repair, alter or
otherwise prepare the Premises for reoccupancy at any time after Tenant vacates
or abandons the Premises for more than thirty (30) consecutive days or without
notice to Landlord of Tenant’s intention to reoccupy the Premises.

17.          NON-LIABILITY AND
INDEMNIFICATION.

17.1.       Non-Liability.  Except with respect to Landlord’s indemnity
under Section 17.3, none of
Landlord, Agent, any other managing agent, or their respective affiliates,
owners, partners, directors, officers, agents and employees shall be liable to
Tenant for any loss, injury, or damage, to Tenant or to any other person, or to
its or their property, irrespective of the cause of such injury, damage or
loss.  Further, none of Landlord, Agent,
any other managing agent, or their respective affiliates, owners, partners,
directors, officers, agents and employees shall be liable to Tenant (a) for any
damage caused by other tenants or persons in, upon or about the Property, or
caused by operations in construction of any public or quasi-public work, except
as otherwise expressly provided in Section
17.3; (b) with respect to matters for which Landlord

 13

 

is liable, for consequential or indirect damages purportedly arising
out of any loss of use of the Premises or any equipment or facilities therein
by Tenant or any person claiming through or under Tenant; (c) for any defect in
the Premises or the Property; (d) for injury or damage to person or property
caused by fire, or theft, or resulting from the operation of heating or air
conditioning or lighting apparatus, or from falling plaster, or from steam,
gas, electricity, water, rain, snow, ice, or dampness, that may leak or flow
from any part of the Property, or from the pipes, appliances or plumbing work
of the same, except as otherwise expressly provided in Section 17.3.

17.2.       Tenant Indemnification.  Except for the Landlord’s or Landlord
Indemnified Parties’ (as defined below) negligence or willful misconduct,
Tenant hereby indemnifies, defends, and holds Landlord, Agent, Landlord’s
members and their respective affiliates, owners, partners, members, directors,
officers, agents and employees (collectively, “Landlord
Indemnified Parties”) harmless from and against any and all Losses
(defined below) arising from or in connection with any or all of: (a) the
conduct of Tenant’s business in either or both the Property and the Premises,
or any work or Alterations done by Tenant or any Tenant Parties, or any
condition created by any or all of Tenant and Tenant’s Parties in or about the
Premises during the Term; (b) any act, omission or negligence of any or all of
Tenant and Tenant’s Parties; (c) any accident, injury or damage whatsoever
occurring in, at or upon either or both of the Property and the Premises and
caused solely and directly by any or all of Tenant and Tenant’s Parties; (d)
any breach by Tenant of any or all of its warranties, representations and
covenants under this Lease; (f) the existence of any Hazardous Materials in or
on the Premises or the Property, if and to the extent brought to the Premises
or the Property or caused by Tenant or any party within Tenant’s control; and
(g) any violation or alleged violation by any or all of Tenant and Tenant’s
Parties of any Law (collectively, “Tenant’s Indemnified
Matters”).  In case any action
or proceeding is brought against any or all of Landlord and the Landlord
Indemnified Parties by reason of any of Tenant’s Indemnified Matters, Tenant,
upon notice from any or all of Landlord, Agent or any holder of a mortgage or
deed of trust encumbering the Property or Landlord pursuant to a ground lease encumbering the Property (a “Superior Party”), shall resist and defend such action
or proceeding by counsel reasonably satisfactory to, or selected by,
Landlord.  The term “Losses”
shall mean all claims, demands, expenses, actions, judgments, damages (actual,
but not consequential), penalties, fines, liabilities, losses of every kind and
nature, suits, administrative proceedings, costs and fees, including, without
limitation, attorneys’ and consultants’ reasonable fees and expenses, and the
costs of cleanup, remediation, removal and restoration, that are in any way related to any matter covered by the
foregoing indemnity.  The provisions of
this Section 17.2 shall survive the expiration or termination of
this Lease.

17.3.       Landlord Indemnification.  Landlord hereby indemnifies, defends and
holds Tenant and the Tenant Parties harmless from and against any and all
Losses arising from or in connection with any or all of: (a)   any negligent, willful or intentional acts
or omissions of any or all of Landlord, Agent or the Landlord Indemnified Parties;
(b) any accident, injury or damage whatsoever occurring in, at or upon either
or both of the Property and the Premises and caused solely and directly by any
or all of Landlord and the Landlord Indemnified Parties; (c) any breach by
Landlord of any or all of its warranties, representations and covenants under
this Lease; and (d) any violation or alleged violation by any or all of
Landlord and Landlord’s Indemnified Parties of any Law (collectively, “Landlord’s Indemnified Matters”). In case any 

 14
 

 

action or proceeding is brought against any or all of Tenant and the
Tenant Parties by reason of any of Landlord’s Indemnified Matters, Landlord,
upon notice from any or all of Tenant or Tenant’s Parties, shall resist and
defend such action or proceeding by counsel reasonably satisfactory to, or selected
by, Tenant.  Notwithstanding anything to
the contrary set forth in this Lease, however, in all events and under all
circumstances, the liability of Landlord to Tenant and the Tenant Parties,
whether under this Section 17.3 or
any other provision of this Lease, shall be limited to the interest of Landlord
in the Property, and Tenant and the Tenant Parties agree to look solely to
Landlord’s interest in the Property for the recovery of any judgment or award
against Landlord, it being intended that Landlord shall not be personally
liable for any judgment or deficiency.  The provisions of this Section 17.3 shall survive the expiration or termination of
this Lease.

17.4.       Force Majeure.  Neither the obligations of Tenant (except the
obligation to pay Rent and the obligation to maintain insurance, and provide
evidence thereof, in accordance with Section 10.2)
nor those of Landlord shall be affected, impaired or excused, and neither
Landlord nor Tenant shall have any liability whatsoever to the other, with respect
to any act, event or circumstance (so long as such act, event or circumstance
relates directly to the Property) arising out of either or both (a) Landlord’s
or Tenant’s, as the case may be, failure to fulfill, or delay in fulfilling any
of its obligations under this Lease (except, with respect to Tenant, the
obligation to pay Rent and the obligation to maintain insurance, and provide
evidence thereof, in accordance with Section 10.2)
by reason of labor dispute, governmental preemption of property in connection
with a public emergency or shortages of fuel, supplies, or labor, or any other
cause, whether similar or dissimilar, beyond Landlord’s or Tenant’s, as the
case may be, reasonable control; or (b) any failure or defect in the supply,
quantity or character of utilities furnished to the Premises, or by reason of
any requirement, act or omission of any public utility or others serving the
Property, beyond Landlord’s or Tenant’s, as the case may be, reasonable
control.

18.          DAMAGE OR DESTRUCTION.

18.1.       Notification and Repair; Rent Abatement.  Tenant shall give prompt notice to Landlord
and Agent of (a) any fire or other casualty to the Premises or the Property,
and (b) any damage to, or defect in, any part or appurtenance of the Property’s
sanitary, electrical, HVAC, elevator or other systems located in or passing
through the Premises or any part thereof. 
In the event that, as a result of Tenant’s failure to promptly notify
Landlord pursuant to the preceding sentence, Landlord’s insurance coverage is
compromised or adversely affected, then Tenant is and shall be responsible for
the payment to Landlord of any insurance proceeds that Landlord’s insurer fails
or refuses to pay to Landlord as a result of the delayed notification, provided
that Landlord is not otherwise aware of such casualty or damage.  Subject to the provisions of Section 18.2 below, if either or  both of the Property and the Premises is
damaged by fire or other casualty, Landlord shall use commercially reasonable
efforts to repair (or cause Agent to repair) the damage and restore and rebuild
the Property and/or the Premises (except Tenant’s personal property) as
promptly as possible.  Landlord (or
Agent, as the case may be) shall use its diligent, good faith efforts to make
such repair or restoration promptly and in such manner as not to unreasonably
interfere with Tenant’s use and occupancy of the Premises, but Landlord or
Agent shall not be required to do such repair or restoration work except during
normal business hours of business days. 
Provided that any damage to either or 

 15
 

 

both of the Property and the Premises is not directly caused by, or is
not the direct result of acts or omissions by, any or all of Tenant and Tenant’s
Parties, if (i) the Property is damaged by fire or other casualty thereby
causing the Premises to be inaccessible or (ii) the Premises are partially
damaged by fire or other casualty, the Rent shall be proportionally abated to
the extent of any actual loss of use of the Premises by Tenant.

18.2.       Total Destruction.  If the Property or the Premises shall be
totally destroyed by fire or other casualty, or if the Property shall be so
damaged by fire or other casualty that (in the reasonable opinion of a
reputable contractor or architect designated by Landlord) its repair or restoration
of the Premises requires more than one hundred eighty (180) days, Landlord and
Tenant shall each have the option to terminate this Lease (by so advising the
other, in writing) within thirty (30) days after said contractor or architect
delivers written notice of its opinion to Landlord and Tenant, but in all
events prior to the commencement of any restoration of the Premises or the
Property by Landlord.  Additionally, if
the damage occurs during the last year of Lease Term, then Landlord and Tenant
shall each have the option to terminate this Lease pursuant to the notice and
within the time period established pursuant to the immediately preceding
sentence.  In the event of a termination
pursuant to either of the preceding two (2) sentences, the termination shall be
effective as of the date of the destruction. 
If neither Landlord nor Tenant timely delivers a termination notice,
this Lease shall remain in full force and effect.  Notwithstanding the foregoing, if (A) any
holder of a mortgage or deed of trust encumbering the Property or Landlord
pursuant to a ground lease encumbering
the Property (collectively, “Superior
Parties”) or other party
entitled to the insurance proceeds fails to make such proceeds available to
Landlord in an amount sufficient for restoration of the Premises or the
Property, or (B) the issuer of any commercial property insurance policies on
the Property fails to make available to Landlord sufficient proceeds for
restoration of the Premises or the Property to the condition existing
immediately prior to such fire or other casualty, then Landlord shall promptly
notify Tenant of such facts and Landlord may, at Landlord’s sole option,
terminate this Lease by giving Tenant written notice to such effect within
thirty (30) days after Landlord receives notice from the Superior Party or
insurance company, as the case may be, that such proceeds shall not be made
available, in which event the termination of this Lease shall be effective as
of the date of destruction; provided, however, if Landlord has not terminated
this Lease pursuant to the immediately preceding clause within ninety (90) days
after the date of destruction, then Tenant shall have the option of terminating
this Lease on or before the date which is one hundred twenty (120) days after
the date of destruction, such termination being effective as of the date of
destruction.  In the event Tenant fails
to terminate this Lease pursuant to the immediately preceding sentence on or
prior to the date which is one hundred twenty (120) days after the date of
destruction, Tenant shall be deemed to have waived such right to terminate the
Lease.  Landlord shall have no liability
to Tenant, and Tenant shall not be entitled to terminate this Lease by virtue
of any delays in completion of repairs and restoration; provided, however, in
the event Landlord fails to complete such repairs and restoration (for any
reason other than as set forth in Section
17.4 or due to the acts or
omissions of Tenant) within thirty (30) days of the originally scheduled date
for completion of such (the “Outside
Restoration Date”), Tenant
shall have the right to terminate this Lease by written notice to Landlord
given not later than the first to occur of that date (i) that is five (5) days
following the Outside Restoration Date or (ii) on which Landlord completes such
repairs and restoration, whereupon any such timely termination neither Landlord
nor Tenant shall have any liability to the other under this Lease except as
otherwise provided herein.  In the event
Tenant fails to timely deliver 

 16
 

 

any
such notice of termination, Tenant shall forever have waived any right to
terminate this Lease due to Landlord’s failure to timely complete such repairs
and restoration.

19.          EMINENT DOMAIN.  If
the whole, or any material portion, of the Property is taken or condemned for
any public use under any Law or by right of eminent domain, or by private
purchase in lieu thereof, and such taking would prevent or materially interfere
with or impair the Permitted Use of the Premises, this Lease shall terminate
effective when the physical taking of said Premises occurs.  If less than a material portion of the
Property is so taken or condemned, or if the taking or condemnation is
temporary (regardless of the portion of the Property affected), this Lease
shall not terminate, but the Rent payable hereunder shall be proportionally
abated to the extent of any actual loss of use of the Premises by Tenant.  Landlord shall be entitled to any and all
payment, income, rent or award, or any interest therein whatsoever, which may
be paid or made in connection with such a taking or conveyance, and Tenant
shall have no claim against Landlord for the value of any unexpired portion of
this Lease.  Notwithstanding the foregoing,
Tenant shall be entitled to pursue a separate claim against the appropriate
authority and any compensation specifically and independently awarded to Tenant
for loss of business or goodwill, loss of its leasehold interest in the
Premises, loss of its personal property or for relocation expenses, shall be
the property of Tenant.

20.          SURRENDER AND HOLDOVER.  On
the last day of the Term, or upon any earlier termination of this Lease, or
upon any authorized re-entry by Landlord upon the Premises: (a) Tenant shall
quit and surrender the Premises to Landlord in a “broom-clean” condition,
subject only to ordinary wear and tear (as is attributable to deterioration by
reason of time and use, in spite of Tenant’s reasonable care) and such damage
or destruction as Landlord is required to repair or restore under this Lease;
(b) Tenant shall remove all of Tenant’s personal property therefrom, except as
otherwise expressly provided in this Lease; and (c) Tenant shall surrender to
Landlord any and all keys, access cards, computer codes or any other items used
to access the Premises.  Upon reasonable
prior notice, Landlord shall be permitted to inspect the Premises in order to
verify compliance with this Section 20
at any time prior to (x) the Expiration Date, (y) the effective date of any
earlier termination of this Lease, or (z) the surrender date otherwise agreed
to in writing by Landlord and Tenant. 
The obligations imposed under the first sentence of this Section 20 shall survive the termination or
expiration of this Lease.  If Tenant
remains in possession after the Expiration Date hereof or after any earlier
termination date of this Lease or of Tenant’s right to possession: (i) Tenant
shall be deemed a tenant-at-will; (ii) Tenant shall pay one hundred fifty
percent (150%) of the aggregate of Base Rent last prevailing hereunder, and
also shall pay all actual damages sustained by Landlord, directly by reason of
Tenant’s remaining in possession after the expiration or termination of this
Lease; (iii) there shall be no renewal or extension of this Lease by operation
of law; and (iv) the tenancy-at-will may be terminated by either party hereto
upon thirty (30) days’ prior written notice given by the terminating party to
the non-terminating party.  The
provisions of this Section 20
shall not constitute a waiver by Landlord of any re-entry rights of Landlord
provided hereunder or by law.

21.          EVENTS OF DEFAULT.

21.1.       Bankruptcy of Tenant.  It shall be a default by Tenant under this
Lease (“Default” or “Event of Default”) if Tenant makes an assignment for the
benefit of creditors, or files a voluntary petition under any state or federal
bankruptcy or insolvency law (including the 

 17
 

 

United States Bankruptcy Code), or an involuntary petition is filed
against Tenant under any state or federal bankruptcy (including the United
States Bankruptcy Code) or insolvency law that is not dismissed within ninety
(90) days after filing, or whenever a receiver of Tenant, or of, or for, the
property of Tenant shall be appointed, or Tenant admits in writing it is
insolvent or is not able to pay its debts as they mature.

21.2.       Default Provisions.  In addition to any Default arising under Section 21.1 above, each of the following shall constitute a
Default: (a) if Tenant fails to pay Rent or any other payment when due
hereunder within five (5) days after written notice from Landlord of such
failure to pay on the due date; provided, however, that if in any consecutive
twelve (12) month period, Tenant shall, on two (2) separate occasions, fail to
pay any installment of Rent on the date such installment of Rent is due, then,
on the third such occasion and on each occasion thereafter on which Tenant
shall fail to pay an installment of Rent on the date such installment of Rent
is due, Landlord shall be relieved from any obligation to provide notice to
Tenant, and Tenant shall then no longer have a five (5) day period in which to
cure any such failure; and (b) if Tenant fails, whether by action or inaction,
to timely comply with, or satisfy, any or all of the obligations imposed on
Tenant under this Lease (other than the obligation to pay Rent) for a period of
thirty (30) days after Landlord’s delivery to Tenant of written notice of such
default under this Section 21.2(b);
provided, however, that if the default cannot, by its nature, be cured within
such thirty (30) day period, then Landlord shall not exercise its remedies
under Section 22 if Tenant commences and
diligently pursues a cure of such default promptly within the initial thirty
(30) day cure period until such default has been cured.  Notwithstanding the foregoing sentence, if
Tenant does not obtain a cure of such default within ninety (90) days from the
initial delivery of Landlord’s original default notice, then Landlord shall be
permitted to exercise its remedies under Section 22.

22.          RIGHTS AND REMEDIES.

22.1.       Landlord’s Cure Rights Upon Default of Tenant.  If a Default occurs, then Landlord may (but
shall not be obligated to) cure or remedy the Default for the account of, and
at the expense of, Tenant, but without waiving such Default.

22.2.       Landlord’s Remedies.  In the event of any Default by Tenant under
this Lease, Landlord, at its option, may, in addition to any and all other
rights and remedies provided in this Lease or otherwise at law or in equity do
or perform any or all of the following:

22.2.1     Terminate
Tenant’s right to possession of the Premises by any lawful means, in which case
this Lease shall terminate and Tenant shall immediately surrender possession to
Landlord.  In such event, Landlord shall
be entitled to recover from Tenant all of: (i) the unpaid Rent that is accrued
and unpaid as of the date on which this Lease is terminated; (ii) the worth, at
the time of award, of the amount by which (x) the unpaid Rent that would
otherwise be due and payable under this Lease (had this Lease not been
terminated) for the period of time from the date on which this Lease is
terminated through the Expiration Date exceeds (y) the amount of such rental
loss that could have been reasonably avoided; and (iii) any other amount
necessary to compensate Landlord for all the detriment proximately caused by
the Tenant’s failure to perform its obligations under this Lease or which, in
the ordinary course of events, would be likely to result therefrom, including
but not limited to, the cost of recovering 

 18
 

 

possession of the Premises, expenses of reletting, including renovation
and alteration of the Premises, reasonable attorneys’ fees, and that portion of
any leasing commission paid by Landlord in connection with this Lease
applicable to the unexpired Term (as of the date on which this Lease is
terminated).  The worth, at the time of
award, of the amount referred to in provision (ii) of the immediately preceding
sentence shall be computed by discounting such amount at seven percent (7%) per
annum.  Efforts by Landlord to mitigate
damages caused by Tenant’s Default shall not waive Landlord’s right to recover
damages under this Section 22.2.  If this Lease is terminated through any
unlawful entry and detainer action, Landlord shall have the right to recover in
such proceeding any unpaid Rent and damages as are recoverable in such action,
or Landlord may reserve the right to recover all or any part of such Rent and
damages in a separate suit; or

22.2.2     Continue
the Lease and either (a) continue Tenant’s right to possession or (b) terminate
Tenant’s right to possession and in the case of either (a) or (b), recover the
Rent as it becomes due.  Acts of
maintenance, efforts to relet, and/or the appointment of a receiver to protect
the Landlord’s interests shall not constitute a termination of the Tenant’s
right to possession; or

22.2.3     Pursue
any other remedy now or hereafter available under the laws of the state in
which the Premises are located.

Any and all personal property
of Tenant that may be removed from the Premises by Landlord pursuant to the
authority of this Lease or of law may be handled, removed or stored by Landlord
at the sole risk, cost and expense of Tenant, and in no event or circumstance
shall Landlord be responsible for the value, preservation or safekeeping
thereof.  Tenant shall pay to Landlord,
upon demand, any and all reasonable out-of-pocket expenses incurred in such
removal and all storage charges for such property of Tenant so long as the same
shall be in Landlord’s possession or under Landlord’s control.  Neither expiration or termination of this
Lease nor the termination of Tenant’s right to possession shall relieve Tenant
from its liability under the indemnity provisions of this Lease.

22.3.       Additional Rights of Landlord.  All sums advanced by Landlord or Agent on
account of Tenant under this Section, or pursuant to any other provision of
this Lease, and all Base Rent and Additional Rent, if delinquent or not paid by
Tenant and received by Landlord when due hereunder, shall bear interest at the
rate of five percent (5%) per annum above the “prime” or “reference” or “base”
rate (on a per annum basis) of interest publicly announced as such, from time
to time, by the JPMorgan Chase Bank, or its successor (“Default
Interest”), from the due date thereof until paid, and such interest
shall be and constitute Additional Rent and be due and payable upon Landlord’s
or Agent’s submission of an invoice therefor. 
The various rights, remedies and elections of Landlord reserved,
expressed or contained herein are cumulative and no one of them shall be deemed
to be exclusive of the others or of such other rights, remedies, options or
elections as are now or may hereafter be conferred upon Landlord by law.

22.4.       Event of Bankruptcy.  In addition to, and in no way limiting the
other remedies set forth herein, Landlord and Tenant agree that if Tenant ever
becomes the subject of a voluntary or involuntary bankruptcy, reorganization,
composition, or other similar type 

 19
 

 

proceeding
under the federal bankruptcy laws, as now enacted or hereinafter amended, then:
(a) “adequate assurance of future performance” by Tenant pursuant to Bankruptcy
Code Section 365 will include (but not be limited to) payment of an
additional/new security deposit in the amount of three times the then current
Base Rent payable hereunder; (b) any person or entity to which this Lease is
assigned, pursuant to the provisions of the Bankruptcy Code, shall be deemed,
without further act or deed, to have assumed all of the obligations of Tenant
arising under this Lease on and after the effective date of such assignment,
and any such assignee shall, upon demand by Landlord, execute and deliver to
Landlord an instrument confirming such assumption of liability; (c)
notwithstanding anything in this Lease to the contrary, all amounts payable by
Tenant to or on behalf of Landlord under this Lease, whether or not expressly
denominated as “Rent”, shall constitute “rent” for the purposes of Section
502(b)(6) of the Bankruptcy Code; and (d) if this Lease is assigned to any
person or entity pursuant to the provisions of the Bankruptcy Code, any and all
monies or other considerations payable or otherwise to be delivered to Landlord
or Agent (including Base Rent, Additional Rent and other amounts hereunder),
shall be and remain the exclusive property of Landlord and shall not constitute
property of Tenant or of the bankruptcy estate of Tenant.  Any and all monies or other considerations
constituting Landlord’s property under the preceding sentence not paid or
delivered to Landlord or Agent shall be held in trust by Tenant or Tenant’s
bankruptcy estate for the benefit of Landlord and shall be promptly paid to or
turned over to Landlord.

23.          MISCELLANEOUS.

23.1.       Estoppel Certificates.  Tenant agrees to furnish, from time to time,
within ten (10) business days after receipt of a written request from Landlord,
for the benefit of Landlord, Landlord’s agent, Landlord’s mortgagee, any
prospective lender or any prospective purchaser of the Premises, a statement
certifying, if applicable, or except as otherwise noted, the following:  that Tenant is in possession of the Premises;
the Premises are acceptable; the Lease is in full force and effect; the Lease
is unmodified; Tenant claims no present charge, lien, or claim of offset against
rent; the rent is paid for the current month, but is not prepaid for more than
one month and will not be prepaid for more than one month in advance; there is
no existing default by reason of some act or omission by Landlord; and such
other matters as may be reasonably required by Landlord.  Tenant hereby appoints Landlord as
its lawful attorney in fact to execute any estoppel certificate required by
Landlord and not executed by Tenant within such ten (10) business days.

23.2.       Parking.  Landlord shall make available all of the
available parking spaces in the parking areas of the Property existing as of
the date hereof to Tenant and its customers and guests, except in the event
that the Property is or becomes a multi-tenant property, in which case Landlord
shall provide sufficient parking spaces in proportion to Tenant’s pro-rata
share of the Property, on an unassigned, nonexclusive basis for Tenant to
operate its business.  Tenant shall not
interfere, nor permit its agents, employees, contractors, customers, invitees
or licensees to interfere with the rights of Landlord and others entitled to
use the parking areas.  All parking
facilities furnished by Landlord shall be subject to the reasonable control and
management of Landlord, who may, from time to time, (a) establish, modify and
enforce reasonable rules and regulations with respect thereto, (b) change or
reconfigure the parking facilities, including changing the location of all
visitor or customer spaces, provided such changes or reconfigurations are no less
advantageous to Tenant and its customers and guests, (c) 

 20
 

 

construct or repair any portion thereof, and/or (d) assign parking
spaces in designated areas. Tenant shall have the ability, right and sufficient
access and space to site a mobile MRI unit in the parking or other areas of the
Property in a location reasonably acceptable to Tenant, if possible.

23.3.       Merger.  All prior understandings and agreements
between the parties solely with respect to the Premises and Property are merged
in this Lease, including the prior lease between Landlord and Tenant, dated
December 1, 1997, and the guaranty of that lease by Guarantor, both of which
are hereby terminated and of no further force or effect, and this Lease shall
supersede such prior lease and guaranty, and this Lease alone fully and
completely expresses the agreement of the parties; provided, however,
notwithstanding the foregoing sentence, nothing in this Lease shall affect the
rights and obligations of the parties pursuant to that certain Confidential Settlement
and Mutual Release entered into by and between Landlord and its related
entities and Guarantor and its related entities dated of even date
herewith.  No agreement shall be
effective to modify this Lease, in whole or in part, unless such agreement is
in writing, and is signed by the party against whom enforcement of said change
or modification is sought.

23.4.       Notices.  Any notice required to be given by either
party pursuant to this Lease, shall be in writing and shall be deemed to have
been properly given, rendered or made only if (a) personally delivered, or (b)
if sent by Federal Express or other comparable commercial overnight delivery
service, or (c) sent by certified mail, return receipt requested and postage
prepaid, addressed (in the case of any or all of (a), (b) and (c) above) to the
other party at the addresses set forth below each party’s respective signature
block (or to such other address as Landlord or Tenant may designate to each
other from time to time by written notice), and shall be deemed to have been
given, rendered or made (i) on the day so delivered or (ii) in the case of
overnight courier delivery on the first business day after having been
deposited with the courier service, and (iii) in the case of certified mail, on
the third (3rd) business day after deposit with the U.S. Postal Service.

23.5.       Non-Waiver.  The failure of either party to insist, in any
one or more instances, upon the strict performance of any one or more of the
obligations of this Lease, or to exercise any election herein contained, shall
not be construed as a waiver or relinquishment for the future of the
performance of such one or more obligations of this Lease or of the right to
exercise such election, but the Lease shall continue and remain in full force and
effect with respect to any subsequent breach, act or omission.  The receipt and acceptance by Landlord or
Agent of Base Rent or Additional Rent with knowledge of breach by Tenant of any
obligation of this Lease shall not be deemed a waiver of such breach.

23.6.       Legal Costs.  In the event of litigation related to any
breach or default under this Lease, the court in such action shall award to the
party in whose favor a judgment is entered a reasonable sum as attorneys’ fees
and costs, which sum shall be paid by the losing party.  Tenant shall pay Landlord’s attorneys’
reasonable fees (not to exceed $1,000.00 per occurrence) incurred in connection
with Tenant’s request for Landlord’s consent under provisions of this Lease
governing assignment and subletting, or in connection with any other act which
Tenant proposes to do and which requires Landlord’s consent.

 21
 

 

23.7.       Parties Bound.  Except as otherwise expressly provided for in
this Lease, this Lease shall be binding upon, and inure to the benefit of, the
successors and assignees of the parties hereto. 
Tenant hereby releases Landlord named herein from any obligations of
Landlord for any period subsequent to the conveyance and transfer of Landlord’s
ownership interest in the Property.  In
the event of such conveyance and transfer, Landlord’s obligations shall
thereafter be binding upon each transferee (whether Successor Landlord or
otherwise).  No obligation of Landlord
shall arise under this Lease until the instrument is signed by, and delivered
to, both Landlord and Tenant.

23.8.       Recordation of Lease.  Tenant shall not record or file this Lease
(or any memorandum hereof) in the public records of any county or state.

23.9.       Governing Law; Construction.  This Lease shall be governed by and
construed in accordance with the laws of the state in which the Property is
located.  If any provision of this Lease
shall be invalid or unenforceable, the remainder of this Lease shall not be
affected but shall be enforced to the extent permitted by law.  The captions, headings and titles in this
Lease are solely for convenience of reference and shall not affect its
interpretation.  This Lease shall be
construed without regard to any presumption or other rule requiring
construction against the party causing this Lease to be drafted.  Each covenant, agreement, obligation, or
other provision of this Lease to be performed by Tenant, shall be construed as
a separate and independent covenant of Tenant, not dependent on any other
provision of this Lease.  All terms and
words used in this Lease, regardless of the number or gender in which they are
used, shall be deemed to include any other number and any other gender as the
context may require.

23.10.     Time.  Time is of the essence for this Lease.  If the time for performance hereunder falls
on a Saturday, Sunday or a day that is recognized as a holiday in the state in
which the Property is located, then such time shall be deemed extended to the
next day that is not a Saturday, Sunday or holiday in said state.

23.11.     Authority of Tenant.  Tenant and the person(s) executing this Lease
on behalf of Tenant (strictly in their capacities as officers of Tenant) hereby
represent, warrant, and covenant with and to Landlord as follows: the
individual(s) acting as signatory on behalf of Tenant is(are) duly authorized
to execute this Lease; Tenant has procured (whether from its members, partners
or board of directors, as the case may be), the requisite authority to enter
into this Lease; this Lease is and shall be fully and completely binding upon
Tenant; and Tenant shall timely and completely perform all of its obligations
hereunder.

23.12.     WAIVER OF TRIAL BY JURY.  THE LANDLORD AND THE TENANT, TO THE
FULLEST EXTENT THAT THEY MAY LAWFULLY DO SO, HEREBY WAIVE TRIAL BY JURY IN ANY
ACTION OR PROCEEDING BROUGHT BY ANY PARTY TO THIS LEASE WITH RESPECT TO THIS
LEASE, THE PREMISES, OR ANY OTHER MATTER RELATED TO THIS LEASE OR THE PREMISES.

23.13.     Financial Information.  Financial information, including audited
financial statements, with respect to MQ Associates, Inc., Tenant’s ultimate
parent company and the Guarantor of this Lease, is publicly filed with the
Securities and Exchange Commission (“SEC”) and
available at http://www.sec.gov; provided, however, if MQ Associates, Inc.,
ceases 

 22
 

 

to file its financial information with the SEC, upon Landlord’s written
request, but in no event more frequently than would be required by the SEC,
Tenant shall provide to Landlord, the most currently available audited financial statements of
MQ Associates, Inc.; and if no such audited financial statements are available,
then Tenant shall instead deliver to Landlord MQ Associates, Inc.’s most currently available unaudited balance
sheet and income statement.  Furthermore,
upon the delivery of any such financial statements from time to time during the
Term, Tenant shall be deemed to automatically represent and warrant to Landlord
that the financial statements delivered to Landlord are true, accurate and
complete, and that there has been no adverse change in the financial condition of
MQ Associates, Inc. since the date of the then-applicable financial
statements.  Any financial information
provided to Landlord pursuant to this Section
23.13 shall be subject to the confidentiality provisions of Section 23.14.

23.14.     Confidential Information.  Tenant agrees to maintain in strict
confidence the economic terms of this Lease and any or all other materials,
data and information delivered to or received by any or all of Tenant and
Tenants’ Parties either prior to or during the Term in connection with the
negotiation and execution hereof; provided, however, that Tenant may disclose
such items or information if required to do so by law or any other governmental
rule or regulation.  The provisions of
this Section 23.14 shall survive the
termination of this Lease for a period of one (1) year.

23.15.     Submission of Lease.  Submission of this Lease to Tenant for
signature does not constitute a reservation of space or an option to
lease.  This Lease is not effective until
execution by and delivery to both Landlord and Tenant.

23.16.     Lien Prohibition.  Tenant shall not permit any mechanics or
materialmen’s liens to attach to the Premises or the Property.  Tenant, at its expense, shall procure the
satisfaction or discharge of record of all such liens and encumbrances within
thirty (30) days after the filing thereof; or, within such thirty (30) day
period, Tenant shall provide Landlord, at Tenant’s sole expense, with
endorsements (reasonably satisfactory, both in form and substance, to Landlord
and the holder of any mortgage or deed of trust) to the existing title
insurance policies of Landlord and the holder of any mortgage or deed of trust,
insuring against the existence of, and any attempted enforcement of, such lien
or encumbrance.  In the event Tenant has
not so performed, Landlord may, at its option, pay and discharge such liens and
Tenant shall be responsible to reimburse Landlord, on demand and as Additional
Rent under this Lease, for all costs and expenses incurred in connection
therewith, together with Default Interest thereon, which expenses shall include
reasonable fees of attorneys of Landlord’s choosing, and any costs in posting
bond to effect discharge or release of the lien as an encumbrance against the
Premises or the Property.

23.17.     Counterparts.  This Lease may be executed in multiple
counterparts, but all such counterparts shall together constitute a single,
complete and fully-executed document.

23.18.     Exclusive
Diagnostic Imaging Provider.  Tenant shall be the exclusive provider of
high-modality diagnostic imaging services (i.e. magnetic resonance imaging, or
MRI, and Computed Tomography, or CT, services) within the Property in the event
that the Property is, or becomes, a multi-tenant property.

 23
 

 

23.19.     Tenant’s Termination Option.  Simultaneously with the execution of this
Lease, Landlord and other entities affiliated with Tenant are executing
seventeen (17) other leases for medical office buildings in the states of
Tennessee, North Carolina, South Carolina, Georgia, Alabama and Florida, which
leases are listed on Exhibit D hereto (collectively with this Lease, the “MedQuest
Leases”).  Notwithstanding anything to
the contrary contained herein, Tenant may terminate this Lease at any time
after the Commencement Date, and one (1) other individual lease among the
MedQuest Leases listed on Schedule I of Exhibit D (“Tenant’s Termination Option”);
provided, however, Tenant may not terminate any of the MedQuest Leases listed
on Schedule II of Exhibit D pursuant to this subsection.  If Tenant elects to exercise Tenant’s
Termination Option and terminate this Lease as one (1) of the two (2) leases
Tenant or Tenant’s affiliates may terminate pursuant to this subsection or
similar provisions contained in the other MedQuest Leases, Tenant shall provide
Landlord with not less than ninety (90) days’ prior written notice of the early
termination date, and, simultaneously with the giving of such notice, Tenant
shall pay to Landlord an early termination fee equal to one (1) year’s Base
Rent for the Premises in effect at the time of the notice (“Tenant’s
Termination Fee”).  The parties hereby
acknowledge and agree that the damages to Landlord caused by Tenant’s exercise
of Tenant’s Termination Option are highly speculative and difficult to
calculate, and, as such, Tenant’s Termination Fee is a fair and reasonable
estimate of Landlord’s damages and related costs stemming from such exercise
and shall constitute liquidated damages with respect to such termination.

[Signature Page Follows]

 24
 

 

In Witness Whereof, Landlord and Tenant have duly executed this
Lease as of the day and year first above written.

	
  

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  Image Properties, LLC, a South Carolina limited liability

  company

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
   

  	
  [medquest entity], a
                    
  corporation

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: Todd E.
  Andrews

  
	
   

  	
   

  	
  Its: Treasurer

  
	
   

  	
   

  	
  Date: August
        , 2006

  
						

 

	
  Landlord’s Addresses for
  Notices:

   

  Image Properties, LLC

  4300 North Point Parkway,
  Suite 350

  Alpharetta, Georgia 30022

  Attention: Tom Gentry

   

  With a copy to:

   

  Sutherland Asbill &
  Brennan LLP

  999 Peachtree Street NE

  Atlanta, Georgia 30309-3996

  Attn: H. Edward Hales, Jr.

  	
   

  	
  Tenant’s Addresses for
  Notices:

   

  [MedQuest Entity]

  c/o MQ Associates, Inc.

  4300 North Point Parkway

  Alpharetta, Georgia 30022

  Attention: Deborah Williams

   

  With a copy to:

   

  MQ Associates, Inc.

  4300 North Point Parkway

  Alpharetta, Georgia 30022

  Attention: Todd
  Latz

  

 

 25

 

LEASE EXHIBIT A

 1

 

LEASE EXHIBIT B

Confirmation of Commencement
Date

[Date]

[Tenant’s Name and Address]

RE:           [Describe lease, by title and date (the “Lease”); name
Landlord and Tenant]

Dear [Name of Contact Person at
Tenant]:

This letter shall confirm that the Commencement Date for the
above-referenced Lease is [specify
Commencement Date].

[Name of Tenant], as Tenant, hereby acknowledges the
following: (i) Tenant is in possession of the Premises (as defined in the
Lease); (ii) the Lease is in full force and effect; (iii) Landlord is not in
default under the Lease; and (iv) possession of the Premises is accepted by
Tenant as having been delivered in accordance with the terms and conditions of
the Lease.

Our records indicate the following information for the [Number of square feet comprising Premises]
square feet of space:

	
  Commencement Date:

  	
   

  	
  200    

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Base Rent
  Commencement Date:

  	
   

  	
  200    

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Next Monthly
  Base Rent Due:

  	
   

  	
  200    

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Operating
  Expense Commencement Date:

  	
   

  	
  200    

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Lease Expiration Date:

  	
   

  	
  200    

  	
   

  

Please sign two (2) copies of
this letter in the space provided below acknowledging your agreement with the
above and return them to me at my office. 
I suggest you attach a copy of this letter to your copy of the Lease.

Thank you again for your cooperation and assistance regarding this
matter.  Please contact me at any time
should you have questions regarding the lease, building, or any related manner.

	
  Sincerely, 

  	
   

  	
  Acknowledged and Agreed to this
             day of 

                                    ,
  20     

  
	
   

  	
   

  	
   

  
	
  [Name]

  	
   

  	
  [Name of Tenant] 

  
	
  Property Manager

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  	
   

  
						

 

 2

 

Lease Exhibit C

Insurance Certificates

 

Lease Exhibit D

MedQuest Leases

 

Addendum Number 1

Renewal Option

1.               Provided that this Lease is in full force and
effect and Tenant is not in default of its obligations hereunder (and no event
is occurring which, with the giving of notice, or passage of time, or both,
would constitute an event of default) at the time a Renewal Option (defined
below) is exercised and at the commencement of a Renewal Term (defined below),
Landlord hereby grants to Tenant  two (2)
options to extend the Term (each, a “Renewal
Options”) for a period of five (5) years (each, a “Renewal Term”), upon the same terms and
conditions as are contained in this Lease, except as provided in this
Addendum.  The Renewal Options granted
herein shall be exercised, if at all, by written notice (a “Renewal Notice”) to Landlord given not
more than one hundred twenty (120) and not less than sixty (60) days prior to
the expiration of the original Term or the preceding Renewal Term, as the case
may be.  In the event that Tenant fails
to deliver a Renewal Notice on a timely basis, Tenant shall have no further
right to extend the original Term or Renewal Term, as the case may be.

2.               The Base Rent for first Lease Year of any
Renewal Term shall be determined by increasing the Base Rent from the previous
Lease Year based on the applicable increase in the Index, pursuant to the terms
of Section 2.2 of this Lease. 
Thereafter, for the remaining Lease Years in the applicable Renewal
Term, the terms of Section 2.2 of the Lease shall continue to apply, including,
without limitation, the required adjustment of Base Rent on each subsequent
Adjustment Date.

3.               Tenant shall have no further or additional
right to extend the Term of this Lease beyond the two (2) Renewal Terms.  Landlord shall have no obligation to make
improvements, decorations, repairs, alterations or additions to the Premises as
a condition to Tenant’s obligation to pay Rent for any Renewal Term.

4.               The Renewal Options granted pursuant to this
Addendum are personal to the Tenant and its affiliates.  If the Tenant subleases any portion of the
Premises or assigns or otherwise transfers any interests under this Lease to
any person or entity other than an affiliate, any unexercised Renewal Options
shall automatically and irrevocably be rendered null and void.

 

Addendum 2

FORM OF
GUARANTY

THIS GUARANTY (the “Guaranty”)
made and entered into this 31st day of August, 2006, by MQ Associates, Inc. (“Guarantor”), a
Delaware corporation, to and for the benefit of Image Properties, LLC, a South Carolina limited liability
company (“Landlord”).

W I T N E
S S E T H:

WHEREAS, Landlord and
Chattanooga Diagnostic Imaging, Inc., a Tennessee corporation, as Tenant (the “Tenant”)
propose to enter into a certain Medical Office Building Lease dated _August 31,
2006 (the “Lease”) pursuant to which Tenant shall lease certain premises (the “Premises”)
more particularly described therein;  and

WHEREAS, Guarantor as a related
entity to Tenant is desirous that Landlord make and enter into the Lease with
Tenant; and

WHEREAS, Landlord requires as a
condition to its execution of the Lease that Guarantor guarantees the full
performance of the obligations of Tenant under the Lease;

NOW, THEREFORE, for and in
consideration of Ten and No/100 Dollars ($10.00), the execution of the Lease by
Landlord and for other good and valuable consideration, the receipt, adequacy
and sufficiency of all of which are hereby acknowledged by Guarantor, Guarantor
does hereby agree as follows:

1.             Guaranty  -
Guarantor hereby unconditionally guarantees the full, faithful and punctual
performance of each and all of the terms, covenants, agreements and conditions
of the Lease to be kept and performed by Tenant, in accordance with and within
the time prescribed by the Lease, including, without limitation, the payment of
all Base Rent, Additional Rent and all other charges accruing under the Lease,
any damages owed Landlord in the event Tenant defaults under the Lease,
together with interest on all of the foregoing as provided in the Lease, and
all other costs and expenses of collection, including, without limitation,
reasonable attorneys’ fees (all of the foregoing sometimes hereinafter referred
to as the “Obligations”).  Guarantor does
hereby agree that if all or any part of the Obligations are not paid or
performed by Tenant pursuant to the terms and conditions of the Lease,
Guarantor will immediately make such payments to Landlord or perform such
Obligations.

2.             No Discharge  -
This Guaranty by Guarantor shall continue for the benefit of Landlord
notwithstanding (i) any extension, modification, amendment or alteration of the
Lease, (ii) any assignment of the Lease or sublease of the Premises without the
consent of Landlord, or sublease of the Premises with the consent of Landlord
(iii) any release, extension or modification of the liability of Tenant or any
other party liable under the Lease or any other guaranty of the Lease, (iv) any
dissolution or liquidation of Tenant or change in the composition of the
ownership of Tenant.  No such extension,
modification, amendment, alteration or assignment (without Landlord consent) of
the Lease, sublease of the Premises, 
release, extension, or modification of liability of Tenant or other
liable party, dissolution or liquidation of Tenant or change in the composition
of ownership of Tenant, and no other agreements or releases between Landlord
and Tenant or between Landlord and any other party liable under the Lease or
any other guaranty of the Lease (with or without notice to or knowledge of
Guarantor) shall in any 

 

manner release or
discharge Guarantor; and Guarantor does hereby consent to any such extension,
modification, amendment, alteration, release or assignment of the Lease,
sublease of the Premises, dissolution or liquidation of Tenant or change in the
composition of ownership of Tenant.  This
Guaranty shall in all respects be a continuing, absolute and unconditional
guaranty, and shall remain in full force and effect notwithstanding, without limitation,
the death or incompetency of Guarantor.

3.             Unchanged by
Bankruptcy  -  This Guaranty will
continue unchanged notwithstanding any bankruptcy, reorganization, or
insolvency of Tenant or any successor or assignee thereof, any discharge of
Tenant or any successor or assignee pursuant thereto or by any disaffirmance or
abandonment by a trustee or Tenant. If any payment by Tenant is held to
constitute a preference under any applicable bankruptcy or similar law or for
any reason Landlord is required to refund any sums to Tenant, Guarantor shall
remain liable for the amounts refunded by Landlord to Tenant.

4.             Transfer or
Assignment  - Landlord may without notice, assign or transfer this
Guaranty in whole or in part and no such assignment or transfer of the Lease
shall operate to extinguish or diminish the liability of Guarantor hereunder.

5.             Primarily Liable
- This Guaranty is a guaranty of payment and not of collection.  The liability of Guarantor under this
Guaranty shall be primary and direct and in any right of action which shall
accrue to Landlord under the Lease, Landlord may, at its option, proceed
against Guarantor without having commenced any action, or having obtained any
judgment, against Tenant or any other party liable under the Lease or any other
guaranty of the Lease.

6.             Default – If
an Event of Default (as defined in the Lease) occurs under the Lease, Landlord
shall have the right to enforce its rights, powers and remedies under the
Lease, any other guaranty of the Lease, and under this Guaranty and all rights,
powers and remedies available to Landlord shall be non-exclusive and cumulative
of all other rights, powers and remedies under the Lease, any other guaranty of
the Lease or under this Guaranty or by law or in equity.  The obligations of Guarantor hereunder are
independent of the obligations of Tenant or any other guarantor, and Landlord
may proceed directly to enforce all rights under this Guaranty without
proceeding against or joining Tenant, any other guarantor or any other person
or entity.  Guarantor hereby authorizes
and empowers Landlord upon a Event of Default by Tenant under the Lease, at its
sole discretion and without notice to Guarantor, to exercise any right or
remedy which Landlord may have under the Lease and Guarantor shall be liable to
Landlord for any deficiency resulting from the exercise by it of any such
remedy, even though any right which Guarantor may have against Tenant or others
may be lost or diminished by exercise of any such remedy.  Until all of the Obligations have been
performed and paid in full, Guarantor shall have no right of subrogation to
Landlord and Guarantor hereby waives any rights to enforce any remedy which
Landlord may have against Tenant.

7.             Proceeds  -
Guarantor hereby authorizes Landlord, without notice to Guarantor, to apply all
payments and credits received from Tenant or realized from any personal
property of Tenant on the Premises in such manner and in such priority as
Landlord in its sole judgment shall see fit to the Obligations which are the
subject of this Guaranty.

8.             Binding on
Successors  - Guarantor’s obligations hereunder shall not be assigned or
delegated but this Guaranty shall pass to and be fully binding upon any
successors, heirs, assigns and/or trustees of Guarantor.

9.             Waivers  -
Guarantor expressly waives and agrees not to assert or take advantage of:  (a) the defense of the statute of limitations
in any action hereunder or in any action for collection of the Obligations,
(b) any defense that may arise by reason of the failure of Landlord to
file or enforce a claim 

 

against Guarantor
in bankruptcy or any other proceeding, (c) any defense based on the failure of
Landlord to give notice of the creation, existence or incurring of any new
obligations or on the action or non-action of any person or entity in connection
with the Obligations, (d) any defense based on any duty on the part of
Landlord to disclose to Guarantor any facts it may know or hereinafter acquire
regarding Tenant, (e) any defense based on lack of diligence on the part
of Landlord in the collection of any and all of the Obligations, (f) demand for
payment, presentment, notice of protest or dishonor, notice of acceptance of
this Guaranty, and any and all other notices or demands to which Guarantor
might otherwise be entitled by law, (g) any defense arising from the
extinguishment of the Obligations by an act of Landlord without the consent of
Guarantor, (h) any defense arising from any release or compounding with any
other guarantor without the consent of the Guarantor, (i) any defense relating
to any change in the nature or terms of the Obligations without the consent of
Guarantor, (j) any defense arising from any act of Landlord that injures
Guarantor or exposes Guarantor to increased risk, and/or (k) any defense
arising from Landlord’s failure to commence an action against Tenant.

10.           Choice of Law; Consent to Jurisdiction
- Guarantor acknowledges and agrees that this Guaranty shall be governed
by, and construed and interpreted in accordance with, the laws of the state in
which the Premises is located.  Guarantor
hereby consents to personal jurisdiction in such state for the enforcement of
this Guaranty and hereby waives any and all claims of rights under the laws of
that state or of the United States or of any other state or country, to object
to jurisdiction within that state for the purpose of litigation to enforce this
Guaranty.  In the event such litigation
is commenced, Guarantor agrees that service of process may be made and personal
jurisdiction obtained over Guarantor by serving a copy of the summons and
complaint upon Guarantor by a generally recognized courier service (e.g.,
Federal Express, UPS or DHL) at the address set forth below Guarantor’s
signature or any other address notice of which is provided by Guarantor to
Landlord.  Nothing contained herein,
however, shall prevent the Landlord from bringing any action or exercising any
rights against Guarantor personally, or against any property of Guarantor,
within any other county, state or country. 
The means of obtaining personal jurisdiction and perfecting service of
process set forth above are not intended to be exclusive but are cumulative and
in addition to all other means of obtaining personal jurisdiction and
perfecting service of process now or hereafter provided by the laws of the
state in which the Premises is located, the United States or any other state or
country.

11.           Financial Statements; Estoppel Certificates
- Guarantor files its audited financial statements publicly with the
Securities and Exchange Commission and such financial statements are available
at www.sec.gov.  Guarantor further agrees
from time to time to provide Landlord and any prospective purchaser or lender
dealing with Landlord, a statement certifying that this Guaranty is unmodified
and in full force and effect (or if there have been modifications, that the
same is in full force and effect as modified stating such modification) and
such further information as such prospective purchaser or lender may reasonably
request.  Guarantor agrees that any such
certificate may be relied upon by anyone purchasing the property that is the
subject of the Lease or making any loan secured by such property.

12.          Representations  -
Guarantor hereby represents and warrants that:

(a)           Guarantor is not in default under any agreement
to which Guarantor is a party, the effect of which will impair performance by
Guarantor of the Obligations;

(b)           There are no actions, suits or proceedings
pending or threatened against Guarantor before any court or any governmental,
administrative, regulatory, adjudicatory or arbitrational body or agency of any
kind that will affect performance by Guarantor of the Obligations; and

 

(c)           Neither this Guaranty nor any document,
financial statement, credit information, certificate or statement heretofore
furnished or required herein to be furnished to Landlord by Guarantor contains
any untrue statement of facts or omits to state a fact material to this
Guaranty as of the date of this Guaranty.

13.          Notices - Any
notice, demand or document required or permitted to be delivered by this
Guaranty or the Lease shall be deemed to be delivered (whether or not actually
received) when delivered personally or when delivered by a generally recognized
courier service (e.g., Federal Express, UPS or DHL) at the address set
forth below Guarantor’s signature or any other address notice of which is
provided by Guarantor to Landlord.

14.          Miscellaneous  -
The invalidity or unenforceability in any particular circumstances of any
provision of this Guaranty shall not extend beyond such provision or
circumstances, and no other provision of this instrument shall be affected
thereby.  This provision shall control
every other provision of this Guaranty. 
Whenever used herein, the singular number shall include the plural, the
plural the singular, and the use of any gender shall include all genders.  The paragraph headings used in this Guaranty
are for suggestive purposes only and are not intended to be an accurate or
comprehensive summary of the terms and provisions of this Guaranty.  Time is of the essence of this Guaranty.  The liability of Guarantor hereunder shall be
joint and several with the liability of any other guarantor of the Lease and
with the liability of any other party liable under the Lease.  This Guaranty may not be changed orally, and
no obligation of Guarantor can be released or waived by Landlord except by a
writing signed by Landlord.

IN WITNESS WHEREOF, Guarantor
has hereunder caused this Guaranty to be executed under seal and delivered to
Landlord the day and year first above written.

	
  

  	
  MQ
  Associates, Inc., a Delaware
  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MQ Associates,
  Inc.

  	
   

  
	
   

  	
  4300 North Point
  Parkway

  	
   

  
	
   

  	
  Alpharetta,
  Georgia 30022

  	
   

  
	
   

  	
  Attention: Todd
  Latz

  	
   

  
								

 

 

SCHEDULE 1

Schedule Identifying
Documents Omitted and Material Differences in These Documents from the
Agreement Filed As Exhibit 10.40

	
  LESSEE

  	
   

  	
  LOCATION

  	
   

  	
  SQ. FT.

  	
   

  	
  MONTHLY RENTAL

  RATE

  	
   

  	
  TERM

  	
   

  	
  RENEWAL OPTION

  	
   

  	
  EARLY TERMINATION

  OPTION(1)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Open MRI &
  Imaging of Albany, LLC

  	
   

  	
  Albany, GA

  	
   

  	
  4,896

  	
   

  	
  $

  	
  5,798.00

  	
   

  	
  9/1/06 - 12/31/06

  	
   

  	
  None

  	
   

  	
  Yes

  
	
  Asheville Open
  MRI, Inc.

  	
   

  	
  Asheville, NC

  	
   

  	
  6,818

  	
   

  	
  $

  	
  13,636.00

  	
   

  	
  9/1/06 - 8/31/13

  	
   

  	
  (2) 5 Year

  	
   

  	
  No

  
	
  Open MRI &
  Imaging of Athens, LLC

  	
   

  	
  Athens, GA

  	
   

  	
  3,007

  	
   

  	
  $

  	
  7,642.79

  	
   

  	
  9/1/06 - 8/31/13

  	
   

  	
  (2) 5 Year

  	
   

  	
  Yes

  
	
  South Carolina
  Diagnostic Imaging, Inc.

  	
   

  	
  Charleston, SC

  	
   

  	
  3,605

  	
   

  	
  $

  	
  7,735.73

  	
   

  	
  9/1/06 - 8/31/13

  	
   

  	
  (2) 5 Year

  	
   

  	
  No

  
	
  Chattanooga
  Diagnostic Imaging, Inc.

  	
   

  	
  Chattanooga, TN

  	
   

  	
  7,416

  	
   

  	
  $

  	
  11,742.00

  	
   

  	
  9/1/06 - 8/31/13

  	
   

  	
  (2) 5 Year

  	
   

  	
  Yes

  
	
  Palmetto Imaging,
  Inc.

  	
   

  	
  Columbia, SC

  	
   

  	
  4,800

  	
   

  	
  $

  	
  10,208.00

  	
   

  	
  9/1/06 - 8/31/13

  	
   

  	
  (2) 5 Year

  	
   

  	
  No

  
	
  Open MRI &
  Imaging of Conyers, LLC

  	
   

  	
  Conyers, GA

  	
   

  	
  2,943

  	
   

  	
  $

  	
  6,437.81

  	
   

  	
  9/1/06 - 8/31/13

  	
   

  	
  (2) 5 Year

  	
   

  	
  Yes

  
	
  Dothan Diagnostic
  Imaging, Inc.

  	
   

  	
  Dothan, AL

  	
   

  	
  3,500

  	
   

  	
  $

  	
  7,656.25

  	
   

  	
  9/1/06 - 8/31/13

  	
   

  	
  (2) 5 Year

  	
   

  	
  Yes

  
	
  Carolina Imaging,
  Inc. of Fayetteville

  	
   

  	
  Fayetteville, NC

  	
   

  	
  10,234

  	
   

  	
  $

  	
  23,154.43

  	
   

  	
  9/1/06 - 8/31/13

  	
   

  	
  (2) 5 Year

  	
   

  	
  No

  
	
  Florida
  Diagnostic Imaging Center, Inc.

  	
   

  	
  Fort Walton Beach, FL

  	
   

  	
  2,300

  	
   

  	
  $

  	
  6,900.00

  	
   

  	
  9/1/06 - 8/31/13

  	
   

  	
  (2) 5 Year

  	
   

  	
  Yes

  
	
  Mobile Open MRI,
  Inc.

  	
   

  	
  Mobile, AL

  	
   

  	
  5,900

  	
   

  	
  $

  	
  9,833.33

  	
   

  	
  9/1/06 - 8/31/13

  	
   

  	
  (2) 5 Year

  	
   

  	
  Yes

  
	
  Montgomery Open
  MRI, LLC

  	
   

  	
  Montgomery, AL

  	
   

  	
  4,293

  	
   

  	
  $

  	
  7,691.63

  	
   

  	
  9/1/06 - 8/31/13

  	
   

  	
  (2) 5 Year

  	
   

  	
  Yes

  
	
  BioImaging at
  Harding, Inc.

  	
   

  	
  Nashville, TN

  	
   

  	
  3,576

  	
   

  	
  $

  	
  6,016.62

  	
   

  	
  9/1/06 - 12/31/07

  	
   

  	
  None

  	
   

  	
  Yes

  
	
  Florida
  Diagnostic Imaging Center, Inc.

  	
   

  	
  Panama City, FL

  	
   

  	
  3,500

  	
   

  	
  $

  	
  7,437.50

  	
   

  	
  9/1/06 - 8/31/13

  	
   

  	
  (2) 5 Year

  	
   

  	
  Yes

  
	
  Lexington Open
  MRI, Inc.

  	
   

  	
  Columbia, SC

  	
   

  	
  7,180

  	
   

  	
  $

  	
  11,326.45

  	
   

  	
  9/1/06 - 8/31/13

  	
   

  	
  (2) 5 Year

  	
   

  	
  No

  
	
  Lexington Open
  MRI, Inc.

  	
   

  	
  Columbia, SC

  	
   

  	
  2,733

  	
   

  	
  $

  	
  3,074.63

  	
   

  	
  9/1/06 - 8/31/13

  	
   

  	
  (2) 5 Year

  	
   

  	
  No

  
	
  Piedmont Imaging,
  Inc.

  	
   

  	
  Winston-Salem, NC

  	
   

  	
  5,824

  	
   

  	
  $

  	
  13,997.01

  	
   

  	
  9/1/06 - 12/31/06

  	
   

  	
  None

  	
   

  	
  No

  

 

(1)           Early termination option is exercisable on any two (2) properties upon
the payment of one year of base rent.Exhibit
4.9

TEAM FINANCIAL,
INC.

as Issuer

 

INDENTURE

Dated as of September 14, 2006

 

 

WELLS FARGO BANK,
NATIONAL ASSOCIATION

As Trustee

 

JUNIOR
SUBORDINATED DEBT SECURITIES

Due October 7, 2036

 1

 

	
  ARTICLE I

  	
   

  
	
  DEFINITIONS

  	
   

  
	
   

  	
   

  
	
  SECTION 1.01.

  	
   

  	
  Definitions

  	
  6

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  
	
  DEBT SECURITIES

  	
   

  
	
   

  	
   

  
	
  SECTION 2.01.

  	
   

  	
  Authentication and Dating

  	
  12

  
	
  SECTION 2.02.

  	
   

  	
  Form of Trustee’s Certificate of Authentication

  	
  12

  
	
  SECTION 2.03.

  	
   

  	
  Form and Denomination of Debt Securities

  	
  12

  
	
  SECTION 2.04.

  	
   

  	
  Execution of Debt Securities

  	
  12

  
	
  SECTION 2.05.

  	
   

  	
  Exchange and Registration of Transfer of Debt
  Securities

  	
  13

  
	
  SECTION 2.06.

  	
   

  	
  Mutilated, Destroyed, Lost or Stolen Debt Securities

  	
  15

  
	
  SECTION 2.07.

  	
   

  	
  Temporary Debt Securities

  	
  15

  
	
  SECTION 2.08.

  	
   

  	
  Payment of Interest

  	
  16

  
	
  SECTION 2.09.

  	
   

  	
  Cancellation of Debt Securities Paid, etc

  	
  17

  
	
  SECTION 2.10.

  	
   

  	
  Computation of Interest

  	
  17

  
	
  SECTION 2.11.

  	
   

  	
  Extension of Interest Payment Period

  	
  18

  
	
  SECTION 2.12.

  	
   

  	
  CUSIP Numbers

  	
  19

  
	
  SECTION 2.13.

  	
   

  	
  Global Debentures

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  
	
  PARTICULAR
  COVENANTS OF THE COMPANY

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 3.01.

  	
   

  	
  Payment of Principal, Premium and Interest; Agreed
  Treatment of the Debt Securities

  	
  20

  
	
  SECTION 3.02.

  	
   

  	
  Offices for Notices and Payments, etc

  	
  21

  

 

 2
 

 

 

	
  SECTION 3.03.

  	
   

  	
  Appointments to Fill Vacancies in Trustee’s Office

  	
  21

  
	
  SECTION 3.04.

  	
   

  	
  Provision as to Paying Agent

  	
  21

  
	
  SECTION 3.05.

  	
   

  	
  Certificate to Trustee

  	
  22

  
	
  SECTION 3.06.

  	
   

  	
  Additional Interest

  	
  22

  
	
  SECTION 3.07.

  	
   

  	
  Compliance with Consolidation Provisions

  	
  23

  
	
  SECTION 3.08.

  	
   

  	
  Limitation on Dividends

  	
  23

  
	
  SECTION 3.09.

  	
   

  	
  Covenants as to the Trust

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  
	
  LISTS AND
  REPORTS BY THE COMPANY AND THE TRUSTEE

  	
   

  
	
   

  	
   

  
	
  SECTION 4.01.

  	
   

  	
  Securityholders’ Lists

  	
  24

  
	
  SECTION 4.02.

  	
   

  	
  Preservation and Disclosure of Lists

  	
  24

  
	
  SECTION 4.03.

  	
   

  	
  Financial and Other Information

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  
	
  REMEDIES OF THE
  TRUSTEE AND SECURITYHOLDERS UPON AN EVENT OF DEFAULT

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 5.01.

  	
   

  	
  Events of Default

  	
  25

  
	
  SECTION 5.02.

  	
   

  	
  Payment of Debt Securities on Default; Suit Therefor

  	
  27

  
	
  SECTION 5.03.

  	
   

  	
  Application of Moneys Collected by Trustee

  	
  28

  
	
  SECTION 5.04.

  	
   

  	
  Proceedings by Securityholders

  	
  28

  
	
  SECTION 5.05.

  	
   

  	
  Proceedings by Trustee

  	
  28

  
	
  SECTION 5.06.

  	
   

  	
  Remedies Cumulative and Continuing

  	
  29

  
	
  SECTION 5.07.

  	
   

  	
  Direction of Proceedings and Waiver of Defaults by
  Majority of Securityholders

  	
  29

  
	
  SECTION 5.08.

  	
   

  	
  Notice of Defaults

  	
  29

  
	
  SECTION 5.09.

  	
   

  	
  Undertaking to Pay Costs

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
  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 or Registrar May Own Debt Securities

  	
  32

  
	
  SECTION 6.05.

  	
   

  	
  Moneys to be Held in Trust

  	
  32

  
	
  SECTION 6.06.

  	
   

  	
  Compensation and Expenses of Trustee

  	
  32

  
	
  SECTION 6.07.

  	
   

  	
  Officers’ Certificate as Evidence

  	
  33

  
	
  SECTION 6.08.

  	
   

  	
  Eligibility of Trustee

  	
  33

  
	
  SECTION 6.09.

  	
   

  	
  Resignation or Removal of Trustee, Calculation
  Agent, Paying Agent or Debt Security Registrar

  	
  34

  
	
  SECTION 6.10.

  	
   

  	
  Acceptance by Successor

  	
  34

  

 

 3
 

 

 

	
  SECTION 6.11.

  	
   

  	
  Succession by Merger, etc

  	
  35

  
	
  SECTION 6.12.

  	
   

  	
  Authenticating Agents

  	
  36

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  
	
  CONCERNING THE
  SECURITYHOLDERS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 7.01.

  	
   

  	
  Action by Securityholders

  	
  36

  
	
  SECTION 7.02.

  	
   

  	
  Proof of Execution by Securityholders

  	
  37

  
	
  SECTION 7.03.

  	
   

  	
  Who Are Deemed Absolute Owners

  	
  37

  
	
  SECTION 7.04.

  	
   

  	
  Debt Securities Owned by Company Deemed Not
  Outstanding

  	
  37

  
	
  SECTION 7.05.

  	
   

  	
  Revocation of Consents; Future Securityholders Bound

  	
  38

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  
	
  SECURITYHOLDERS’
  MEETINGS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 8.01.

  	
   

  	
  Purposes of Meetings

  	
  38

  
	
  SECTION 8.02.

  	
   

  	
  Call of Meetings by Trustee

  	
  38

  
	
  SECTION 8.03.

  	
   

  	
  Call of Meetings by Company or Securityholders

  	
  38

  
	
  SECTION 8.04.

  	
   

  	
  Qualifications for Voting

  	
  39

  
	
  SECTION 8.05.

  	
   

  	
  Regulations

  	
  39

  
	
  SECTION 8.06.

  	
   

  	
  Voting

  	
  39

  
	
  SECTION 8.07.

  	
   

  	
  Quorum; Actions

  	
  40

  
	
  SECTION 8.08.

  	
   

  	
  Written Consent Without a Meeting

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
   

  
	
  SUPPLEMENTAL
  INDENTURES

  	
   

  
	
   

  	
   

  
	
  SECTION 9.01.

  	
   

  	
  Supplemental Indentures without Consent of
  Securityholders

  	
  40

  
	
  SECTION 9.02.

  	
   

  	
  Supplemental Indentures with Consent of
  Securityholders

  	
  41

  
	
  SECTION 9.03.

  	
   

  	
  Effect of Supplemental Indentures

  	
  42

  
	
  SECTION 9.04.

  	
   

  	
  Notation on Debt Securities

  	
  42

  
	
  SECTION 9.05.

  	
   

  	
  Evidence of Compliance of Supplemental Indenture to
  be furnished to Trustee

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
   

  
	
  REDEMPTION OF
  SECURITIES

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 10.01.

  	
   

  	
  Optional Redemption

  	
  43

  
	
  SECTION 10.02.

  	
   

  	
  Special Event Redemption

  	
  43

  
	
  SECTION 10.03.

  	
   

  	
  Notice of Redemption; Selection of Debt Securities

  	
  43

  
	
  SECTION 10.04.

  	
   

  	
  Payment of Debt Securities Called for Redemption

  	
  44

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
   

  
	
  CONSOLIDATION,
  MERGER, SALE, CONVEYANCE AND LEASE

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 11.01.

  	
   

  	
  Company May Consolidate, etc., on Certain Terms

  	
  44

  
	
  SECTION 11.02.

  	
   

  	
  Successor Entity to be Substituted

  	
  45

  
	
  SECTION 11.03.

  	
   

  	
  Opinion of Counsel to be Given to Trustee

  	
  45

  

 

 4
 

 

 

	
  ARTICLE XII

  	
   

  
	
  SATISFACTION AND
  DISCHARGE OF INDENTURE

  	
   

  
	
   

  	
   

  
	
  SECTION 12.01.

  	
   

  	
  Discharge of Indenture

  	
  45

  
	
  SECTION 12.02.

  	
   

  	
  Deposited Moneys to be Held in Trust by Trustee

  	
  46

  
	
  SECTION 12.03.

  	
   

  	
  Paying Agent to Repay Moneys Held

  	
  46

  
	
  SECTION 12.04.

  	
   

  	
  Return of Unclaimed Moneys

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIII

  	
   

  
	
  IMMUNITY OF
  INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 13.01.

  	
   

  	
  Indenture and Debt Securities Solely Corporate
  Obligations

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIV

  	
   

  
	
  MISCELLANEOUS
  PROVISIONS

  	
   

  
	
   

  	
   

  
	
  SECTION 14.01.

  	
   

  	
  Successors

  	
  47

  
	
  SECTION 14.02.

  	
   

  	
  Official Acts by Successor Entity

  	
  47

  
	
  SECTION 14.03.

  	
   

  	
  Surrender of Company Powers

  	
  47

  
	
  SECTION 14.04.

  	
   

  	
  Addresses for Notices, etc

  	
  47

  
	
  SECTION 14.05.

  	
   

  	
  Governing Law

  	
  47

  
	
  SECTION 14.06.

  	
   

  	
  Evidence of Compliance with Conditions Precedent

  	
  47

  
	
  SECTION 14.07.

  	
   

  	
  Non-Business Days

  	
  48

  
	
  SECTION 14.08.

  	
   

  	
  Table of Contents, Headings, etc

  	
  48

  
	
  SECTION 14.09.

  	
   

  	
  Execution in Counterparts

  	
  48

  
	
  SECTION 14.10.

  	
   

  	
  Severability

  	
  48

  
	
  SECTION 14.11.

  	
   

  	
  Assignment

  	
  48

  
	
  SECTION 14.12.

  	
   

  	
  Acknowledgment of Rights

  	
  48

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XV

  	
   

  
	
  SUBORDINATION OF
  DEBT SECURITIES

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  SECTION 15.01.

  	
   

  	
  Agreement to Subordinate

  	
  49

  
	
  SECTION 15.02.

  	
   

  	
  Default on Senior Indebtedness

  	
  49

  
	
  SECTION 15.03.

  	
   

  	
  Liquidation; Dissolution; Bankruptcy

  	
  49

  
	
  SECTION 15.04.

  	
   

  	
  Subrogation

  	
  50

  
	
  SECTION 15.05.

  	
   

  	
  Trustee to Effectuate Subordination

  	
  51

  
	
  SECTION 15.06.

  	
   

  	
  Notice by the Company

  	
  51

  
	
  SECTION 15.07.

  	
   

  	
  Rights of the Trustee, Holders of Senior Indebtedness

  	
  52

  
	
  SECTION 15.08.

  	
   

  	
  Subordination May Not Be Impaired

  	
  52

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBITS

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  EXHIBIT A

  	
   

  	
  FORM OF DEBT SECURITY

  	
   

  

 

 5

 

THIS
INDENTURE, dated as of September 14, 2006, between Team Financial, Inc., a bank
holding company incorporated in Kansas (hereinafter sometimes called the “Company”),
and Wells Fargo Bank, National Association, a national banking association with
its principal place of business in the State of Delaware, as trustee
(hereinafter sometimes called the “Trustee”).

W I T N E S S E T
H:

WHEREAS,
for its lawful corporate purposes, the Company has duly authorized the issuance
of its Junior Subordinated Debt Securities due October 7, 2036 (the “Debt
Securities”) under this Indenture and to provide, among other things, for the
execution and authentication, delivery and administration thereof, the Company
has duly authorized the execution of this Indenture.

NOW,
THEREFORE, in consideration of the premises, and the purchase of the Debt
Securities by the holders thereof, the Company covenants and agrees with the
Trustee for the equal and proportionate benefit of the respective holders from
time to time of the Debt Securities as follows:

DEFINITIONS

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 and of any indenture supplemental hereto shall have the respective
meanings specified in this Section 1.01. 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 in the United States 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.

“Additional
Interest” shall have the meaning set forth in Section 3.06.

“Additional
Provisions” shall have the meaning set forth in Section 15.01.

“Applicable
Depository Procedures” means, with respect to any transfer or transaction
involving a Global Debenture or beneficial interest therein, the rules and
procedures of the Depositary for such Global Debenture, in each case to the
extent applicable to such transaction and as in effect from time to time.

“Authenticating
Agent” means any agent or agents of the Trustee which at the time shall be
appointed and acting pursuant to Section 6.12.

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

“Board
of Directors” means the board of directors or the executive committee or any
other duly authorized designated officers of the Company.

“Board
Resolution” means a copy of a resolution certified by the Secretary or an
Assistant Secretary of the Company 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.

 6
 

 

“Business
Day” means any day other than a Saturday, Sunday or any other day on which
banking institutions in Wilmington, Delaware or New York City are permitted or
required by any applicable law or executive order to close.

“Calculation
Agent” means the Person identified as “Trustee” in the first paragraph hereof
with respect to the Debt Securities and the Institutional Trustee with respect
to the Trust Securities.

“Capital
Securities” means undivided beneficial interests in the assets of the Trust
which are designated as “Capital Securities” and rank pari passu with Common
Securities issued by the Trust; provided, however, that if an Event of Default
has occurred and is continuing, the rights of holders of such Common Securities
to payment in respect of distributions and payments upon liquidation,
redemption and otherwise are subordinated to the rights of holders of such
Capital Securities.

“Capital
Securities Guarantee” means the guarantee agreement that the Company will enter
into with Wells Fargo Bank, National Association or other Persons that operates
directly or indirectly for the benefit of holders of Capital Securities of the
Trust.

“Capital
Treatment Event” means the receipt by the Company and the Trust of an Opinion
of Counsel experienced in such matters to the effect that, as a result of any
amendment to, or change in, the laws, rules or regulations of the United States
or any political subdivision thereof or therein, or as the result of any
official or administrative pronouncement or action or decision interpreting or
applying such laws, rules or regulations, which amendment or change is
effective or which pronouncement, action or decision is announced on or after
the date of original issuance of the Debt Securities, there is more than an
insubstantial risk that, within 90 days of the receipt of such opinion, the
aggregate Liquidation Amount of the Capital Securities will not be eligible to
be treated by the Company as “Tier 1 Capital” (or the then equivalent thereof)
for purposes of the capital adequacy guidelines of the Federal Reserve or OTS,
as applicable (or any successor regulatory authority with jurisdiction over
bank, savings & loan or financial holding companies), as then in effect and
applicable to the Company; provided, however, that the inability
of the Company to treat all or any portion of the Liquidation Amount of the
Capital Securities as Tier 1 Capital shall not constitute the basis for a
Capital Treatment Event, if such inability results from the Company having
cumulative preferred stock, minority interests in consolidated subsidiaries, or
any other class of security or interest which the Federal Reserve or OTS, as
applicable, may now or hereafter accord Tier 1 Capital treatment in excess
of the amount which may now or hereafter qualify for treatment as Tier 1
Capital under applicable capital adequacy guidelines; provided  further,
however, that the distribution of the Debt Securities in connection with
the liquidation of the Trust by the Company shall not in and of itself
constitute a Capital Treatment Event unless such liquidation shall have
occurred in connection with a Tax Event or an Investment Company Event.

“Certificate”
means a certificate signed by any one of the principal executive officer, the
principal financial officer or the principal accounting officer of the Company.

“Common
Securities” means undivided beneficial interests in the assets of the Trust
which are designated as “Common Securities” and rank pari passu with Capital
Securities issued by the Trust; provided, however, that if an Event of Default
has occurred and is continuing, the rights of holders of such Common Securities
to payment in respect of distributions and payments upon liquidation,
redemption and otherwise are subordinated to the rights of holders of such
Capital Securities.

“Company”
means Team Financial, Inc., a bank holding company incorporated in Kansas, and,
subject to the provisions of Article XI, shall include its successors and
assigns.

“Debt
Security” or “Debt Securities” has the meaning stated in the first recital of
this Indenture.

“Debt
Security Register” has the meaning specified in Section 2.05.

“Debt
Security Registrar” has the meaning specified in Section 2.05.

 7
 

 

“Declaration”
means the Amended and Restated Declaration of Trust of the Trust dated as of
September 14, 2006, as amended or supplemented from time to time.

“Default”
means any event, act or condition that with notice or lapse of time, or both,
would constitute an Event of Default.

“Defaulted
Interest” has the meaning set forth in Section 2.08.

“Deferred
Interest” has the meaning set forth in Section 2.11.

“Depositary”
means an organization registered as a clearing agency under the Securities
Exchange Act of 1934 that is designated as Depositary by the Company or any
successor thereto.  DTC will be the
initial Depositary.

“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 the Depositary.

“DTC”
means The Depository Trust Company, a New York corporation.

“Event
of Default” means any event specified in Section 5.01, which has continued for
the period of time, if any, and after the giving of the notice, if any, therein
designated.

“Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to time,
or any successor legislation.

“Extension
Period” has the meaning set forth in Section 2.11.

“Federal
Reserve” means the Board of Governors of the Federal Reserve System.

“Global
Debenture” means a security that evidences all or part of the Debt Securities,
the ownership and transfers of which shall be made through book entries by a
Depositary.

“Indenture”
means this instrument as originally executed or, if amended or supplemented as
herein provided, as so amended or supplemented, or both.

“Initial Purchaser”
means the initial purchaser of the Capital Securities.

“Institutional
Trustee” has the meaning set forth in the Declaration.

“Interest
Payment Date” means January 7, April 7, July 7 and October 7 of each year,
commencing on January 7, 2007, during the term of this Indenture.

“Interest Payment
Period” means the period from and including an Interest Payment Date, or in the
case of the first Interest Payment Period, the original date of issuance of the
Debt Securities, to, but excluding, the next succeeding Interest Payment Date
or, in the case of the last Interest Payment Period, the Redemption Date,
Special Redemption Date or Maturity Date, as the case may be.

“Interest
Rate” means, with respect to any Interest Payment Period, a per annum rate of
interest, reset quarterly, equal to LIBOR, as determined on the LIBOR
Determination Date immediately preceding each Interest Payment Date, plus
1.65%; provided, however, that the Interest Rate for any Interest Payment
Period may not exceed the highest rate permitted by New York law, as the same
may be modified by United States law of general applicability.

 8
 

 

“Investment
Company Event” means the receipt by the Company and the Trust of an Opinion of
Counsel experienced in such matters to the effect that, as a result of a change
in law or regulation or written change in interpretation or application of law
or regulation by any legislative body, court, governmental agency or regulatory
authority, there is more than an insubstantial risk that the Trust is or,
within 90 days of the date of such opinion will be, considered an “investment
company” that is required to be registered under the Investment Company Act of
1940, as amended, which change or prospective change becomes effective or would
become effective, as the case may be, on or after the date of the original
issuance of the Debt Securities.

“LIBOR”
means the London Interbank Offered Rate for U.S. Dollar deposits in Europe as
determined by the Calculation Agent according to Section 2.10(b).

“LIBOR
Banking Day” has the meaning set forth in Section 2.10(b)(1).

“LIBOR
Business Day” has the meaning set forth in Section 2.10(b)(1).

“LIBOR
Determination Date” has the meaning set forth in Section 2.10(b).

“Liquidation
Amount” means the liquidation amount of $1,000 per Trust Security.

“Maturity
Date” means October 7, 2036.

“Notice”
has the meaning set forth in Section 2.11.

“Officers’
Certificate” means a certificate signed by the Chairman of the Board, the Vice
Chairman, the President or any Vice President, and by the Chief Financial
Officer, the Treasurer, an Assistant Treasurer, the Comptroller, an Assistant
Comptroller, the Secretary or an Assistant Secretary of the Company, and
delivered to the Trustee. Each such certificate shall include the statements
provided for in Section 14.06 if and to the extent required by the provisions
of such Section.

“Opinion
of Counsel” means an opinion in writing signed by legal counsel, who may be an
employee of or counsel to the Company, or may be other counsel reasonably
satisfactory to the Trustee. Each such opinion shall include the statements
provided for in Section 14.06 if and to the extent required by the provisions
of such Section.

“OTS”
means the Office of Thrift Supervision and any successor federal agency that is
primarily responsible for regulating the activities of savings and loan holding
companies.

“Outstanding”
means, when used with reference to Debt Securities, subject to the provisions
of Section 7.04, as of any particular time, all Debt Securities authenticated
and delivered by the Trustee or the Authenticating Agent under this Indenture,
except

Debt
Securities theretofore canceled by the Trustee or the Authenticating Agent or
delivered to the Trustee for cancellation;

Debt
Securities, or portions thereof, for the payment or redemption of which moneys
in the necessary amount shall have been deposited in trust with the Trustee or
with any Paying Agent (other than the Company) or shall have been set aside and
segregated in trust by the Company (if the Company shall act as its own Paying
Agent); provided, that, if such Debt Securities, or portions thereof,
are to be redeemed prior to maturity thereof, notice of such redemption shall
have been given as provided in Articles X and XIV or provision satisfactory to
the Trustee shall have been made for giving such notice; and

Debt
Securities paid pursuant to Section 2.06 or in lieu of or in substitution for
which other Debt Securities shall have been authenticated and delivered
pursuant to the terms of Section 2.06 unless proof satisfactory to the Company
and the Trustee is presented that any such Debt Securities are held by bona
fide holders in due course.

 9
 

 

“Paying
Agent” has the meaning set forth in Section 3.04(e).

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

“Predecessor
Security” of any particular Debt Security means every previous Debt Security
evidencing all or a portion of the same debt as that evidenced by such
particular Debt Security; and, for the purposes of this definition, any Debt
Security authenticated and delivered under Section 2.06 in lieu of a lost,
destroyed or stolen Debt Security shall be deemed to evidence the same debt as
the lost, destroyed or stolen Debt Security.

“Principal
Office of the Trustee” means the office of the Trustee, at which at any
particular time its corporate trust business shall be principally administered,
which at all times shall be located within the United States and at the time of
the execution of this Indenture shall be 919 Market Street, Suite 700,
Wilmington, DE 19801.

“Redemption
Date” has the meaning set forth in Section 10.01.

“Redemption
Price” means 100% of the principal amount of the Debt Securities being redeemed
plus accrued and unpaid interest on such Debt Securities to the Redemption Date
or, in the case of a redemption due to the occurrence of a Special Event to the
Special Redemption Date if such Special Redemption Date is on or after October
7, 2011.

“Responsible
Officer” means, with respect to the Trustee, any officer within the Principal
Office of the Trustee with direct responsibility for the administration of the
Indenture, including any vice-president, any assistant vice-president, any
secretary, any assistant secretary, the treasurer, any assistant treasurer, any
trust officer or other officer of the Principal Office of the Trustee
customarily performing functions similar to those performed by any of the above
designated officers and also means, with respect to a particular corporate
trust matter, any other officer to whom such matter is referred because of that
officer’s knowledge of and familiarity with the particular subject.

“Securities
Act” means the Securities Act of 1933, as amended from time to time, or any
successor legislation.

“Securityholder,”
“holder of Debt Securities” or other similar terms, means any Person in whose
name at the time a particular Debt Security is registered on the Debt Security
Register.

“Senior
Indebtedness” means, with respect to the Company, (i) the principal, premium,
if any, and interest in respect of (A) indebtedness of the Company for money
borrowed and (B) indebtedness evidenced by securities, debentures, notes, bonds
or other similar instruments issued by the Company; (ii) all capital lease
obligations of the Company; (iii) all obligations of the Company issued or
assumed as the deferred purchase price of property, all conditional sale
obligations of the Company and all obligations of the Company under any title
retention agreement (but excluding trade accounts payable arising in the
ordinary course of business); (iv) all obligations of the Company for the
reimbursement of any letter of credit, any banker’s acceptance, any security purchase
facility, any repurchase agreement or similar arrangement, any interest rate
swap, any other hedging arrangement, any obligation under options or any
similar credit or other transaction; (v) all obligations of the type referred
to in clauses (i) through (iv) above of other Persons for the payment of which
the Company is responsible or liable as obligor, guarantor or otherwise; and
(vi) all obligations of the type referred to in clauses (i) through (v) above
of other Persons secured by any lien on any property or asset of the Company
(whether or not such obligation is assumed by the Company), whether incurred on
or prior to the date of this Indenture or thereafter incurred, unless (1) with
the prior approval of the Federal Reserve or OTS, as applicable, if not
otherwise generally approved, in the instrument creating or evidencing the same
or pursuant to which the same is outstanding, it is provided that such
obligations are not superior or are pari
passu in right of payment to the Debt Securities; or (2) the Federal
Reserve or OTS, as applicable, shall hereafter classify or otherwise recognize
any such obligation as pari passu
or subordinate to the Debt Securities.

 10
 

 

“Special
Event” means any of a Tax Event, an Investment Company Event or a Capital
Treatment Event.

“Special
Redemption Date” has the meaning set forth in Section 10.02.

“Special
Redemption Price” means (1) if the Special Redemption Date is before October 7,
2011, One Hundred Five Percent (105%) of the principal amount of the Debt
Securities to be redeemed plus any accrued and unpaid interest thereon to the
date of such redemption or (2) if the Special Redemption Date is on or after
October 7, 2011, the Redemption Price for such Special Redemption Date.

“Subsidiary”
means, 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 or similar
entity, at least a majority of the outstanding partnership or similar interests
of which 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.

“Tax
Event” means the receipt by the Company and the Trust of an Opinion of Counsel
experienced in such matters to the effect that, as a result of any amendment to
or change (including any announced prospective change) in the laws or any regulations
thereunder of the United States or any political subdivision or taxing
authority thereof or therein, or as a result of any official administrative
pronouncement (including any private letter ruling, technical advice
memorandum, regulatory procedure, notice or announcement (an “Administrative
Action”)) or judicial decision interpreting or applying such laws or
regulations, regardless of whether such Administrative Action or judicial
decision is issued to or in connection with a proceeding involving the Company
or the Trust and whether or not subject to review or appeal, which amendment,
clarification, change, Administrative Action or decision is enacted,
promulgated or announced, in each case on or after the date of original
issuance of the Debt Securities, there is more than an insubstantial risk that:
(i) the Trust is, or will be within 90 days of the date of such opinion,
subject to United States federal income tax with respect to income received or
accrued on the Debt Securities; (ii) interest payable by the Company on the
Debt Securities is not, or within 90 days of the date of such opinion, will not
be, deductible by the Company, in whole or in part, for United States federal
income tax purposes; or (iii) the Trust is, or will be within 90 days of the
date of such opinion, subject to or otherwise required to pay, or required to
withhold from distributions to holders of Trust Securities, more than a de
minimis amount of other taxes (including withholding taxes), duties,
assessments or other governmental charges.

“Trust”
means Team Financial Capital Trust II, the Delaware statutory trust, or any
other similar trust created for the purpose of issuing Capital Securities in
connection with the issuance of Debt Securities under this Indenture, of which
the Company is the sponsor.

“Trust
Indenture Act” means the Trust Indenture Act of 1939, as amended from
time-to-time, or any successor legislation.

“Trust
Securities” means Common Securities and Capital Securities of Team Financial
Capital Trust II.

“Trustee”
means the Person identified as “Trustee” in the first paragraph hereof, and,
subject to the provisions of Article VI hereof, shall also include its
successors and assigns as Trustee hereunder.

“United
States” means the United States of America and the District of Columbia.

“U.S.
Person” has the meaning given to United States Person as set forth in Section
7701(a)(30) of the Internal Revenue Code of 1986, as amended.

 11
 

 

DEBT SECURITIES

 

Authentication
and Dating.

Upon
the execution and delivery of this Indenture, or from time to time thereafter,
Debt Securities in an aggregate principal amount not in excess of $22,681,000
may be executed and delivered by the Company to the Trustee for authentication,
and the Trustee shall thereupon authenticate and make available for delivery
said Debt Securities to or upon the written order of the Company, signed by its
Chairman of the Board of Directors, Vice Chairman, President or Chief Financial
Officer or one of its Vice Presidents, without any further action by the Company
hereunder. In authenticating such Debt Securities, and accepting the additional
responsibilities under this Indenture in relation to such Debt Securities, the
Trustee shall be entitled to receive, and (subject to Section 6.01) shall be
fully protected in relying upon a copy of any Board Resolution or Board
Resolutions relating thereto and, if applicable, an appropriate record of any
action taken pursuant to such resolution, in each case certified by the
Secretary or an Assistant Secretary or other officers with appropriate
delegated authority of the Company as the case may be.

The
Trustee shall have the right to decline to authenticate and deliver any Debt
Securities 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 Securityholders.

The
definitive Debt Securities shall be typed, printed, lithographed or engraved on
steel engraved borders or may be produced in any other manner, all as
determined by the officers executing such Debt Securities, as evidenced by
their execution of such Debt Securities.

Form
of Trustee’s Certificate of Authentication.

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

This
is one of the Debt Securities referred to in the within-mentioned Indenture.

WELLS
FARGO BANK, NATIONAL ASSOCIATION, not in its individual capacity but solely as
trustee

	
   

  	
  By

  	
  /s/ Tracy M.
  McLamb - VP

  	
   

  
	
   

  	
  Authorized Officer

  	
   

  

 

Form
and Denomination of Debt Securities.

The
Debt Securities shall be substantially in the form of Exhibit A hereto. The
Debt Securities shall be in registered, certificated form without coupons and
in minimum denominations of $100,000 and any multiple of $1,000 in excess
thereof. The Debt Securities 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.

Execution
of Debt Securities.

The
Debt Securities shall be signed in the name and on behalf of the Company by the
manual or facsimile signature of its Chairman of the Board of Directors, Vice
Chairman, President or Chief Financial Officer or one of its Executive Vice
Presidents, Senior Vice Presidents or Vice Presidents, by facsimile or
otherwise, and which need not be attested. Only such Debt Securities 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

 12
 

 

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 Debt Security executed by the Company shall be
conclusive evidence that the Debt Security so authenticated has been duly
authenticated and delivered hereunder and that the Securityholder is entitled
to the benefits of this Indenture.

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

Every
Debt Security shall be dated the date of its authentication.

Exchange
and Registration of Transfer of Debt Securities.

The
Trustee, in its capacity as “Debt Security Registrar”, 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, a register (the “Debt Security
Register”) for the Debt Securities issued hereunder in which, subject to such
reasonable regulations as it may prescribe, the Debt Security Registrar shall
provide for the registration and transfer of all Debt Securities as provided in
this Article II. Such register shall be in written form or in any other form
capable of being converted into written form within a reasonable time.

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

All
Debt Securities presented for registration of transfer or for exchange or
payment shall (if so required by the Company 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 Company and
either the Trustee or the Authenticating Agent duly executed by, the
Securityholder or such Securityholder’s attorney duly authorized in writing.

No
service charge shall be made for any exchange or registration of transfer of
Debt Securities, but the Company 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.

The
Company or the Trustee shall not be required to exchange or register a transfer
of any Debt Security for a period of 15 days immediately preceding the date of
selection of Debt Securities for redemption.

Notwithstanding
the foregoing, Debt Securities may not be transferred except in compliance with
the restricted securities legend set forth below, unless otherwise determined
by the Company in accordance with applicable law, which legend shall be placed
on each Debt Security:

 13
 

 

THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE
SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN
MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL
OR OTHERWISE TRANSFER SUCH SECURITY ONLY (A) TO THE COMPANY, (B) PURSUANT TO
RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON THE HOLDER
REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE
144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, (C) TO A “NON U.S. PERSON” IN AN “OFFSHORE TRANSACTION”
PURSUANT TO REGULATION S UNDER THE SECURITIES ACT, (D) PURSUANT TO AN EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT TO AN “ACCREDITED
INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (a) (1), (2), (3) OR (7) OF RULE
501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN
ACCOUNT, OR FOR THE ACCOUNT OF AN “ACCREDITED INVESTOR,” FOR INVESTMENT
PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY
DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (E) PURSUANT TO ANOTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT,
SUBJECT TO THE COMPANY’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO IT IN
ACCORDANCE WITH THE INDENTURE, A COPY OF WHICH MAY BE OBTAINED FROM THE
COMPANY. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES THAT IT
WILL COMPLY WITH THE FOREGOING RESTRICTIONS.

THE
HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES, REPRESENTS AND
WARRANTS THAT IT WILL NOT ENGAGE IN HEDGING TRANSACTIONS INVOLVING THIS
SECURITY UNLESS SUCH TRANSACTIONS ARE IN COMPLIANCE WITH THE SECURITIES ACT OR
AN APPLICABLE EXEMPTION THEREFROM.

THE
HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF ALSO AGREES, REPRESENTS AND
WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL RETIREMENT ACCOUNT OR
OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), (EACH A “PLAN”), OR AN ENTITY
WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS “ BY REASON OF ANY PLAN’S
INVESTMENT IN THE ENTITY AND NO PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY
ACQUIRE OR HOLD THIS SECURITY OR ANY INTEREST THEREIN, UNLESS SUCH PURCHASER OR
HOLDER IS ELIGIBLE FOR THE EXEMPTIVE RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF
LABOR PROHIBITED TRANSACTION CLASS EXEMPTION 96-23, 95-60, 91-38, 90-1 OR 84-14
OR ANOTHER APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS SECURITY IS
NOT PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH RESPECT
TO SUCH PURCHASE OR HOLDING. ANY PURCHASER OR HOLDER OF THIS SECURITY OR ANY
INTEREST THEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING
THEREOF THAT EITHER (i) IT IS NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING
OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS
APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE BENEFIT
PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE
BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE, OR (ii) SUCH PURCHASE WILL NOT
RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975
OF THE CODE FOR WHICH THERE IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE
EXEMPTION.

IN
CONNECTION WITH ANY TRANSFER, THE HOLDER OF THIS SECURITY WILL DELIVER TO THE
COMPANY AND THE TRUSTEE SUCH CERTIFICATES AND OTHER INFORMATION

 14
 

 

AS MAY BE REQUIRED
BY THE INDENTURE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE FOREGOING
RESTRICTIONS.

THIS
SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING A
PRINCIPAL AMOUNT OF NOT LESS THAN $100,000 AND MULTIPLES OF $1,000 IN EXCESS
THEREOF. ANY ATTEMPTED TRANSFER OF THIS SECURITY IN A BLOCK HAVING A PRINCIPAL
AMOUNT OF LESS THAN $100,000 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 THIS SECURITY FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF
DISTRIBUTIONS ON THIS SECURITY, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED
TO HAVE NO INTEREST WHATSOEVER IN THIS SECURITY.

THIS
OBLIGATION IS NOT A DEPOSIT AND IS NOT INSURED BY THE UNITED STATES OR ANY
AGENCY OR FUND OF THE UNITED STATES, INCLUDING THE FEDERAL DEPOSIT INSURANCE
CORPORATION (THE “FDIC”). THIS OBLIGATION IS SUBORDINATED TO THE CLAIMS OF
DEPOSITORS AND THE CLAIMS OF GENERAL AND SECURED CREDITORS OF THE COMPANY, IS
INELIGIBLE AS COLLATERAL FOR A LOAN BY THE COMPANY OR ANY OF ITS SUBSIDIARIES
AND IS NOT SECURED.

Mutilated,
Destroyed, Lost or Stolen Debt Securities.

In
case any Debt Security shall become mutilated or be destroyed, lost or stolen,
the Company shall execute, and upon its written request the Trustee shall authenticate
and deliver, a new Debt Security bearing a number not contemporaneously
outstanding, in exchange and substitution for the mutilated Debt Security, or
in lieu of and in substitution for the Debt Security so destroyed, lost or
stolen. In every case the applicant for a substituted Debt Security shall
furnish to the Company and the Trustee such security or indemnity as may be
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 Company and
the Trustee evidence to their satisfaction of the destruction, loss or theft of
such Debt Security and of the ownership thereof.

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

Every
substituted Debt Security issued pursuant to the provisions of this Section
2.06 by virtue of the fact that any such Debt Security is destroyed, lost or
stolen shall constitute an additional contractual obligation of the Company,
whether or not the destroyed, lost or stolen Debt Security 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 Debt Securities duly issued
hereunder. All Debt Securities 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 Debt Securities 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 securities without their surrender.

Temporary
Debt Securities.

Pending
the preparation of definitive Debt Securities, the Company may execute and the
Trustee shall authenticate and make available for delivery temporary Debt
Securities that are typed, printed or lithographed. Temporary Debt Securities
shall be issuable in any authorized denomination, and substantially in the form
of the

 15
 

 

definitive Debt
Securities but with such omissions, insertions and variations as may be
appropriate for temporary Debt Securities, all as may be determined by the
Company. Every such temporary Debt Security shall be executed by the Company and
be authenticated by the Trustee upon the same conditions and in substantially
the same manner, and with the same effect, as the definitive Debt Securities.
Without unreasonable delay, the Company will execute and deliver to the Trustee
or the Authenticating Agent definitive Debt Securities and thereupon any or all
temporary Debt Securities may be surrendered in exchange therefor, at the
Principal Office of the Trustee or at any office or agency maintained by the
Company 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 Debt Securities a like aggregate principal amount
of such definitive Debt Securities. Such exchange shall be made by the Company
at its own expense and without any charge therefor except that in case of any
such exchange involving a registration of transfer the Company 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 Debt
Securities shall in all respects be entitled to the same benefits under this
Indenture as definitive Debt Securities authenticated and delivered hereunder.

Payment
of Interest.

Each
Debt Security will bear interest at the then applicable Interest Rate from and
including each Interest Payment Date or, in the case of the first Interest
Payment Period, the original date of issuance of such Debt Security to, but
excluding, the next succeeding Interest Payment Date or, in the case of the
last Interest Payment Period, the Redemption Date, Special Redemption Date or
Maturity Date, as applicable, on the principal thereof, on any overdue
principal and (to the extent that payment of such interest is enforceable under
applicable law) on Deferred Interest and on any overdue installment of interest
(including Defaulted Interest), payable (subject to the provisions of Article
XV) on each Interest Payment Date commencing on January 7, 2007.  Interest and any Deferred Interest on any
Debt Security that is payable, and is punctually paid or duly provided for by
the Company, on any Interest Payment Date shall be paid to the Person in whose
name said Debt Security (or one or more Predecessor Securities) is registered
at the close of business on the regular record date for such interest
installment, except that interest and any Deferred Interest payable on the
Maturity Date, the Redemption Date (to the extent redeemed) or the Special
Redemption Date, shall be paid to the Person to whom principal is paid. In (i)
case the Maturity Date of any Debt Security or (ii) the event that any Debt
Security or portion thereof is called for redemption and the redemption date is
subsequent to a regular record date with respect to any Interest Payment Date
and either on or prior to such Interest Payment Date, interest on such Debt
Security will be paid upon presentation and surrender of such Debt Security.

Any
interest on any Debt Security, other than Deferred Interest, that is payable,
but is not punctually paid or duly provided for by the Company, on any Interest
Payment Date (herein called “Defaulted Interest”) shall forthwith cease to be
payable to the registered Securityholder on the relevant regular record date by
virtue of having been such Securityholder, and such Defaulted Interest shall be
paid by the Company to the Persons in whose names such Debt Securities (or
their respective Predecessor Securities) 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 Company shall notify the
Trustee in writing of the amount of Defaulted Interest proposed to be paid on
each such Debt Security and the date of the proposed payment, and at the same
time the Company 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
in this clause provided. Thereupon the Trustee shall fix a special record date
for the payment of such Defaulted Interest which shall not be more than fifteen
nor less than ten days prior to the date of the proposed payment and not less
than ten days after the receipt by the Trustee of the notice of the proposed
payment. The Trustee shall promptly notify the Company of such special record
date and, in the name and at the expense of the Company, 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 Securityholder at
his or her address as it appears in the Debt Security Register, not less than
ten 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 Debt Securities (or their respective Predecessor Securities) are
registered on such special record date and thereafter the Company shall have no
further payment obligation in respect of the Defaulted Interest.

 16

 

Any
interest scheduled to become payable on an Interest Payment Date occurring
during an Extension Period shall not be Defaulted Interest and shall be payable
on such other date as may be specified in the terms of such Debt Securities.

The
term “regular record date” as used in this Section shall mean the fifteenth day
prior to the applicable Interest Payment Date, whether or not such date is a
Business Day.

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

Cancellation
of Debt Securities Paid, etc.

All Debt
Securities surrendered for the purpose of payment, redemption, exchange or
registration of transfer, shall, if surrendered to the Company 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 Debt Securities shall be issued in lieu thereof except
as expressly permitted by any of the provisions of this Indenture. All Debt
Securities canceled by any Authenticating Agent shall be delivered to the
Trustee. The Trustee shall destroy all canceled Debt Securities unless the
Company otherwise directs the Trustee in writing, in which case the Trustee
shall dispose of such Debt Securities as directed by the Company. If the
Company shall acquire any of the Debt Securities, however, such acquisition
shall not operate as a redemption or satisfaction of the indebtedness
represented by such Debt Securities unless and until the same are surrendered
to the Trustee for cancellation.

Computation
of Interest.

The
amount of interest payable for any Interest Payment Period will be computed on
the basis of a 360-day year and the actual number of days elapsed in the
relevant interest period; provided, however, that upon the
occurrence of a Special Event Redemption pursuant to Section 10.02 the amounts
payable pursuant to this Indenture shall be calculated as set forth in the
definition of Special Redemption Price.

LIBOR,
for any Interest Payment Period, shall be determined by the Calculation Agent
in accordance with the following provisions:

On the second LIBOR
Business Day (provided, that on such day commercial banks are open for business
(including dealings in foreign currency deposits) in London (a “LIBOR Banking
Day”), and otherwise the next preceding LIBOR Business Day that is also a LIBOR
Banking Day) prior to the January 15, April 15, July 15 and October 15
immediately succeeding the commencement of such Interest Payment Period (or,
with respect to the first Interest Payment Period, on September 12, 2006) (each
such day, a “LIBOR Determination Date” for such Interest Payment Period), the
Calculation Agent shall obtain the rate for three-month U.S. Dollar deposits in
Europe, which appears on Telerate Page 3750 (as defined in the International
Swaps and Derivatives Association, Inc. 2000 Interest Rate and Currency
Exchange Definitions) or such other page as may replace such Telerate Page 3750
on the Moneyline Telerate, Inc. service (or such other service or services as
may be nominated by the British Banker’s Association as the information vendor
for the purpose of displaying London interbank offered rates for U.S. dollar
deposits), as of 11:00 a.m. (London time) on such LIBOR Determination Date, and
the rate so obtained shall be LIBOR for such Interest Payment Period.  “LIBOR Business Day” means any day that is
not a Saturday, Sunday or other day on which commercial banking institutions in
The City of New York or Wilmington, Delaware are authorized or obligated by law
or executive order to be closed. If such rate is superseded on Telerate Page
3750 by a corrected rate before 12:00 noon (London time) on the same LIBOR
Determination Date, the corrected rate as so substituted will be LIBOR for that
Interest Payment Period.

If, on any LIBOR
Determination Date, such rate does not appear on Telerate Page 3750 or such
other page as may replace such Telerate Page 3750 on the Moneyline Telerate,
Inc. service

 17
 

 

(or such other service or services as may be nominated
by the British Banker’s Association as the information vendor for the purpose
of displaying London interbank offered rates for U.S. dollar deposits), the
Calculation Agent shall determine the arithmetic mean of the offered quotations
of the Reference Banks (as defined below) to leading banks in the London
Interbank market for three-month U.S. Dollar deposits in Europe (in an amount
determined by the Calculation Agent) by reference to requests for quotations as
of approximately 11:00 a.m. (London time) on the LIBOR Determination Date made
by the Calculation Agent to the Reference Banks. If, on any LIBOR Determination
Date, at least two of the Reference Banks provide such quotations, LIBOR shall
equal the arithmetic mean of such quotations. If, on any LIBOR Determination
Date, only one or none of the Reference Banks provide such a quotation, LIBOR
shall be deemed to be the arithmetic mean of the offered quotations that at
least two leading banks in the City of New York (as selected by the Calculation
Agent) are quoting on the relevant LIBOR Determination Date for three-month
U.S. Dollar deposits in Europe at approximately 11:00 a.m. (London time) (in an
amount determined by the Calculation Agent). As used herein, “Reference Banks”
means four major banks in the London Interbank market selected by the
Calculation Agent.

If the Calculation Agent
is required but is unable to determine a rate in accordance with at least one
of the procedures provided above, LIBOR for the applicable Interest Payment
Period shall be LIBOR in effect for the immediately preceding Interest Payment
Period.

All
percentages resulting from any calculations on the Debt Securities will be
rounded, if necessary, to the nearest one hundred-thousandth of a percentage
point, with five one-millionths of a percentage point rounded upward (e.g.,
9.876545% (or .09876545) being rounded to 9.87655% (or .0987655)), and all
dollar amounts used in or resulting from such calculation will be rounded to
the nearest cent (with one-half cent being rounded upward).

On
each LIBOR Determination Date, the Calculation Agent shall notify, in writing,
the Company and the Paying Agent of the applicable Interest Rate in effect for
the related Interest Payment Period. The Calculation Agent shall, upon the
request of the any Securityholder, provide the Interest Rate then in effect.
All calculations made by the Calculation Agent in the absence of manifest error
shall be conclusive for all purposes and binding on the Company and the
Securityholder. The Paying Agent shall be entitled to rely on information
received from the Calculation Agent or the Company as to the Interest Rate. The
Company shall, from time to time, provide any necessary information to the
Paying Agent relating to any original issue discount and interest on the Debt
Securities that is included in any payment and reportable for taxable income
calculation purposes.

Extension
of Interest Payment Period.

So
long as no Event of Default leading to an acceleration event pursuant to
paragraphs (c), (e), (f) or (g) of Section 5.01 of the Indenture has occurred
and is continuing, the Company shall have the right under the Indenture, from
time to time and without causing an Event of Default, to defer payments of
interest on the Debt Securities by extending the interest distribution period
on the Debt Securities at any time and from time to time during the term of the
Debt Securities, for up to twenty consecutive quarterly periods (each such
extended interest distribution period, an “Extension Period”), during which
Extension Period no interest shall be due and payable (except any Additional
Interest that may be due and payable). No Extension Period may end on a date
other than an Interest Payment Date or extend beyond the Maturity Date, any
Redemption Date (to the extent redeemed) or any Special Redemption Date. During
any Extension Period, interest will continue to accrue on the Debt Securities,
and interest on such accrued interest (such accrued interest and interest
thereon referred to herein as “Deferred Interest”) will accrue at an annual
rate equal to the Interest Rate applicable during such Extension Period,
compounded quarterly from the date such Deferred Interest would have been
payable were it not for the Extension Period, to the extent permitted by law.
No interest or Deferred Interest shall be due and payable during an Extension
Period, except at the end thereof. At the end of any such Extension Period the
Company shall pay all Deferred Interest then accrued and unpaid on the Debt
Securities; provided, however, that no Extension Period may
extend beyond the Maturity Date, Redemption Date (to the extent redeemed) or
Special Redemption Date; and provided  further, however,
that during any such Extension Period, the Company shall be subject to the
restrictions set forth in Section 3.08 of this Indenture. Prior to the termination
of any Extension Period, the Company may further extend such period, provided,
that such period together with all such previous and further consecutive
extensions thereof shall

 18
 

 

not exceed twenty
consecutive quarterly periods, or extend beyond the Maturity Date, Redemption
Date (to the extent redeemed) or Special Redemption Date. Upon the termination
of any Extension Period and upon the payment of all Deferred Interest, the
Company may commence a new Extension Period, subject to the foregoing requirements.
The Company must give the Trustee notice of its election to begin such
Extension Period (“Notice”) not later than the related regular record date for
the relevant Interest Payment Date. The Notice shall describe, in reasonable
detail, why the Company has elected to begin an Extension Period.  The Notice shall acknowledge and affirm the
Company’s understanding that it is prohibited from issuing dividends and other
distributions during the Extension Period. 
Upon receipt of the Notice, an Initial Purchaser shall have the right,
at its sole discretion, to disclose the name of the Company, the fact that the
Company has elected to begin an Extension Period and other information that
such Initial Purchaser, at its sole discretion, deems relevant to the Company’s
election to begin an Extension Period. 
The Trustee shall give notice of the Company’s election to begin a new
Extension Period to the Securityholders.

CUSIP
Numbers.

The
Company in issuing the Debt Securities may use a “ CUSIP” number (if then generally
in use), and, if so, the Trustee shall use a “CUSIP” number in notices of
redemption as a convenience to Securityholders; provided, that any such
notice may state that no representation is made as to the correctness of such
number either as printed on the Debt Securities or as contained in any notice
of a redemption and that reliance may be placed only on the other
identification numbers printed on the Debt Securities, and any such redemption
shall not be affected by any defect in or omission of such numbers. The Company
will promptly notify the Trustee in writing of any change in the CUSIP number.

Global
Debentures.

Upon
the election of a holder of Outstanding Debt Securities, which election need
not be in writing, the Debt Securities owned by such holder shall be issued in
the form of one or more Global Debentures registered in the name of the
Depositary or its nominee.  Each Global
Debenture issued under this Indenture shall be registered in the name of the
Depositary designated by the Company for such Global Debenture or a nominee
thereof and delivered to such Depositary or a nominee thereof or custodian
therefor, and each such Global Debenture shall constitute a single Debt
Security for all purposes of this Indenture.

Notwithstanding
any other provision in this Indenture, no Global Debenture may be exchanged in
whole or in part for Debt Securities registered, and no transfer of a Global
Debenture in whole or in part may be registered, in the name of any Person
other than the Depositary for such Global Debenture or a nominee thereof unless
(i) such Depositary advises the Trustee and the Company in writing that such
Depositary is no longer willing or able to properly discharge its
responsibilities as Depositary with respect to such Global Debenture, and no
qualified successor is appointed by the Company within ninety (90) days of
receipt by the Company of such notice, (ii) such Depositary ceases to be a
clearing agency registered under the Exchange Act and no successor is appointed
by the Company within ninety (90) days after obtaining knowledge of such event,
(iii) the Company executes and delivers to the Trustee a company order stating
that the Company elects to terminate the book-entry system through the
Depositary or (iv) an Event of Default shall have occurred and be
continuing.  Upon 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 Debenture of the occurrence of such event
and of the availability of Debt Securities to such owners of beneficial
interests requesting the same.  Upon the
issuance of such Debt Securities and the registration in the Debt Security
Register of such Debt Securities in the names of the holders of the beneficial
interests therein, the Trustee shall recognize such holders of beneficial
interests as holders thereof.

If
any Global Debenture is to be exchanged for other Debt Securities or canceled
in part, or if another Debt Security is to be exchanged in whole or in part for
a beneficial interest in any Global Debenture, then either (i) such Global
Debenture shall be so surrendered for exchange or cancellation as provided in
this Article II or (ii) the principal amount thereof 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 other Debt Security to be so
exchanged for a beneficial interest therein, as the case may be, by means of an
appropriate adjustment made on the records of the Debt Security Registrar,
whereupon the Trustee, in accordance with the applicable depository procedures,
shall instruct the Depositary or its authorized representative to make a
corresponding adjustment to its records. 
Upon any

 19
 

 

such surrender or
adjustment of a Global Debenture by the Depositary, accompanied by registration
instructions, the Company shall execute and the Trustee shall authenticate and
deliver any Debt Securities issuable in exchange for such Global Debenture (or
any portion thereof) in accordance with the instructions of the
Depositary.  The Trustee shall not be
liable for any delay in delivery of such instructions and may conclusively rely
on, and shall be fully protected in relying on, such instructions.

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

Debt
Securities distributed to holders of Book-Entry Capital Securities (as defined
in the Trust Agreement) upon the dissolution of the Trust shall be distributed
in the form of one or more Global Debentures registered in the name of a
Depositary or its nominee, and deposited with the Debt Security Registrar, as
custodian for such Depositary, or with such Depositary, for credit by the
Depositary to the respective accounts of the beneficial owners of the Debt
Securities represented thereby (or such other accounts as they may
direct).  Debt Securities distributed to
holders of Capital Securities other than Book-Entry Capital Securities upon the
dissolution of the Trust shall not be issued in the form of a Global Debenture
or any other form intended to facilitate book-entry trading in beneficial
interests in such Debt Securities.

The
Depositary or its nominee, as the registered owner of a Global Debenture, shall
be the holder of such Global Debenture for all purposes under this Indenture
and the Debt Securities, and owners of beneficial interests in a Global
Debenture shall hold such interests pursuant to the Applicable Depository
Procedures.  Accordingly, any such owner’s
beneficial interest in a Global Debenture 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 Debt Security Registrar and the Trustee
shall be entitled to deal with the Depositary for all purposes of this
Indenture relating to a Global Debenture (including the payment of principal
and interest thereon and the giving of instructions or directions by owners of
beneficial interests therein and the giving of notices) as the sole holder of
the Debt Security and shall have no obligations to the owners of beneficial
interests therein.  Neither the Trustee
nor the Debt Security Registrar shall have any liability in respect of any
transfers affected by the Depositary.

The
rights of owners of beneficial interests in a Global Debenture 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.

No
holder of any beneficial interest in any Global Debenture held on its behalf by
a Depositary shall have any rights under this Indenture with respect to such
Global Debenture, and such Depositary may be treated by the Company, the
Trustee and any agent of the Company or the Trustee as the owner of such Global
Debenture for all purposes whatsoever. 
None of the Company, the Trustee nor any agent of the Company 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 of a
Global Debenture or maintaining, supervising or reviewing any records relating
to such beneficial ownership interests. 
Notwithstanding the foregoing, nothing herein shall prevent the Company,
the Trustee or any agent of the Company or the Trustee from giving effect to
any written certification, proxy or other authorization furnished by a
Depositary or impair, as between a Depositary and such holders of beneficial
interests, the operation of customary practices governing the exercise of the
rights of the Depositary (or its nominee) as holder of any Debt Security.

PARTICULAR COVENANTS OF THE COMPANY

Payment
of Principal, Premium and Interest; Agreed Treatment of the Debt Securities.

The
Company covenants and agrees that it will duly and punctually pay or cause to
be paid all payments due on the Debt Securities at the place, at the respective
times and in the manner provided in this Indenture and the Debt Securities. At
the option of the Company, each installment of interest on the Debt Securities

 20
 

 

may be paid (i) by
mailing checks for such interest payable to the order of the Securityholders
entitled thereto as they appear on the Debt Security Register or (ii) by wire
transfer to any account with a banking institution located in the United States
designated by such Person to the Paying Agent no later than the related record
date.

The
Company will treat the Debt Securities as indebtedness, and the interest
payable in respect of such Debt Securities as interest, for all U.S. federal
income tax purposes. All payments in respect of such Debt Securities will be
made free and clear of U.S. withholding tax to any beneficial owner thereof
that has provided an Internal Revenue Service Form W-8 BEN (or any substitute
or successor form) establishing its non-U.S. status for U.S. federal income tax
purposes.

As
of the date of this Indenture, the Company represents that it has no intention
to exercise its right under Section 2.11 to defer payments of interest on the
Debt Securities by commencing an Extension Period.

As
of the date of this Indenture, the Company represents that the likelihood that
it would exercise its right under Section 2.11 to defer payments of interest on
the Debt Securities by commencing an Extension Period at any time during which
the Debt Securities are outstanding is remote because of the restrictions that
would be imposed on the Company’s ability to declare or pay dividends or
distributions on, or to redeem, purchase or make a liquidation payment with
respect to, any of its outstanding equity and on the Company’s ability to make
any payments of principal of or interest on, or repurchase or redeem, any of
its debt securities that rank pari passu
in all respects with (or junior in interest to) the Debt Securities.

Offices
for Notices and Payments, etc.

So
long as any of the Debt Securities remain outstanding, the Company will
maintain in Wilmington, Delaware an office or agency where the Debt Securities
may be presented for payment, an office or agency where the Debt Securities may
be presented for registration of transfer and for exchange as provided in this
Indenture and an office or agency where notices and demands to or upon the
Company in respect of the Debt Securities or of this Indenture may be served.
The Company will give to the Trustee written notice of the location of any such
office or agency and of any change of location thereof. Until otherwise
designated from time to time by the Company in a notice to the Trustee, or
specified as contemplated by Section 2.05, such office or agency for all of the
above purposes shall be the Principal Office of the Trustee. In case the
Company shall fail to maintain any such office or agency in Wilmington,
Delaware 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 Company may from time to time
designate one or more offices or agencies outside Wilmington, Delaware or where
the Debt Securities may be presented for registration of transfer and for
exchange in the manner provided in this Indenture, and the Company may from
time to time rescind such designation, as the Company may deem desirable or
expedient; provided, however, that no such designation or
rescission shall in any manner relieve the Company of its obligation to
maintain any such office or agency in Wilmington, Delaware for the purposes
above mentioned. The Company will give to the Trustee prompt written notice of
any such designation or rescission thereof.

Appointments
to Fill Vacancies in Trustee’s Office.

The
Company, whenever necessary to avoid or fill a vacancy in the office of
Trustee, will appoint, in the manner provided in Section 6.09, a Trustee, so
that there shall at all times be a Trustee hereunder.

Provision
as to Paying Agent.

If
the Company shall appoint a Paying Agent other than the Trustee, 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 provision of this
Section 3.04:

 21
 

 

that it will hold all
sums held by it as such agent for the payment of all payments due on the Debt
Securities (whether such sums have been paid to it by the Company or by any
other obligor on the Debt Securities) in trust for the benefit of the
Securityholders;

that it will give the
Trustee prompt written notice of any failure by the Company (or by any other
obligor on the Debt Securities) to make any payment on the Debt Securities when
the same shall be due and payable; and

that it will, at any time
during the continuance of any Event of Default, upon the written request of the
Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying
Agent.

If
the Company shall act as its own Paying Agent, it will, on or before each due
date of the payments due on the Debt Securities, set aside, segregate and hold
in trust for the benefit of the Securityholders a sum sufficient to pay such
payments so becoming due and will notify the Trustee in writing of any failure
to take such action and of any failure by the Company (or by any other obligor
under the Debt Securities) to make any payment on the Debt Securities when the
same shall become due and payable.

Whenever
the Company shall have one or more Paying Agents for the Debt Securities, it
will, on or prior to each due date of the payments on the Debt Securities,
deposit with a Paying Agent a sum sufficient to pay all payments so becoming
due, such sum to be held in trust for the benefit of the Persons entitled
thereto and (unless such Paying Agent is the Trustee) the Company shall
promptly notify the Trustee in writing of its action or failure to act.

Anything
in this Section 3.04 to the contrary notwithstanding, the Company may, at any
time, for the purpose of obtaining a satisfaction and discharge with respect to
the Debt Securities, or for any other reason, pay, or direct any Paying Agent
to pay to the Trustee all sums held in trust by the Company or any such Paying
Agent, such sums to be held by the Trustee upon the same terms and conditions
herein contained.

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.

The
Company hereby initially appoints the Trustee to act as Paying Agent (the “
Paying Agent”).

Certificate
to Trustee.

The
Company will deliver to the Trustee on or before 120 days after the end of each
fiscal year, so long as Debt Securities are outstanding hereunder, a
Certificate stating that in the course of the performance by the signers of
their duties as officers of the Company they would normally have knowledge of
any default by the Company in the performance of any covenants of the Company
contained herein, stating whether or not they have knowledge of any such
default and, if so, specifying each such default of which the signers have
knowledge and the nature thereof.

Additional
Interest.

If
and for so long as the Trust is the holder of all Debt Securities and is
subject to or otherwise required to pay, or is required to withhold from
distributions to holders of Trust Securities, any additional taxes (including
withholding taxes), duties, assessments or other governmental charges as a
result of a Tax Event, the Company will pay such additional amounts (the “Additional
Interest”) on the Debt Securities as shall be required so that the net amounts
received and retained by the Trust for distribution to holders of Trust
Securities after paying all taxes (including withholding taxes on distributions
to holders of Trust Securities), duties, assessments or other governmental charges
will be equal to the amounts the Trust would have received and retained for
distribution to holders of Trust Securities after paying all taxes (including
withholding taxes on distributions to holders of Trust Securities), duties,
assessments or other governmental charges if no such additional taxes, duties,
assessments or other governmental charges had been imposed. Whenever in this
Indenture or the Debt Securities there is a reference in any context to the
payment of principal of or premium, if any, or interest on the Debt Securities,
such mention

 22
 

 

shall be deemed to
include mention of payments of the Additional Interest provided for in this
paragraph to the extent that, in such context, Additional Interest is, was or
would be payable in respect thereof pursuant to the provisions of this
paragraph and express mention of the payment of Additional Interest (if
applicable) in any provisions hereof shall not be construed as excluding
Additional Interest in those provisions hereof where such express mention is
not made, provided, however, that, notwithstanding anything to
the contrary contained in this Indenture or any Debt Security, the deferral of
the payment of interest during an Extension Period pursuant to Section 2.11
shall not defer the payment of any Additional Interest that may be due and
payable.

Compliance
with Consolidation Provisions.

The
Company will not, while any of the Debt Securities remain outstanding,
consolidate with, or merge into any other Person, or merge into itself, or
sell, convey, transfer or otherwise dispose of all or substantially all of its
property or capital stock to any other Person unless the provisions of Article
XI hereof are complied with.

Limitation
on Dividends.

If Debt Securities are
initially issued to the Trust or a trustee of such Trust in connection with the
issuance of Trust Securities by the Trust (regardless of whether Debt
Securities continue to be held by such Trust) and (i) there shall have occurred
and be continuing an Event of Default, (ii) the Company shall be in default
with respect to its payment of any obligations under the Capital Securities
Guarantee or (iii) the Company shall have given notice of its election to defer
payments of interest on the Debt Securities by extending the interest
distribution period as provided herein and such period, or any extension
thereof, shall have commenced and be continuing, then the Company may 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 Company’s capital
stock or (B) make any payment of principal of or interest or premium, if any,
on or repay, repurchase or redeem any debt securities of the Company that rank pari passu in all respects with or junior
in interest to the Debt Securities or (C) make any payment under any guarantees
of the Company that rank pari passu
in all respects with or junior in interest to the Capital Securities Guarantee
(other than (a) repurchases, redemptions or other acquisitions of shares of
capital stock of the Company (I) in connection with any employment contract,
benefit plan or other similar arrangement with or for the benefit of one or
more employees, officers, directors or consultants, (II) in connection with a
dividend reinvestment or stockholder stock purchase plan or (III) in connection
with the issuance of capital stock of the Company (or securities convertible
into or exercisable for such capital stock), as consideration in an acquisition
transaction entered into prior to the occurrence of (i), (ii) or (iii) above,
(b) as a result of any exchange, reclassification, combination or conversion of
any class or series of the Company’s capital stock (or any capital stock of a
subsidiary of the Company) for any class or series of the Company ‘s capital
stock or of any class or series of the Company’s indebtedness for any class or
series of the Company’s capital stock, (c) the purchase of fractional interests
in shares of the Company’s capital stock pursuant to the conversion or exchange
provisions of such capital stock or the security being converted or exchanged,
(d) any declaration of a dividend in connection with any stockholder’s rights
plan, or the issuance of rights, stock or other property under any stockholder’s
rights plan, or the redemption or repurchase of rights pursuant thereto, or (e)
any dividend in the form of stock, warrants, options or other rights where the
dividend stock or the stock issuable upon exercise of such warrants, options or
other rights is the same stock as that on which the dividend is being paid or
ranks pari passu with or junior
to such stock).

Covenants
as to the Trust.

For
so long as such Trust Securities remain outstanding, the Company shall maintain
100% ownership of the Common Securities; provided, however, that
any permitted successor of the Company under this Indenture that is a U.S.
Person may succeed to the Company’s ownership of such Common Securities. The
Company, as owner of the Common Securities, shall use commercially reasonable
efforts to cause the Trust (a) to remain a statutory trust, except in
connection with a distribution of Debt Securities to the holders of Trust
Securities in liquidation of the Trust, the redemption of all of the Trust
Securities or certain mergers, consolidations or amalgamations, each as
permitted by the Declaration, (b) to otherwise continue to be classified as a
grantor trust for United States federal income tax purposes and (c) to cause
each holder of Trust Securities to be treated as owning an undivided beneficial
interest in the Debt Securities.

 23
 

 

LISTS AND REPORTS BY THE
COMPANY AND THE TRUSTEE

 

Securityholders’
Lists.

The
Company covenants and agrees that it will furnish or cause to be furnished to
the Trustee:

on
each regular record date for an Interest Payment Date, a list, in such form as
the Trustee may reasonably require, of the names and addresses of the
Securityholders of the Debt Securities as of such record date; and

at
such other times as the Trustee may request in writing, within 30 days after
the receipt by the Company 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 no such lists
need be furnished under this Section 4.01 so long as the Trustee is in
possession thereof by reason of its acting as Debt Security Registrar.

Preservation
and Disclosure of Lists.

The
Trustee shall preserve, in as current a form as is reasonably practicable, all
information as to the names and addresses of the Securityholders (1) contained
in the most recent list furnished to it as provided in Section 4.01 or (2)
received by it in the capacity of Debt Security 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.

In
case three or more holders of Debt Securities (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 Debt Security 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
Securityholders with respect to their rights under this Indenture or under such
Debt Securities 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:

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

inform such applicants as
to the approximate number of Securityholders 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 Securityholders the form of proxy or other communication, if any,
specified in such application.

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 Securityholder of Debt Securities 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,
unless within five days after such tender, the Trustee shall mail to such
applicants and file with the Securities and Exchange Commission, if permitted
or required by applicable law, together with a copy of the material to be
mailed, a written statement to the effect that, in the opinion of the Trustee,
such mailing would be contrary to the best interests of the holders of all Debt
Securities, as the case may be, or would be in violation of applicable law.
Such written statement shall specify the basis of such opinion. If said
Commission, as permitted or required by applicable law, after opportunity for a
hearing upon the objections specified in the written statement so filed, shall
enter an order refusing to sustain any of such objections or if, after the
entry of an order sustaining one or more of such objections, said Commission
shall find, after notice and opportunity for hearing, that all the objections
so sustained have been met and shall enter an order so declaring, the Trustee
shall mail copies of such material to all such Securityholders with reasonable
promptness after the entry of

 24
 

 

such order and the
renewal of such tender; otherwise the Trustee shall be relieved of any
obligation or duty to such applicants respecting their application.

Each
and every Securityholder, by receiving and holding the same, agrees with the
Company and the Trustee that neither the Company 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 Securityholders 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).

Financial
and Other Information.

The
Company shall deliver to each Securityholder (1) each Report on Form 10-K and
Form 10-Q prepared by the Company and filed with the Securities and Exchange
Commission in accordance with the Exchange Act within 7 days after the filing
thereof, (2) if the Company is not then (y) subject to Section 13 or 15(d) of
the Exchange Act or (z) exempt from reporting pursuant to Rule 12g3-2(b)
thereunder, the Company shall be required to provide within 45 days of the end
of each calendar quarterly period and 90 days after the end of each calendar
year, the information required to be provided by Rule 144A(d)(4) under the
Securities Act and (3) within 30 days after the end of the fiscal year of the
Company, Form 1099 or such other annual U.S. federal income tax information
statement required by the Code containing such information with regard to the
Debt Securities held by such Securityholder as is required by the Code and the
income tax regulations of the U.S. Treasury thereunder.

The
Company will cause copies of its regulatory reports to be delivered to the
Holder promptly following their filing with the Federal Reserve.

REMEDIES OF THE
TRUSTEE AND SECURITYHOLDERS UPON AN EVENT OF DEFAULT

Events
of Default.

The following events
shall be “Events of Default” with respect to Debt Securities:

the
Company defaults in the payment of any interest upon any Debt Security when it
becomes due and payable (unless the Company has elected and may defer interest
payments pursuant to Section 2.11), and continuance of such default for a
period of 30 days; for the avoidance of doubt, an extension of any interest
distribution period by the Company in accordance with Section 2.11 of this
Indenture shall not constitute a default under this clause 5.01(a); or

the
Company defaults in the payment of all or any part of the principal of (or
premium, if any, on) any Debt Securities as and when the same shall become due
and payable either at maturity, upon redemption, by declaration of acceleration
pursuant to Section 5.01 of this Indenture or otherwise; or

the
Company defaults in the payment of any interest upon any Debt Security when it
becomes due and payable following the nonpayment of any such interest for 20 or
more consecutive quarterly periods; or

the
Company defaults in the performance of, or breaches, any of its covenants or
agreements in Sections 3.06, 3.07, 3.08 or 3.09 of this Indenture and
continuance of such default or breach for a period of 30 days after there has
been given, by registered or certified mail, to the Company by the Trustee or
to the Company and the Trustee by the holders of not less than 25% in aggregate
principal amount of the outstanding Debt Securities, a written notice
specifying such default or breach and requiring it to be remedied and stating
that such notice is a “Notice of Default” hereunder; or

a
court having jurisdiction in the premises shall enter a decree or order for
relief in respect of the Company in an involuntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or
appoints a receiver, liquidator, assignee, custodian, trustee, sequestrator (or
similar official) of the

 25
 

 

Company or for any
substantial part of its property, or orders the winding-up or liquidation of
its affairs and such decree or order shall remain unstayed and in effect for a
period of 90 consecutive days; or

the
Company 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 Company 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; or

the
Trust shall have voluntarily or involuntarily liquidated, dissolved, wound-up
its business or otherwise terminated its existence except in connection with
(1) the distribution of the Debt Securities to holders of the Trust Securities
in liquidation of their interests in the Trust, (2) the redemption of all of
the outstanding Trust Securities or (3) certain mergers, consolidations or
amalgamations, each as permitted by the Declaration.

If
an Event of Default specified under clause (c) of this Section 5.01 occurs and
is continuing with respect to the Debt Securities, then, and in each and every
such case, unless the principal of the Debt Securities shall have already
become due and payable, either the Trustee or the holders of not less than 25%
in aggregate principal amount of the Debt Securities then outstanding
hereunder, by notice in writing to the Company (and to the Trustee if given by
Securityholders), may declare the entire principal of the Debt Securities and
any premium and interest accrued, but unpaid, thereon, if any, to be due and
payable immediately, and upon any such declaration the same shall become
immediately due and payable.  If an Event
of Default specified under clause (e), (f) or (g) of this Section 5.01 occurs,
then, in each and every such case, the entire principal amount of the Debt
Securities and any premium and interest accrued, but unpaid, thereon shall ipso facto become immediately due and
payable without further action. 
Notwithstanding anything to the contrary in this Section 5.01, if at any
time during the period in which this Indenture remains in force and effect, the
Company ceases or elects to cease to be subject to the supervision and
regulations of the Federal Reserve, OTS, OCC or similar regulatory authority
overseeing bank, thrift, savings and loan or financial holding companies or
similar institutions requiring specifications for the treatment of capital
similar in nature to the capital adequacy guidelines under the Federal Reserve
rules and regulations, then the first sentence of this paragraph shall be
deemed to include clauses (a), (b) and (d) under this Section 5.01 as an Event
of Default resulting in an acceleration of payment of the Debt Securities to
the same extent as provided herein for clause (c).

Anything
in this Section 5.01 to the contrary notwithstanding, if an Event of Default
specified under clause (d) occurs and is continuing, then, and in each and
every such case, the Trustee, in its own name and as trustee of an express
trust, shall pursue all available remedies at law and/or equity against the
Company.  The Company acknowledges and
affirms that in the event of breach of such covenants and agreements referenced
in clause (d) of this Section 5.01, the damages to the holders of the Debt
Securities and the Capital Securities may be difficult or impossible to
ascertain.  Therefore, in addition to any
remedies available at law for breach of any or all of said covenants or agreements,
the holders of the Debt Securities and the Capital Securities shall be entitled
to injunctive or other equitable relief in connection with the violation of any
such covenants or agreements referenced in Section 5.01(d).

The
foregoing provisions, however, are subject to the condition that if, at any
time after the principal of the Debt Securities shall have been so declared due
and payable, and before any judgment or decree for the payment of the moneys
due shall have been obtained or entered as hereinafter provided, (i) the
Company shall pay or shall deposit with the Trustee a sum sufficient to pay all
matured installments of interest upon all the Debt Securities and all payments
on the Debt Securities which shall have become due otherwise than by
acceleration (with interest upon all such payments and Deferred Interest, to
the extent permitted by law) and such amount as shall be sufficient to cover
reasonable compensation to the Trustee and each predecessor Trustee, their
respective agents, attorneys and counsel, and all other amounts due to the
Trustee pursuant to Section 6.06, if any, and (ii) all Events of Default under
this Indenture, other than the non-payment of the payments on Debt Securities
which shall have become due by acceleration, shall have been cured, waived or
otherwise remedied as provided herein, then and in every such case the holders
of a majority in aggregate principal amount of the Debt Securities then
outstanding, by written notice to the Company and to the Trustee, may waive all
defaults and rescind and annul such declaration and its consequences, but no
such waiver or rescission and annulment shall extend to or shall affect any
subsequent

 26
 

 

default or shall
impair any right consequent thereon; provided, however, that if the Debt
Securities are held by the Trust or a trustee of the Trust, such waiver or
rescission and annulment shall not be effective until the holders of a majority
in aggregate liquidation amount of the outstanding Capital Securities of the
Trust shall have consented to such waiver or rescission and annulment.

In
case the Trustee shall have proceeded to enforce any right under this Indenture
and such proceedings shall have been discontinued or abandoned because of such
rescission or annulment or for any other reason or shall have been determined
adversely to the Trustee, then and in every such case the Company, the Trustee
and the Securityholders shall be restored respectively to their several
positions and rights hereunder, and all rights, remedies and powers of the
Company, the Trustee and the Securityholders shall continue as though no such
proceeding had been taken.

Payment
of Debt Securities on Default; Suit Therefor.

The
Company covenants that upon the occurrence of an Event of Default under
paragraphs (c), (e), (f) or (g) of Section 5.01 of the Indenture, the Company
will pay to the Trustee, for the benefit of the Securityholders, the whole
amount that then shall have become due and payable on all Debt Securities
including Deferred Interest accrued on the Debt Securities; and, in addition
thereto, such further amount as shall be sufficient to cover the costs and
expenses of collection, including a reasonable compensation to the Trustee, its
agents, attorneys and counsel, and any other amounts due to the Trustee under
Section 6.06. In case the Company 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 Company or any other
obligor on such Debt Securities and collect in the manner provided by law out
of the property of the Company or any other obligor on such Debt Securities
wherever situated the moneys adjudged or decreed to be payable.

In
case there shall be pending proceedings for the bankruptcy or for the
reorganization of the Company or any other obligor on the Debt Securities under
Bankruptcy Law, or in case a receiver or trustee shall have been appointed for
the property of the Company or such other obligor, or in the case of any other
similar judicial proceedings relative to the Company or other obligor upon the
Debt Securities, or to the creditors or property of the Company or such other
obligor, the Trustee, irrespective of whether the principal of the Debt
Securities shall then be due and payable as therein expressed or by declaration
of acceleration or otherwise and irrespective of whether the Trustee shall have
made any demand pursuant to the provisions of this Section 5.02, 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 Debt Securities 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 reasonable compensation to the Trustee and each predecessor
Trustee, and their respective agents, attorneys and counsel, and for
reimbursement of all other amounts due to the Trustee under Section 6.06) and
of the Securityholders allowed in such judicial proceedings relative to the
Company or any other obligor on the Debt Securities, or to the creditors or
property of the Company or such other obligor, unless prohibited by applicable
law and regulations, to vote on behalf of the Securityholders 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 Securityholders 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 Securityholders, to pay to the Trustee such amounts as shall be sufficient
to cover reasonable compensation to the Trustee, each predecessor Trustee and
their respective agents, attorneys and counsel, and all other amounts due to
the Trustee under Section 6.06.

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

 27
 

 

All
rights of action and of asserting claims under this Indenture, or under any of
the Debt Securities, may be enforced by the Trustee without the possession of
any of the Debt Securities, or the production thereof at 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 be for the ratable benefit of the
Securityholders.

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 Securityholders, and it
shall not be necessary to make any Securityholders parties to any such
proceedings.

Application
of Moneys Collected by Trustee.

Any
moneys collected by the Trustee 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 several Debt Securities 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 incurred by, and reasonable fees of, the Trustee, its
agents, attorneys and counsel, and of all other amounts due to the Trustee
under Section 6.06;

Second: To the payment of
all Senior Indebtedness of the Company if and to the extent required by Article
XV;

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

Fourth: The balance, if
any, to the Company.

Proceedings
by Securityholders.

No
Securityholder shall have any right to institute any suit, action or proceeding
for any remedy hereunder, unless such Securityholder previously shall have
given to the Trustee written notice of an Event of Default with respect to the
Debt Securities and unless the holders of not less than 25% in aggregate
principal amount of the Debt Securities then outstanding shall have given the
Trustee a written request to institute such action, suit or proceeding and
shall have offered to the Trustee such reasonable indemnity as it may require
against the costs, expenses and liabilities to be incurred thereby, and 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; provided,
that no Securityholder shall have any right to prejudice the rights of any
other Securityholder, obtain priority or preference over any other such
Securityholder or enforce any right under this Indenture except in the manner
herein provided and for the equal, ratable and common benefit of all
Securityholders.

Notwithstanding
any other provisions in this Indenture, however, the right of any
Securityholder to receive payment of the principal of, premium, if any, and
interest on such Debt Security when due, or to institute suit for the
enforcement of any such payment, shall not be impaired or affected without the
consent of such Securityholder. For the protection and enforcement of the
provisions of this Section, each and every Securityholder and the Trustee shall
be entitled to such relief as can be given either at law or in equity.

Proceedings
by Trustee.

In
case of an Event of Default hereunder 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.

 28

 

Remedies
Cumulative and Continuing.

Except
as otherwise provided in Section 2.06, all powers and remedies given by this
Article V to the Trustee or to the Securityholders 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 Securityholders, 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 Debt Securities, and no delay or omission of the Trustee or
of any Securityholder 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 5.04, every
power and remedy given by this Article V or by law to the Trustee or to the
Securityholders may be exercised from time to time, and as often as shall be
deemed expedient, by the Trustee or by the Securityholders.

Direction
of Proceedings and Waiver of Defaults by Majority of Securityholders.

The
holders of a majority in aggregate principal amount of the Debt Securities
affected (voting as one class) at the time outstanding and, if the Debt
Securities are held by the Trust or a trustee of the Trust, the holders of a
majority in aggregate liquidation amount of the outstanding Capital Securities
of the Trust 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
Debt Securities; provided, however, that if the Debt Securities
are held by the Trust or a trustee of the Trust, such time, method and place or
such exercise, as the case may be, may not be so directed until the holders of
a majority in aggregate liquidation amount of the outstanding Capital
Securities of the Trust shall have directed such time, method and place or such
exercise, as the case may be; provided, further, 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 being advised by counsel 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 a Responsible Officer of the Trustee shall determine that the
action or proceedings so directed would involve the Trustee in personal
liability. Prior to any declaration of acceleration, or ipso facto acceleration, of the
maturity of the Debt Securities, the holders of a majority in aggregate
principal amount of the Debt Securities at the time outstanding may on behalf
of the holders of all of the Debt Securities waive (or modify any previously
granted waiver of) any past default or Event of Default and its consequences,
except a default (a) in the payment of principal of, premium, if any, or
interest on any of the Debt Securities, (b) in respect of covenants or
provisions hereof which cannot be modified or amended without the consent of
the holder of each Debt Security affected, or (c) in respect of the covenants
contained in Section 3.09; provided,  however, that if the Debt Securities are
held by the Trust or a trustee of the Trust, such waiver or modification to
such waiver shall not be effective until the holders of a majority in Liquidation
Amount of the Trust Securities of the Trust shall have consented to such waiver
or modification to such waiver; provided, further, that if the
consent of the holder of each outstanding Debt Security is required, such
waiver or modification to such waiver shall not be effective until each holder
of the outstanding Capital Securities of the Trust shall have consented to such
waiver or modification to such waiver. Upon any such waiver or modification to
such waiver, the Default or Event of Default covered thereby shall be deemed to
be cured for all purposes of this Indenture and the Company, the Trustee and
the Securityholders shall be restored to their former positions and rights
hereunder, respectively; but no such waiver or modification to such waiver
shall extend to any subsequent or other Default or Event of Default or impair
any right consequent thereon. Whenever any Default or Event of Default
hereunder shall have been waived as permitted by this Section 5.07, said
Default or Event of Default shall for all purposes of the Debt Securities and
this Indenture be deemed to have been cured and to be not continuing.

Notice
of Defaults.

The
Trustee shall, within 90 days after a Responsible Officer of the Trustee shall
have actual knowledge or received written notice of the occurrence of a Default
with respect to the Debt Securities, mail to all Securityholders, as the names
and addresses of such Securityholders appear upon the Debt Security Register,
notice of all Defaults with respect to the Debt Securities actually known to
the Trustee, unless such Defaults shall have been cured before the giving of
such notice (the term “Defaults” for the purpose of this Section 5.08 being
hereby defined to be the events specified in subsections (a), (b), (c), (d), (e),
(f) and (g) of Section 5.01, not including periods of grace, if any, provided
for therein); provided, that, except in the case of default in the
payment of the principal of, premium, if any, or interest on any of the Debt
Securities, the Trustee shall be protected in withholding

 29
 

 

such notice if and
so long as a Responsible Officer of the Trustee in good faith determines that
the withholding of such notice is in the interests of the Securityholders.

Undertaking
to Pay Costs.

All
parties to this Indenture agree, and each Securityholder by such Securityholder
‘s 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 5.09 shall not apply to any suit instituted
by the Trustee, to any suit instituted by any Securityholder, or group of
Securityholders, holding in the aggregate more than 10% in principal amount of
the Debt Securities (or, if such Debt Securities are held by the Trust or a
trustee of the Trust, more than 10% in liquidation amount of the outstanding
Capital Securities) to any suit instituted by any Securityholder for the
enforcement of the payment of the principal of (or premium, if any) or interest
on any Debt Security against the Company on or after the same shall have become
due and payable, or to any suit instituted in accordance with Section 14.12.

CONCERNING THE TRUSTEE

Duties
and Responsibilities of Trustee.

With
respect to the holders of Debt Securities issued hereunder, the Trustee, prior
to the occurrence of an Event of Default with respect to the Debt Securities
and after the curing or waiving of all Events of Default which may have
occurred, with respect to the Debt Securities, undertakes to perform such
duties and only such duties as are specifically set forth in this Indenture. In
case an Event of Default with respect to the Debt Securities 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 such person’s 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:

prior
to the occurrence of an Event of Default with respect to the Debt Securities
and after the curing or waiving of all Events of Default which may have
occurred

the duties and
obligations of the Trustee with respect to the Debt Securities 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
with respect to the Debt Securities as are specifically set forth in this
Indenture, and no implied covenants or obligations shall be read into this
Indenture against the Trustee; and

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 certificates or opinions furnished to the Trustee and conforming to
the requirements of this Indenture; but, in the case of any such certificates
or opinions which by any provision hereof are specifically required to be
furnished to the Trustee, the Trustee shall be under a duty to examine the same
to determine whether or not they conform on their face to the requirements of
this Indenture;

 30
 

 

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

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
Securityholders pursuant to Section 5.07, 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;

the
Trustee shall not be charged with knowledge of any Default or Event of Default
with respect to the Debt Securities unless either (1) a Responsible Officer
shall have actual knowledge of such Default or Event of Default or (2) written
notice of such Default or Event of Default shall have been given to the Trustee
by the Company or any other obligor on the Debt Securities or by any
Securityholder, except with respect to an Event of Default pursuant to Sections
5.01 (a) or 5.01 (b) hereof (other than an Event of Default resulting from the
default in the payment of Additional Interest or premium, if any, if the
Trustee does not have actual knowledge or written notice that such payment is
due and payable), of which the Trustee shall be deemed to have knowledge; and

(e)           in the absence of bad faith on the
part of the Trustee, the Trustee may seek and rely on reasonable instructions
from the Company.

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.

Reliance
on Documents, Opinions, etc.

Except
as otherwise provided in Section 6.01:

the
Trustee may conclusively rely and shall be fully 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 believed by it in good faith to be genuine and to have
been signed or presented by the proper party or parties;

any
request, direction, order or demand of the Company mentioned herein shall 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 Company;

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, suffered or omitted by it hereunder in good faith and in
accordance with such advice or Opinion of Counsel;

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
Securityholders, pursuant to the provisions of this Indenture, unless such Securityholders
shall have offered to the Trustee reasonable security or indemnity against the
costs, expenses and liabilities which may be incurred therein or thereby;

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 with respect to the Debt Securities (that has not been
cured or waived) to exercise with respect to the Debt Securities such of the
rights and powers vested in it by this Indenture, and to 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 such person’s own affairs;

 31
 

 

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 not less than a majority in principal amount of the
outstanding Debt Securities affected thereby; 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; and

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.

No
Responsibility for Recitals, etc.

The
recitals contained herein and in the Debt Securities (except in the certificate
of authentication of the Trustee or the Authenticating Agent) shall be taken as
the statements of the Company, 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 Debt Securities. The Trustee and the Authenticating
Agent shall not be accountable for the use or application by the Company of any
Debt Securities or the proceeds of any Debt Securities authenticated and
delivered by the Trustee or the Authenticating Agent in conformity with the
provisions of this Indenture.

Trustee,
Authenticating Agent, Paying Agents, Transfer Agents or Registrar May Own Debt
Securities.

The
Trustee or any Authenticating Agent or any Paying Agent or any transfer agent
or any Debt Security Registrar, in its individual or any other capacity, may become
the owner or pledgee of Debt Securities with the same rights it would have if
it were not Trustee, Authenticating Agent, Paying Agent, transfer agent or Debt
Security Registrar.

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 Company. So long as no
Event of Default shall have occurred and be continuing, all interest allowed on
any such moneys, if any, shall be paid from time to time to the Company upon
the written order of the Company, signed by the Chairman of the Board of
Directors, the President, the Chief Operating Officer, a Vice President, the
Treasurer or an Assistant Treasurer of the Company.

Compensation
and Expenses of Trustee.

Other
than as provided in the Fee Agreement of even date herewith, the Company
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 Company 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 Company will pay or reimburse the Trustee upon its written request
for all documented 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 reasonable expenses and
disbursements of its counsel and of all Persons not regularly in its employ)
except any such expense, disbursement or advance that arises from its
negligence, willful misconduct or bad faith. The Company also 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, liability or
expense including taxes (other than taxes based on the income of the Trustee), except
to the extent

 32
 

 

such loss, damage,
claim, liability or expense results from the negligence, willful misconduct or
bad faith of such indemnitee, 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 or liability in the premises. The
obligations of the Company under this Section 6.06 to compensate and indemnify
the Trustee and to pay or reimburse the Trustee for documented expenses,
disbursements and advances shall constitute additional indebtedness hereunder.
Such additional indebtedness shall be secured by (and the Company hereby grants
and pledges to the Trustee) a lien prior to that of the Debt Securities 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 Debt Securities.

Without
prejudice to any other rights available to the Trustee under applicable law,
when the Trustee incurs expenses or renders services in connection with an
Event of Default specified in subsections (d), (e) or (f) of Section 5.01, the
expenses (including the reasonable charges and expenses of its counsel) and the
compensation for the 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 shall survive the resignation or removal of the
Trustee and the defeasance or other termination of this Indenture.

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 be
herein specifically prescribed) may, in the absence of negligence, willful
misconduct or bad faith on the part of the Trustee, be deemed to be
conclusively proved and established by an Officers’ Certificate delivered to
the Trustee, and such certificate, in the absence of negligence, willful
misconduct or bad faith 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 upon the faith thereof.

Eligibility
of Trustee.

The
Trustee hereunder shall at all times be a U.S. Person that is a banking
corporation or national association organized and doing business under the laws
of the United States of America or any state thereof or of the District of
Columbia and 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, or
District of Columbia authority. If such corporation or national association
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 6.08 the combined capital and surplus of such
corporation or national association shall be deemed to be its combined capital
and surplus as set forth in its most recent records of condition so published.

The
Company may not, nor may any Person directly or indirectly controlling,
controlled by, or under common control with the Company, serve as Trustee,
notwithstanding that such corporation or national association shall be
otherwise eligible and qualified under this Article.

In
case at any time the Trustee shall cease to be eligible in accordance with the
provisions of this Section 6.08, the Trustee shall resign immediately in the
manner and with the effect specified in Section 6.09.

If
the Trustee has or shall acquire any “conflicting interest” within the meaning
of § 310(b) of the Trust Indenture Act, the Trustee shall either eliminate such
interest or resign, to the extent and in the manner provided by, and subject to
this Indenture.

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Resignation
or Removal of Trustee, Calculation Agent, Paying Agent or Debt Security
Registrar.

The
Trustee, or any trustee or trustees hereafter appointed, the Calculation Agent,
the Paying Agent and any Debt Security Registrar may at any time resign by
giving written notice of such resignation to the Company and by mailing notice
thereof, at the Company’s expense, to the Securityholders at their addresses as
they shall appear on the Debt Security Register. Upon receiving such notice of
resignation, the Company shall promptly appoint a successor or successors by
written instrument, in duplicate, executed by order of its Board of Directors,
one copy of which instrument shall be delivered to the resigning party and one
copy to the successor. If no successor shall have been so appointed and have
accepted appointment within 30 days after the mailing of such notice of
resignation to the affected Securityholders, the resigning party may petition
any court of competent jurisdiction for the appointment of a successor, or any
Securityholder who has been a bona fide holder of a Debt Security or Debt
Securities for at least six months may, subject to the provisions of Section
5.09, on behalf of himself or herself and all others similarly situated,
petition any such court for the appointment of a successor. Such court may thereupon,
after such notice, if any, as it may deem proper and prescribe, appoint a
successor.

In
case at any time any of the following shall occur -

the Trustee shall fail to
comply with the provisions of the last paragraph of Section 6.08 after written
request therefor by the Company or by any Securityholder who has been a bona
fide holder of a Debt Security or Debt Securities for at least six months,

the Trustee shall cease
to be eligible in accordance with the provisions of Section 6.08 and shall fail
to resign after written request therefor by the Company or by any such
Securityholder, or

the Trustee shall become
incapable of acting, or shall be adjudged 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 Company may remove the Trustee and appoint a successor Trustee by
written instrument, in duplicate, executed by order of the Board of Directors,
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
5.09, if no successor Trustee shall have been so appointed and have accepted
appointment within 30 days of the occurrence of any of (1), (2) or (3) above,
any Securityholder who has been a bona fide holder of a Debt Security or Debt
Securities for at least six months may, on behalf of himself or herself 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.

Upon
prior written notice to the Company and the Trustee, the holders of a majority
in aggregate principal amount of the Debt Securities at the time outstanding
may at any time remove the Trustee and nominate a successor Trustee, which
shall be deemed appointed as successor Trustee unless within ten Business Days
after such nomination the Company objects thereto, in which case or in the case
of a failure by such Securityholders to nominate a successor Trustee, the
Trustee so removed or any Securityholder, upon the terms and conditions and
otherwise as in subsection (a) of this Section 6.09 provided, may petition any
court of competent jurisdiction for an appointment of a successor.

Any
resignation or removal of the Trustee, the Calculation Agent, the Paying Agent
and any Debt Security Registrar a nd appointment of a successor pursuant to any
of the provisions of this Section 6.09 shall become effective upon acceptance
of appointment by the successor as provided in Section 6.10.

Acceptance
by Successor.

Any
successor Trustee, Calculation Agent, Paying Agent or Debt Security Registrar
appointed as provided in Section 6.09 shall execute, acknowledge and deliver to
the Company and to its predecessor an instrument accepting such appointment
hereunder, and thereupon the resignation or removal of the retiring party

 34
 

 

shall become
effective and such successor, without any further act, deed or conveyance,
shall become vested with all the rights, powers, duties and obligations with
respect to the Debt Securities of its predecessor hereunder, with like effect
as if originally named herein; but, nevertheless, on the written request of the
Company or of the successor, the party ceasing to act shall, upon payment of
the amounts then due it pursuant to the provisions of Section 6.06, execute and
deliver an instrument transferring to such successor all the rights and powers
of the party so ceasing to act and shall duly assign, transfer and deliver to
such successor all property and money held by such retiring party hereunder.
Upon request of any such successor, the Company shall execute any and all
instruments in writing for more fully and certainly vesting in and confirming
to such successor all such rights and powers. Any party ceasing to act shall,
nevertheless, retain a lien upon all property or funds held or collected to
secure any amounts then due it pursuant to the provisions of Section 6.06.

If a
successor Trustee is appointed, the Company, the retiring Trustee and the
successor Trustee shall execute and deliver an indenture supplemental hereto
which 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 Debt Securities as to which the predecessor Trustee
is not retiring shall continue to be vested in the predecessor Trustee, and
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 Trust
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 and 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.

No
successor Trustee shall accept appointment as provided in this Section 6.10
unless at the time of such acceptance such successor Trustee shall be eligible
and qualified under the provisions of Section 6.08.

In
no event shall a retiring Trustee, Calculation Agent, Paying Agent or Debt
Security Registrar be liable for the acts or omissions of any successor
hereunder.

Upon
acceptance of appointment by a successor Trustee, Calculation Agent, Paying
Agent or Debt Security Registrar as provided in this Section 6.10, the Company
shall mail notice of the succession to the Securityholders at their addresses
as they shall appear on the Debt Security Register. If the Company fails to
mail such notice within ten Business Days after the acceptance of appointment
by the successor, the successor shall cause such notice to be mailed at the
expense of the Company.

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 without the execution or filing
of any paper or any further act on the part of any of the parties hereto; provided,
that such Person shall be otherwise eligible and qualified under this Article.

In
case at the time such successor to the Trustee shall succeed to the trusts
created by this Indenture any of the Debt Securities shall have been
authenticated but not delivered, any such successor to the Trustee may adopt
the certificate of authentication of any predecessor Trustee, and deliver such
Debt Securities so authenticated; and in case at that time any of the Debt
Securities shall not have been authenticated, any successor to the Trustee may
authenticate such Debt Securities 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 it is anywhere in the Debt
Securities or in this Indenture provided 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 Debt Securities in
the name of any predecessor Trustee shall apply only to its successor or
successors by merger, conversion or consolidation.

 35
 

 

Authenticating
Agents.

There
may be one or more Authenticating Agents appointed by the Trustee upon the
request of the Company with power to act on its behalf and subject to its
direction in the authentication and delivery of Debt Securities issued upon
exchange or registration of transfer thereof as fully to all intents and
purposes as though any such Authenticating Agent had been expressly authorized
to authenticate and deliver Debt Securities; provided, that the Trustee shall
have no liability to the Company for any acts or omissions of the
Authenticating Agent with respect to the authentication and delivery of Debt
Securities. 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 $50,000,000 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 6.12 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 or converted or with
which it may be consolidated, or any Person resulting from any merger,
consolidation or conversion to which any Authenticating Agent shall be a party,
or any Person succeeding to all or substantially all of 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 6.12 without the execution or filing of any paper or any
further act on the part of the parties hereto or such Authenticating Agent.

Any
Authenticating Agent may at any time resign by giving written notice of
resignation to the Trustee and to the Company. The Trustee may at any time
terminate the agency of any Authenticating Agent with respect to the Debt
Securities by giving written notice of termination to such Authenticating Agent
and to the Company. 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 6.12, the Trustee may, and upon the request of the
Company shall, promptly appoint a successor Authenticating Agent eligible under
this Section 6.12, shall give written notice of such appointment to the Company
and shall mail notice of such appointment to all Securityholders as the names
and addresses of such Securityholders appear on the Debt Security Register. Any
successor Authenticating Agent upon acceptance of its appointment hereunder
shall become vested with all rights, powers, duties and responsibilities with
respect to the Debt Securities of its predecessor hereunder, with like effect
as if originally named as Authenticating Agent herein.

Other
than as provided in the Fee Agreement of even date herewith, the Company 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 and shall receive such reasonable indemnity as it may require
against the costs, expenses and liabilities incurred in furtherance of its
duties under this Section 6.12.

CONCERNING THE SECURITYHOLDERS

Action
by Securityholders.

Whenever
in this Indenture it is provided that the holders of a specified percentage in
aggregate principal amount of the Debt Securities or aggregate Liquidation
Amount of the Capital Securities may take any action (including the making of
any demand or request, the giving of any notice, consent or waiver or the
taking of any other action), the fact that at the time of taking any such
action the holders of such specified percentage have joined therein may be
evidenced (a) by any instrument or any number of instruments of similar tenor
executed by such Securityholders or holders of Capital Securities, as the case
may be, in person or by agent or proxy appointed in writing, or (b) by the
record of such Securityholders voting in favor thereof at any meeting of such
Securityholders duly called and held in accordance with the provisions of
Article VIII, or of such holders of Capital Securities duly called and held in
accordance with the provisions of the Declaration, or (c) by a combination of
such

 36
 

 

instrument or
instruments and any such record of such a meeting of such Securityholders, or
holders of Capital Securities, as the case may be, or (d) by any other method
the Trustee deems satisfactory.

If
the Company shall solicit from the Securityholders any request, demand,
authorization, direction, notice, consent, waiver or other action or revocation
of the same, the Company may, at its option, as evidenced by an Officers’
Certificate, fix in advance a record date for such Debt Securities for the
determination of Securityholders entitled to give such request, demand,
authorization, direction, notice, consent, waiver or other action or revocation
of the same, but the Company 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 or revocation of the same may be given before
or after the record date, but only the Securityholders of record at the close
of business on the record date shall be deemed to be Securityholders for the
purposes of determining whether holders of the requisite proportion of
outstanding Debt Securities have authorized or agreed or consented to such
request, demand, authorization, direction, notice, consent, waiver or other
action or revocation of the same, and for that purpose the outstanding Debt
Securities shall be computed as of the record date; provided, however,
that no such authorization, agreement or consent by such Securityholders on the
record date shall be deemed effective unless it shall become effective pursuant
to the provisions of this Indenture not later than six months after the record
date.

Proof
of Execution by Securityholders.

Subject
to the provisions of Sections 6.01, 6.02 and 8.05, proof of the execution of
any instrument by a Securityholder or such Securityholder’s 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 Debt Securities shall be proved
by the Debt Security Register or by a certificate of the Debt Security
Registrar. The Trustee may require such additional proof of any matter referred
to in this Section as it shall deem necessary.

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

Who
Are Deemed Absolute Owners.

Prior
to due presentment for registration of transfer of any Debt Security, the
Company, the Trustee, any Authenticating Agent, any Paying Agent, any transfer
agent and any Debt Security Registrar may deem the Person in whose name such
Debt Security shall be registered upon the Debt Security Register to be, and
may treat such Person as, the absolute owner of such Debt Security (whether or
not such Debt Security shall be overdue) for the purpose of receiving payment
of or on account of the principal of, premium, if any, and interest on such
Debt Security and for all other purposes; and neither the Company nor the
Trustee nor any Authenticating Agent nor any Paying Agent nor any transfer
agent nor any Debt Security Registrar shall be affected by any notice to the
contrary. All such payments so made to any Securityholder for the time being or
upon such Securityholder’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 Debt Security.

Debt
Securities Owned by Company Deemed Not Outstanding.

In
determining whether the holders of the requisite aggregate principal amount of
Debt Securities have concurred in any direction, consent or waiver under this
Indenture, Debt Securities which are owned by the Company or any other obligor
on the Debt Securities or by any Person directly or indirectly controlling or
controlled by or under direct or indirect common control with the Company
(other than the Trust) or any other obligor on the Debt Securities shall be
disregarded and deemed not to be outstanding for the purpose of any such
determination; provided, that for the purposes of determining whether
the Trustee shall be protected in relying on any such direction, consent or
waiver, only Debt Securities which a Responsible Officer of the Trustee
actually knows are so owned shall be so disregarded. Debt Securities 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 Debt Securities
and that the pledgee is not the Company or any such other obligor or Person
directly or indirectly controlling or controlled by or under direct or indirect
common control with the

 37
 

 

Company 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.

Revocation
of Consents; Future Securityholders 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 Debt Securities specified in this Indenture
in connection with such action, any Securityholder (in cases where no record
date has been set pursuant to Section 7.01) or any holder as of an applicable
record date (in cases where a record date has been set pursuant to Section
7.01) of a Debt Security (or any Debt Security issued in whole or in part in
exchange or substitution therefor) the serial number of which is shown by the
evidence to be included in the Debt Securities the holders of which have
consented to such action may, by filing written notice with the Trustee at the
Principal Office of the Trustee and upon proof of holding as provided in
Section 7.02, revoke such action so far as concerns such Debt Security (or so
far as concerns the principal amount represented by any exchanged or
substituted Debt Security). Except as aforesaid any such action taken by the
holder of any Debt Security shall be conclusive and binding upon such
Securityholder and upon all future holders and owners of such Debt Security,
and of any Debt Security issued in exchange or substitution therefor or on
registration of transfer thereof, irrespective of whether or not any notation
in regard thereto is made upon such Debt Security or any Debt Security issued
in exchange or substitution therefor.

SECURITYHOLDERS’ MEETINGS

Purposes
of Meetings.

A
meeting of Securityholders 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:

to
give any notice to the Company or to the Trustee, or to give any directions to
the Trustee, or to consent to the waiving of any default hereunder and its
consequences, or to take any other action authorized to be taken by
Securityholders pursuant to any of the provisions of Article V;

to
remove the Trustee and nominate a successor trustee pursuant to the provisions
of Article VI;

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

to
take any other action authorized to be taken by or on behalf of the holders of
any specified aggregate principal amount of such Debt Securities under any
other provision of this Indenture or under applicable law.

Call
of Meetings by Trustee.

The
Trustee may at any time call a meeting of Securityholders to take any action
specified in Section 8.01, to be held at such time and at such place in New
York or Wilmington, Delaware, as the Trustee shall determine. Notice of every
meeting of the Securityholders, 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 Securityholder affected at their addresses as they shall
appear on the Debt Securities Register. Such notice shall be mailed not less
than 20 nor more than 180 days prior to the date fixed for the meeting.

Call
of Meetings by Company or Securityholders.

In
case at any time the Company pursuant to a Board Resolution, or the holders of
at least 10% in aggregate principal amount of the Debt Securities, as the case
may be, then outstanding, shall have requested the

 38
 

 

Trustee to call a
meeting of Securityholders, 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 Company or such Securityholders may determine the time and
the place in 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.

Qualifications
for Voting.

To
be entitled to vote at any meeting of Securityholders a Person shall be (a) a
holder of one or more Debt Securities with respect to which the meeting is
being held or (b) a Person appointed by an instrument in writing as proxy by a
holder of one or more such Debt Securities. The only Persons who shall be
entitled to be present or to speak at any meeting of Securityholders 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
Company and its counsel.

Regulations.

Notwithstanding
any other provisions of this Indenture, the Trustee may make such reasonable
regulations as it may deem advisable for any meeting of Securityholders, in
regard to proof of the holding of Debt Securities 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 deem appropriate.

The
Trustee shall, by an instrument in writing, appoint a temporary chairman of the
meeting, unless the meeting shall have been called by the Company or by
Securityholders as provided in Section 8.03, in which case the Company or the
Securityholders 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 at the meeting.

Subject
to the provisions of Section 7.04, at any meeting each Securityholder with
respect to which such meeting is being held or proxy therefor shall be entitled
to one vote for each $1,000 principal amount of Debt Securities held or
represented by such Securityholder; provided, however, that no
vote shall be cast or counted at any meeting in respect of any Debt Security
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 Debt Securities held by such chairman or instruments in
writing as aforesaid duly designating such chairman as the Person to vote on
behalf of other Securityholders. Any meeting of Securityholders duly called
pursuant to the provisions of Section 8.02 or 8.03 may be adjourned from time
to time by a majority of those present, whether or not constituting a quorum,
and the meeting may be held as so adjourned without further notice.

Voting.

The
vote upon any resolution submitted to any meeting of Securityholders with
respect to which such meeting is being held shall be by written ballots on
which shall be subscribed the signatures of such Securityholders or of their
representatives by proxy and the serial number or numbers of the Debt
Securities 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 Securityholders 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 Debt Securities 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 Company 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.

 39

 

Quorum;
Actions.

The
Persons entitled to vote a majority in outstanding principal amount of the Debt
Securities shall constitute a quorum for a meeting of Securityholders; 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 outstanding principal amount of the Debt Securities, the Persons
holding or representing such specified percentage in outstanding principal
amount of the Debt Securities 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 Securityholders, 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 outstanding principal amount of the Debt Securities 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 not less than a majority in outstanding principal amount of the Debt
Securities; 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 outstanding principal amount of the
Debt Securities 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
outstanding principal amount of the Debt Securities.

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

Written
Consent Without a Meeting.

Whenever
under this Indenture, Securityholders are required or permitted to take any
action by vote, such action may be taken without a meeting on written consent,
setting forth the action so taken, signed by the Securityholders of all
outstanding Debt Securities entitled to vote thereon.  No consent shall be effective to take the
action referred to therein unless, within sixty days of the earliest dated
consent delivered in the manner required by this paragraph to the Trustee,
written consents signed by a sufficient number of Securityholders to take
action are delivered to the Trustee at its Principal Office.  Delivery made to the Trustee at its Principal
Office, shall be by hand or by certificated or registered mail, return receipt
requested.  Written consent thus given by
the Securityholders of such number of Debt Securities as is required hereunder,
shall have the same effect as a valid vote of Securityholders of such number of
Debt Securities.

SUPPLEMENTAL INDENTURES

Supplemental
Indentures without Consent of Securityholders.

The
Company, when authorized by a Board Resolution, and the Trustee may from time
to time and at any time enter into an indenture or indentures supplemental
hereto, without the consent of the Securityholders, for one or more of the
following purposes:

 40
 

 

to
evidence the succession of another Person to the Company, or successive
successions, and the assumption by the successor Person of the covenants,
agreements and obligations of the Company, pursuant to Article XI hereof;

to
add to the covenants of the Company such further covenants, restrictions or
conditions for the protection of the Securityholders as the Board of Directors
shall consider to be for the protection of the Securityholders, and to make the
occurrence, or the occurrence and continuance, of a Default in any of such
additional covenants, restrictions or conditions a Default or an Event of
Default permitting the enforcement of all or any of the several 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 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;

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 or amend such other provisions in regard to matters or questions arising
under this Indenture; provided, that any such action shall not adversely
affect the interests of the Securityholders;

to
add to, delete from, or revise the terms of Debt Securities, including, without
limitation, any terms relating to the issuance, exchange, registration or transfer
of Debt Securities, including to provide for transfer procedures and
restrictions substantially similar to those applicable to the Capital
Securities, as required by Section 2.05 (for purposes of assuring that no
registration of Debt Securities is required under the Securities Act of 1933,
as amended); provided, that any such action shall not adversely affect the
interests of the holders of the Debt Securities then outstanding (it being
understood, for purposes of this proviso, that transfer restrictions on Debt
Securities substantially similar to those applicable to Capital Securities
shall not be deemed to adversely affect the Securityholders);

to
evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Debt Securities and to add to or change any of the
provisions of this Indenture as shall be necessary to provide for or facilitate
the administration of the trusts hereunder by more than one Trustee, pursuant
to the requirements of Section 6.10;

to
make any change (other than as elsewhere provided in this paragraph) that does
not adversely affect the rights of any Securityholder in any material respect;
or

to
provide for the issuance of and establish the form and terms and conditions of
the Debt Securities, to establish the form of any certifications required to be
furnished pursuant to the terms of this Indenture or the Debt Securities, or to
add to the rights of the Securityholders.

The
Trustee is hereby authorized to join with the Company in the execution of any
such supplemental indenture, 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 authorized by the provisions of this Section 9.01 may be
executed by the Company and the Trustee without the consent of the
Securityholders at the time outstanding, notwithstanding any of the provisions
of Section 9.02.

Supplemental
Indentures with Consent of Securityholders.

With
the consent (evidenced as provided in Section 7.01) of the holders of not less
than a majority in aggregate principal amount of the Debt Securities at the
time outstanding affected by such supplemental indenture (voting as a class),
the Company, when authorized by a Board Resolution, and the Trustee may from
time to time

 41
 

 

and at any time
enter into an indenture or indentures supplemental hereto (which shall conform
to the provisions of the Trust Indenture Act, then in effect, applicable to
indentures qualified thereunder) for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Indenture
or of any supplemental indenture or of modifying in any manner the rights of
the Securityholders; provided, however, that no such supplemental
indenture shall without such consent of the holders of each Debt Security then
outstanding and affected thereby (i) extend the Maturity Date of any Debt
Security, or reduce the principal amount thereof or any premium thereon, or
reduce the rate (or manner of calculation of the rate) or extend the time of
payment of interest thereon, or reduce (other than as a result of the maturity
or earlier redemption of any such Debt Security in accordance with the terms of
this Indenture and such Debt Security) or increase the aggregate principal
amount of Debt Securities then outstanding, or change any of the redemption
provisions, or make the principal thereof or any interest or premium thereon
payable in any coin or currency other than United States Dollars, or impair or affect
the right of any Securityholder to institute suit for payment thereof or impair
the right of repayment, if any, at the option of the Securityholder, or (ii)
reduce the aforesaid percentage of Debt Securities the holders of which are
required to consent to any such supplemental indenture; and provided, further,
that if the Debt Securities are held by the Trust or a trustee of such trust,
such supplemental indenture shall not be effective until the holders of a
majority in Liquidation Amount of the outstanding Capital Securities shall have
consented to such supplemental indenture; provided, further, that
if the consent of the Securityholder of each outstanding Debt Security is
required, such supplemental indenture shall not be effective until each holder of
the outstanding Capital Securities shall have consented to such supplemental
indenture.

Upon
the request of the Company accompanied by a Board Resolution authorizing the
execution of any such supplemental indenture, and upon the filing with the
Trustee of evidence of the consent of Securityholders (and holders of Capital
Securities, if required) as aforesaid, the Trustee shall join with the Company
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 Company 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
Company, setting forth in general terms the substance of such supplemental
indenture, to the Securityholders as their names and addresses appear upon the
Debt Security 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.

It
shall not be necessary for the consent of the Securityholders 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.

Effect
of Supplemental Indentures.

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
Company and the Securityholders 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.

Notation
on Debt Securities.

Debt
Securities authenticated and delivered after the execution of any supplemental
indenture pursuant to the provisions of this Article IX may bear a notation as
to any matter provided for in such supplemental indenture. If the Company or
the Trustee shall so determine, new Debt Securities so modified as to conform,
in the opinion of the Board of Directors of the Company, to any modification of
this Indenture contained in any such supplemental indenture may be prepared and
executed by the Company, authenticated by the Trustee or the Authenticating
Agent and delivered in exchange for the Debt Securities then outstanding.

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Evidence
of Compliance of Supplemental Indenture to be furnished to Trustee
..

The
Trustee, subject to the provisions of Sections 6.01 and 6.02, shall, in
addition to the documents required by Section 14.06, 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. The Trustee shall receive an Opinion of Counsel as
conclusive evidence that any supplemental indenture executed pursuant to this
Article IX is authorized or permitted by, and conforms to, the terms of this
Article IX and that it is proper for the Trustee under the provisions of this
Article IX to join in the execution thereof.

REDEMPTION OF SECURITIES

Optional
Redemption.

At
any time the Company shall have the right, subject to the receipt by the
Company of prior approval from any regulatory authority with jurisdiction over
the Company if such approval is then required under applicable capital
guidelines or policies of such regulatory authority, to redeem the Debt
Securities, in whole or (provided that all accrued and unpaid interest has been
paid on all Debt Securities for all Interest Payment Periods terminating on or
prior to such date) from time to time in part, on any January 7, April 7, July
7 or October 7 on or after October 7, 2011 (the “Redemption Date”), at the
Redemption Price.

Special
Event Redemption.

If a
Special Event shall occur and be continuing, the Company shall have the right,
subject to the receipt by the Company of prior approval from any regulatory
authority with jurisdiction over the Company if such approval is then required
under applicable capital guidelines or policies of such regulatory authority,
to redeem the Debt Securities, in whole or in part, at any time within 90 days
following the occurrence of such Special Event (the “Special Redemption Date”),
at the Special Redemption Price.

Notice
of Redemption; Selection of Debt Securities.

In
case the Company shall desire to exercise the right to redeem all, or, as the
case may be, any part of the Debt Securities, it shall fix a date for
redemption and shall mail, or cause the Trustee to mail (at the expense of the
Company) a notice of such redemption at least 30 and not more than 60 days
prior to the date fixed for redemption to the Securityholders so to be redeemed
as a whole or in part at their last addresses as the same appear on the Debt
Security Register. Such mailing shall be by first class mail. The notice if mailed
in the manner herein provided shall be conclusively presumed to have been duly
given, whether or not the Securityholder receives such notice. In any case,
failure to give such notice by mail or any defect in the notice to the holder
of any Debt Security designated for redemption as a whole or in part shall not
affect the validity of the proceedings for the redemption of any other Debt
Security.

Each
such notice of redemption shall specify the CUSIP number, if any, of the Debt
Securities to be redeemed, the date fixed for redemption, the redemption price
(or manner of calculation of the price) at which Debt Securities are to be
redeemed, the place or places of payment, that payment will be made upon
presentation and surrender of such Debt Securities, that interest accrued to
the date fixed for redemption will be paid as specified in said notice, and
that on and after said date interest thereon or on the portions thereof to be
redeemed will cease to accrue. If less than all the Debt Securities are to be redeemed
the notice of redemption shall specify the numbers of the Debt Securities to be
redeemed. In case the Debt Securities are to be redeemed in part only, the
notice of redemption shall state the portion of the principal amount thereof to
be redeemed and shall state that on and after the date fixed for redemption,
upon surrender of such Debt Security, a new Debt Security or Debt Securities in
principal amount equal to the unredeemed portion thereof will be issued.

Prior
to 10:00 a.m. New York City time on the Redemption Date or the Special
Redemption Date specified in the notice of redemption given as provided in this
Section, the Company will deposit with the Trustee or

 43
 

 

with one or more
Paying Agents an amount of money sufficient to redeem on the redemption date
all the Debt Securities so called for redemption at the appropriate redemption
price, together with unpaid interest accrued to such date.

The
Company will give the Trustee notice not less than 45 nor more than 60 days
prior to the Redemption Date as to the Redemption Price at which the Debt
Securities are to be redeemed and the aggregate principal amount of Debt
Securities to be redeemed and the Trustee shall select, in such manner as in
its sole discretion it shall deem appropriate and fair, the Debt Securities or
portions thereof (in integral multiples of $1,000) to be redeemed.

Payment
of Debt Securities Called for Redemption.

If
notice of redemption has been given as provided in Section 10.03, the Debt
Securities or portions of Debt Securities with respect to which such notice has
been given shall become due and payable on the Redemption Date or the Special
Redemption Date (as the case may be) and at the place or places stated in such
notice at the applicable redemption price, together with interest accrued to
the date fixed for redemption, and on and after said Redemption Date or the
Special Redemption Date (unless the Company shall default in the payment of
such Debt Securities at the redemption price, together with unpaid interest
accrued thereon to said date) interest on the Debt Securities or portions of
Debt Securities so called for redemption shall cease to accrue. On presentation
and surrender of such Debt Securities at a place of payment specified in said
notice, such Debt Securities or the specified portions thereof shall be paid
and redeemed by the Company at the applicable redemption price, together with
unpaid interest accrued thereon to the Redemption Date or the Special
Redemption Date (as the case may be).

Upon
presentation of any Debt Security redeemed in part only, the Company shall
execute and the Trustee shall authenticate and make available for delivery to
the holder thereof, at the expense of the Company, a new Debt Security or Debt
Securities of authorized denominations in principal amount equal to the
unredeemed portion of the Debt Security so presented.

CONSOLIDATION, MERGER, SALE, CONVEYANCE AND LEASE

Company
May Consolidate, etc., on Certain Terms.

Nothing
contained in this Indenture or in the Debt Securities shall prevent any
consolidation or merger of the Company with or into any other corporation or
corporations (whether or not affiliated with the Company) or successive
consolidations or mergers in which the Company or its successor or successors
shall be a party or parties, or shall prevent any sale, conveyance, transfer or
other disposition of all or substantially all of the property or capital stock
of the Company or its successor or successors, to any other corporation
(whether or not affiliated with the Company, or its successor or successors)
authorized to acquire and operate the same; provided, however,
that the Company hereby covenants and agrees that, (i) upon any such
consolidation, merger (where the Company is not the surviving corporation),
sale, conveyance, transfer or other disposition, the successor entity shall be
a corporation organiz ed and existing under the laws of the United States or
any state thereof or the District of Columbia (unless such corporation has (1)
agreed to make all payments due in respect of the Debt Securities or, if
outstanding, the Capital Securities and Capital Securities Guarantee without
withholding or deduction for, or on account of, any taxes, duties, assessments
or other governmental charges under the laws or regulations of the jurisdiction
of organization or residence (for tax purposes) of such corporation or any
political subdivision or taxing authority thereof or therein unless required by
applicable law, in which case such corporation shall have agreed to pay such
additional amounts as shall be required so that the net amounts received and
retained by the Securityholders or holders of Capital Securities, as the case
may be, after payment of all taxes (including withholding taxes), duties,
assessments or other governmental charges, will be equal to the amounts that
such Securityholders or holders of Capital Securities would have received and
retained had no such taxes (including withholding taxes), duties, assessments
or other governmental charges been imposed, (2) irrevocably and unconditionally
consented and submitted to the jurisdiction of any United States federal court
or New York state court, in each case located in The City of New York, Borough
of Manhattan, in respect of any action, suit or proceeding against it arising out
of or in connection with this Indenture, the Debt Securities, the Capital
Securities

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Guarantee or the
Declaration and irrevocably and unconditionally waived, to the fullest extent
permitted by law, any objection to the laying of venue in any such court or
that any such action, suit or proceeding has been brought in an inconvenient
forum and (3) irrevocably appointed an agent in The City of New York for
service of process in any action, suit or proceeding referred to in clause (2)
above) and such corporation expressly assumes all of the obligations of the
Company under the Debt Securities, this Indenture, the Capital Securities
Guarantee and the Declaration and (ii) after giving effect to any such
consolidation, merger, sale, conveyance, transfer or other disposition, no
Default or Event of Default shall have occurred and be continuing.

Successor
Entity to be Substituted.

In
case of any such consolidation, merger, sale, conveyance, transfer or other
disposition contemplated in Section 11.01 and upon the assumption by the
successor entity, by supplemental indenture, executed and delivered to the
Trustee and reasonably satisfactory in form to the Trustee, of the due and
punctual payment of the principal of and premium, if any, and interest on all
of the Debt Securities 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 Company, such successor entity shall succeed to and be
substituted for the Company, with the same effect as if it had been named
herein as the Company, and thereupon the predecessor entity shall be relieved
of any further liability or obligation hereunder or upon the Debt Securities.
Such successor entity thereupon may cause to be signed, and may issue either in
its own name or in the name of the Company, any or all of the Debt Securities
issuable hereunder which theretofore shall not have been signed by the Company
and delivered to the Trustee or the Authenticating Agent; and, upon the order
of such successor entity instead of the Company and subject to all the terms,
conditions and limitations in this Indenture prescribed, the Trustee or the
Authenticating Agent shall authenticate and deliver any Debt Securities which
previously shall have been signed and delivered by the officers of the Company,
to the Trustee or the Authenticating Agent for authentication, and any Debt
Securities which such successor entity thereafter shall cause to be signed and
delivered to the Trustee or the Authenticating Agent for that purpose. All the
Debt Securities so issued shall in all respects have the same legal rank and
benefit under this Indenture as the Debt Securities theretofore or thereafter
issued in accordance with the terms of this Indenture as though all of such
Debt Securities had been issued at the date of the execution hereof.

Opinion
of Counsel to be Given to Trustee.

The
Trustee, subject to the provisions of Sections 6.01 and 6.02, shall receive, in
addition to the Opinion of Counsel required by Section 9.05, an Opinion of
Counsel as conclusive evidence that any consolidation, merger, sale,
conveyance, transfer or other disposition, and any assumption, permitted or
required by the terms of this Article XI complies with the provisions of this
Article XI.

SATISFACTION AND DISCHARGE OF INDENTURE

Discharge
of Indenture.

When
(a) the Company shall deliver to the Trustee for cancellation all Debt
Securities theretofore authenticated (other than any Debt Securities which
shall have been destroyed, lost or stolen and which shall have been replaced or
paid as provided in Section 2.06) and not theretofore canceled, or (b) all the
Debt Securities 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 or are to be called for redemption within one
year under arrangements satisfactory to the Trustee for the giving of notice of
redemption, and the Company shall deposit with the Trustee, in trust, funds,
which shall be immediately due and payable, sufficient to pay at maturity or
upon redemption all of the Debt Securities (other than any Debt Securities
which shall have been destroyed, lost or stolen and which shall have been
replaced or paid as provided in Section 2.06) not theretofore canceled or
delivered to the Trustee for cancellation, including principal and premium, if
any, and interest due or to become due to such date of maturity or redemption
date, as the case may be, but excluding, however, the amount of any moneys for
the payment of principal of, and premium, if any, or interest on the Debt
Securities (1) theretofore repaid to the Company in accordance with the
provisions of Section 12.04, or (2) paid to any state or to the District of
Columbia pursuant to its unclaimed property or similar laws, and if in the case
of either clause (a) or clause (b) the Company shall also pay or

 45
 

 

cause to be paid
all other sums payable hereunder by the Company, then this Indenture shall
cease to be of further effect except for the provisions of Sections 2.05, 2.06,
3.01, 3.02, 3.04, 6.06, 6.09 and 12.04 hereof, which shall survive until such
Debt Securities shall mature or are redeemed, as the case may be, and are paid
in full. Thereafter, Sections 6.06, 6.09 and 12.04 shall survive, and the
Trustee, on demand of the Company accompanied by an Officers’ Certificate and
an Opinion of Counsel, each stating that all conditions precedent herein
provided for relating to the satisfaction and discharge of this Indenture have
been complied with, and at the cost and expense of the Company, shall execute
proper instruments acknowledging satisfaction of and discharging this
Indenture, the Company, however, hereby agreeing to reimburse the Trustee for
any costs or expenses thereafter reasonably and properly incurred by the
Trustee in connection with this Indenture or the Debt Securities.

Deposited
Moneys to be Held in Trust by Trustee.

Subject
to the provisions of Section 12.04, all moneys deposited with the Trustee
pursuant to Section 12.01 shall be held in trust and applied by it to the
payment, either directly or through any Paying Agent (including the Company if
acting as its own Paying Agent), to the holders of the particular Debt
Securities for the payment of which such moneys have been deposited with the
Trustee, of all sums due and to become due thereon for principal, and premium,
if any, and interest.

Paying
Agent to Repay Moneys Held.

Upon
the satisfaction and discharge of this Indenture, all moneys then held by any
Paying Agent of the Debt Securities (other than the Trustee) shall, upon demand
of the Company, be repaid to the Company or paid to the Trustee, and thereupon
such Paying Agent shall be released from all further liability with respect to
such moneys.

Return
of Unclaimed Moneys.

Any
moneys deposited with or paid to the Trustee or any Paying Agent for payment of
the principal of, and premium, if any, or interest on Debt Securities and not
applied but remaining unclaimed by the Securityholders for two years after the
date upon which the principal of, and premium, if any, or interest on such Debt
Securities, as the case may be, shall have become due and payable, shall be
repaid to the Company by the Trustee or such Paying Agent on written demand;
and the holder of any of the Debt Securities shall thereafter look only to the
Company for any payment which such Securityholder may be entitled to collect
and all liability of the Trustee or such Paying Agent with respect to such
moneys shall thereupon cease.

IMMUNITY OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

Indenture
and Debt Securities Solely Corporate Obligations.

No
recourse for the payment of the principal of or premium, if any, or interest on
any Debt Security, or for any claim based thereon or otherwise in respect
thereof, and no recourse under or upon any obligation, covenant or agreement of
the Company in this Indenture or in any supplemental indenture, or in any such
Debt Security, or because of the creation of any indebtedness represented
thereby, shall be had against any incorporator, stockholder, officer, director,
employee or agent, as such, past, present or future, of the Company or of any
predecessor or successor corporation of the Company, either directly or through
the Company or any successor corporation of the Company, 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 issue of the Debt
Securities.

 46
 

 

MISCELLANEOUS PROVISIONS

 

Successors.

All
the covenants, stipulations, promises and agreements of the Company contained
in this Indenture shall bind its successors and assigns whether so expressed or
not.

Official
Acts by Successor Entity.

Any
act or proceeding by any provision of this Indenture authorized or required to
be done or performed by any board, committee or officer of the Company shall
and may be done and performed with like force and effect by the like board,
committee, officer or other authorized Person of any entity that shall at the
time be the lawful successor of the Company.

Surrender
of Company Powers.

The
Company 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 Company hereunder and thereupon such power so
surrendered shall terminate both as to the Company and as to any permitted successor.

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 Securityholders on the
Company may be given or served in writing by being deposited postage prepaid by
registered or certified mail in a post office letter box addressed (until
another address is filed by the Company with the Trustee for such purpose) to
the Company at:

Team Financial, Inc.

8 West Peoria, Suite 200

Paola, Kansas 66071

Attention:  Michael L. Gibson

Any
notice, direction, request or demand by any Securityholder or the Company 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 Wells Fargo Bank,
National Association at:

919 Market Street

Suite 700

Wilmington, DE 19801

Attention: Corporate Trust Division

Governing
Law.

This
Indenture and each Debt Security shall be deemed to be a contract made under
the law of the State of New York, and for all purposes shall be governed by and
construed in accordance with the law of said State, without regard to conflict
of laws principles of said State other than Section 5 1401 of the New York
General Obligations Law.

Evidence
of Compliance with Conditions Precedent.

Upon
any application or demand by the Company to the Trustee to take any action
under any of the provisions of this Indenture, the Company 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 is required to be
furnished to the Trustee in connection with the authentication and issuance of
Debt Securities issued on the date of this Indenture).

 47
 

 

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 or she has made such examination or
investigation as is necessary to enable him or her to express an informed
opinion as to whether or not such covenant or condition has been 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.

Non-Business
Days.

Notwithstanding
anything to the contrary contained herein, if any Interest Payment Date, other
than on the Maturity Date, any Redemption Date or the Special Redemption Date,
falls on a day that is not a Business Day, then any interest payable will be
paid on, and such Interest Payment Date will be moved to, the next succeeding
Business Day, and additional interest will accrue for each day that such
payment is delayed as a result thereof. 
If the Maturity Date, any Redemption Date or the Special Redemption Date
falls on a day that is not a Business Day, then the principal, premium, if any,
and/or interest payable on such date will be paid on the next succeeding
Business Day, and no additional interest will accrue in respect of such payment
made on such next succeeding Business Day (except that, if such Business Day
falls in the next calendar year, such payment will be made on the immediately
preceding Business Day).

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.

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.

Severability.

In
case any one or more of the provisions contained in this Indenture or in the
Debt Securities 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 such Debt
Securities, but this Indenture and such Debt Securities shall be construed as
if such invalid or illegal or unenforceable provision had never been contained
herein or therein.

Assignment.

Subject
to Article XI, the Company will have the right at all times to assign any of
its rights or obligations under this Indenture to a direct or indirect wholly
owned Subsidiary of the Company; provided, however, that, in the event
of any such assignment, the Company will remain liable for all such
obligations. Subject to the foregoing, this Indenture is binding upon and
inures to the benefit of the parties hereto and their respective successors and
assigns. This Indenture may not otherwise be assigned by the parties thereto.

Acknowledgment
of Rights.

The
Company acknowledges that, with respect to any Debt Securities held by the
Trust or the Institutional Trustee of the Trust, if the Institutional Trustee
of the Trust fails to enforce its rights under this Indenture as the
Securityholder held as the assets of the Trust after the holders of a majority
in Liquidation Amount of the Capital Securities of the Trust have so directed
in writing such Institutional Trustee, a holder of record of such Capital
Securities may to the fullest extent permitted by law institute legal
proceedings directly against the Company

 48
 

 

to enforce such
Institutional Trustee’s rights under this Indenture without first instituting
any legal proceedings against such Institutional Trustee or any other Person.
Notwithstanding the foregoing, if an Event of Default has occurred and is
continuing and such event is attributable to the failure of the Company to pay
interest (or premium, if any) or principal on the Debt Securities on the date
such interest (or premium, if any) or principal is otherwise due and payable
(or in the case of redemption, on the redemption date), the Company
acknowledges that a holder of record of Capital Securities of the Trust may
directly institute a proceeding against the Company for enforcement of payment
to such holder directly of the principal of (or premium, if any) or interest on
the Debt Securities having an aggregate principal amount equal to the aggregate
Liquidation Amount of the Capital Securities of such holder on or after the
respective due date specified in the Debt Securities.

SUBORDINATION OF DEBT SECURITIES

Agreement
to Subordinate.

The
Company covenants and agrees, and each holder of Debt Securities issued
hereunder and under any supplemental indenture (the “Additional Provisions”) by
such Securityholder’s acceptance thereof likewise covenants and agrees, that
all Debt Securities shall be issued subject to the provisions of this Article
XV; and each Securityholder, whether upon original issue or upon transfer or
assignment thereof, accepts and agrees to be bound by such provisions.

The
payment by the Company of the payments due on all Debt Securities issued
hereunder and under any Additional Provisions shall, to the extent and in the
manner hereinafter set forth, be subordinated and junior in right of payment to
the prior payment in full of all Senior Indebtedness of the Company, whether
outstanding at the date of this Indenture or thereafter incurred.

No
provision of this Article XV shall prevent the occurrence of any Default or
Event of Default hereunder.

Default
on Senior Indebtedness.

In
the event and during the continuation of any default by the Company in the
payment of principal, premium, interest or any other payment due on any Senior
Indebtedness of the Company following any applicable grace period, or in the
event that the maturity of any Senior Indebtedness of the Company has been
accelerated because of a default, and such acceleration has not been rescinded
or canceled and such Senior Indebtedness has not been paid in full, then, in either
case, no payment shall be made by the Company with respect to the payments due
on the Debt Securities.

In
the event that, notwithstanding the foregoing, any payment shall be received by
the Trustee when such payment is prohibited by the preceding paragraph of this
Section 15.02, such payment shall, subject to Section 15.06, be held in trust
for the benefit of, and shall be paid over or delivered to, the holders of
Senior Indebtedness or their respective representatives, or to the trustee or
trustees under any indenture pursuant to which any of such Senior Indebtedness
may have been issued, as their respective interests may appear, but only to the
extent that the holders of the Senior Indebtedness (or their representative or
representatives or a trustee) notify the Trustee in writing within 90 days of
such payment of the amounts then due and owing on the Senior Indebtedness and
only the amounts specified in such notice to the Trustee shall be paid to the
holders of Senior Indebtedness.

Liquidation;
Dissolution; Bankruptcy.

Upon
any payment by the Company or distribution of assets of the Company of any kind
or character, whether in cash, property or securities, to creditors upon any
dissolution or winding-up or liquidation or reorganization of the Company,
whether voluntary or involuntary or in bankruptcy, insolvency, receivership or
other proceedings, all amounts due upon all Senior Indebtedness of the Company
shall first be paid in full, or payment thereof provided for in money in
accordance with its terms, before any payment is made by the Company on the

 49
 

 

Debt Securities;
and upon any such dissolution or winding-up or liquidation or reorganization,
any payment by the Company, or distribution of assets of the Company of any
kind or character, whether in cash, property or securities, to which the
Securityholders or the Trustee would be entitled to receive from the Company,
except for the provisions of this Article XV, shall be paid by the Company, or
by any receiver, trustee in bankruptcy, liquidating trustee, agent or other
Person making such payment or distribution, or by the Securityholders or by the
Trustee under this Indenture if received by them or it, directly to the holders
of Senior Indebtedness of the Company (pro rata to such holders on the basis of
the respective amounts of Senior Indebtedness held by such holders, as
calculated by the Company) or their representative or representatives, or to
the trustee or trustees under any indenture pursuant to which any instruments
evidencing such Senior Indebtedness may have been issued, as their respective
interests may appear, to the extent necessary to pay such Senior Indebtedness
in full, in money or money’s worth, after giving effect to any concurrent
payment or distribution to or for the holders of such Senior Indebtedness,
before any payment or distribution is made to the Securityholders.

In
the event that, notwithstanding the foregoing, any payment or distribution of
assets of the Company of any kind or character, whether in cash, property or
securities, prohibited by the foregoing, shall be received by the Trustee
before all Senior Indebtedness of the Company is paid in full, or provision is
made for such payment in money in accordance with its terms, such payment or
distribution shall be held in trust for the benefit of and shall be paid over
or delivered to the holders of such Senior Indebtedness or their representative
or representatives, or to the trustee or trustees under any indenture pursuant
to which any instruments evidencing such Senior Indebtedness may have been
issued, as their respective interests may appear, as calculated by the Company,
for application to the payment of all Senior Indebtedness of the Company
remaining unpaid to the extent necessary to pay such Senior Indebtedness in
full in money in accordance with its terms, after giving effect to any
concurrent payment or distribution to or for the benefit of the holders of such
Senior Indebtedness.

For
purposes of this Article XV, the words “cash, property or securities” shall not
be deemed to include shares of stock of the Company as reorganized or
readjusted, or securities of the Company or any other corporation provided for
by a plan of reorganization or readjustment, the payment of which is
subordinated at least to the extent provided in this Article XV with respect to
the Debt Securities to the payment of all Senior Indebtedness of the Company,
that may at the time be outstanding, provided, that (a) such Senior
Indebtedness is assumed by the new corporation, if any, resulting from any such
reorganization or readjustment, and (b) the rights of the holders of such
Senior Indebtedness are not, without the consent of such holders, altered by
such reorganization or readjustment. The consolidation of the Company with, or
the merger of the Company into, another corporation or the liquidation or
dissolution of the Company following the conveyance or transfer or other
disposition of its property as an entirety, or substantially as an entirety, to
another corporation upon the terms and conditions provided for in Article XI of
this Indenture shall not be deemed a dissolution, winding-up, liquidation or
reorganization for the purposes of this Section 15.03 if such other corporation
shall, as a part of such consolidation, merger, conveyance or transfer, comply
with the conditions stated in Article XI of this Indenture. Nothing in Section
15.02 or in this Section 15.03 shall apply to claims of, or payments to, the
Trustee under or pursuant to Section 6.06 of this Indenture.

Subrogation.

Subject
to the payment in full of all Senior Indebtedness of the Company, the
Securityholders shall be subrogated to the rights of the holders of such Senior
Indebtedness to receive payments or distributions of cash, property or
securities of the Company applicable to such Senior Indebtedness until all
payments due on the Debt Securities shall be paid in full; and, for the
purposes of such subrogation, no payments or distributions to the holders of
such Senior Indebtedness of any cash, property or securities to which the Securityholders
or the Trustee would be entitled except for the provisions of this Article XV,
and no payment over pursuant to the provisions of this Article XV to or for the
benefit of the holders of such Senior Indebtedness by Securityholders or the Trustee,
shall, as between the Company, its creditors other than holders of Senior
Indebtedness of the Company, and the Securityholders be deemed to be a payment
or distribution by the Company to or on account of such Senior Indebtedness. It
is understood that the provisions of this Article XV are and are intended
solely for the purposes of defining the relative rights of the Securityholders,
on the one hand, and the holders of such Senior Indebtedness, on the other
hand.

 50

 

Nothing
contained in this Article XV or elsewhere in this Indenture, any Additional
Provisions or in the Debt Securities is intended to or shall impair, as between
the Company, its creditors other than the holders of Senior Indebtedness of the
Company, and the Securityholders, the obligation of the Company, which is
absolute and unconditional, to pay to the Securityholders all payments on the
Debt Securities as and when the same shall become due and payable in accordance
with their terms, or is intended to or shall affect the relative rights of the
Securityholders and creditors of the Company, other than the holders of Senior
Indebtedness of the Company, nor shall anything herein or therein prevent the
Trustee or the holder of any Debt Security from exercising all remedies
otherwise permitted by applicable law upon default under this Indenture,
subject to the rights, if any, under this Article XV of the holders of such
Senior Indebtedness in respect of cash, property or securities of the Company
received upon the exercise of any such remedy.

Upon
any payment or distribution of assets of the Company referred to in this
Article XV, the Trustee, subject to the provisions of Article VI of this
Indenture, and the Securityholders shall be entitled to conclusively rely upon
any order or decree made by any court of competent jurisdiction in which such
dissolution, winding-up, liquidation or reorganization proceedings are pending,
or a certificate of the receiver, trustee in bankruptcy, liquidation trustee,
agent or other Person making such payment or distribution, delivered to the
Trustee or to the Securityholders, for the purposes of ascertaining the Persons
entitled to participate in such distribution, the holders of Senior
Indebtedness and other indebtedness of the Company, the amount thereof or
payable thereon, the amount or amounts paid or distributed thereon and all
other facts pertinent thereto or to this Article XV.

Trustee
to Effectuate Subordination.

Each
Securityholder by such Securityholder’s acceptance thereof authorizes and
directs the Trustee on such Securityholder’s behalf to take such action as may
be necessary or appropriate to effectuate the subordination provided in this
Article XV and appoints the Trustee such Securityholder’s attorney-in-fact for
any and all such purposes.

Notice
by the Company.

The Company shall give
prompt written notice to a Responsible Officer of the Trustee at the Principal
Office of the Trustee of any fact known to the Company that would prohibit the
making of any payment of moneys to or by the Trustee in respect of the Debt
Securities pursuant to the provisions of this Article XV. Notwithstanding the
provisions of this Article XV or any other provision of this Indenture or any
Additional Provisions, the Trustee shall not be charged with knowledge of the
existence of any facts that would prohibit the making of any payment of moneys
to or by the Trustee in respect of the Debt Securities pursuant to the
provisions of this Article XV, unless and until a Responsible Officer of the Trustee
at the Principal Office of the Trustee shall have received written notice
thereof from the Company or a holder or holders of Senior Indebtedness or from
any trustee therefor; and before the receipt of any such written notice, the
Trustee, subject to the provisions of Article VI of this Indenture, shall be
entitled in all respects to assume that no such facts exist; provided, however,
that if the Trustee shall not have received the notice provided for in this
Section 15.06 at least two Business Days prior to the date upon which by the
terms hereof any money may become payable for any purpose (including, without
limitation, the payment of the principal of (or premium, if any) or interest on
any Debt Security), then, anything herein contained to the contrary
notwithstanding, the Trustee shall have full power and authority to receive
such money and to apply the same to the purposes for which they were received,
and shall not be affected by any notice to the contrary that may be received by
it within two Business Days prior to such date.

The Trustee, subject to
the provisions of Article VI of this Indenture, shall be entitled to
conclusively rely on the delivery to it of a written notice by a Person
representing himself or herself to be a holder of Senior Indebtedness of the
Company (or a trustee or representative on behalf of such holder) to establish
that such notice has been given by a holder of such Senior Indebtedness or a
trustee or representative on behalf of any such holder or holders. In the event
that the Trustee determines in good faith that further evidence is required
with respect to the right of any Person as a holder of such Senior Indebtedness
to participate in any payment or distribution pursuant to this Article XV, the
Trustee may request such Person to furnish evidence to the reasonable
satisfaction of the Trustee as to the amount of such Senior Indebtedness held
by such Person, the extent to which such Person is entitled to participate in
such payment or distribution and any other facts pertinent to the rights of
such Person under this Article XV, and, if such evidence is not furnished, the
Trustee may defer any payment to such Person pending judicial determination as
to the right of such Person to receive such payment.

 51
 

 

Rights
of the Trustee, Holders of Senior Indebtedness.

The
Trustee in its individual capacity shall be entitled to all the rights set
forth in this Article XV in respect of any Senior Indebtedness at any time held
by it, to the same extent as any other holder of Senior Indebtedness, and
nothing in this Indenture or any Additional Provisions shall deprive the
Trustee of any of its rights as such holder.

With
respect to the holders of Senior Indebtedness of the Company, the Trustee
undertakes to perform or to observe only such of its covenants and obligations
as are specifically set forth in this Article XV, and no implied covenants or
obligations with respect to the holders of such Senior Indebtedness shall be
read into this Indenture or any Additional Provisions against the Trustee. The
Trustee shall not owe or be deemed to owe any fiduciary duty to the holders of
such Senior Indebtedness and, subject to the provisions of Article VI of this
Indenture, the Trustee shall not be liable to any holder of such Senior
Indebtedness if it shall pay over or deliver to Securityholders, the Company or
any other Person money or assets to which any holder of such Senior
Indebtedness shall be entitled by virtue of this Article XV or otherwise.

Nothing
in this Article XV shall apply to claims of, or payments to, the Trustee under
or pursuant to Section 6.06.

Subordination
May Not Be Impaired.

No
right of any present or future holder of any Senior Indebtedness of the Company
to enforce subordination as herein provided shall at any time in any way be prejudiced
or impaired by any act or failure to act on the part of the Company, or by any
act or failure to act, in good faith, by any such holder, or by any
noncompliance by the Company, with the terms, provisions and covenants of this
Indenture, regardless of any knowledge thereof that any such holder may have or
otherwise be charged with.

Without
in any way limiting the generality of the foregoing paragraph, the holders of
Senior Indebtedness of the Company may, at any time and from time to time,
without the consent of or notice to the Trustee or the Securityholders, without
incurring responsibility to the Securityholders and without impairing or
releasing the subordination provided in this Article XV or the obligations
hereunder of the Securityholders to the holders of such Senior Indebtedness, do
any one or more of the following: (a) change the manner, place or terms of
payment or extend the time of payment of, or renew or alter, such Senior
Indebtedness, or otherwise amend or supplement in any manner such Senior
Indebtedness or any instrument evidencing the same or any agreement under which
such Senior Indebtedness is outstanding; (b) sell, exchange, release or
otherwise deal with any property pledged, mortgaged or otherwise securing such
Senior Indebtedness; (c) release any Person liable in any manner for the
collection of such Senior Indebtedness; and (d) exercise or refrain from
exercising any rights against the Company, and any other Person.

Wells
Fargo Bank, National Association, in its capacity as Trustee, hereby accepts
the trusts in this Indenture declared and provided, upon the terms and
conditions herein above set forth.

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.

	
  

  	
   

  	
  Team Financial, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Michael L. Gibson

  	
   

  
	
   

  	
  Name: Michael L. Gibson

  
	
   

  	
  Title: Chief Financial Officer

  

 

 52
 

 

 

	
   

  	
   

  	
  Wells Fargo Bank, National Association, as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Tracy M.
  McLamb

  	
   

  
	
   

  	
   

  	
  Name: Tracy M.
  McLamb

  
	
   

  	
   

  	
  Title: VP

  

 

EXHIBIT A

FORM
OF JUNIOR SUBORDINATED DEBT SECURITY

DUE 2036

[FORM OF FACE
OF SECURITY]

THIS
SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAWS OR ANY OTHER APPLICABLE
SECURITIES LAWS. NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN
MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE
DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES
ACT. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL
OR OTHERWISE TRANSFER SUCH SECURITY ONLY (A) TO THE COMPANY, (B) PURSUANT TO
RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON THE HOLDER
REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE
144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED
INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN
RELIANCE ON RULE 144A, (C) TO A “NON U.S. PERSON” IN AN “OFFSHORE TRANSACTION”
PURSUANT TO REGULATION S UNDER THE SECURITIES ACT, (D) PURSUANT TO AN EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT TO AN “ACCREDITED
INVESTOR” WITHIN THE MEANING OF SUBPARAGRAPH (a) (1), (2), (3) OR (7) OF RULE
501 UNDER THE SECURITIES ACT THAT IS ACQUIRING THE SECURITY FOR ITS OWN
ACCOUNT, OR FOR THE ACCOUNT OF SUCH AN “ACCREDITED INVESTOR,” FOR INVESTMENT
PURPOSES AND NOT WITH A VIEW TO, OR FOR OFFER OR SALE IN CONNECTION WITH, ANY
DISTRIBUTION IN VIOLATION OF THE SECURITIES ACT, OR (E) PURSUANT TO ANOTHER
AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT,
SUBJECT TO THE COMPANY’S RIGHT PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER
PURSUANT TO CLAUSES (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF
COUNSEL, CERTIFICATION AND/OR OTHER INFORMATION SATISFACTORY TO IT IN
ACCORDANCE WITH THE INDENTURE, A COPY OF WHICH MAY BE OBTAINED FROM THE
COMPANY. THE HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES THAT IT
WILL COMPLY WITH THE FOREGOING RESTRICTIONS.

THE
HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF AGREES, REPRESENTS AND
WARRANTS THAT IT WILL NOT ENGAGE IN HEDGING TRANSACTIONS INVOLVING THIS
SECURITY UNLESS SUCH TRANSACTIONS ARE IN COMPLIANCE WITH THE SECURITIES ACT OR
AN APPLICABLE EXEMPTION THEREFROM.

THE
HOLDER OF THIS SECURITY BY ITS ACCEPTANCE HEREOF ALSO AGREES, REPRESENTS AND
WARRANTS THAT IT IS NOT AN EMPLOYEE BENEFIT, INDIVIDUAL RETIREMENT ACCOUNT OR
OTHER PLAN OR ARRANGEMENT SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME
SECURITY ACT OF 1974, AS AMENDED (“ERISA”), OR SECTION 4975 OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), (EACH A “PLAN”), OR AN ENTITY
WHOSE UNDERLYING ASSETS INCLUDE “PLAN ASSETS” BY REASON OF ANY PLAN’S
INVESTMENT IN THE ENTITY AND NO PERSON INVESTING “PLAN ASSETS” OF ANY PLAN MAY
ACQUIRE OR

 53
 

 

HOLD THIS SECURITY
OR ANY INTEREST THEREIN, UNLESS SUCH PURCHASER OR HOLDER IS ELIGIBLE FOR THE
EXEMPTIVE RELIEF AVAILABLE UNDER U.S. DEPARTMENT OF LABOR PROHIBITED
TRANSACTION CLASS EXEMPTION 96-23, 95-60, 91-38, 90-1 OR 84-14 OR ANOTHER
APPLICABLE EXEMPTION OR ITS PURCHASE AND HOLDING OF THIS SECURITY IS NOT
PROHIBITED BY SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE WITH RESPECT TO
SUCH PURCHASE OR HOLDING. ANY PURCHASER OR HOLDER OF THIS SECURITY OR ANY
INTEREST THEREIN WILL BE DEEMED TO HAVE REPRESENTED BY ITS PURCHASE AND HOLDING
THEREOF THAT EITHER (i) IT IS NOT AN EMPLOYEE BENEFIT PLAN WITHIN THE MEANING
OF SECTION 3(3) OF ERISA, OR A PLAN TO WHICH SECTION 4975 OF THE CODE IS
APPLICABLE, A TRUSTEE OR OTHER PERSON ACTING ON BEHALF OF AN EMPLOYEE BENEFIT
PLAN OR PLAN, OR ANY OTHER PERSON OR ENTITY USING THE ASSETS OF ANY EMPLOYEE
BENEFIT PLAN OR PLAN TO FINANCE SUCH PURCHASE, OR (ii) SUCH PURCHASE WILL NOT
RESULT IN A PROHIBITED TRANSACTION UNDER SECTION 406 OF ERISA OR SECTION 4975
OF THE CODE FOR WHICH THERE IS NO APPLICABLE STATUTORY OR ADMINISTRATIVE
EXEMPTION.

IN
CONNECTION WITH ANY TRANSFER, THE HOLDER OF THIS SECURITY WILL DELIVER TO THE
COMPANY AND THE TRUSTEE SUCH CERTIFICATES AND OTHER INFORMATION AS MAY BE
REQUIRED BY THE INDENTURE TO CONFIRM THAT THE TRANSFER COMPLIES WITH THE
FOREGOING RESTRICTIONS.

THIS
SECURITY WILL BE ISSUED AND MAY BE TRANSFERRED ONLY IN BLOCKS HAVING A
PRINCIPAL AMOUNT OF NOT LESS THAN $100,000 AND MULTIPLES OF $1,000 IN EXCESS
THEREOF. ANY ATTEMPTED TRANSFER OF THIS SECURITY IN A BLOCK HAVING A PRINCIPAL
AMOUNT OF LESS THAN $100,000 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 THIS SECURITY FOR ANY PURPOSE, INCLUDING, BUT NOT LIMITED TO, THE RECEIPT OF
DISTRIBUTIONS ON THIS SECURITY, AND SUCH PURPORTED TRANSFEREE SHALL BE DEEMED
TO HAVE NO INTEREST WHATSOEVER IN THIS SECURITY.

THIS
OBLIGATION IS NOT A DEPOSIT AND IS NOT INSURED BY THE UNITED STATES OR ANY
AGENCY OR FUND OF THE UNITED STATES, INCLUDING THE FEDERAL DEPOSIT INSURANCE
CORPORATION (THE “FDIC”). THIS OBLIGATION IS SUBORDINATED TO THE CLAIMS OF
DEPOSITORS AND THE CLAIMS OF GENERAL AND SECURED CREDITORS OF THE COMPANY, IS
INELIGIBLE AS COLLATERAL FOR A LOAN BY THE COMPANY OR ANY OF ITS SUBSIDIARIES
AND IS NOT SECURED.

Form of Junior Subordinated Debt Security due 2036

of

Team Financial,
Inc.

Team
Financial, Inc., a bank holding company incorporated in Kansas (the “Company”),
for va lue received promises to pay to Wells Fargo Bank, National Association,
not in its individual capacity but solely as Institutional Trustee for Team
Financial Capital Trust II, a Delaware statutory trust (the “Securityholder”),
or registered assigns, the principal sum of Twenty Two Million Six Hundred
Eighty One Thousand Dollars on October 7, 2036 and to pay interest on said
principal sum from September 14, 2006, 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, quarterly (subject to deferral as set forth herein)
in arrears on January 7, April 7, July 7 and October 7 of each year commencing
January 7, 2007, at a variable per annum rate equal to LIBOR (as defined in the
Indenture) plus 1.65% (the “Interest Rate”) (provided, however, that the
Interest Rate for any Interest Payment Period may not exceed the highest rate
permitted by New York law, as the same may be modified by United States law of
general applicability) until the principal hereof shall have become due and
payable, and on any overdue principal and (without duplication and to the
extent that payment of such interest is enforceable under applicable law) on
any overdue installment of interest at an annual rate equal to the Interest
Rate in effect for each such Extension Period compounded quarterly. The amount
of interest payable on any Interest Payment Date shall be computed on the basis
of a 360-day year and

 54
 

 

the actual number
of days elapsed in the relevant interest period.  Notwithstanding anything to the contrary
contained herein, if any Interest Payment Date, other than on the Maturity
Date, any Redemption Date (to the extent redeemed) or the Special Redemption
Date, falls on a day that is not a Business Day, then any interest payable will
be paid on, and such Interest Payment Date will be moved to, the next
succeeding Business Day, and additional interest will accrue for each day that
such payment is delayed as a result thereof. 
If the Maturity Date, any Redemption Date or the Special Redemption Date
falls on a day that is not a Business Day, then the principal, premium, if any,
and/or interest payable on such date will be paid on the next succeeding
Business Day, and no additional interest will accrue (except that, if such
Business Day falls in the next calendar year, such payment will be made on the
immediately preceding Business Day).  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 Debt Security (or one or more Predecessor Securities,
as defined in said Indenture) is registered at the close of business on the
regular record date for such interest installment, except that interest and any
Deferred Interest payable on the Maturity Date shall be paid to the Person to
whom principal is paid. Any such interest installment not punctually paid or
duly provided for shall forthwith cease to be payable to the registered
Securityholders on such regular record date and may be paid to the Person in whose
name this Debt Security (or one or more Predecessor Debt Securities) 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 registered Securityholders not less than 10 days prior to such
special record date, all as more fully provided in the Indenture. The principal
of and interest on this Debt Security shall be payable at the office or agency
of the Trustee (or other Paying Agent appointed by the Company) 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
Company by check mailed to the registered Securityholder at such address as
shall appear in the Debt Security Register or by wire transfer of immediately
available funds to an account appropriately designated by the holder hereof.
Notwithstanding the foregoing, so long as the holder of this Debt Security is
the Institutional Trustee, the payment of the principal of and premium, if any,
and interest on this Debt Security shall be made in immediately available funds
when due at such place and to such account as may be designated by the
Institutional Trustee.  All payments in
respect of this Debt Security shall be payable 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.

Upon
submission of Notice (as defined in the Indenture) and so long as no Event of
Default pursuant to paragraphs (c), (e), (f) or (g) of Section 5.01 of the
Indenture has occurred and is continuing, the Company shall have the right
under the Indenture, from time to time and without causing an Event of Default,
to defer payments of interest on the Debt Securities by extending the interest
distribution period on the Debt Securities at any time and from time to time
during the term of the Debt Securities, for up to 20 consecutive quarterly
periods (each such extended interest distribution period, an “Extension Period”),
during which Extension Period no interest shall be due and payable (except any
Additional Interest that may be due and payable). During any Extension Period,
interest will continue to accrue on the Debt Securities, and interest on such
accrued interest (such accrued interest and interest thereon referred to herein
as “Deferred Interest”) will accrue at an annual rate equal to the Interest
Rate applicable during such Extension Period, compounded quarterly from the
date such Deferred Interest would have been payable were it not for the
Extension Period, to the extent permitted by law. No Extension Period may end
on a date other than an Interest Payment Date. At the end of any such Extension
Period the Company shall pay all Deferred Interest then accrued and unpaid on
the Debt Securities; provided, however, that no Extension Period
may extend beyond the Maturity Date, Redemption Date (to the extent redeemed)
or Special Redemption Date; and provided, further, however,
during any such Extension Period, the Company may 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 Company’s capital stock or (ii)
make any payment of principal of or premium, if any, or interest on or repay,
repurchase or redeem any debt securities of the Company that rank pari passu in all respects with or junior
in interest to the Debt Securities or (iii) make any payment under any
guarantees of the Company that rank in all respects pari passu with or junior in respect to the Capital
Securities Guarantee (other than (a) repurchases, redemptions or other
acquisitions of shares of capital stock of the Company (A) in connection with
any employment contract, benefit plan or other similar arrangement with or for
the benefit of one or more employees, officers, directors or consultants, (B)
in connection with a dividend reinvestment or stockholder stock purchase plan
or (C) in connection with the issuance of capital stock of the Company (or
securities convertible into or exercisable for such capital stock), as
consideration in an acquisition transaction entered into prior to the
applicable Extension Period, (b) as a result of any exchange, reclassification,
combination or conversion of any class or series of the Company’s capital stock
(or any capital stock of a subsidiary of the Company) for any class or series
of the Company’s capital

 55
 

 

stock or of any
class or series of the Company’s indebtedness for any class or series of the
Company’s capital stock, (c) the purchase of fractional interests in shares of
the Company’s capital stock pursuant to the conversion or exchange provisions
of such capital stock or the security being converted or exchanged, (d) any
declaration of a dividend in connection with any stockholder’s rights plan, or
the issuance of rights, stock or other property under any stockholder’s rights
plan, or the redemption or repurchase of rights pursuant thereto, or (e) any
dividend in the form of stock, warrants, options or other rights where the
dividend stock or the stock issuable upon exercise of such warrants, options or
other rights is the same stock as that on which the dividend is being paid or
ranks pari passu with or junior
to such stock). Prior to the termination of any Extension Period, the Company
may further extend such period, provided, that such period together with
all such previous and further consecutive extensions thereof shall not exceed
20 consecutive quarterly periods, or extend beyond the Maturity Date,
Redemption Date (to the extent redeemed) or Special Redemption Date. Upon the
termination of any Extension Period and upon the payment of all Deferred
Interest, the Company may commence a new Extension Period, subject to the
foregoing requirements. No interest or Deferred Interest shall be due and
payable during an Extension Period, except at the end thereof, but Deferred
Interest shall accrue upon each installment of interest that would otherwise
have been due and payable during such Extension Period until such installment
is paid. The Company must give the Trustee notice of its election to begin or
extend an Extension Period (“Notice”) not later than the related regular record
date for the relevant Interest Payment Date. The Notice shall describe, in
reasonable detail, why the Company has elected to begin an Extension
Period.  The Notice shall acknowledge and
affirm the Company’s understanding that it is prohibited from issuing dividends
and other distributions during the Extension Period.  Upon receipt of the Notice, an Initial
Purchaser shall have the right, at its sole discretion, to disclose the name of
the Company, the fact that the Company has elected to begin an Extension Period
and other information that such Initial Purchaser, at its sole discretion,
deems relevant to the Company’s election to begin an Extension Period.  The Trustee shall give notice of the Company ‘s
election to begin a new Extension Period to the Securityholders.

The
indebtedness evidenced by this Debt Security is, to the extent provided in the
Indenture, subordinate and junior in right of payment to the prior payment in
full of all Senior Indebtedness, and this Debt Security is issued subject to
the provisions of the Indenture with respect thereto. Each holder of this Debt
Security, by accepting the same, (a) agrees to and shall be bound by such
provisions, (b) authorizes and directs the Trustee on such Securityholder’s
behalf to take such action as may be necessary or appropriate to acknowledge or
effectuate the subordination so provided and (c) appoints the Trustee such
Securityholder’s attorney-in-fact for any and all such purposes. Each holder
hereof, by such holder ‘s acceptance hereof, hereby waives all notice of the
acceptance of the subordination provisions contained herein and in the
Indenture by each holder of Senior Indebtedness, whether now outstanding or
hereafter incurred, and waives reliance by each such Securityholder upon said
provisions.

The
Company waives diligence, presentment, demand for payment, notice of
nonpayment, notice of protest, and all other demands and notices.

This
Debt Security shall not be entitled to any benefit under the Indenture
hereinafter referred to and shall not 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 Debt Security are continued on the reverse side hereof and
such continued provisions shall for all purposes have the same effect as though
fully set forth at this place.

 56
 

 

IN
WITNESS WHEREOF, the Company has duly executed this certificate.

	
  

  	
  Team Financial, Inc.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Michael L. Gibson

  	
   

  
	
   

  	
  Name: Michael L.
  Gibson

  
	
   

  	
  Title:Chief
  Financial Officier

  
	
   

  	
   

  	
   

  
	
  Dated:  September
  14, 2006

  	
   

  	
   

  
					

 

CERTIFICATE OF
AUTHENTICATION

This
is one of the Debt Securities referred to in the within-mentioned Indenture.

Wells Fargo Bank,
National Association, not in its

individual capacity but solely as the Trustee

By:  /s/ Tracy M. McLamb - VP
       Authorized Officer

Dated: September
14, 2006

[FORM OF REVERSE
OF SECURITY]

This
Debt Security is one of a duly authorized series of Debt Securities of the
Company, all issued or to be issued pursuant to an Indenture (the “Indenture”),
dated as of September 14, 2006, duly executed and delivered between the Company
and Wells Fargo Bank, National Association, as Trustee (the “Trustee”), to
which Indenture and all indentures supplemental thereto reference is hereby
made for a description of the rights, limitations of rights, obligations,
duties and immunities thereunder of the Trustee, the Company and the holders of
the Debt Securities (referred to herein as the “Debt Securities”) of which this
Debt Security is a part. The summary of the terms of this Debt Security
contained herein does not purport to be complete and is qualified by reference
to the Indenture.

Upon
the occurrence and continuation of a Tax Event, an Investment Company Event or
a Capital Treatment Event (each a “Special Event”), this Debt Security may
become due and payable, in whole or in part, at any time, within 90 days
following the occurrence of such Tax Event, Investment Company Event or Capital
Treatment Event (the “Special Redemption Date”), as the case may be, at the
Special Redemption Price.  In the event
that the Special Redemption Date falls on a day prior to the LIBOR
Determination Date for any Interest Payment Period, then the Company shall be required
to pay to Securityholders, on the Business Day following such LIBOR
Determination Date, any additional amount of interest that would have been
payable on the Special Redemption Date had the amount of interest determined on
such LIBOR Determination Date been known on the first day of such Interest
Payment Period.  The Company shall also
have the right to redeem this Debt Security at the option of the Company, in
whole or in part, on any January 7, April 7, July 7 or October 7 on or after
October 7, 2011 (a “Redemption Date”), at the Redemption Price.

Any
redemption pursuant to the preceding paragraph will be made, subject to the
receipt by the Company of prior approval from any regulatory authority with
jurisdiction over the Company if such approval is then required under
applicable capital guidelines or policies of such regulatory authority, upon
not less than 30 days’ nor more than 60 days’ notice. If the Debt Securities
are only partially redeemed by the Company, the Debt Securities will be
redeemed pro rata or by lot or by any other method utilized by the
Trustee.

“Redemption
Price” means 100% of the principal amount of the Debt Securities being redeemed
plus accrued and unpaid interest on such Debt Securities to the Redemption Date
or, in the case of a redemption due

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to the occurrence
of a Special Event, to the Special Redemption Date if such Special Redemption
Date is on or after October 7, 2011 .

“Special
Redemption Price” means (1) if the Special Redemption Date is before October 7,
2011, One Hundred Five Percent (105%) of the principal amount to be redeemed
plus any accrued and unpaid interest thereon to the date of such redemption and
(2) if the Special Redemption Date is on or after October 7, 2011, the
Redemption Price for such Special Redemption Date.

In the
event of redemption of this Debt Security in part only, a new Debt Security or
Debt Securities for the unredeemed portion hereof will be issued in the name of
the Securityholder hereof upon the cancellation hereof.

Upon
the occurrence of an Event of Default pursuant to paragraphs (c), (e), (f) or
(g), of Section 5.01 of the Indenture, the principal of all of the Debt
Securities may be declared, and in certain cases shall ipso facto become, due and payable, and
upon such acceleration shall become due and payable, in the manner, with the
effect and subject to the conditions provided in the Indenture.

The
Indenture contains provisions permitting the Company and the Trustee, with the
consent of the holders of not less than a majority in aggregate principal amount
of the Debt Securities at the time outstanding affected thereby, as specified
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 any supplemental indenture or of modifying in
any manner the rights of the Securityholders; provided, however,
that no such supplemental indenture shall, among other things, without the
consent of the holders of each Debt Security then outstanding and affected
thereby (i) change the Maturity Date of any Debt Security, or reduce the
principal amount thereof or any premium thereon, or reduce the rate or manner
of calculation of the rate or extend the time of payment of interest thereon,
or reduce (other than as a result of the maturity or earlier redemption of any
such Debt Security in accordance with the terms of the Indenture and such Debt
Security) or increase the aggregate principal amount of Debt Securities then
outstanding, or change any of the redemption provisions, or make the principal
thereof or any interest or premium thereon payable in any coin or currency
other than that of the United States that at the time of payment is legal
tender for payment of public and private debts, or impair or affect the right
of any Securityholder to institute suit for the payment thereof, or (ii) reduce
the aforesaid percentage of Debt Securities, 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 Debt
Securities at the time outstanding, on behalf of all of the Securityholders, 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) a default in payments due in respect of any of the Debt Securities,
(b) in respect of covenants or provisions of the Indenture which cannot be
modified or amended without the consent of the holder of each Debt Security
affected, or (c) in respect of the covenants of the Company relating to its
ownership of Common Securities of the Trust. Any such consent or waiver by the
registered holder of this Debt Security (unless revoked as provided in the
Indenture) shall be conclusive and binding upon such Securityholder and upon
all future holders and owners of this Debt Security and of any Debt Security
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 Debt Security.

No
reference herein to the Indenture and no provision of this Debt Security or of
the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay all payments due on this Debt Security at
the time and place and at the rate and in the money herein prescribed.

As
provided in the Indenture and subject to certain limitations herein and therein
set forth, this Debt Security is transferable by the registered holder hereof
on the Debt Security Register of the Company, upon surrender of this Debt
Security for registration of transfer at the office or agency of the Trustee in
Wilmington, Delaware accompanied by a written instrument or instruments of
transfer in form satisfactory to the Company or the Trustee duly executed by
the registered holder hereof or such Securityholder’s attorney duly authorized
in writing, and thereupon one or more new Debt Securities 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 Company may require payment of a sum
sufficient to cover any tax or other governmental charge payable in relation
thereto.

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Prior
to due presentment for registration of transfer of this Debt Security, the
Company, the Trustee, any Authenticating Agent, any Paying Agent, any transfer
agent and the Debt Security Registrar may deem and treat the registered holder
hereof as the absolute owner hereof (whether or not this Debt Security shall be
overdue and notwithstanding any notice of ownership or writing hereon) for the
purpose of receiving payment of the principal of and premium, if any, and
interest on this Debt Security and for all other purposes, and neither the
Company nor the Trustee nor any Authenticating Agent nor any Paying Agent nor
any transfer agent nor any Debt Security Registrar shall be affected by any
notice to the contrary.

No
recourse shall be had for the payment of the principal of or the interest on
this Debt Security, or for any claim based hereon, or otherwise in respect
hereof, or based on or in respect of the Indenture, against any incorporator,
stockholder, officer or director, past, present or future, as such, of the
Company or of any predecessor or successor corporation, 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.

The
Debt Securities are issuable only in registered certificated form without
coupons. As provided in the Indenture and subject to certain limitations herein
and therein set forth, Debt Securities are exchangeable for a like aggregate
principal amount of Debt Securities of a different authorized denomination, as
requested by the Securityholder surrendering the same.

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

THE
LAW OF THE STATE OF NEW YORK SHALL GOVERN THE INDENTURE AND THE DEBT
SECURITIES, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF (OTHER THAN
SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW).

 59

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