Document:

exv4w2

Exhibit 4.2

FORM OF

ENDOLOGIX, INC.

 

INDENTURE

Dated as of                                         

 

[Name of Trustee]

Trustee

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE I

	DEFINITIONS AND INCORPORATION BY REFERENCE

	 
	 	 	 	 	 	 
	Section 1.1.
	 	Definitions	 	 	1	 
	Section 1.2.
	 	Other Definitions	 	 	5	 
	Section 1.3.
	 	Incorporation by Reference of Trust Indenture Act	 	 	5	 
	Section 1.4.
	 	Rules of Construction	 	 	5	 
	 
	 	 	 	 	 	 
	ARTICLE II

	THE SECURITIES

	 
	 	 	 	 	 	 
	Section 2.1.
	 	Issuable in Series	 	 	6	 
	Section 2.2.
	 	Establishment of Terms of Series of Securities	 	 	6	 
	Section 2.3.
	 	Execution and Authentication	 	 	8	 
	Section 2.4.
	 	Registrar and Paying Agent	 	 	9	 
	Section 2.5.
	 	Paying Agent to Hold Money in Trust	 	 	10	 
	Section 2.6.
	 	Securityholder Lists	 	 	10	 
	Section 2.7.
	 	Transfer and Exchange	 	 	10	 
	Section 2.8.
	 	Mutilated, Destroyed, Lost and Stolen Securities	 	 	10	 
	Section 2.9.
	 	Outstanding Securities	 	 	11	 
	Section 2.10.
	 	Treasury Securities	 	 	11	 
	Section 2.11.
	 	Temporary Securities	 	 	12	 
	Section 2.12.
	 	Cancellation	 	 	12	 
	Section 2.13.
	 	Defaulted Interest	 	 	12	 
	Section 2.14.
	 	Global Securities	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE III

	REDEMPTION

	 
	 	 	 	 	 	 
	Section 3.1.
	 	Notice to Trustee	 	 	13	 
	Section 3.2.
	 	Selection of Securities to be Redeemed	 	 	14	 
	Section 3.3.
	 	Notice of Redemption	 	 	14	 
	Section 3.4.
	 	Effect of Notice of Redemption	 	 	14	 
	Section 3.5.
	 	Deposit of Redemption Price	 	 	15	 
	Section 3.6.
	 	Securities Redeemed in Part	 	 	15	 
	 
	 	 	 	 	 	 
	ARTICLE IV

	COVENANTS

	 
	 	 	 	 	 	 
	Section 4.1.
	 	Payment of Principal and Interest	 	 	15	 
	Section 4.2.
	 	SEC Reports	 	 	15	 
	Section 4.3.
	 	Compliance Certificate	 	 	15	 
	Section 4.4.
	 	Stay, Extension and Usury Laws	 	 	15	 
	Section 4.5.
	 	Corporate Existence	 	 	16	 
	Section 4.6.
	 	Taxes	 	 	16	 

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	 	 	 	 	Page	 
	ARTICLE V

	SUCCESSORS

	 
	 	 	 	 	 	 
	Section 5.1.
	 	When Company May Merge, Etc	 	 	16	 
	Section 5.2.
	 	Successor Corporation Substituted	 	 	16	 
	 
	 	 	 	 	 	 
	ARTICLE VI

	DEFAULTS AND REMEDIES

	 
	 	 	 	 	 	 
	Section 6.1.
	 	Events of Default	 	 	17	 
	Section 6.2.
	 	Acceleration of Maturity; Rescission and Annulment	 	 	18	 
	Section 6.3.
	 	Collection of Indebtedness and Suits for Enforcement by Trustee	 	 	19	 
	Section 6.4.
	 	Trustee May File Proofs of Claim	 	 	19	 
	Section 6.5.
	 	Trustee May Enforce Claims Without Possession of Securities	 	 	20	 
	Section 6.6.
	 	Application of Money Collected	 	 	20	 
	Section 6.7.
	 	Limitation on Suits	 	 	20	 
	Section 6.8.
	 	Unconditional Right of Holders to Receive Principal and Interest	 	 	21	 
	Section 6.9.
	 	Restoration of Rights and Remedies	 	 	21	 
	Section 6.10.
	 	Rights and Remedies Cumulative	 	 	21	 
	Section 6.11.
	 	Delay or Omission Not Waiver	 	 	21	 
	Section 6.12.
	 	Control by Holders	 	 	22	 
	Section 6.13.
	 	Waiver of Past Defaults	 	 	22	 
	Section 6.14.
	 	Undertaking For Costs	 	 	22	 
	 
	 	 	 	 	 	 
	ARTICLE VII

	TRUSTEE

	 
	 	 	 	 	 	 
	Section 7.1.
	 	Duties of Trustee	 	 	23	 
	Section 7.2.
	 	Rights of Trustee	 	 	24	 
	Section 7.3.
	 	Individual Rights of Trustee	 	 	24	 
	Section 7.4.
	 	Trustee's Disclaimer	 	 	24	 
	Section 7.5.
	 	Notice of Defaults	 	 	24	 
	Section 7.6.
	 	Reports by Trustee to Holders	 	 	25	 
	Section 7.7.
	 	Compensation and Indemnity	 	 	25	 
	Section 7.8.
	 	Replacement of Trustee	 	 	25	 
	Section 7.9.
	 	Successor Trustee by Merger, Etc	 	 	26	 
	Section 7.10.
	 	Eligibility; Disqualification	 	 	26	 
	Section 7.11.
	 	Preferential Collection of Claims Against Company	 	 	27	 
	 
	 	 	 	 	 	 
	ARTICLE VIII

	SATISFACTION AND DISCHARGE; DEFEASANCE

	 
	 	 	 	 	 	 
	Section 8.1.
	 	Satisfaction and Discharge of Indenture	 	 	27	 
	Section 8.2.
	 	Application of Trust Funds; Indemnification	 	 	28	 
	Section 8.3.
	 	Legal Defeasance of Securities of Any Series	 	 	28	 
	Section 8.4.
	 	Covenant Defeasance	 	 	30	 
	Section 8.5.
	 	Repayment to Company	 	 	31	 
	 
	 	 	 	 	 	 

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	 	 	 	 	Page	 
	ARTICLE IX

	AMENDMENTS AND WAIVERS

	 
	 	 	 	 	 	 
	Section 9.1.
	 	Without Consent of Holders	 	 	31	 
	Section 9.2.
	 	With Consent of Holders	 	 	31	 
	Section 9.3.
	 	Limitations	 	 	32	 
	Section 9.4.
	 	Compliance with Trust Indenture Act	 	 	32	 
	Section 9.5.
	 	Revocation and Effect of Consents	 	 	32	 
	Section 9.6.
	 	Notation on or Exchange of Securities	 	 	33	 
	Section 9.7.
	 	Trustee Protected	 	 	33	 
	 
	 	 	 	 	 	 
	ARTICLE X

	MISCELLANEOUS

	 
	 	 	 	 	 	 
	Section 10.1.
	 	Trust Indenture Act Controls	 	 	33	 
	Section 10.2.
	 	Notices	 	 	33	 
	Section 10.3.
	 	Communication by Holders with other Holders	 	 	34	 
	Section 10.4.
	 	Certificate and Opinion as to Conditions Precedent	 	 	34	 
	Section 10.5.
	 	Statements Required in Certificate or Opinion	 	 	34	 
	Section 10.6.
	 	Rules by Trustee and Agents	 	 	35	 
	Section 10.7.
	 	Legal Holidays	 	 	35	 
	Section 10.8.
	 	No Recourse Against Others	 	 	35	 
	Section 10.9.
	 	Counterparts	 	 	35	 
	Section 10.10.
	 	Governing Laws	 	 	35	 
	Section 10.11.
	 	No Adverse Interpretation of Other Agreements	 	 	35	 
	Section 10.12.
	 	Successors	 	 	35	 
	Section 10.13.
	 	Severability	 	 	35	 
	Section 10.14.
	 	Table of Contents, Headings, Etc	 	 	35	 
	Section 10.15.
	 	Securities in a Foreign Currency or in ECU	 	 	35	 
	Section 10.16.
	 	Judgment Currency	 	 	36	 
	 
	 	 	 	 	 	 
	ARTICLE XI

	SINKING FUNDS

	 
	 	 	 	 	 	 
	Section 11.1.
	 	Applicability of Article	 	 	37	 
	Section 11.2.
	 	Satisfaction of Sinking Fund Payments with Securities	 	 	37	 
	Section 11.3.
	 	Redemption of Securities for Sinking Fund	 	 	37	 

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ENDOLOGIX, INC.

Reconciliation and tie between Trust Indenture Act of 1939 and

Indenture, dated as of                     

	 	 	 	 	 
	Section. 310(a)(1)
	 	 	 	7.10
	(a)(2)
	 	 	 	7.10
	(a)(3)
	 	 	 	Not Applicable
	(a)(4)
	 	 	 	Not Applicable
	(a)(5)
	 	 	 	7.10
	(b)
	 	 	 	7.10
	Section. 311(a)
	 	 	 	7.11
	(b)
	 	 	 	7.11
	(c)
	 	 	 	Not Applicable
	Section. 312(a)
	 	 	 	2.6
	(b)
	 	 	 	10.3
	(c)
	 	 	 	10.3
	Section. 313(a)
	 	 	 	7.6
	(b)(1)
	 	 	 	7.6
	(b)(2)
	 	 	 	7.6
	(c)(1)
	 	 	 	7.6
	(d)
	 	 	 	7.6
	Section. 314(a)
	 	 	 	4.2, 10.5
	(b)
	 	 	 	Not Applicable
	(c)(1)
	 	 	 	10.4
	(c)(2)
	 	 	 	10.4
	(c)(3)
	 	 	 	Not Applicable
	(d)
	 	 	 	Not Applicable
	(e)
	 	 	 	10.5
	(f)
	 	 	 	Not Applicable
	Section. 315(a)
	 	 	 	7.1
	(b)
	 	 	 	7.5
	(c)
	 	 	 	7.1
	(d)
	 	 	 	7.1
	(e)
	 	 	 	6.14
	Section. 316(a)
	 	 	 	2.10
	(a)(1)(A)
	 	 	 	6.12
	(a)(1)(B)
	 	 	 	6.13
	(b)
	 	 	 	6.8
	Section. 317(a)(1)
	 	 	 	6.3
	(a)(2)
	 	 	 	6.4
	(b)
	 	 	 	2.5
	Section. 318(a)
	 	 	 	10.1

Note: This reconciliation and tie shall not, for any purpose, be deemed to be part of the
Indenture.

iv

 

     Indenture dated as of                           , 20      between Endologix, Inc., a Delaware corporation
(“Company”), and [Name of Trustee], a                                                              (“Trustee”).

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

ARTICLE I

DEFINITIONS AND INCORPORATION BY REFERENCE

     Section 1.1. Definitions.

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

     “Affiliate” of any specified person means any other person directly or indirectly controlling
or controlled by or under direct or indirect common control with such specified person. For the
purposes of this definition, “control” (including, with correlative meanings, the terms “controlled
by” and “under common control with”), as used with respect to any person, shall mean the
possession, directly or indirectly, of the power to direct or cause the direction of the management
or policies of such person, whether through the ownership of voting securities or by agreement or
otherwise.

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

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

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

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

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

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

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

 

 

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

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

     “Company Request” means a written request signed in the name of the Company by any Officer and
delivered to the Trustee.

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

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

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

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

     “Dollars” means the currency of the United States of America.

     “ECU” means the European Currency Unit as determined by the Commission of the European Union.

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

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

     “Foreign Government Obligations” means with respect to Securities of any Series that are
denominated in a Foreign Currency, (i) direct obligations of the government that issued or caused
to be issued such currency for the payment of which obligations its full faith and credit is
pledged or (ii) obligations of a person controlled or supervised by or acting as an agency or
instrumentality of such government the timely payment of which is unconditionally guaranteed as a
full faith and credit obligation by such government, which, in either case under clauses (i) or
(ii), are not callable or redeemable at the option of the issuer thereof.

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

2

 

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

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

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

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

     “Officer” means the Chairman of the Board, any President, any Vice-President, the Chief
Financial Officer, the Treasurer, the Secretary, any Assistant Treasurer or any Assistant Secretary
of the Company.

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

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

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

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

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

     “SEC” means the Securities and Exchange Commission.

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

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

     “Significant Subsidiary” means (i) any direct or indirect Subsidiary of the Company that would
be a “significant subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X, promulgated
pursuant to the Securities Act of 1933, as amended, as such regulation is in effect on the date
hereof, or (ii) any group of direct or indirect Subsidiaries of the Company that, taken together as
a group, would be a “significant subsidiary” as defined in Article 1, Rule 1-02 of Regulation S-X,
promulgated pursuant to the Securities Act of 1933, as amended, as such regulation is in effect on
the date hereof.

3

 

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

     “Subsidiary” of any specified person means any corporation of which at least a majority of the
outstanding stock having by the terms thereof ordinary voting power for the election of directors
of such corporation (irrespective of whether or not at the time stock of any other class or classes
of such corporation shall have or might have voting power by reason of the happening of any
contingency) is at the time directly or indirectly owned by such person, or by one or more other
Subsidiaries, or by such person and one or more other Subsidiaries.

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

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

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

4

 

     Section 1.2. Other Definitions.

	 	 	 	 	 
	Term	 	Defined in Section
	“Bankruptcy Law”
	 	 	6.1	 
	“Custodian”
	 	 	6.1	 
	“Event of Default”
	 	 	6.1	 
	“Journal”
	 	 	10.15	 
	“Judgment Currency”
	 	 	10.16	 
	“Legal Holiday”
	 	 	10.7	 
	“mandatory sinking fund payment”
	 	 	11.1	 
	“Market Exchange Rate”
	 	 	10.15	 
	“New York Banking Day”
	 	 	10.16	 
	“optional sinking fund payment”
	 	 	11.1	 
	“Paying Agent”
	 	 	2.4	 
	“Registrar”
	 	 	2.4	 
	“Required Currency”
	 	 	10.16	 
	“Service Agent”
	 	 	2.4	 
	“successor person”
	 	 	5.1	 

     Section 1.3. Incorporation by Reference of Trust Indenture Act. Whenever this Indenture
refers to a provision of the TIA, the provision is incorporated by reference in and made a part of
this Indenture. The following TIA terms used in this Indenture have the following meanings:

     “Commission” means the SEC.

     “indenture securities” means the Securities.

     “indenture security holder” means a Securityholder.

     “indenture to be qualified” means this Indenture.

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

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

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

     Section 1.4. Rules of Construction. Unless the context otherwise requires:

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

          (b) an accounting term not otherwise defined has the meaning assigned to it in accordance with
generally accepted accounting principles;

5

 

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

          (d) “or” is not exclusive;

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

          (f) provisions apply to successive events and transactions.

ARTICLE II

THE SECURITIES

     Section 2.1. Issuable in Series. The aggregate principal amount of Securities that may be
authenticated and delivered under this Indenture is unlimited. The Securities may be issued in one
or more Series. All Securities of a Series shall be identical except as may be set forth in a
Board Resolution, a supplemental indenture or an Officers’ Certificate detailing the adoption of
the terms thereof pursuant to the authority granted under a Board Resolution. In the case of
Securities of a Series to be issued from time to time, the Board Resolution, Officers’ Certificate
or supplemental indenture may provide for the method by which specified terms (such as interest
rate, maturity date, record date or date from which interest shall accrue) are to be determined.
Securities may differ between Series in respect of any matters, provided that all Series of
Securities shall be equally and ratably entitled to the benefits of the Indenture.

     Section 2.2. Establishment of Terms of Series of Securities. At or prior to the issuance of
any Securities within a Series, the following shall be established (as to the Series generally, in
the case of Subsection 2.2.1 and either as to such Securities within the Series or as to the Series
generally in the case of Subsections 2.2.2 through 2.2.21) by a Board Resolution, a supplemental
indenture or an Officers’ Certificate pursuant to authority granted under a Board Resolution:

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

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

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

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

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

6

 

on which such interest, if any, shall commence and be payable and any regular record date for
the interest payable on any interest payment date;

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

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

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

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

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

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

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

          2.2.13 the currency of denomination of the Securities of the Series, which may be Dollars or
any Foreign Currency, including, but not limited to, the ECU, and if such currency of denomination
is a composite currency other than the ECU, the agency or organization, if any, responsible for
overseeing such composite currency;

          2.2.14 the designation of the currency, currencies or currency units in which payment of the
principal of and interest, if any, on the Securities of the Series will be made;

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

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

7

 

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

          2.2.18 the provisions, if any, relating to the subordination of the debt securities;

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

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

          2.2.21 any other terms of the Securities of the Series (which terms shall not be inconsistent
with the provisions of this Indenture, except as permitted by Section 9.1, but which may modify or
delete any provision of this Indenture insofar as it applies to such Series); and

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

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

     Section 2.3. Execution and Authentication. Two Officers shall sign the Securities for the
Company by manual or facsimile signature.

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

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

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

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

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

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

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

     Section 2.4. Registrar and Paying Agent. The Company shall maintain, with respect to each
Series of Securities, at the place or places specified with respect to such Series pursuant to
Section 2.2, an office or agency where Securities of such Series may be presented or surrendered
for payment (“Paying Agent”), where Securities of such Series may be surrendered for registration
of transfer or exchange (“Registrar”) and where notices and demands to or upon the Company in
respect of Securities of such Series and this Indenture may be served (“Service Agent”). The
Registrar shall keep a register with respect to each Series of Securities and to their transfer and
exchange. The Company will give prompt written notice to the Trustee of the name and address, and
any change in the name or address, of each Registrar, Paying Agent or Service Agent. If at any
time the Company shall fail to maintain any such required Registrar, Paying Agent or Service Agent
or shall fail to furnish the Trustee with the name and address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust Office of the Trustee,
and the Company hereby appoints the Trustee as its agent to receive all such presentations,
surrenders, notices and demands.

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

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

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     Section 2.5. Paying Agent to Hold Money in Trust. The Company shall require each Paying Agent
other than the Trustee to agree in writing that the Paying Agent will hold in trust, for the
benefit of Securityholders of any Series of Securities, or the Trustee, all money held by the
Paying Agent for the payment of principal of or interest on the Series of Securities, and will
notify the Trustee of any default by the Company in making any such payment. While any such
default continues, the Trustee may require a Paying Agent to pay all money held by it to the
Trustee. The Company at any time may require a Paying Agent to pay all money held by it to the
Trustee. Upon payment over to the Trustee, the Paying Agent (if other than the Company or a
Subsidiary of the Company) shall have no further liability for the money. If the Company or a
Subsidiary of the Company acts as Paying Agent, it shall segregate and hold all money held by it as
Paying Agent in a separate trust fund for the benefit of Securityholders of any Series of
Securities.

     Section 2.6. Securityholder Lists. The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and addresses of
Securityholders of each Series of Securities and shall otherwise comply with TIA Section 312(a).
If the Trustee is not the Registrar, the Company shall furnish to the Trustee at least ten days
before each interest payment date and at such other times as the Trustee may request in writing a
list, in such form and as of such date as the Trustee may reasonably require, of the names and
addresses of Securityholders of each Series of Securities.

     Section 2.7. Transfer and Exchange. Where Securities of a Series are presented to the
Registrar or a co-registrar with a request to register a transfer or to exchange them for an equal
principal amount of Securities of the same Series, the Registrar shall register the transfer or
make the exchange if its requirements for such transactions are met. To permit registrations of
transfers and exchanges, the Trustee shall authenticate Securities at the Registrar’s request. No
service charge shall be made for any registration of transfer or exchange (except as otherwise
expressly permitted herein), but the Company may require payment of a sum sufficient to cover any
transfer tax or similar governmental charge payable in connection therewith (other than any such
transfer tax or similar governmental charge payable upon exchanges pursuant to Sections 2.11, 3.6
or 9.6).

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

     Section 2.8. Mutilated, Destroyed, Lost and Stolen Securities. If any mutilated Security is
surrendered to the Trustee, the Company shall execute and the Trustee shall authenticate and
deliver in exchange therefor a new Security of the same Series and of like tenor and principal
amount and bearing a number not contemporaneously outstanding.

     If there shall be delivered to the Company and the Trustee (i) evidence to their satisfaction
of the destruction, loss or theft of any Security and (ii) such security or indemnity as may be
required by them to save each of them and any agent of either of them harmless, then, in the
absence of notice to the Company or the Trustee that such Security has been acquired by a bona fide
purchaser, the Company shall execute and upon its request the Trustee shall authenticate and make
available for

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delivery, in lieu of any such destroyed, lost or stolen Security, a new Security of the same
Series and of like tenor and principal amount and bearing a number not contemporaneously
outstanding.

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

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

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

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

     Section 2.9. Outstanding Securities. The Securities outstanding at any time are all the
Securities authenticated by the Trustee except for those canceled by it, those delivered to it for
cancellation, those reductions in the interest on a Global Security effected by the Trustee in
accordance with the provisions hereof and those described in this Section as not outstanding.

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

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

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

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

     Section 2.10. Treasury Securities. In determining whether the Holders of the required
principal amount of Securities of a Series have concurred in any request, demand, authorization,
direction, notice, consent or waiver Securities of a Series owned by the Company or an Affiliate of
the Company shall be disregarded, except that for the purposes of determining whether the Trustee

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shall be protected in relying on any such request, demand, authorization, direction, notice,
consent or waiver only Securities of a Series that the Trustee knows are so owned shall be so
disregarded.

     Section 2.11. Temporary Securities. Until definitive Securities are ready for delivery, the
Company may prepare and the Trustee shall authenticate temporary Securities upon a Company Order.
Temporary Securities shall be substantially in the form of definitive Securities but may have
variations that the Company considers appropriate for temporary Securities. Without unreasonable
delay, the Company shall prepare and the Trustee, upon request, shall authenticate definitive
Securities of the same Series and date of Maturity in exchange for temporary Securities. Until so
exchanged, temporary Securities shall have the same rights under this Indenture as the definitive
Securities.

     Section 2.12. Cancellation. The Company at any time may deliver Securities to the Trustee for
cancellation. The Registrar and the Paying Agent shall forward to the Trustee any Securities
surrendered to them for registration of transfer, exchange or payment. The Trustee shall cancel
all Securities surrendered for transfer, exchange, payment, replacement or cancellation and shall
destroy such canceled Securities (subject to the record retention requirement of the Exchange Act)
and deliver a certificate of such destruction to the Company, unless the Company otherwise directs.
The Company may not issue new Securities to replace Securities that it has paid or delivered to
the Trustee for cancellation.

     Section 2.13. Defaulted Interest. If the Company defaults in a payment of interest on a
Series of Securities, it shall pay the defaulted interest, plus, to the extent permitted by law,
any interest payable on the defaulted interest, to the persons who are Securityholders of the
Series on a subsequent special record date. The Company shall fix the record date and payment
date. At least 30 days before the record date, the Company shall mail to the Trustee and to each
Securityholder of the Series a notice that states the record date, the payment date and the amount
of interest to be paid. The Company may pay defaulted interest in any other lawful manner.

     Section 2.14. Global Securities.

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

          2.14.2 Transfer and Exchange. Notwithstanding any provisions to the contrary
contained in Section 2.7 of the Indenture and in addition thereto, any Global Security shall be
exchangeable pursuant to Section 2.7 of the Indenture for Securities registered in the names of
Holders other than the Depository for such Security or its nominee only if (i) such Depository
notifies the Company that it is unwilling or unable to continue as Depository for such Global
Security or if at any time such Depository ceases to be a clearing agency registered under the
Exchange Act, and, in either case, the Company fails to appoint a successor Depository within 90
days of such event, (ii) the Company executes and delivers to the Trustee an Officers’ Certificate
to the effect that such Global Security shall be so exchangeable or (iii) an Event of Default with
respect to the Securities represented by such Global Security shall have happened and be
continuing. Any Global Security that is exchangeable pursuant to the preceding sentence shall be
exchangeable for Securities registered in such names as the Depository shall direct in writing in
an aggregate principal amount equal to the principal amount of the Global Security with like tenor
and terms.

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     Except as provided in this Section 2.14.2, a Global Security may not be transferred except as
a whole by the Depository with respect to such Global Security to a nominee of such Depository, by
a nominee of such Depository to such Depository or another nominee of such Depository or by the
Depository or any such nominee to a successor Depository or a nominee of such a successor
Depository.

          2.14.3 Legend. Any Global Security issued hereunder shall bear a legend in
substantially the following form:

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

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

          2.14.5 Payments. Notwithstanding the other provisions of this Indenture, unless
otherwise specified as contemplated by Section 2.2, payment of the principal of and interest, if
any, on any Global Security shall be made to the Holder thereof.

          2.14.6 Consents, Declaration and Directions. Except as provided in Section 2.14.5,
the Company, the Trustee and any Agent shall treat a person as the Holder of such principal amount
of outstanding Securities of such Series represented by a Global Security as shall be specified in
a written statement of the Depository with respect to such Global Security, for purposes of
obtaining any consents, declarations, waivers or directions required to be given by the Holders
pursuant to this Indenture.

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

ARTICLE III

REDEMPTION

     Section 3.1. Notice to Trustee. The Company may, with respect to any Series of Securities,
reserve the right to redeem and pay the Series of Securities or may covenant to redeem and pay the
Series of Securities or any part thereof prior to the Stated Maturity thereof at such time and on
such terms as provided for in such Securities. If a Series of Securities is redeemable and the

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Company wants or is obligated to redeem prior to the Stated Maturity thereof all or part of
the Series of Securities pursuant to the terms of such Securities, it shall notify the Trustee of
the redemption date and the principal amount of Series of Securities to be redeemed. The Company
shall give the notice at least 45 days before the redemption date (or such shorter notice as may be
acceptable to the Trustee).

     Section 3.2. Selection of Securities to be Redeemed. Unless otherwise indicated for a
particular Series by a Board Resolution, a supplemental indenture or an Officers’ Certificate, if
less than all the Securities of a Series are to be redeemed, the Trustee shall select Securities of
the Series to be redeemed in any manner that the Trustee deems fair and appropriate. The Trustee
shall make the selection from Securities of the Series outstanding not previously called for
redemption. The Trustee may select for redemption portions of the principal of Securities of the
Series that have denominations larger than $1,000. Securities of the Series and portions of them
it selects shall be in amounts of $1,000 or whole multiples of $1,000 or, with respect to
Securities of any Series issuable in other denominations pursuant to Section 2.2.10, the minimum
principal denomination for each Series and integral multiples thereof. Provisions of this
Indenture that apply to Securities of a Series called for redemption also apply to portions of
Securities of that Series called for redemption.

     Section 3.3. Notice of Redemption. Unless otherwise indicated for a particular Series by a
Board Resolution, a supplemental indenture hereto or an Officers’ Certificate, at least 30 days but
not more than 60 days before a redemption date, the Company shall mail a notice of redemption by
first-class mail to each Holder whose Securities are to be redeemed and if any Bearer Securities
are outstanding, publish on one occasion a notice in an Authorized Newspaper.

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

          (a) the redemption date;

          (b) the redemption price;

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

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

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

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

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

     Section 3.4. Effect of Notice of Redemption. Once notice of redemption is mailed or published
as provided in Section 3.3, Securities of a Series called for redemption become due and payable on
the redemption date and at the redemption price. A notice of redemption may not be conditional.
Upon surrender to the Paying Agent, such Securities shall be paid at the redemption price plus
accrued interest to the redemption date.

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     Section 3.5. Deposit of Redemption Price. On or before the redemption date, the Company shall
deposit with the Paying Agent money sufficient to pay the redemption price of and accrued interest,
if any, on all Securities to be redeemed on that date.

     Section 3.6. Securities Redeemed in Part. Upon surrender of a Security that is redeemed in
part, the Trustee shall authenticate for the Holder a new Security of the same Series and the same
Maturity equal in principal amount to the unredeemed portion of the Security surrendered.

ARTICLE IV

COVENANTS

     Section 4.1. Payment of Principal and Interest. The Company covenants and agrees for the
benefit of the Holders of each Series of Securities that it will duly and punctually pay the
principal of and interest, if any, on Securities of that Series in accordance with the terms of
such Securities and this Indenture.

     Section 4.2. SEC Reports. The Company shall deliver to the Trustee, within 15 days after it
files them with the SEC, copies of the annual reports and of the information, documents, and other
reports (or copies of such portions of any of the foregoing as the SEC may by rules and regulations
prescribe) which the Company is required to file with the SEC pursuant to Section 13 or 15(d) of
the Exchange Act. The Company also shall comply with the other provisions of TIA Section 314(a).

     Section 4.3. Compliance Certificate. The Company shall deliver to the Trustee, within 90 days
after the end of each fiscal year of the Company, an Officers’ Certificate stating that a review of
the activities of the Company and its Subsidiaries during the preceding fiscal year has been made
under the supervision of the signing Officers with a view to determining whether the Company has
kept, observed, performed and fulfilled its obligations under this Indenture, and further stating,
as to each such Officer signing such certificate, that to the best of such Officer’s knowledge the
Company has kept, observed, performed and fulfilled each and every covenant contained in this
Indenture and is not in default in the performance or observance of any of the terms, provisions
and conditions hereof (or, if a Default or Event of Default shall have occurred, describing all
such Defaults or Events of Default of which such Officer may have knowledge).

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

     Section 4.4. Stay, Extension and Usury Laws. The Company covenants (to the extent that it may
lawfully do so) that it will not at any time insist upon, plead, or in any manner whatsoever claim
or take the benefit or advantage of, any stay, extension or usury law wherever enacted, now or at
any time hereafter in force, which may affect the covenants or the performance of this Indenture or
the Securities; and the Company (to the extent it may lawfully do so) hereby expressly waives all
benefit or advantage of any such law and covenants that it will not, by resort to any such law,
hinder, delay or impede the execution of any power herein granted to the Trustee, but will suffer
and permit the execution of every such power as though no such law has been enacted.

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     Section 4.5. Corporate Existence. Subject to Article V, the Company will do or cause to be
done all things necessary to preserve and keep in full force and effect its corporate existence and
the corporate, partnership or other existence of each Significant Subsidiary in accordance with the
respective organizational documents of each Significant Subsidiary and the rights (charter and
statutory), licenses and franchises of the Company and its Significant Subsidiaries; provided,
however, that the Company shall not be required to preserve any such right, license or franchise,
or the corporate, partnership or other existence of any Significant Subsidiary, if the Board of
Directors shall determine that the preservation thereof is no longer desirable in the conduct of
the business of the Company and its Subsidiaries taken as a whole and that the loss thereof is not
adverse in any material respect to the Holders.

     Section 4.6. Taxes. The Company shall, and shall cause each of its Significant Subsidiaries
to, pay prior to delinquency all taxes, assessments and governmental levies, except as contested in
good faith and by appropriate proceedings.

ARTICLE V

SUCCESSORS

     Section 5.1. When Company May Merge, Etc. The Company shall not consolidate with or merge
into, or convey, transfer or lease all or substantially all of its properties and assets to, any
person (a “successor person”), and may not permit any person to merge into, or convey, transfer or
lease its properties and assets substantially as an entirety to, the Company, unless:

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

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

     The Company shall deliver to the Trustee, prior to the consummation of the proposed
transaction, an Officers’ Certificate to the foregoing effect and an Opinion of Counsel stating
that the proposed transaction and such supplemental indenture comply with this Indenture.

     Section 5.2. Successor Corporation Substituted. Upon any consolidation or merger, or any
sale, lease, conveyance or other disposition of all or substantially all of the assets of the
Company in accordance with Section 5.1, the successor corporation formed by such consolidation or
into or with which the Company is merged or to which such sale, lease, conveyance or other
disposition is made shall succeed to, and be substituted for, and may exercise every right and
power of, the Company under this Indenture with the same effect as if such successor person has
been named as the Company herein; provided, however, that the predecessor Company in the case of a
sale, lease, conveyance or other disposition shall not be released from the obligation to pay the
principal of and interest, if any, on the Securities.

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ARTICLE VI

DEFAULTS AND REMEDIES

     Section 6.1. Events of Default. “Event of Default,” wherever used herein with respect to
Securities of any Series, means any one of the following events, unless in the establishing Board
Resolution, supplemental indenture or Officers’ Certificate, it is provided that such Series shall
not have the benefit of said Event of Default:

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

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

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

          (d) default in the performance or breach of any covenant or warranty of the Company in this
Indenture (other than a covenant or warranty that has been included in this Indenture solely for
the benefit of Series of Securities other than that Series), which default continues uncured for a
period of 60 days after there has been given, by registered or certified mail, to the Company by
the Trustee or to the Company and the Trustee by the Holders of at least a majority in principal
amount of the outstanding Securities of that Series a written notice specifying such default or
breach and requiring it to be remedied and stating that such notice is a “Notice of Default”
hereunder; or

          (e) the Company or any of its Significant Subsidiaries pursuant to or within the meaning of
any Bankruptcy Law:

               (i) commences a voluntary case,

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

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

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

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

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

               (i) is for relief against the Company or any of its Significant Subsidiaries in an involuntary
case,

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               (ii) appoints a Custodian of the Company or any of its Significant Subsidiaries or for all or
substantially all of its property, or

               (iii) orders the liquidation of the Company or any of its Significant Subsidiaries, and the
order or decree remains unstayed and in effect for 60 days; or

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

     The term “Bankruptcy Law” means title 11, U.S. Code or any similar Federal or State law for
the relief of debtors. The term “Custodian” means any receiver, trustee, assignee, liquidator or
similar official under any Bankruptcy Law.

     Section 6.2. Acceleration of Maturity; Rescission and Annulment. If an Event of Default with
respect to Securities of any Series at the time outstanding occurs and is continuing (other than an
Event of Default referred to in Section 6.1(e) or (f)) then in every such case the Trustee or the
Holders of not less than a majority in principal amount of the outstanding Securities of that
Series may declare the principal amount (or, if any Securities of that Series are Discount
Securities, such portion of the principal amount as may be specified in the terms of such
Securities) of and accrued and unpaid interest, if any, on all of the Securities of that Series to
be due and payable immediately, by a notice in writing to the Company (and to the Trustee if given
by Holders), and upon any such declaration such principal amount (or specified amount) and accrued
and unpaid interest, if any, shall become immediately due and payable. If an Event of Default
specified in Section 6.1(e) or (f) shall occur, the principal amount (or specified amount) of and
accrued and unpaid interest, if any, on all outstanding Securities shall ipso facto become and be
immediately due and payable without any declaration or other act on the part of the Trustee or any
Holder.

     At any time after such a declaration of acceleration with respect to any Series has been made
and before a judgment or decree for payment of the money due has been obtained by the Trustee as
hereinafter in this Article provided, the Holders of a majority in principal amount of the
outstanding Securities of that Series, by written notice to the Company and the Trustee, may
rescind and annul such declaration and its consequences if:

          (a) the Company has paid or deposited with the Trustee a sum sufficient to pay:

               (i) all overdue interest, if any, on all Securities of that Series,

               (ii) the principal of any Securities of that Series which have become due otherwise than by
such declaration of acceleration and interest thereon at the rate or rates prescribed therefor in
such Securities,

               (iii) to the extent that payment of such interest is lawful, interest upon any overdue
principal and overdue interest at the rate or rates prescribed therefor in such Securities, and

               (iv) all sums paid or advanced by the Trustee hereunder and the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel; and

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          (b) all Events of Default with respect to Securities of that Series, other than the
non-payment of the principal of Securities of that Series which have become due solely by such
declaration of acceleration, have been cured or waived as provided in Section 6.13.

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

     Section 6.3. Collection of Indebtedness and Suits for Enforcement by Trustee. The Company
covenants that if

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

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

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

then, the Company will, upon demand of the Trustee, pay to it, for the benefit of the Holders of
such Securities, the whole amount then due and payable on such Securities for principal and
interest and, to the extent that payment of such interest shall be legally enforceable, interest on
any overdue principal or any overdue interest, at the rate or rates prescribed therefor in such
Securities, and, in addition thereto, such further amount as shall be sufficient to cover the costs
and expenses of collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel.

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

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

     Section 6.4. Trustee May File Proofs of Claim. In case of the pendency of any receivership,
insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other
judicial proceeding relative to the Company or any other obligor upon the Securities or the
property of the Company or of such other obligor or their creditors, the Trustee (irrespective of
whether the principal of the Securities shall then be due and payable as therein expressed or by
declaration or otherwise and irrespective of whether the Trustee shall have made any demand on the
Company for the payment of overdue principal or interest) shall be entitled and empowered, by
intervention in such proceeding or otherwise,

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          (a) to file and prove a claim for the whole amount of principal and interest owing and unpaid
in respect of the Securities and to file such other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and of
the Holders allowed in such judicial proceeding, and

          (b) to collect and receive any moneys or other property payable or deliverable on any such
claims and to distribute the same, and any custodian, receiver, assignee, trustee, liquidator,
sequestrator or other similar official in any such judicial proceeding is hereby authorized by each
Holder to make such payments to the Trustee and, in the event that the Trustee shall consent to the
making of such payments directly to the Holders, to pay to the Trustee any amount due it for the
reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and
counsel, and any other amounts due the Trustee under Section 7.7.

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

     Section 6.5. Trustee May Enforce Claims Without Possession of Securities. All rights of
action and claims under this Indenture or the Securities may be prosecuted and enforced by the
Trustee without the possession of any of the Securities or the production thereof in any proceeding
relating thereto, and any such proceeding instituted by the Trustee shall be brought in its own
name as trustee of an express trust, and any recovery of judgment shall, after provision for the
payment of the reasonable compensation, expenses, disbursements and advances of the Trustee, its
agents and counsel, be for the ratable benefit of the Holders of the Securities in respect of which
such judgment has been recovered.

     Section 6.6. Application of Money Collected. Any money collected by the Trustee pursuant to
this Article shall be applied in the following order, at the date or dates fixed by the Trustee
and, in case of the distribution of such money on account of principal or interest, upon
presentation of the Securities and the notation thereon of the payment if only partially paid and
upon surrender thereof if fully paid:

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

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

     Third: To the Company.

     Section 6.7. Limitation on Suits. No Holder of any Security of any Series shall have any
right to institute any proceeding, judicial or otherwise, with respect to this Indenture, or for
the appointment of a receiver or trustee, or for any other remedy hereunder, unless

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

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          (b) the Holders of not less than a majority in principal amount of the outstanding Securities
of that Series shall have made written request to the Trustee to institute proceedings in respect
of such Event of Default in its own name as Trustee hereunder;

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

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

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

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

     Section 6.8. Unconditional Right of Holders to Receive Principal and Interest.
Notwithstanding any other provision in this Indenture, the Holder of any Security shall have the
right, which is absolute and unconditional, to receive payment of the principal of, premium and
interest, if any, on such Security on the Stated Maturity or Stated Maturities expressed in such
Security (or, in the case of redemption, on the redemption date) and to institute suit for the
enforcement of any such payment, and such rights shall not be impaired without the consent of such
Holder.

     Section 6.9. Restoration of Rights and Remedies. If the Trustee or any Holder has instituted
any proceeding to enforce any right or remedy under this Indenture and such proceeding has been
discontinued or abandoned for any reason, or has been determined adversely to the Trustee or to
such Holder, then and in every such case, subject to any determination in such proceeding, the
Company, the Trustee and the Holders shall be restored severally and respectively to their former
positions hereunder and thereafter all rights and remedies of the Trustee and the Holders shall
continue as though no such proceeding had been instituted.

     Section 6.10. Rights and Remedies Cumulative. Except as otherwise provided with respect to
the replacement or payment of mutilated, destroyed, lost or stolen Securities in Section 2.8, no
right or remedy herein conferred upon or reserved to the Trustee or to the Holders is intended to
be exclusive of any other right or remedy, and every right and remedy shall, to the extent
permitted by law, be cumulative and in addition to every other right and remedy given hereunder or
now or hereafter existing at law or in equity or otherwise. The assertion or employment of any
right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment
of any other appropriate right or remedy.

     Section 6.11. Delay or Omission Not Waiver. No delay or omission of the Trustee or of any
Holder of any Securities to exercise any right or remedy accruing upon any Event of Default shall
impair any such right or remedy or constitute a waiver of any such Event of Default or an
acquiescence therein. Every right and remedy given by this Article or by law to the Trustee or to
the

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Holders may be exercised from time to time, and as often as may be deemed expedient, by the
Trustee or by the Holders, as the case may be.

     Section 6.12. Control by Holders. The Holders of a majority in principal amount of the
outstanding Securities of any Series shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power
conferred on the Trustee, with respect to the Securities of such Series, provided that

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

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

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

     Section 6.13. Waiver of Past Defaults. The Holders of not less than a majority in principal
amount of the outstanding Securities of any Series may on behalf of the Holders of all the
Securities of such Series waive any past Default hereunder with respect to such Series and its
consequences, except a Default (i) in the payment of the principal of or interest on any Security
of such Series (provided, however, that the Holders of a majority in principal amount of the
outstanding Securities of any Series may rescind an acceleration and its consequences, including
any related payment default that resulted from such acceleration) and (ii) in respect of a covenant
or provision hereof which cannot be modified or amended without the consent of the Holder of each
outstanding Security of such Series affected. Upon any such waiver, such Default shall cease to
exist, and any Event of Default arising therefrom shall be deemed to have been cured, for every
purpose of this Indenture; but no such waiver shall extend to any subsequent or other Default or
impair any right consequent thereon.

     Section 6.14. Undertaking For Costs. All parties to this Indenture agree, and each Holder of
any Security by his acceptance thereof shall be deemed to have agreed, that any court may in its
discretion require, in any suit for the enforcement of any right or remedy under this Indenture, or
in any suit against the Trustee for any action taken, suffered or omitted by it as Trustee, the
filing by any party litigant in such suit of an undertaking to pay the costs of such suit, and that
such court may in its discretion assess reasonable costs, including reasonable attorneys’ fees,
against any party litigant in such suit, having due regard to the merits and good faith of the
claims or defenses made by such party litigant; but the provisions of this Section shall not apply
to any suit instituted by the Company, to any suit instituted by the Trustee, to any suit
instituted by any Holder, or group of Holders, holding in the aggregate more than 10% in principal
amount of the outstanding Securities of any Series, or to any suit instituted by any Holder for the
enforcement of the payment of the principal of or interest on any Security on or after the Stated
Maturity or Stated Maturities expressed in such Security (or, in the case of redemption, on the
redemption date).

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ARTICLE VII

TRUSTEE

     Section 7.1. Duties of Trustee.

          (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise the
rights and powers vested in it by this Indenture and use the same degree of care and skill in their
exercise as a prudent man would exercise or use under the circumstances in the conduct of his own
affairs.

          (b) Except during the continuance of an Event of Default:

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

               (ii) In the absence of bad faith on its part, the Trustee may conclusively rely, as to the
truth of the statements and the correctness of the opinions expressed therein, upon Officers’
Certificates or Opinions of Counsel furnished to the Trustee and conforming to the requirements of
this Indenture; however, in the case of any such Officers’ Certificates or Opinions of Counsel
which by any provisions hereof are specifically required to be furnished to the Trustee, the
Trustee shall examine such Officers’ Certificates and Opinions of Counsel to determine whether or
not they conform to the requirements of this Indenture.

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

               (i) This paragraph does not limit the effect of paragraph (b) of this Section.

               (ii) The Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer, unless it is proved that the Trustee was negligent in ascertaining the
pertinent facts.

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

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

          (e) The Trustee may refuse to perform any duty or exercise any right or power unless it
receives indemnity satisfactory to it against any loss, liability or expense.

          (f) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by law.

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

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

     Section 7.2. Rights of Trustee.

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

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

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

          (d) The Trustee shall not be liable for any action it takes or omits to take in good faith
which it believes to be authorized or within its rights or powers.

          (e) The Trustee may consult with counsel and the advice of such counsel or any Opinion of
Counsel shall be full and complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in reliance thereon.

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

     Section 7.3. Individual Rights of Trustee. The Trustee in its individual or any other
capacity may become the owner or pledgee of Securities and may otherwise deal with the Company or
an Affiliate of the Company with the same rights it would have if it were not Trustee. Any Agent
may do the same with like rights. The Trustee is also subject to Sections 7.10 and 7.11.

     Section 7.4. Trustee’s Disclaimer. The Trustee makes no representation as to the validity or
adequacy of this Indenture or the Securities, it shall not be accountable for the Company’s use of
the proceeds from the Securities, and it shall not be responsible for any statement in the
Securities other than its authentication.

     Section 7.5. Notice of Defaults. If a Default or Event of Default occurs and is continuing
with respect to the Securities of any Series and if it is known to a Responsible Officer of the
Trustee, the Trustee shall mail to each Securityholder of the Securities of that Series and, if any
Bearer

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

     Section 7.6. Reports by Trustee to Holders. Within 60 days after May 15 in each year, the
Trustee shall transmit by mail to all Securityholders, as their names and addresses appear on the
register kept by the Registrar and, if any Bearer Securities are outstanding, publish in an
Authorized Newspaper, a brief report dated as of such May 15, in accordance with, and to the extent
required under, TIA Section 313.

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

     Section 7.7. Compensation and Indemnity. The Company shall pay to the Trustee from time to
time reasonable compensation for its services. The Trustee’s compensation shall not be limited by
any law on compensation of a trustee of an express trust. The Company shall reimburse the Trustee
upon request for all reasonable out-of-pocket expenses incurred by it. Such expenses shall include
the reasonable compensation and expenses of the Trustee’s agents and counsel.

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

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

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

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

     Section 7.8. Replacement of Trustee. A resignation or removal of the Trustee and appointment
of a successor Trustee shall become effective only upon the successor Trustee’s acceptance of
appointment as provided in this Section.

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

          (a) the Trustee fails to comply with Section 7.10;

          (b) the Trustee is adjudged a bankrupt or an insolvent or an order for relief is entered with
respect to the Trustee under any Bankruptcy Law;

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

          (d) the Trustee becomes incapable of acting.

     If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any
reason, the Company shall promptly appoint a successor Trustee. Within one year after the
successor Trustee takes office, the Holders of a majority in principal amount of the then
outstanding Securities may appoint a successor Trustee to replace the successor Trustee appointed
by the Company.

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

     If the Trustee with respect to the Securities of any one or more Series fails to comply with
Section 7.10, any Securityholder of the applicable Series may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

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

     Section 7.9. Successor Trustee by Merger, Etc. If the Trustee consolidates with, merges or
converts into, or transfers all or substantially all of its corporate trust business to, another
corporation, the successor corporation without any further act shall be the successor Trustee.

     Section 7.10. Eligibility; Disqualification. This Indenture shall always have a Trustee who
satisfies the requirements of TIA Section 310(a)(1), (2) and (5). The Trustee shall always have a
combined capital and surplus of at least $25,000,000 as set forth in its most recent published
annual report of condition. The Trustee shall comply with TIA Section 310(b).

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     Section 7.11. Preferential Collection of Claims Against Company. The Trustee is subject to
TIA Section 311(a), excluding any creditor relationship listed in TIA Section 311(b). A Trustee
who has resigned or been removed shall be subject to TIA Section 311(a) to the extent indicated.

ARTICLE VIII

SATISFACTION AND DISCHARGE; DEFEASANCE

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

          (a) either

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

               (ii) all such Securities not theretofore delivered to the Trustee for cancellation

                    (1) have become due and payable, or

                    (2) will become due and payable at their Stated Maturity within one year, or

                    (3) are to be called for redemption within one year under arrangements satisfactory to the
Trustee for the giving of notice of redemption by the Trustee in the name, and at the expense, of
the Company, or

                    (4) are deemed paid and discharged pursuant to Section 8.3, as applicable;

and the Company, in the case of (1), (2) or (3) above, has irrevocably deposited or caused to be
deposited with the Trustee as trust funds in trust an amount sufficient for the purpose of paying
and discharging the entire indebtedness on such Securities not theretofore delivered to the Trustee
for cancellation, for principal and interest to the date of such deposit (in the case of Securities
which have become due and payable on or prior to the date of such deposit) or to the Stated
Maturity or redemption date, as the case may be;

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

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

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

     Section 8.2. Application of Trust Funds; Indemnification.

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

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

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

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

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

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

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          (c) the rights, powers, trust and immunities of the Trustee hereunder;

provided that, the following conditions shall have been satisfied:

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

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

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

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

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

          (i) such deposit shall not result in the trust arising from such deposit constituting an
investment company (as defined in the Investment Company Act of 1940, as amended), or such trust
shall be qualified under such Act or exempt from regulation thereunder; and

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

29

 

     Section 8.4. Covenant Defeasance. Unless this Section 8.4 is otherwise specified pursuant to
Section 2.2.20 to be inapplicable to Securities of any Series, on and after the 91st day after the
date of the deposit referred to in subparagraph (a) hereof, the Company may omit to comply with any
term, provision or condition set forth under Sections 4.2, 4.3, 4.4, 4.5, 4.6, and 5.1 as well as
any additional covenants contained in a supplemental indenture hereto for a particular Series of
Securities or a Board Resolution or an Officers’ Certificate delivered pursuant to Section 2.2.20
(and the failure to comply with any such covenants shall not constitute a Default or Event of
Default under Section 6.1) with respect to the Securities of such Series, provided that the
following conditions shall have been satisfied:

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

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

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

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

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

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

30

 

     Section 8.5. Repayment to Company. The Trustee and the Paying Agent shall pay to the Company
upon request any money held by them for the payment of principal and interest that remains
unclaimed for two years. After that, Securityholders entitled to the money must look to the
Company for payment as general creditors unless an applicable abandoned property law designates
another person.

ARTICLE IX

AMENDMENTS AND WAIVERS

     Section 9.1. Without Consent of Holders. The Company and the Trustee may amend or supplement
this Indenture or the Securities of one or more Series without the consent of any Securityholder:

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

          (b) to comply with Article V;

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

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

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

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

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

     Section 9.2. With Consent of Holders. The Company and the Trustee may enter into a
supplemental indenture with the written consent of the Holders of at least a majority in principal
amount of the outstanding Securities of each Series affected by such supplemental indenture
(including consents obtained in connection with a tender offer or exchange offer for the Securities
of such Series), for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Indenture or of any supplemental indenture or of
modifying in any manner the rights of the Securityholders of each such Series. Except as provided
in Section 6.13, the Holders of at least a majority in principal amount of the outstanding
Securities of each Series affected by such waiver by notice to the Trustee (including consents
obtained in connection with a tender offer or exchange offer for the Securities of such Series) may
waive compliance by the Company with any provision of this Indenture or the Securities with respect
to such Series.

     It shall not be necessary for the consent of the Holders of Securities under this Section 9.2
to approve the particular form of any proposed supplemental indenture or waiver, but it shall be
sufficient if such consent approves the substance thereof. After a supplemental indenture or
waiver

31

 

under this section becomes effective, the Company shall mail to the Holders of Securities
affected thereby and, if any Bearer Securities affected thereby are outstanding, publish on one
occasion in an Authorized Newspaper, a notice briefly describing the supplemental indenture or
waiver. Any failure by the Company to mail or publish such notice, or any defect therein, shall
not, however, in any way impair or affect the validity of any such supplemental indenture or
waiver.

     Section 9.3. Limitations. Without the consent of each Securityholder affected, an amendment
or waiver may not:

          (a) change the amount of Securities whose Holders must consent to an amendment, supplement or
waiver;

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

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

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

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

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

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

          (h) waive a redemption payment with respect to any Security or change any of the provisions
with respect to the redemption of any Securities.

     Section 9.4. Compliance with Trust Indenture Act. Every amendment to this Indenture or the
Securities of one or more Series shall be set forth in a supplemental indenture hereto that
complies with the TIA as then in effect.

     Section 9.5. Revocation and Effect of Consents. Until an amendment or waiver becomes
effective, a consent to it by a Holder of a Security is a continuing consent by the Holder and
every subsequent Holder of a Security or portion of a Security that evidences the same debt as the
consenting Holder’s Security, even if notation of the consent is not made on any Security.
However, any such Holder or subsequent Holder may revoke the consent as to his Security or portion
of a Security if the Trustee receives the notice of revocation before the date the amendment or
waiver becomes effective.

     Any amendment or waiver once effective shall bind every Securityholder of each Series affected
by such amendment or waiver unless it is of the type described in any of clauses (a) through (h) of
Section 9.3. In that case, the amendment or waiver shall bind each Holder of a Security who

32

 

has consented to it and every subsequent Holder of a Security or portion of a Security that
evidences the same debt as the consenting Holder’s Security.

     Section 9.6. Notation on or Exchange of Securities. The Trustee may place an appropriate
notation about an amendment or waiver on any Security of any Series thereafter authenticated. The
Company in exchange for Securities of that Series may issue and the Trustee shall authenticate upon
request new Securities of that Series that reflect the amendment or waiver.

     Section 9.7. Trustee Protected. In executing, or accepting the additional trusts created by,
any supplemental indenture permitted by this Article or the modifications thereby of the trusts
created by this Indenture, the Trustee shall be entitled to receive, and (subject to Section 7.1)
shall be fully protected in relying upon, an Opinion of Counsel stating that the execution of such
supplemental indenture is authorized or permitted by this Indenture. The Trustee shall sign all
supplemental indentures, except that the Trustee need not sign any supplemental indenture that
adversely affects its rights.

ARTICLE X

MISCELLANEOUS

     Section 10.1. Trust Indenture Act Controls. If any provision of this Indenture limits,
qualifies, or conflicts with another provision which is required or deemed to be included in this
Indenture by the TIA, such required or deemed provision shall control.

     Section 10.2. Notices. Unless otherwise provided herein, any notice or communication by the
Company or the Trustee to the other shall be in writing and delivered in person or by courier,
telegraphed, telexed or by facsimile transmission or mailed by first-class mail as follows:

	 	 	 	 	 
	 
	 	if   to the Company:	 	Endologix, Inc.
	 
	 	 	 	11 Studebaker
	 
	 	 	 	Irvine, California 92618
	 
	 	 	 	Attention:  Chief Executive Officer
	 
	 	 	 	Facsimile:  (949) 595-7200
	 
	 	 	 	 
	 
	 	with a copy to:	 	Stradling Yocca Carlson & Rauth
	 
	 	 	 	660 Newport Center Drive, Suite 1600
	 
	 	 	 	Newport Beach, California 92660
	 
	 	 	 	Attention:  Lawrence B. Cohn, Esq.
	 
	 	 	 	Facsimile:  (949) 725-4100
	 
	 	 	 	 
	 
	 	if to the Trustee:	 	[Name of Trustee]
	 
	 	 	 	[Address]
	 
	 	 	 	                                                            
	 
	 	 	 	                                                            
	 
	 	 	 	Attention:                                          

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

33

 

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

     If a notice or communication is mailed in the manner provided above, within the time
prescribed, it is duly given, whether or not the Securityholder receives it. If a notice or
communication is delivered in person, by courier, telegraphed, telexed or by facsimile transmission
(with confirmation of receipt) within the time prescribed, it is duly given.

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

     Section 10.3. Communication by Holders with other Holders. Securityholders of any Series may
communicate pursuant to TIA Section 312(b) with other Securityholders of that Series or any other
Series with respect to their rights under this Indenture or the Securities of that Series or all
Series. The Company, the Trustee, the Registrar and anyone else shall have the protection of TIA
Section 312(c).

     Section 10.4. Certificate and Opinion as to Conditions Precedent. Upon any request or
application by the Company to the Trustee to take any action under this Indenture, the Company
shall furnish to the Trustee:

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

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

     Section 10.5. Statements Required in Certificate or Opinion. Each certificate or opinion with
respect to compliance with a condition or covenant provided for in this Indenture (other than a
certificate provided pursuant to TIA Section 314(a)(4)) shall comply with the provisions of TIA
Section 314(e) and shall include:

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

          (b) a brief statement as to the nature and scope of the examination or investigation upon
which the statements or opinions contained in such certificate or opinion are based;

          (c) a statement that, in the opinion of such person, he has made such examination or
investigation as is necessary to enable him to express an informed opinion as to whether or not
such covenant or condition has been complied with; and

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

34

 

     Section 10.6. Rules by Trustee and Agents. The Trustee may make reasonable rules for action
by or a meeting of Securityholders of one or more Series. Any Agent may make reasonable rules and
set reasonable requirements for its functions.

     Section 10.7. Legal Holidays. Unless otherwise provided by Board Resolution, Officers’
Certificate or supplemental indenture for a particular Series, a “Legal Holiday” is any day that is
not a Business Day. If a payment date is a Legal Holiday at a place of payment, payment may be
made at that place on the next succeeding day that is not a Legal Holiday, and no interest shall
accrue for the intervening period.

     Section 10.8. No Recourse Against Others. A director, officer, employee or stockholder, as
such, of the Company shall not have any liability for any obligations of the Company under the
Securities or the Indenture or for any claim based on, in respect of or by reason of such
obligations or their creation. Each Securityholder by accepting a Security waives and releases all
such liability. The waiver and release are part of the consideration for the issue of the
Securities.

     Section 10.9. Counterparts. This Indenture may be executed in any number of counterparts and
by the parties hereto in separate counterparts, each of which when so executed shall be deemed to
be an original and all of which taken together shall constitute one and the same agreement.

     Section 10.10. Governing Laws. THIS INDENTURE AND THE SECURITIES SHALL BE GOVERNED BY THE
LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED IN SUCH STATE,
WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS THEREOF.

     Section 10.11. No Adverse Interpretation of Other Agreements. This Indenture may not be used
to interpret another indenture, loan or debt agreement of the Company or a Subsidiary. Any such
indenture, loan or debt agreement may not be used to interpret this Indenture.

     Section 10.12. Successors. All agreements of the Company in this Indenture and the Securities
shall bind its successor. All agreements of the Trustee in this Indenture shall bind its
successor.

     Section 10.13. Severability. In case any provision in this Indenture or in the Securities
shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

     Section 10.14. Table of Contents, Headings, Etc. The Table of Contents, Cross Reference
Table, and headings of the Articles and Sections of this Indenture have been inserted for
convenience of reference only, are not to be considered a part hereof, and shall in no way modify
or restrict any of the terms or provisions hereof.

     Section 10.15. Securities in a Foreign Currency or in ECU. Unless otherwise specified in a
Board Resolution, a supplemental indenture hereto or an Officers’ Certificate delivered pursuant to
Section 2.2 of this Indenture with respect to a particular Series of Securities, whenever for
purposes of this Indenture any action may be taken by the Holders of a specified percentage in
aggregate principal amount of Securities of all Series or all Series affected by a particular
action at the time outstanding and, at such time, there are outstanding Securities of any Series
which are denominated

35

 

in a coin or currency other than Dollars (including ECUs), then the principal amount of
Securities of such Series which shall be deemed to be outstanding for the purpose of taking such
action shall be that amount of Dollars that could be obtained for such amount at the Market
Exchange Rate at such time. For purposes of this Section 10.15, “Market Exchange Rate” shall mean
the noon Dollar buying rate in New York City for cable transfers of that currency as published by
the Federal Reserve Bank of New York; provided, however, in the case of ECUs, Market Exchange Rate
shall mean the rate of exchange determined by the Commission of the European Union (or any
successor thereto) as published in the Official Journal of the European Union (such publication or
any successor publication, the “Journal”). If such Market Exchange Rate is not available for any
reason with respect to such currency, the Trustee shall use, in its sole discretion and without
liability on its part, such quotation of the Federal Reserve Bank of New York or, in the case of
ECUs, the rate of exchange as published in the Journal, as of the most recent available date, or
quotations or, in the case of ECUs, rates of exchange from one or more major banks in The City of
New York or in the country of issue of the currency in question or, in the case of ECUs, in
Luxembourg or such other quotations or, in the case of ECUs, rates of exchange as the Trustee, upon
consultation with the Company, shall deem appropriate. The provisions of this paragraph shall
apply in determining the equivalent principal amount in respect of Securities of a Series
denominated in currency other than Dollars in connection with any action taken by Holders of
Securities pursuant to the terms of this Indenture.

     All decisions and determinations of the Trustee regarding the Market Exchange Rate or any
alternative determination provided for in the preceding paragraph shall be in its sole discretion
and shall, in the absence of manifest error, be conclusive to the extent permitted by law for all
purposes and irrevocably binding upon the Company and all Holders.

     Section 10.16. Judgment Currency. The Company agrees, to the fullest extent that it may
effectively do so under applicable law, that (a) if for the purpose of obtaining judgment in any
court it is necessary to convert the sum due in respect of the principal of or interest or other
amount on the Securities of any Series (the “Required Currency”) into a currency in which a
judgment will be rendered (the “Judgment Currency”), the rate of exchange used shall be the rate at
which in accordance with normal banking procedures the Trustee could purchase in The City of New
York the Required Currency with the Judgment Currency on the day on which final unappealable
judgment is entered, unless such day is not a New York Banking Day, then, the rate of exchange used
shall be the rate at which in accordance with normal banking procedures the Trustee could purchase
in The City of New York the Required Currency with the Judgment Currency on the New York Banking
Day preceding the day on which final unappealable judgment is entered and (b) its obligations under
this Indenture to make payments in the Required Currency (i) shall not be discharged or satisfied
by any tender, any recovery pursuant to any judgment (whether or not entered in accordance with
subsection (a)), in any currency other than the Required Currency, except to the extent that such
tender or recovery shall result in the actual receipt, by the payee, of the full amount of the
Required Currency expressed to be payable in respect of such payments, (ii) shall be enforceable as
an alternative or additional cause of action for the purpose of recovering in the Required Currency
the amount, if any, by which such actual receipt shall fall short of the full amount of the
Required Currency so expressed to be payable, and (iii) shall not be affected by judgment being
obtained for any other sum due under this Indenture. For purposes of the foregoing, “New York
Banking Day” means any day except a Saturday, Sunday or a legal holiday in The City of New York on
which banking institutions are authorized or required by law, regulation or executive order to
close.

36

 

ARTICLE XI

SINKING FUNDS

     Section 11.1. Applicability of Article. The provisions of this Article shall be applicable to
any sinking fund for the retirement of the Securities of a Series, except as otherwise permitted or
required by any form of Security of such Series issued pursuant to this Indenture.

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

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

     Section 11.3. Redemption of Securities for Sinking Fund. Not less than 45 days (unless
otherwise indicated in the Board Resolution, supplemental indenture hereto or Officers’ Certificate
in respect of a particular Series of Securities) prior to each sinking fund payment date for any
Series of Securities, the Company will deliver to the Trustee an Officers’ Certificate specifying
the amount of the next ensuing mandatory sinking fund payment for that Series pursuant to the terms
of that Series, the portion thereof, if any, which is to be satisfied by payment of cash and the
portion thereof, if any, which is to be satisfied by delivering and crediting of Securities of that
Series pursuant to Section 11.2, and the optional amount, if any, to be added in cash to the next
ensuing mandatory

37

 

sinking fund payment, and the Company shall thereupon be obligated to pay the amount therein
specified. Not less than 30 days (unless otherwise indicated in the Board Resolution, Officers’
Certificate or supplemental indenture in respect of a particular Series of Securities) before each
such sinking fund payment date the Trustee shall select the Securities to be redeemed upon such
sinking fund payment date in the manner specified in Section 3.2 and cause notice of the redemption
thereof to be given in the name of and at the expense of the Company in the manner provided in
Section 3.3. Such notice having been duly given, the redemption of such Securities shall be made
upon the terms and in the manner stated in Sections 3.4, 3.5 and 3.6.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

38

 

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

	 	 	 	 	 	 	 
	 	 	ENDOLOGIX, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Its:
	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	[NAME OF TRUSTEE]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Its:
	 	 	 	 
	 

	 	 	 	 	 	 

39exv10w1

Exhibit 10.1

This lease made this 9th day of April, 2009.

BETWEEN:

Elk Property Management Limited, as agent for

PBX Properties Ltd. and 350 Palladium Drive Inc. and 856581 Alberta Ltd.

(Hereinafter called the” Landlord”)

OF THE FIRST PART,

AND:

ZixCorp Canada Inc. and Zix Corporation.

(Hereinafter called the “Tenant”)

OF THE SECOND PART,

     Whereas:

	A.	 	This document and all schedules shall hereafter be referred to as the “Lease” or the “lease.
	 
	B.	 	Lease Year — means the twelve month financial year of the Landlord commencing on the
1st day of January in each calendar year.
	 
	C.	 	Proportionate Share means, with respect to the Tenant, a fraction, the numerator of which is
the leasable area of the Premises and the denominator of which is the leasable area of the
Building with such leasable areas to be determined in accordance with the most recent BOMA
standard.
	 
	D.	 	Rent means either or both of Minimum Rent and Additional Rent.

PREMISES

1. WITNESSETH that in consideration of the Tenant paying the rents and any other amounts provided
for herein and in consideration of the Tenant meeting all its other obligations as provided for
herein, the Landlord does demise herein and lease unto the Tenant the premises as described herein.
These premises shall be hereinafter called either the “Leased Premises” or the “Premises” and has
been measured to have a rentable area of 6,080 square feet, as shown on the attached Schedule B,
and located on the second floor of the building bearing the civic address of 350 Palladium Drive in
the City of Ottawa, Province of Ontario which said building and lands are legally described and
shown in Schedule “A” hereto annexed. The building, including the Leased Premises and lands,
including all driveways, parking areas and access and egress points shall be hereafter referred to
as the Building or building. The rentable area of the Leased Premises, for the purposes of
calculating any and all rent as provided for herein, shall include a share of the common areas of
the Building.

TERM

2(a) The Tenant shall lease the Leased Premises for and during the term, (hereinafter called “the
Term”) starting from the 1st day of July 2009 (the “Commencement Date”) and to be
completed and ended on the 31st day of July, 2012.

EARLY OCCUPANCY  — (INTENTIONALLY DELETED)

RENTALS PAYABLE 

3(a) The Tenant covenants and agrees to pay to the Landlord as rental for the Leased Premises,
without any set-off or deduction whatsoever for the full term of the lease the following:

	 	(i)	 	For the period from July 1st, 2009 to July 31st, 2009 the Tenant
shall not pay any Minimum or Additional Rent.

 

 

-2-

	 	(ii)	 	From August 1st, 2009 to July 31st, 2012 the Tenant shall pay the
amount of $127,680.00 plus GST in equal monthly installments of $3,546.67 plus GST
based on a rate of $7 per square foot.

All such rental payments shall be made in advance, on the first day of each calendar month
and shall be referred to either as the “Minimum Rental” or “Minimum Rent”;

	 	(iii)	 	In addition to the Minimum Rent described herein and without limiting the
generality of the foregoing, the Tenant shall also pay Additional Rental representing
payment by the Tenant of its proportionate share of all taxes, insurance, interior
cleaning, and operating costs for the Building and other costs as set forth in
subparagraphs 3(j), 3(k) and 3(l) and elsewhere herein, as applicable. The Landlord
hereby estimates such Additional Rental for the 2009 portion of this Lease to be $12.75
per square foot. All such payments of Additional Rental shall be based on the
Landlord’s estimates and shall also be paid monthly on the first day of each calendar
month.

The Tenant agrees that all rental amounts referred to in this paragraph and the amount shown under
paragraph 3(d) entitled Security Deposit may be subject to small changes to reflect the actual
rentable area of the Leased Premises (i.e. including its share of any common areas), as reasonably
determined by the Landlord in accordance with prevailing BOMA standards.

MINIMUM RENTAL and ADDITIONAL RENTAL 

3(b) The Minimum Rental and Additional Rental will be adjusted proportionately for any Lease Year
that is other than twelve (12) calendar months. The initial lease payment, if applicable, under
this Lease shall include also any pro-rated Minimum Rental and Additional Rental for the period
from the date of the commencement of the Term to the first day of the first full calendar month in
the Term.

RENT ADJUSTMENT FOR INTEREST RATE INCREASE

3(c) deleted intentionally

SECURITY DEPOSIT

3(d) The Tenant, as a requirement of its original terms of occupancy has provided a deposit of
$12,800.41 which will continue to be retained by the Landlord without interest, as a security
deposit, to be released after the expiry of the term, or any renewal thereof, subject to deductions
for any unpaid rent or other amounts due by the Tenant to the Landlord under this lease and any
remainder of the security deposit to be released only so long as the Tenant has complied with all
its obligations herein including but not limited to the paragraph entitled Surrender of the Leased
Premises.

MANNER AND PLACE OF PAYMENT OF RENT

3(e) (i) All rent shall be paid by the Tenant to the Landlord or to any entity designated by the
Landlord, at par at the principal office of the Landlord or at such other place as the Landlord may
designate in writing from time to time without any prior demand therefore, and shall be payable in
lawful money of Canada.

     (ii) Any sums received by the Landlord from or for the account of the Tenant when the Tenant
is in default hereunder may be applied at the Landlord’s option to the satisfaction, in whole or
part, of any of the obligations of the Tenant then due hereunder in such manner as the Landlord
sees fit, and regardless of any designation or instruction of the Tenant to the contrary.

 

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LEASE YEAR

3(f) Deleted Intentionally

SET-OFF & ABATEMENT

3(g) All Minimum Rent and Additional Rent and other sums payable hereunder by the Tenant to the
Landlord shall be payable without any deduction, set-off or abatement whatsoever.

INTEREST ON ARREARS

3(h) If the Tenant shall fail to pay, when due, any Minimum Rent, Additional Rent, or installment
on account thereof, or any other amount payable to the Landlord hereunder, the amount unpaid shall
bear interest from the due date thereof to the date of payment at the rate of four (4%) percent in
excess of the prime rate of interest then chargeable by the Landlord’s bankers to its most favoured
customers on commercial loans in Canadian currency, but this provision for interest shall not limit
any other remedies which the Landlord may have in respect of such default.

OPERATE ON CONTINUOUS BASIS

3(i) Deleted Intentionally

ADDITIONAL TAXES AND RATES

3(j) In addition to the Minimum Rent, The Tenant shall pay an additional monthly sum (herein called
the “Additional Rental for Taxes”) estimated by the Landlord as sufficient to reimburse the
Landlord for the Tenant’s Proportionate Share of all municipal, provincial, federal or other
governmental taxes or rates or charges of every nature or description that are attributable to the
Building (hereafter “Taxes”). These Taxes shall include without limiting the generality of the
foregoing, realty taxes, school taxes, general taxes, goods and services taxes (i.e. GST or any
other tax or levy that replaces or is in addition to such tax or that is charged on any of the rent
payable by the Tenant as called for herein), value added taxes, business transfer taxes, any and
all capital taxes including but not limited to taxes based upon or computed by reference to capital
or paid up capital of the Landlord so long as such capital taxes relate to this Building, fire
protection charges, water rates, sewerage rates, local improvement rates, general or particular
levies or assessments, or charges or any similar rates, taxes, assessments or charges levied by any
municipal, provincial, federal or other governmental authority against the building to the extent
that the same are attributed, by the Landlord, to the Leased Premises but excluding any interest or
penalty payable as a result of the failure by the Landlord to make any payment of any such taxes,
rates, or charges when due. Upon the receipt by the Landlord of any demand for payment or statement
of account with respect to any such taxes, rates and charges, it shall notify the Tenant and the
Tenant shall pay for any variation in the monthly amount payable as Additional Rental for Taxes
under this clause; provided, however, that the Landlord shall be entitled to vary the Additional
Rental for Taxes at any time upon giving notice in writing of such variation to the Tenant and all
amounts payable under this Lease as Additional Rental for Taxes shall be recoverable by the
Landlord from the Tenant in the same manner as rent under the terms hereof.

If at any time during the Term, Taxes payable for the Building are calculated based, in whole or in
part, on the Building being less than fully occupied by tenants carrying on business, then the
Landlord may at

 

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its option and acting reasonably, adjust the Taxes payable as if the Building had been fully
occupied by tenants carrying on business. The parties acknowledge that the purpose of this clause
is to ensure that the Landlord solely benefits from any lower rate or assessment levied on vacant
space in the Building. It is the intent of this paragraph that the Tenant pays no more in Taxes
than if the Building were fully occupied and that the Landlord benefit from any reduction in Taxes
related to vacancies in the Building.

INSURANCE

3(k) The Tenant shall, during the term of this tenancy and any renewal thereof, at the Tenant’s
sole cost and expense, obtain and keep in full force and effect insurance policies to cover fire
and property damage, business interruption, and public liability of not less than two million
($2,000,000) dollars for each occurrence. Such Tenant’s insurance shall include, but not be limited
to coverage from loss or damage caused by malicious damage, lightning, explosion, windstorm, hail,
sprinkler leakage (if applicable), smoke, impact of vehicles or aircraft and such other insurable
hazards as the Landlord may from time to time reasonably decide but not in an amount exceeding the
replacement value thereof. Such Tenant’s “all risk” insurance shall also cover property of every
kind and nature owned by the Tenant or for which the Tenant is legally liable, or installed by or
on behalf of the Tenant and which is located within, in or about, the Leased Premises in an amount
not less than the full replacement cost thereof. The Tenant shall provide the Landlord with copies
of all policies of insurance coverage required to be placed by the Tenant pursuant hereto prior to
the rental commencement date and annually thereafter with renewals thereof at least thirty (30)
days prior to any expiry thereof. In addition if required by a mortgagee the Tenant shall furnish
to the Landlord, within five (5) days after demand thereof by the Landlord, additional copies of
same. In the event the Tenant fails to obtain any insurance referred to in this section, the
Landlord may place such insurance, and the cost thereof together with interest on such payment at a
rate equal to the stipulated rate of interest (Royal Bank prime rate plus 4.0%) from the date such
payments are made by the Landlord until reimbursed by the Tenant shall forthwith be payable by the
Tenant to the Landlord. The Tenant hereby agrees and understands that the placing of any of the
above mentioned insurance by the Landlord shall in no way relieve the Tenant from any obligation
assumed under this Lease.

The Tenant covenants that nothing will be done or omitted to be done upon the Leased Premises or
any part thereof and nothing will be brought upon the Leased Premises or any part thereof which may
result in an insurance policy to be cancelled or the Leased Premises or Building to be rendered
uninsurable.

All insurance policies shall be in form and substance and with insurers satisfactory to the
Landlord. The “all risk” insurance required to be maintained by the Tenant under this clause shall
include a waiver of subrogation in favour of the Landlord and against those for whom the Landlord
is in law responsible and the comprehensive general liability policy shall in addition contain a
provision for cross-liability and severability of interest.

The Landlord and the Building manager shall be entitled to be named as a co-insured or additional
insured, under the Tenant’s public liability policy required herein, and, in any event, the
Tenant will arrange, if possible, for notice to be given by an insurer to the Landlord of any
cancellation of any of the policies of insurance required by this Lease to be maintained by the
Tenant.

The Landlord shall maintain on the building, fire insurance and insurance against all perils,
reasonable in the circumstances, for full replacement cost with minimum by-law endorsement and
broad extended coverage, boiler insurance coverage, insurance against loss of rental income by
reason of fire or related

 

-5-

perils and third person liability and any other liability insurance protecting the Landlord against
all or any claims for personal injury including death or property damage in an amount deemed
advisable by the Landlord from time to time, and if and when deemed advisable by the Landlord,
insurance against loss of an “all risk” nature including but not limited to earthquake, and the
Tenant shall reimburse the Landlord by paying a further additional monthly sum (herein called the
“Additional Rental for Insurance”) for its proportionate share of all costs and charges of any such
insurance and all such costs and charges may be recovered by the Landlord from the Tenant in the
same manner as rent under the terms hereof.

Notwithstanding the foregoing, the Tenant shall not be required to contribute any part of a premium
for terrorism insurance unless such terrorism insurance is required by a lender or mortgagee to the
property or unless such terrorism insurance becomes customary amongst institutional owners of
office buildings.

OPERATING AND MAINTENANCE COSTS

3(l) Unless caused by Tenant misuse or neglect and subject to Tenant’s obligation to maintain and
effect repairs, at the Tenant’s cost, as outlined in paragraph 4(e) herein entitled Tenant Repairs
and Alterations and elsewhere as called for in the Lease, the Landlord shall maintain and repair
the building, including the repair and replacement of any building components such as the roof as
well as the foundations, structural columns of the building and mechanical, electrical and other
basic systems of the building as well as perimeter fences, if applicable and the Landlord shall
maintain, operate and manage (including the provisioning of cleaning and janitorial services and
refuse collection) to the standard of a high quality building, all the lands comprising the said
building including the parking areas and landscaped areas and the Tenant shall reimburse the
Landlord its proportionate share for all costs related to the aforementioned repairs and
replacements and for all other operating costs to maintain, operate and manage the building and
lands in such a manner. Such Tenant’s reimbursement for such costs shall hereinafter be called
“Additional Rental for Operating Costs”. Subject to the Tenant Repairs and Alterations clause
herein, the said operating costs shall include all the aforenoted costs and shall also include,
without duplication, the amounts paid whether by the Landlord or others on behalf of the Landlord
for complete maintenance services for the building such as are in keeping with maintaining the
standard of a high quality building and shall include all repairs and replacements required for
such maintenance, including but not limited to the following: all grass cutting and removal and
other landscaping costs including litter removal, parking lot maintenance and snow removal,
maintenance of the exterior of the building including roof repairs and maintenance, the costs of
providing water and electricity or any other utility not otherwise chargeable directly to or
payable by tenants, and any costs related to consumption of utilities (including but not limited to
electricity, gas, water, oil, cable, etc.) or any costs incurred to investigate or to install any
devices, systems or equipment designed to reduce the consumption of such utilities, service
contracts with independent contractors, all amounts paid for wages, benefits, and other payments to
janitors, caretakers and any other staff, to the extent they are directly involved in the
maintenance and management of the building, managerial fees, supplies used in the maintenance of
the building, the cost of heating, ventilating and/or air-conditioning the building, including the
common areas of the building not directly chargeable to the Tenant and including repairs and
replacements to all equipment used in the provision of plumbing, electricity, heating, ventilating,
and air conditioning of the building including any meters and all other expenses paid or payable by
the Landlord in connection with the operation of the building. Such operating costs shall not
include interest on debt or capital retirement of debt, or any amount directly chargeable by the
Landlord to any tenant or tenants as otherwise provided herein, or the proceeds realized by the
Landlord from any insurance claims made by

 

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the Landlord in connection with repairs done by the Landlord, sums payable by the Landlord as taxes
on income of the Landlord and which are clearly personal to the Landlord and are not directly
related to the Building, the costs of enforcing other tenants’ obligations under leases, costs and
expenses of leasehold improvements relating to renewed tenancies, and marketing costs, real estate
commissions, tenant inducements or tenants’ work costs incurred by the Landlord in acquiring new
tenants for the Building.

All such costs and charges, except as noted above, may be recoverable by the Landlord from the
Tenant in the same manner as rent under the terms hereof. Operating costs shall be determined in
accordance with generally accepted accounting principles and without duplication. The management
fee that forms part of the above costs shall not exceed five percent (5%) of gross rentals paid
(i.e. including Minimum Rental and all Additional Rental), excluding such management fee.

In respect of the replacement of major structural items, including by way of illustration and not
limitation, the roof, foundations, structural columns of the building, the amount which the
Landlord can expense in any one year (and, commensurately, the Tenant’s proportionate amount of
which is permitted to be included in “Additional Rental for Operating Costs”) shall not exceed the
greater of the cost of such replacement divided by the item’s life expectancy in years or that
amount which would be permitted to be expensed in any one year and still comply with generally
accepted accounting principles and that are applied in a fashion consistent with the Landlord’s
past practice. Such expense shall be permitted on an annual basis until the cost of such replaced
item has been fully amortized or the Term has expired.

Should part of the Building be vacant any time during the term of the lease, then, where
appropriate, the
Landlord may reasonably allocate expenses such that the Landlord shall benefit from any reduced
costs that are reasonably attributable to the vacancy and such that the Tenant shall pay amounts
which it otherwise would have had to pay if the building were fully occupied. The expenses to be
allocated pursuant to this clause must be real, out of pocket expenses of the Landlord which are
more fairly attributed to occupied space than to vacant space.

Except for costs which are in any way related to the Tenant’s occupancy which shall be the Tenant’s
responsibility as called for in paragraph 37 herein, the Tenant shall not be responsible to
contribute to costs of clean up or remediation in connection with any condition of environmental
concern in respect of the Building other than the costs incurred by the Landlord related to any
insurance premiums paid to obtain coverage for such clean up or remediation or to cost of the
deductible paid by the Landlord in the event of a claim related to such coverage (unless the
Landlord has recovered all or a portion of the deductible, in which case the Tenant shall not be
responsible for the cost of the deductible so recovered). Without effecting or delaying the
Tenant’s obligation to contribute, the Landlord will use reasonable efforts to recover from third
parties any monies payable by them to which the Tenant would otherwise contribute under this
section.

DIRECT CHARGE FOR WATER & SEWERAGE RATES & HYDRO CHARGES

3(m) Deleted Intentionally

PAYMENT OF ADDITIONAL RENT

3(n) During the Term of the Lease, the Tenant shall pay to the Landlord, Additional Rental for
Taxes, Additional Rental for Insurance and Additional Rental for Operating Costs which shall be
collectively be referred to herein as Additional Rent, Additional Rental or Additional Rentals.
Prior to the commencement of the term of this Lease and of each Lease Year selected by the Landlord
thereafter

 

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which commences during the term of this Lease, the Landlord shall estimate the amounts of the
said Additional Rentals as herein before set forth for the ensuing Lease Year or (if applicable)
broken portion thereof, as the case may be, and shall notify the Tenant in writing of such
estimate. The amount so estimated shall be payable in equal monthly installments in advance over
the Lease Year or broken portion thereof in question, on the first day of each and every month
during such Lease Year. The Landlord may from time to time alter the Lease Year selected in which
case the appropriate adjustment in monthly installments shall be made. From time to time during a
Lease Year, the Landlord may re-estimate the amount of the taxes, insurance, or operating costs or
any of them, in which event the Landlord shall notify the Tenant in writing of such re-estimate and
the Tenant shall pay the amended monthly installments for the then remaining balance of such Lease
Year or broken portion thereof.

Within sixty (60) days after the expiration of each Lease Year, the Landlord shall make a
calculation of such taxes, insurance, and operating costs for such Lease Year or broken portion
thereof and shall notify the Tenant of such calculation and the Landlord and the Tenant shall make
the necessary readjustment within thirty (30) days of such notification to the Tenant. Neither the
Landlord nor the Tenant may claim a re-adjustment with respect to such Additional Rentals based
upon any error of estimation, determination or calculation thereof unless claimed in writing within
one (1) year after the Landlord has provided the Tenant with the calculation referred to herein.

EXAMINATION OF RECORDS

3(o) The Tenant and its agents may within thirty (30) days of the receipt by the Tenant of any
notice respecting Additional Rental for Taxes, Insurance or Operating Costs payable hereunder, at
reasonable times, and upon giving reasonable prior notice in writing of its intention to do so,
examine at the expense of the Tenant (subject to the cost allocation between the parties for the
accountant referred to below in this Section 3(o)), the accounts, records, books, statements and
other documents concerning such Additional Rental all of which accounts, records, books, statements
and other documents will be made available by the Landlord to the Tenant at reasonable times and at
the Landlord’s place of business. All information obtained by the Tenant as a result of such
examination shall be treated as confidential. Should, as a result of the Tenant’s examination of
records, the Landlord or Tenant feel an adjustment is warranted and should the Landlord and Tenant
fail to agree on such adjustment then an accountant, agreed upon by both parties, shall be
appointed to examine the Landlord’s records to determine what adjustment if any, is required. The
cost of such accountant shall not be included in operating and maintenance costs under Section 3(l)
of this Lease.

Should the adjustment, if any, be less than 5% of the total annual cost for the Additional Rent
then the Tenant shall pay, on it own, for the cost of such accountant. Should the cost be more than
the 5% figure noted herein and should such adjustment result, in the Landlord being requested to
pay such adjustment to the Tenant, then the Landlord shall pay the cost for such accountant.

APPEAL OF ASSESSMENT

3(p) The Tenant shall be entitled at any time and from time to time, provided that it has first
obtained the Landlord’s written consent, at the Tenant’s own cost and expense to appeal any
assessment or taxes imposed or levied on the Leased Premises or the building and may take such
appeal in the name of the Landlord provided that such appeal is prosecuted in good faith, and
provided that if the building or any part thereof or the Landlord shall become liable to
assessment, prosecution, fine or other liability, the

 

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Tenant shall have given cash security in an amount satisfactory to the Landlord in respect of such
liability and such undertakings as the Landlord may reasonably require to indemnify the Landlord
from any costs of any nature in connection with such appeal. In no event shall the Tenant’s appeals
noted herein permit the Tenant to delay any payments of rent to the Landlord including but not
limited to payment of Additional Rent for Taxes as called for herein.

TENANT’S COVENANTS

	4.	 	THE TENANT COVENANTS WITH THE LANDLORD AS FOLLOWS:
	 
	(a)	 	To pay, without setoff, Minimum Rent and Additional Rents as herein set forth;
	 
	(b)	 	To observe and perform all covenants and obligations of the Tenant herein;
	 
	(c)	 	To pay the costs of, as and when the same become due, all gas, electrical, water and sewer
rates and charges levied or imposed or any other utility consumption costs including the cost
of installing, repairing or replacing any meter so long as such cost does not also form part
of the cost outlined in paragraph 3(l) herein entitled Operating and Maintenance Costs charged
or assessed against the Leased Premises as and when the same become due;

BUSINESS TAX, ETC.

4(d) To pay business and other taxes, charges, rates, duties and assessments levied, rated, charged
or assessed against and in respect of the Tenant’s occupancy of the Leased Premises or in respect
of the personal property, trade fixtures, furniture and facilities of the Tenant or business of the
Tenant on the Leased Premises, as and when the same become due, and to indemnify and keep
indemnified the Landlord from and against all payment of all loss, costs, charges and expenses
occasioned by or arising from any and all such taxes, rates, duties, assessments, license fees and
any and all taxes which may in future be levied in lieu of such taxes, and also if the Tenant or
any person occupying the Leased Premises or any part thereof shall elect to have the Leased
Premises or any part thereof assessed for separate school taxes, the Tenant shall pay to the
Landlord as soon as the amount of the separate school taxes is ascertainable, any amount by which
the separate school taxes exceed the amount which would have been payable for school taxes had such
election not been made as aforesaid.

TENANT REPAIRS AND ALTERATIONS

4(e) (i) General Repairs: Subject to the provisions of Section 9 of this Lease,
the Tenant shall, at its own cost and expense, keep and maintain the Premises in good order,
condition and repair, including all replacements, maintenance and repair, ordinary, extraordinary,
foreseen and unforeseen, except for normal wear and tear and those matters that are clearly
indicated herein as the Landlord’s obligation to repair. Without limiting the generality of the
foregoing the Tenant shall, at all times, at its sole cost, keep and maintain the whole of the
Premises including without limitation, all interior partitions and interior walls, interior and
exterior of all door frames and doors including, where applicable, loading doors, dock levels,
interior of all windows, fixtures, shelves, equipment and appurtenances thereof and improvements
thereto (including without limitation, electrical, lighting, including ballasts and tubes, wiring,
plumbing fixtures and equipment), and all telephone outlets and conduits within or serving the
Premises in good working order and repair (which shall include periodic painting and decoration) as
reasonably determined by the Landlord, and the Tenant shall make all needed repairs and
replacements with due diligence and dispatch. The Tenant shall be responsible to replace any glass
broken on the Premises (excluding outside windows and doors of the perimeter of the Premises and
perimeter windows in the exterior walls, but including those that are broken by Tenant’s employees,
agents, or invitees and including those that are broken due to the acts

 

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or omissions to act of Tenant’s employees, agents, or invitees) during the Term and such glass
shall be replaced by the Tenant with glass of as good quality and size as that glass so broken. The
Tenant shall effect all repairs referred to herein according to notice from the Landlord but
failure to give notice shall not relieve the Tenant from its obligation to repair.

4 (e) (ii) Urgent Repairs: Notwithstanding anything herein before contained, the Landlord
may, in any event, enter the Leased Premises and make repairs to the Leased Premises without notice
if such repairs are, in the Landlord’s opinion, necessary for the protection of the building and
the Tenant covenants and agrees with the Landlord that if the Landlord exercises any such option to
repair, the Tenant will pay to the Landlord together with the next installment of rent which shall
become due after the exercise of such option, all sums which the Landlord shall have expended in
making such repairs (less any insurance proceeds recovered in connection therewith) and such sums
if not so paid within such time shall be recoverable from the Tenant as rent in arrears. Provided
further that in the event that the Landlord from time to time makes any repairs as herein before
provided, the Tenant shall not be deemed to have been relieved from its ongoing obligation during
the Term, to repair and maintain the Leased Premises in a good state of repair including leaving
the Leased Premises in a good state of repair and cleanliness after the Tenant leaves.

4 (e) (iii) Additional Repairs: Notwithstanding any other terms, covenants and conditions
contained in this Lease, including without limitation, the Landlord’s obligations to take out
insurance and the Tenant’s obligation to pay the cost of such insurance, if the building or any
part thereof including but not limited to the Leased Premises, or any equipment, machinery,
facilities or improvements contained therein or made thereto, or the roof or outside walls of the
building or any other structural portions thereof require repair or become damaged or destroyed
through the negligence, carelessness or misuse of the Tenant or its servants, agents, employees or
anyone permitted by the Tenant to be in the building, or through the Tenant in any way blocking or
damaging the heating apparatus, water pipes, drainage pipes or other equipment or facilities or
parts of the building, the cost of the resulting repairs, replacements or alterations plus a sum
equal to fifteen percent (15%) of the cost thereof representing the Landlord’s administrative
overhead and charges, shall be borne by the Tenant who shall pay the same to the Landlord together
with interest (with such interest to be calculated in accordance with paragraph 3(h) herein),
forthwith upon presentation of an account for such expenses incurred by the Landlord.

4 (e) (iv) Tenant to Notify. The Tenant shall promptly notify the Landlord of any damage
to, malfunction of, or deficiency or defect in any part of the Premises or any equipment or utility
systems or installations therein or serving the Premises that might cause or result in injury to
any person or property including the Building upon becoming aware of any such condition.

4(e) (v) Alterations. The Tenant shall not make any repairs, alterations, additions,
decorations, improvements nor add fixtures except trade fixtures (hereafter collectively referred
to as the “Alterations”) to any part of the Premises without first obtaining the Landlord’s written
approval. Prior to commencing any such Alterations, the Tenant shall submit the following, at the
sole cost of the Tenant, to the Landlord, for the Landlord’s approval:

	 	(a)	 	If reasonably required by the Landlord, drawings and specifications prepared by
qualified architects or engineers and conforming to good engineering practice;

 

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	 	(b)	 	Such indemnification as the Landlord reasonably requires; and,
	 
	 	(c)	 	Evidence satisfactory to the Landlord that the Tenant has obtained, at its
expense, all necessary consents, permits, licences and inspections from all
governmental and regulatory authorities having jurisdiction.
	 
	 	(d)	 	Should the Landlord’s review and approval require the use of third party
consultants the Tenant shall be responsible to pay the reasonable costs of all said
third party consultants.

And the Landlord shall have 10 business days from having received all the previous information to
indicate, in writing, whether it shall permit such Alterations.

4 (e) (vi) All Alterations approved by the Landlord shall be performed in the following manner:

	 	(a)	 	At the sole cost of the Tenant.
	 
	 	(b)	 	By competent workmen approved by the Landlord whose labour union
affiliations, if any are compatible with others employed by the Landlord and its
contractors. In the case of work or repairs related to the mechanical, electrical or
structural systems of the Building, the Landlord will have the right to insist that
the Tenant use the Landlord’s trades, professionals or contractors provided the
amount charged by any such contractor shall be at market rates.
	 
	 	(c)	 	In a good and workmanlike manner;
	 
	 	(d)	 	In accordance with the drawings and specifications approved in writing by
the Landlord
	 
	 	(e)	 	subject to the reasonable regulations, controls, approvals, and
inspections of the Landlord or its professionals with any cost of such supervision
or inspection to be at the Tenant’s expense.
	 
	 	(f)	 	The Tenant covenants that it will not suffer or permit during the term
hereof any mechanics’ or other liens, for work, labour, services or materials
ordered by it or for the costs of which it may be in any way obligated, to attach to
the Leased Premises or to the building and that whenever and so often as any such
liens shall attach or claims therefore shall be filed, the Tenant shall, within
twenty (20) days after the Tenant has notice of the claim for lien, procure the
discharge thereof by payment or by giving security or in such other manner as is or
may be required or permitted by law.
	 
	 	(g)	 	Except for the Tenant’s trade fixtures, the Tenant accepts that any
repairs, alterations, additions, decorations, improvements, including those
referenced in Section 17, and fixtures (hereafter collectively referred to as the
“Alterations”) shall, when made or installed in the Leased Premises, be and become
the property of the Landlord without any payment or compensation to the Tenant being
made and that unless specifically instructed, in writing, by the Landlord, the
Tenant shall not remove any such Alterations from the Leased Premises either during
or after the term. Notwithstanding this and except for the demising wall referred to
in Section 17, , the Landlord shall be under no obligation to repair, maintain, or
insure the Alterations The Tenant also accepts that upon the termination of this
Lease whether at expiry or otherwise, the Landlord may, at its option, require the
Tenant to remove all or part of such Alterations except for those referred to in
Section 17, and to require the Tenant to repair any damage caused to the Leased
Premises or the Building by such installation or removal and or the Landlord

 

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	 	 	 	may require the Tenant to restore all or part of the Leased Premises to the
condition in which they were at the commencement of this Lease, except for
reasonable wear and tear, all being done at the Tenant’s expense. Should the Tenant
fail to perform such repair or restoration work requested by the Landlord, then the
Landlord may do such work at the expense of the Tenant and collect from the Tenant
the cost of same as Additional Rent whether before or after the expiry of the
Lease.

The Tenant’s obligation to observe and perform this covenant shall survive the expiration or
earlier termination of the Term.

4(e) (vii) Landlord’s Right to Perform. At all reasonable times, the Landlord has the
right to enter and view the conditions or state of repair of the Leased Premises. If the Tenant
shall fail to make any of the repairs required by any of the provisions of sections 4(e)(i) to
4(e)(vii) inclusive hereof, or any other section of the Lease, or to commence the performance of
any of its obligations thereunder within ten (10) days after notice to the Tenant by the Landlord
or any shorter period of time required by any mortgage affecting the Premises, the Landlord shall
have the right (but not the obligation) to make any such repairs, replacements or perform
maintenance work or any other work required of the Tenant pursuant to the above noted sections or
any other section of this Lease and charge the actual cost plus 15% of such cost representing the
Landlord’s administrative and overhead charges and such total cost shall be paid by the Tenant to
the Landlord as Additional Rent within 15 days of invoicing by the Landlord.

ASSIGNING OR SUBLETTING

4(f) (1) The Tenant will not:

	 	(i)	 	assign this Lease; nor
	 
	 	(ii)	 	sublet, share or part with possession of all or any part of the Leased Premises; nor
	 
	 	(iii)	 	mortgage or encumber the Lease or the Leased Premises,

	 	 	 	(collectively, a “Transfer”) by or in favour of any person, corporation or other
entity (a “Transferee”) without the prior written consent of the Landlord. The
Landlord will take into account the following factors in deciding whether to grant or
withhold its consent:

	 	a.	 	whether the Transfer is contrary to any covenants or restrictions
granted by the Landlord to any other party including, but not limited to,
governmental authorities or to other existing or prospective tenants or
occupants of the Building; and
	 
	 	b.	 	whether in the Landlord’s opinion the financial strength and
background, business and credit history and capability of the Transferee is
satisfactory to the Landlord.

	 	(2)	 	The Landlord shall have no liability for or in connection with any claims,
actions, damages, liabilities or expenses or any kind or nature whatsoever of the
Tenant as a result of the Landlord withholding its consent to any Transfer pursuant to
and in accordance with this paragraph 4(f). The Tenant agrees that its only remedy in
respect of the Landlord’s withholding of consent will be to bring an application for a
declaration that the Transfer should be allowed.

 

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	 	 	 	The consent by the Landlord to any Transfer will not constitute a waiver of any
necessity for consent to any subsequent Transfer. This prohibition against a
Transfer includes:

	 	(i)	 	a change in the direct or indirect effective voting control of
the Tenant from the persons or entities holding voting control at the date of
this Lease:
	 
	 	(ii)	 	an assignment by operation of law; and
	 
	 	(iii)	 	a change in the composition or control of the partnership if the
Tenant is a partnership or is controlled by a partnership.

	 	(3)	 	If the Tenant intends to effect a Transfer, then the Tenant will give prior
written notice to the Landlord of such intent, specifying the proposed Transferee and
providing additional information, including without limitation:

	 	(i)	 	financial and business information relating to the Transferee
that the Landlord may reasonably request, and
	 
	 	(ii)	 	a copy of the Transfer agreement entered into between the Tenant
and the Transferee.
	 
	 	 	 	The Landlord will, within ten(10) business days after having received notice
and all necessary information, notify the Tenant in writing either that it
consents or does not consent to the Transfer.

	 	(4)	 	If there is a Transfer, the Landlord may collect Rent from the Transferee, and
apply the net amount collected to the Rent required to be paid pursuant to this Lease,
but no acceptance by the Landlord of any payments by a Transferee will be a waiver of
this covenant, or the acceptance of the Transferee as the Tenant, or a release of the
Tenant from the further performance by the Tenant of its covenants or obligations.
	 
	 	(5)	 	Any documents evidencing the Transfer will be prepared by the Landlord or its
solicitors, and all legal costs and other reasonable costs incurred by the Landlord,
including but not limited to costs to offset the Landlord’s time and effort in
processing the transfer, shall be paid by the Tenant to the Landlord, or its agent, as
a condition of and prior to the transfer and, if necessary may be collected as
Additional Rent.
	 
	 	(6)	 	Notwithstanding a Transfer, the Tenant will remain jointly and severally liable
with the Transferee on this Lease and will not be released from performing any of its
obligations and it shall be a condition of receipt of the Landlord’s consent that the
Transferee enter into a written agreement directly with the Landlord agreeing to be
bound by all of the terms contained in this Lease.
	 
	 	(7)	 	If the Landlord consents to the Transfer, notwithstanding the provisions of
paragraph 4(f), any rent or any other consideration received by the Tenant on account
of the Transfer of its interest in all or part of the Leased Premises or this Lease in
excess of the rent payable by the Tenant under this Lease shall be payable to the
Landlord.

ASSIGNMENT BY LANDLORD

4(g) If there is a sale, lease or other disposition by the Landlord of the building, or the
assignment by the Landlord of this Lease or any interest of the Landlord hereunder, the party
acquiring the Landlord’s interest in the Building or this Lease shall be bound by the covenants of
the Landlord under this Lease,

 

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and, in which case, then the Landlord will, thereupon and without further agreement, be
relieved of all further liability with respect to its covenants and obligations.

At any time it so chooses, the Landlord may designate a management company to manage the
building and upon written notice, from the Landlord, the Tenant will pay all rent called for herein
to such management company.

CHANGE IN CORPORATE CONTROL

4(h) For the purposes of this paragraph, a change in control shall mean a change whereby one or
more related entities control fifty percent (50%) of the then issued and outstanding voting shares
plus one (1) share of the Tenant and such entity or entities are different from those owning such
majority of voting shares at the time of signing this lease. If at any time during the term any
part of or all of the shares or voting rights of shareholders shall be transferred by sale,
assignment, bequest, inheritance, trust, operation of law or other disposition, or treasury shares
be issued, so as to result in a change in the control of such corporation, the Tenant must disclose
in writing, such changes to the Landlord Following the giving of such notice from the Tenant,
should the Landlord determine, acting reasonably, that such change in control results in a material
deterioration in the financial strength or creditworthiness of the Tenant, then the Landlord may
terminate, at its sole option, this Lease by giving the Tenant thirty (30) days prior written
notice of such termination. To be effective, such written notice of termination from the Landlord
shall be given within 30 days of the giving of such notice by the Tenant. Should the Tenant fail
to give such notice, then the Tenant would be in default of the Lease and the Landlord may, at its
option, terminate this Lease, at any time after such change in control by giving the Tenant thirty
(30) days prior written notice of such termination, which notice must be given within thirty (30)
days of the day the Landlord receives actual written notice of the change in control in order to be
effective. The Tenant shall, at the reasonable request of the Landlord, make available to the
Landlord for inspection or copying, or both, all books and records of the Tenant which, alone or
with other data, show the applicability or inapplicability of this paragraph. If the corporation,
after the request of the Landlord, fails or refuses to furnish forthwith to the Landlord such
data,, which data, alone or with other data would show the applicability or inapplicability of this
paragraph, the Landlord may, at its sole option, terminate this Lease by giving the Tenant thirty
(30) days prior written notice of such termination.

RULES AND REGULATIONS

4(i) The Tenant and its employees and all persons visiting or doing business with it on the Leased
Premises or the Building, shall be bound by and shall observe such reasonable Rules and Regulations
as may hereafter be set by the Landlord of which notice in writing shall be given to the Tenant and
upon such notice being delivered all such Rules and Regulations shall be deemed to be incorporated
into and form part of this Lease. The Rules and Regulations as at the date of execution of this
Lease are those set out in Schedule “C”. Notwithstanding the foregoing, no changes to the Rules and
Regulations attached hereto shall derogate from the other provisions of this Lease.

USE OF PREMISES

4(j) The Leased Premises shall be used only for general office purposes. It is the Tenant’s
obligation to ensure that such uses or activities conducted by it, in the building, comply with all
applicable zoning and building by-laws and regulations or any other legislation or rules that
govern such matters. Any failure to comply and any resulting prohibition by any governmental
authority of any or all the Tenant’s

 

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use, work or activity in the building shall not relieve the Tenant from any of its rental
obligations to the Landlord as described herein.

INCREASE IN INSURANCE PREMIUMS

4(k) The Tenant agrees that it will not keep, use, sell or offer for sale in or upon the Leased
Premises any article which may be prohibited by any insurance policy in force from time to time
covering the building. In the event the Tenant’s occupancy or conduct of business in, or on the
Leased Premises, whether or not the Landlord has consented to same, results in any increase in
premiums for the insurance carried from time to time by the Landlord with respect to the building,
the Tenant shall pay any such increase in premiums as additional rent within ten (10) days after
bills for such additional premiums shall be rendered by the Landlord. In determining whether
increased premiums are a result of the Tenant’s use or occupancy of the Leased Premises, a schedule
issued by the organization computing the insurance rate on the building showing the various
components of such rate, shall be conclusive evidence of the several items and charges which make
up such rate. The Tenant shall promptly comply with all reasonable requirements of the insurance
authority or of any insurer now or hereafter in effect relating to the Leased Premises.

CANCELLATION OF INSURANCE

4(l) If any policy of insurance upon the building or any part thereof shall be canceled by the
insurer by reason of the use or occupation of the Leased Premises or any part thereof by the Tenant
or by any assignee or subtenant of the Tenant or by anyone permitted by the Tenant to be upon the
Leased Premises, and the Tenant is unable to arrange similar insurance coverage, the Landlord may,
at its option, terminate this Lease forthwith by leaving upon the Leased Premises notice in writing
of its intention to do so and thereupon rent and any other payments for which the Tenant is liable
under this Lease shall be apportioned and paid in full to the date of such termination and the
Tenant shall immediately deliver up possession of the Leased Premises to the Landlord and the
Landlord may re-enter and take possession of same.

OBSERVANCE OF LAW

4(m) The Tenant must comply with all provisions of law including without limitation, federal and
provincial legislative enactment, building by-laws, and any other governmental or municipal
regulations which relate to the partitioning, equipment, operation and use of the Leased Premises,
and to the making of any repairs, replacements, alterations, additions, changes, substitutions or
improvements of or to the Leased Premises. The Tenant must also comply with all police, fire and
sanitary regulations imposed by any federal, provincial or municipal authorities or made by fire
insurance underwriters, and to observe and obey all governmental and municipal regulations and
other requirements governing the conduct of any business conducted in the Leased Premises. Provided
that in default of the Tenant so complying, the Landlord may, at its option, where possible, comply
with any such requirement and the cost of such compliance shall be payable by the Tenant to the
Landlord as Additional Rent and the Landlord may enforce payment thereof as rent in arrears.

WASTE & OVERLOADING OF FLOORS

4(n) The Tenant shall not do or suffer any waste or damage, disfiguration or injury to the Leased
Premises or the fixtures and equipment thereof or permit or suffer any overloading of the floors
thereof; and not to place therein any safe, heavy business machine or other heavy object without
first obtaining

 

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the consent in writing of the Landlord; and not to use or permit to be used any part of the
Leased Premises for any dangerous, noxious or offensive trade or business and not to cause or
permit any nuisance in, at or on the Leased Premises; and without the prior consent in writing of
the Landlord, the Tenant will not bring onto or use in the Leased Premises or permit any person
subject to the Tenant to bring onto or use on the Leased Premises any fuel or combustible material
for heating, lighting or cooking nor will it allow onto the Leased Premises any stove, or burner or
appliances for utilizing the same and the Tenant will not purchase, acquire or use electrical
current or gas for consumption on the Leased Premises except from some supplier thereof as shall
have been approved in writing by the Landlord.

INSPECTION

4(o) To permit the Landlord, its servants or agents to enter upon the Leased Premises at any time
and from time to time for the purpose of inspection and of making emergency repair alterations or
improvements to the Leased Premises or to the building and the Tenant shall not be entitled to
compensation for any inconvenience, nuisance or discomfort occasioned thereby. The Landlord, its
servants or agents may at any time upon having provided notice to this effect and from time to time
enter upon the Leased Premises to remove any article or remedy any condition which in the opinion
of the Landlord, reasonably arrived at, would be likely to lead to cancellation of any policy of
insurance as referred to in this Lease or elsewhere herein and such entry by the Landlord shall not
be deemed to be a re-entry.

INDEMNITY BY TENANT

4(p) (i) The Tenant agrees to indemnify and save harmless the Landlord of and from all liabilities,
suits, claims, demands, and actions of any kind or nature, including the full cost of the Landlord
in resisting or defending same, to which the Landlord shall or may become liable for or suffer by
reason of any breach, violation or non-performance by the Tenant or any covenant, term or provision
hereof or by reason of any occurrence resulting from, occasioned to or suffered by any person or
property by reason of any act, neglect or default on the part of the Tenant or any of its officers,
agents, employees, visitors, customers or licensees; and the covenant of the Tenant in regard to
such indemnification occurring during the term of the Lease or any renewal or overholding in
respect thereof shall continue in full force and effect notwithstanding the expiration of the term
or the termination of this Lease for any reason whatsoever.

4(p) (ii) The Landlord shall not be liable for any damage howsoever caused to property of the
Tenant or of any person subject to the Tenant which is in or upon or being brought to or from the
Leased Premises or the building or for personal injury (including death) sustained in any manner by
the Tenant or any person subject to the Tenant while the Tenant or any such person is in or upon or
entering or leaving the Leased Premises or building unless such property damage or personal injury
may have been clearly attributable to fault or neglect on the part of the Landlord or of any person
for whom the Landlord is responsible, and except where the Landlord is not exempt from liability
under this paragraph, the Tenant will indemnify and save harmless the Landlord from and against all
claims and demands made against the Landlord by any person for or arising out of any such property
damage or personal injury.

NO ABATEMENT OF RENT

4(q) Except as provided in Section 9 of this Lease there shall be no abatement or reduction of rent
whatsoever during the term of the Lease or any extension thereof.

 

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EXHIBITING PREMISES

4(r) To permit the Landlord or its agents or servants upon twenty-four (24) hours notice to enter
and show the Leased Premises, during normal business hours, to prospective purchasers or to
existing or prospective lenders of the building and may, after notice terminating this Lease has
been given, or within the last nine (9) months of the Term, enter and show the Leased Premises to
prospective tenants and erect a sign with reasonable dimensions stating that the Leased Premises
are “For Rent”.

MAINTENANCE

4(s) Deleted Intentionally

SIGNS

4(t) Subject to the provisions of Section 4(u) of this Lease, the Tenant shall not erect or
maintain any identification sign of any type and in any location unless the Tenant has received the
Landlord’s prior written approval for such sign. In addition, the Tenant shall not erect, install,
inscribe, paint or affix any sign, lettering or advertisement upon or above the exterior of the
Leased Premises or grounds, including the exterior glass surface of the windows or doors, nor shall
the Tenant install, display, inscribe, paint or affix any sign, lettering or advertisement to or
upon the interior doors of the common areas of the building without first, in each instance,
securing the written approval of the Landlord failing which it shall be removed forthwith by the
Tenant upon the request of the Landlord. Should the Tenant fail to remove any such signage or
markings after written notice to the Tenant, then the Landlord shall have the right to remove same,
at the cost of the Tenant and the cost of same shall be collectible by the Landlord under the same
conditions as if it were considered to be rent.

At the expiry of the Lease or any renewal thereof, the Tenant, at its own costs, will be required
to remove any signage and to restore any surface on which signage (including the signage noted in
Section 4(u)) was placed by or at the request of Tenant to the state it was in prior to the
installation of the signage.

SIGNAGE

4(u) So long as the Tenant occupies approximately 6,080sf in the Building and so long as it submits
to the Landlord and obtains the Landlord’s prior written approval for the design, size, location
and colour of the signage it intends to place, then it shall have the right to place its name or
logo on the west exterior façade, only over the windows on that part of the façade that protrudes
from the balance of the west façade (ie on that part of the façade that contains the front doors to
the building). At the expiry of the Lease or any renewal thereof, the Tenant, all at its own cost,
will be required to remove the signage and to repair any damage and restore the façade to the state
it was in prior to the installation of the signage. For clarification and subject to the signage
terms and conditions as contain herein, the Tenant’s shall be allowed to keep its existing Building
signage located on the west Building façade.

KEEP TIDY

4(v) At the end of each business day, to leave the Leased Premises in a tidy condition. No outside
storage of raw or processed materials or any other debris shall be permitted on or around the
Building.

GARBAGE REMOVAL

4(w) The Tenant shall, at its own cost, be responsible for the removal and disposal of all extraordinary

 

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garbage, whether by volume or type, as reasonably determined by the Landlord, in and around the
Leased Premises, failing which the Landlord shall do so at the cost of the Tenant.

 

-18-

DELIVERIES

4(x) The Tenant shall receive, ship, take delivery of and allow and require suppliers or others to
deliver or take delivery of merchandise, supplies, fixtures, equipment, furnishings, wares or
merchandise only through the facilities provided for that purpose as determined by the Landlord.

NOTICE OF DAMAGE

Deleted Intentionally

CERTIFICATES

4(z) The Tenant agrees that prior to the Commencement Date and at any time and from time to time
upon not less than ten (10) days prior notice execute and deliver to the Landlord a statement on a
form to be provided by the Landlord certifying, amongst other items on the Landlord’s form, that
this Lease is unmodified and in full force and effect (or, if modified, stating the modifications
and that the same is in full force and effect as modified), the amount of the annual rental then
being paid hereunder, the dates to which the same, by installments or otherwise, and other charges
hereunder have been paid, and whether or not there is any existing default on the part of the
Landlord of which the Tenant has notice. In addition and upon written notice to the Tenant by the
Landlord whereby the Landlord indicates it requires the following financial information to
facilitate a sale of the property or any financing of the property including annual reviews by any
mortgage holder then the Tenant shall, within ten (10) days, provide most recent annual financial
statements in addition to year to date financial statements and other financial information
reasonably requested by the Landlord. In all cases, provision of financial information shall be
governed by a confidentiality agreement.

QUIET ENJOYMENT

5. The Landlord covenants with the Tenant for quiet enjoyment.

LANDLORD’S COVENANTS

6. The Landlord covenants with the Tenant that, subject to the Tenant paying amounts as set forth
in Paragraphs 3(a) and 3(j) or elsewhere as called for in this Lease, it shall pay all taxes and
rates, municipal, parliamentary or otherwise, including without limiting the generality of the
foregoing, water rates with respect to the Leased Premises or assessed against the Landlord in
respect thereof, except such as the Tenant has herein covenanted or is herein obligated to pay.

PARKING

7. The Tenant and all persons employed by or doing business with the Tenant shall have the use of
the land as designated from time to time by the Landlord for the purpose of access to and egress
from the Building or Leased Premises, as applicable, and for parking of standard sized motor
vehicles, provided that no such motor vehicle shall be parked on any part of the lands contained in
or around the building which is a loading zone or is not designated by the Landlord for parking or
where signs are in place indicating that parking is prohibited and the Tenant agrees to reimburse
the Landlord on demand for the cost of removal of any motor vehicles which are parked in breach of
this clause and which belong to or are parked by any person employed by or doing business with the
Tenant, all such costs to be recoverable by the Landlord as rent in arrears under this Lease. The
Landlord shall not materially reduce the number of parking spaces existing on the Lands but subject
to such restriction, it is specifically

 

-19-

understood and agreed that the Landlord shall have the right to make all reasonable rules,
regulations and by-laws relating to the operation of the parking area and means of ingress to and
egress from the building or any part thereof, in regard to the parking, traffic control, excessive
weights of loads on ramps or loading docks and all such matters as are required or are normally
incidental to the proper management of the building. The Tenant covenants and agrees that it will
observe, abide by and conform to all such reasonable rules, regulations and by-laws made or
established by the Landlord as aforesaid and as currently exist as outlined in the schedule
attached hereto entitled Rules and Regulations.

FIRE

9. Provided that if during the continuation of this Lease the building or the Leased Premises are
destroyed or damaged by fire or the elements, then the following provisions shall apply and in all
cases the Landlord shall act reasonably in applying such provisions:

	(a)	 	If the building or the Leased Premises are totally destroyed or are partially destroyed so
as, in the reasonable opinion of an architect agreed upon by the Landlord and the Tenant (the
“Architect”), to render the Leased Premises wholly unfit for operation of its business by the
Tenant and if they shall be so badly damaged that they cannot in the opinion of the mutually
agreed Architect be repaired with reasonable diligence within 120 days of the happening of
such damage, then this Lease shall at the option of the Tenant or the option of the Landlord
cease and become null and void from the date of such damage or destruction and the Tenant
shall immediately on reasonable notice to the Landlord or from the Landlord, as applicable,
surrender the Leased Premises and all interest therein to the Landlord, and the Tenant shall
pay rent only to the time of such damage or destruction, and the Landlord may re-enter or
re-possess the Leased Premises, discharged of this Lease, and remove all parties therefrom.
	 
	(b)	 	But if the building or the Leased Premises are partially destroyed and can in the opinion of
the mutually agreed Architect be repaired with reasonable diligence within 120 days from the
happening of such damage and if the damage is such as to render the Leased Premises wholly
unfit for operation of its business by the Tenant , then the rent shall not run or accrue
after said damage, while the process of repairs is going on, and the Landlord shall repair
same with all reasonable speed, and then the rent shall recommence immediately after said
repairs shall be completed.
	 
	(c)	 	But if the building or the Leased Premises can in the opinion of the mutually agreed
Architect be repaired within 120 days from the happening of such damage, and if the damage is
such that the Tenant can operate its business in the undamaged portion of the Leased Premises,
then until such damage shall have been repaired, the rent shall abate in the proportion that
the portion of the Leased Premises rendered unfit for occupancy bears to the whole of the
Leased Premises, and the Landlord shall repair same with all reasonable speed.

Provided, that, if, upon the completion by the Landlord of any repairs required as a result of any
such destruction or damage a dispute shall arise between the Landlord and the Tenant as to whether
or not the Leased Premises have been made fit for the purposes of the Tenant under this Lease, such
disputes shall be determined by the Architect agreed upon by the Landlord and the Tenant and paid
for equally by them which decision shall be final and binding on the Landlord and the Tenant.

 

-20-

Provided further that if any such total or partial destruction or damage is caused in whole or in
part by any fault or neglect on the part of the Tenant or of any person subject to the Tenant
nothing herein contained shall release or discharge the Tenant from liability for any loss or
damage thereby sustained by the Landlord.

	(d)	 	For the purposes of clarifying the obligations of the Landlord and the Tenant in relation to
repair when required pursuant to the provisions of this Section, the Landlord shall be obliged
to repair and rebuild the Building to the condition as at the Commencement Date of this Lease.
The Tenant shall be required to restore all improvements and any Alterations in the Leased
Premises.

DAMAGE OF PROPERTY

10. As the Tenant acknowledges that it is required to carry insurance as called for in paragraph 3k
or elsewhere in this lease, the Landlord shall not be liable or responsible in any way for any loss
of or damage or injury to any property belonging to the Tenant or to employees of the Tenant or to
any other person while such property is on the Leased Premises or in the building or in or on the
surrounding lands and buildings owned by the Landlord whether or not such property has been
entrusted to employees of the Landlord and without limiting the generality of the foregoing, the
Landlord shall not be liable for any damage to any such property caused by steam, water, rain or
snow which may leak into, issue or flow from any part of the building or from the water, steam or
drainage pipes or plumbing works of the building or from any other place or quarter or from any
damage caused by or attributable to the condition or arrangement of any electric or other wiring or
for any damage caused by anything done or omitted by any other tenant.

DELAYS IN PROVISION OF SERVICE

11. Except for willful neglect by the Landlord, it is understood and agreed that whenever and to
the extent that the Landlord shall be unable to fulfill, or shall be delayed or restricted in the
fulfillment of any obligation hereunder in respect of the supply or provision of any service or
utility or the doing of any work or the making of any repairs by reason of being unable to obtain
the material, goods, equipment, service, utility or labour required to enable it to fulfill such
obligation or by reason of any statute, law or order-in-council or any regulation or order passed
or made pursuant thereto or by reason of the order or direction of any administrator, controller or
board, or any governmental department or officer of other authority, or by reason of not being able
to obtain any permission or authority required thereby, or by reason of any other cause beyond its
control whether in the foregoing character or not, the Landlord shall be entitled to extend the
time for fulfillment of such obligation by a time equal to the duration of such delay or
restriction, and the Tenant shall not be entitled to either compensation or rent reduction for any
inconvenience, nuisance or discomfort thereby occasioned.

DEFAULT OF TENANT

12. Provided and it is hereby expressly agreed that if and whenever the rent hereby reserved or any
part thereof shall not be paid on the day appointed for payment thereof, whether lawfully demanded
or not, or in case of breach or non-observance or non-performance of any of the covenants,
agreements, provisos, conditions or rules and regulations on the part of the Tenant to be kept,
observed or performed, or in case the Leased Premises shall be vacated or remain unoccupied for
fifteen (15) days then and in every such case, it shall be lawful for the Landlord thereafter to,
in addition to and not as replacement for any remedies or rights it may have in law, enter into and
upon the Leased Premises or any part thereof in the name of the whole and the same to have again,
repossess and enjoy as of its former estate,

 

-21-

anything in this Lease contained to the contrary notwithstanding other than the proviso to this
Paragraph 12.

Provided that notwithstanding anything to the contrary herein before in this Paragraph 12
contained, the Landlord shall not at any time have the right to re-enter and forfeit this Lease by
reason of the Tenant’s default in the payment of the rent or the Tenant’s default in paying any
other amounts owing to the Landlord as called for by this Lease, unless and until the Landlord
shall have given to the Tenant at least two (2) business days, in the case of monetary defaults,
and ten (10) business days, in the case of non-monetary defaults, written notice of its intention
so to do and setting forth the default complained of and the Tenant shall have the right during
such two (2) business days or ten (10) business days, as applicable, to cure any such default.

BANKRUPTCY, ETC.

13. Provided further that in case without the written consent of the Landlord the Leased Premises
shall be used by any other person than the Tenant or for any other purpose than that for which the
same were let or in case the term or any of the goods and chattels of the Tenant shall be at any
time seized in execution or attachment by any creditor of the Tenant or the Tenant shall make any
assignment for the benefit of creditors or any bulk sale without the consent of the Landlord or
become bankrupt or insolvent or take the benefit of any Act now or hereafter in force for bankrupt
or insolvent debtors, or, if the Tenant is a corporation and any order shall be made for the
winding up of the Tenant, or other termination of the corporate existence of the Tenant, then in
any such case and in addition to and not as replacement for any remedies or rights available to the
Landlord under law, this Lease shall, at the option of the Landlord, cease and terminate and the
term shall immediately become forfeited and void and the then current month’s rent and the next
ensuing three (3) months rent shall immediately become due and be paid and the Landlord may
re-enter and take possession of the Leased Premises as though the Tenant or other occupant or
occupants of the Leased Premises was or were holding over after the expiration of the Term without
any right whatever.

RE-ENTRY BY LANDLORD

14. The Tenant further covenants and agrees that on the Landlord’s becoming entitled to re-enter
upon the Leased Premises under any of the provisions of this Lease or under any applicable
legislation, the Landlord in addition to all other rights shall have the right to enter the Leased
Premises as the agent of the Tenant either by force or otherwise, without being liable for any
prosecution therefore and to re-let the Leased Premises as the agent of the Tenant, and to receive
the rent therefore and as the agent of the Tenant, to take possession of any of the Tenant’s
furniture or other property on the Leased Premises and to sell the same at public or private sale
without notice and to apply the proceeds of such sale and any rent derived from re-letting the
Leased Premises upon account of the rent under this Lease, and the Tenant shall be liable to the
Landlord for the deficiency, if any.

RIGHT OF TERMINATION

15. The Tenant further covenants and agrees that upon any default of the Tenant as provided for in
paragraph 12 or elsewhere herein or upon the Landlord becoming entitled to re-enter upon the Leased
Premises under any of the provisions of this Lease, the Landlord, in addition to all other rights,
shall have the right to terminate forthwith this Lease and the term by leaving upon the Leased
Premises notice in writing of its intention so to do, and thereupon, rent shall be computed,
apportioned and paid in full to the date of such termination of this Lease and any other payments
for which the Tenant is liable under this

 

-22-

Lease shall be paid and the Tenant shall immediately deliver up possession of the Leased Premises
to the Landlord, and the Landlord may re-enter and take possession of same.

DISTRESS

16. The Tenant waives and renounces the benefit of any present or future legislation or statute
which may take away or limit the Landlord’s right of distress, and covenants and agrees that
notwithstanding any such legislation or statute, none of the goods and chattels of the Tenant on
the Leased Premises at any time during the term shall be exempt from levy by distress for rent in
arrears. In the event that the Tenant shall remove or permit the removal of any of its goods or
chattels from the Leased Premises, the Landlord may within thirty (30) days thereafter and if the
Tenant is in arrears of rent, seize such goods and chattels wherever the same may be found and may
sell or otherwise dispose of same as if they had actually been distrained upon the Leased Premises
by the Landlord for arrears of rent.

LANDLORD’S WORK

17. The Tenant, under a sub-lease with an expiry of June 30th, 2009, currently occupies
9,378sf on the 2nd floor of the building. The Tenant has asked to reduce it premises by
3,298sf (the “relinquished space”) and the Landlord and Tenant have agreed to enter into this
Lease, and the Landlord has agreed, at its cost to effect the following Alterations:

	 	•	 	Erect a demising wall approximately as shown on the attached Schedule B
	 
	 	•	 	Relocate the kitchen sink and dishwasher as shown on the attached Schedule B
	 
	 	•	 	Relocate mag locks, if required.

The Landlord, at its option, will not have to undertake any of the above noted work until such time
as the Landlord has leased the relinquished space. However the Tenant shall be required to vacate
the relinquished space at the commencement of the term. Notwithstanding the Tenant’s requirement
to vacate the relinquished space the Tenant will be permitted to use the kitchen and lounge area
until such time as the Landlord has relocated the Tenant’s sink and dishwasher and erected the
demising wall. Tenant shall not owe any additional rents under this Lease (above and beyond those
specifically provided for in this Lease) for the use of the kitchen and lounge area.

NON-WAIVER

18. No condoning, excusing or overlooking by the Landlord or the Tenant of any default, breach or
non-observance by the other of them at any time or times in respect of any covenant, proviso or
condition herein contained shall operate as a waiver of the Landlord’s rights or the Tenant’s
rights, as the case may be, hereunder in respect of any continuing or subsequent default, breach or
non-observance, or so as to defeat or affect in any way the rights of the Landlord herein in
respect of any such continuing or subsequent default or breach, and no waiver shall be inferred
from or implied by anything done or omitted by the Landlord save only express waiver in writing.
All rights and remedies of the Landlord or the Tenant in this Lease contained shall be cumulative
and not alternative.

SURRENDER OF PREMISES

19. (i) Surrender: At the expiration or earlier termination of the Term, the Tenant shall surrender
to the Landlord the Premises in as good condition and repair as the Tenant is required to maintain
the Premises throughout the Term, except for reasonable wear and tear. The Tenant shall also
surrender at that time all keys for the Premises to the Landlord at the place then fixed for the
payment of rent, and shall inform the Landlord of all combinations of locks, safes and vaults, if
any, in the Premises. The Tenant shall, however,

 

-23-

remove all its moveable trade fixtures and, if requested by the Landlord, the Tenant shall also
remove all or part of its Alterations (except for those described in Section 17), as defined in
this Lease, before surrendering the Premises as detailed later herein.

	(ii)	 	Removal and Restoration by Tenant:

	 	(a)	 	As provided for elsewhere in this Lease, the Tenant accepts that, except for
the Tenant’s moveable trade fixtures, any Alterations, as defined in 4(e)(v) above,
shall, when made or installed in the Leased Premises, be and become the property of the
Landlord without any payment or compensation to the Tenant being made and that unless
specifically instructed, in writing, by the Landlord, the Tenant shall not remove any
such Alterations from the Leased Premises either during or after the term of the Lease.
Notwithstanding this, the Landlord shall be under no obligation to repair, maintain, or
insure the Alterations (except for the exterior portion of the demising wall described
in Section 17). The Tenant also accepts that upon the termination of this Lease whether
at expiry or otherwise, the Landlord may, at its option, require the Tenant to remove
all or part of such Alterations (except for those described in Section 17) and to
require the Tenant to repair any damage caused to the Leased Premises or the Building
by such installation or removal and or the Landlord may require the Tenant to restore
all or part of the Leased Premises (except that Tenant shall not be required to remove
the Alternations described in Section 17) to the condition in which they were at the
commencement of this Lease, except for reasonable wear and tear, all being done at the
Tenant’s expense.
	 
	 	 	 	The Tenant’s obligation to observe and perform this covenant shall survive the
expiration or earlier termination of the Term.
	 
	 	 	 	Should the Tenant fail to perform such repair or restoration work requested by the
Landlord, then the Landlord may do such work at the expense of the Tenant and collect
from the Tenant the cost of same as Additional Rent whether before or after the
expiry of the Lease.
	 
	 	 	 	With respect to the Tenant’s trade fixtures, the Tenant may at the Tenant’s sole cost
and expense during the Term in the usual or normal course of its business remove its
moveable trade fixtures, if any ; and, (ii) the Tenant shall, at the expiration or
termination of the Lease, at its own cost, remove all its trade fixtures , and such
of the Alterations (except for those that are described in Section 17) as the
Landlord by notice requires to be removed.
	 
	 	(b)	 	If the Tenant does not remove its trade fixtures at the expiration or earlier
termination of the Term, such fixtures shall, at the option of the Landlord, become the
property of the Landlord and may be removed from the Premises and sold or be disposed
of by the Landlord in such manner as it deems advisable.
	 
	 	(c)	 	The Tenant shall, in the case of every such installation or removal of either
its trade fixtures or Alterations either during or at the expiration of the Term effect
the same at times designated by the Landlord.
	 
	 	(d)	 	For greater certainty, the Tenant’s fixtures shall not include any

	 	(i)	 	heating, ventilating or air conditioning systems, facilities and
equipment in, or serving the Premises;
	 
	 	(ii)	 	floor covering affixed to the floor of the Premises;
	 
	 	(iii)	 	light fixtures; and,
	 
	 	(iv)	 	any fixtures, facilities, equipment or installations installed by or at the expense of the Landlord.

 

-24-

	(iii)	 	Indemnity. If the Premises is not surrendered at the end of the Term, then the
Tenant shall indemnify the Landlord against any and all loss or liability resulting from such
delay by the Tenant in so surrendering the Premises, including without limitation, any claims
founded on such delay made by any succeeding occupant of the Premises or any part thereof, and
the Tenant shall be liable to the Landlord for legal fees (on a solicitor and his client
basis), and all other costs and expenses incurred by the Landlord in obtaining possession of
the Premises.
	 
	(iv)	 	No Tacit Renewal. If the Tenant remains in possession of the Premises after the end
of the Term, and without the execution and delivery of a new lease, or a written renewal or
extension of this Lease, there shall be no tacit or other renewal of this Lease, and the
Tenant will be considered to be occupying the Premises as a tenant from month to month at a
monthly Rent, payable in advance on the first day of each month equal to the sum of:

	 	(a)	 	Double the monthly installment of Minimum Rent payable for the last month of
the Term, and
	 
	 	(b)	 	One-twelfth of the amount of Additional Rent and charges paid or payable by the
Tenant for the last Lease Year of the Term, and otherwise upon the terms and conditions
set forth in this Lease, so far as applicable.

RECOVERY OF ADJUSTMENT

20. The Landlord shall have (in addition to any other right or remedy of the Landlord) the same
rights and remedies in the event of default by the Tenant in payment of any amount payable by the
Tenant hereunder, as the Landlord would have in the case of default in payment of rent.

NOTICE

21. Any notice required or contemplated by any provisions of this Lease shall be given in writing
enclosed in a sealed envelope addressed, in the case of notice to the Landlord, at 451 Daly Avenue,
2nd Floor, Ottawa, Ontario K1N 6H6 and in the case of notice to the Tenant, to it at the
Leased Premises and mailed, registered and postage prepaid. The time of giving of such notice shall
be conclusively deemed to be the fourth (4th) business day after the day of such
mailing. Such notice shall be delivered, in the case of notice to the Landlord, to an executive
officer of the Landlord, and in the case of notice to the Tenant, to it personally, or to the
manager operating the Tenant’s business upon the Leased Premises, or to any executive or senior
officer or director of the Tenant if the Tenant is a corporation. Such notice, if delivered shall
be conclusively deemed to have been given and received at the time of such delivery. If in this
Lease two or more persons are named as Tenant, such notice shall also be sufficiently given if and
when the same shall be delivered personally to any one of such persons. Provided that either party
may, by notice to the other from time to time designate another address in Canada to which notices
mailed more than ten (10) days thereafter shall be addressed.

SUBORDINATION

22. This Lease is subject and subordinate to all ground or underlying leases and to all mortgages
(including any deed of trust and mortgage securing bonds and all indentures supplemental thereto)
which may now or hereafter affect such leases, the Leased Premises, the building and/or the
property where the building is situated and to all renewals, modifications, consolidations,
replacements and extensions thereof. The Tenant agrees to execute promptly any certificate in
confirmation of such

 

-25-

subordination as the Landlord may request and hereby constitutes the Landlord the agent or attorney
of the Tenant for the purpose of executing any such certificate and of making application at any
time and from time to time to register postponements of this Lease in favour of any such mortgage
in order to give effect to the foregoing provisions of this paragraph. At the written request of
the Tenant, the Landlord shall use its best efforts, but shall not be obliged, to obtain
non-disturbance agreements from any mortgagee or lessor registered on the Property. The obligation
of the Tenant to subordinate this Lease shall be conditional upon the Tenant receiving from any
such mortgagee or lessor, an agreement that the possession of the Leased Premises of the Tenant
shall not be disturbed by such mortgagee or lessor so long as the Tenant complies with the
provisions of this Lease. The Landlord shall use its best efforts, but shall not be obliged, to
obtain a non-disturbance agreement from any current mortgagee of the Leased Premises.

LEASE ENTIRE AGREEMENT

23. The Tenant acknowledges that there are no covenants, representations, warranties, agreements or
conditions expressed or implied, collateral or otherwise forming part of or in any way affecting or
relating to this Lease save as expressly set out in this Lease and that this Lease constitutes the
entire agreement between the Landlord and the Tenant and may not be modified except as herein
explicitly provided or except by subsequent agreement in writing of equal formality hereto executed
by the Landlord and the Tenant.

REGISTRATION

24. The Tenant covenants and agrees with the Landlord that the Tenant will not register this Lease
in this or any other form in the Registry Office or the Land Titles Office but may register a
notice of lease which discloses only the term and expiry date thereof and the existence of options
to renew the term.

 

-26-

OPTION TO RENEW

25. So long as the Tenant is or has not been in default under the terms of this Lease, the Tenant
will have an option to renew for one 3 year term with the minimum rent to be $10psf. The Tenant
must exercise the option by providing written notice to the Landlord to this effect no less than 9
months prior to the end of the initial 37 month term and failing its exercise within the time
provided such option to be null and void.

Any renewal pursuant to this proviso shall otherwise be on the terms and conditions contained in
this Lease including but not limited to the payment of Additional Rentals.

NET/NET/NET RENT

26. It is expressly agreed between the Landlord and the Tenant that it is intended that the rent
reserved in this Lease shall be an absolutely net/net/net return to the Landlord during the Term of
the Lease without regard to the condition of the Leased Premises, and, except as otherwise
explicitly provided in this Lease, the Landlord shall be free of any and all costs, expenses, taxes
and charges with respect to the Leased Premises whatsoever, save and except only taxes which are
attributable to the income or profits of the Landlord and any charges to the Landlord in respect of
the amortization or interest under any mortgage or charge on the building.

PAYMENTS BY TENANT

27. In addition to any other specific provisions herein contained, where the Tenant is obligated
under the terms of this Lease to pay any monies, whether to the Landlord or any third party, or to
do any act involving the payment of money, and the Tenant shall fail to carry out its obligations,
the Landlord may do such act or pay such monies and charge the cost of doing such act or the amount
of such monies paid against the Tenant and may enforce the payment thereof by the Tenant in the
same manner as if rent had not been paid on a timely basis under the terms of this Lease, and the
Tenant shall pay unto the Landlord, in respect of any amount so paid in respect of any rent or
additional rent not paid on the due date thereof, interest at the rate computed in accordance with
Paragraph 3(h) hereof.

POST-DATED CHEQUES

28. deleted intentionally.

INTERPRETATION

29(a) In this Indenture “herein”, “hereof”, “hereby”, “hereunder”, “hereto”, “hereinafter” and
similar expressions refer to this lease or indenture and not to any particular paragraph, section
or other portion thereof, unless there is something in the subject matter or context inconsistent
therewith.

	 	(a)	 	“business day” means any of the days from Monday to Friday of each week
inclusive unless such day is a holiday.
	 
	 	(b)	 	“normal business hours” means the hours from 8:00 a.m. to 6:00 p.m. on business
days.

So long as the Tenant pays for associated costs, including but not limited to incremental heating,
lighting, ventilation or cooling costs associated with operations outside of normal business hours,
if any, the Landlord shall ensure that the Tenant’s employees can comfortably work in the Leased
Premises outside of “normal business hours”.

 

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SEVERABILITY OF COVENANTS

30. The Landlord and the Tenant agree that all of the provisions of this Lease are to be construed
as covenants and agreements as though the words importing such covenants and agreements were used
in each separate paragraph hereof. Should any provision or provisions of this Lease be illegal or
not enforceable, it or they shall be considered separate and severable from the Lease and its
remaining provisions shall remain in force and be binding upon the parties hereto as though the
said provision or provisions had never been included.

CAPTIONS

31. The captions appearing in this Lease have been inserted as a matter of convenience and for
reference only, and in no way define, limit or enlarge the scope or meaning of this Lease or of any
provision hereof.

SUCCESSORS & ASSIGNS

32. This indenture and everything herein contained shall ensure to the benefit of and be binding
upon the respective heirs, executors, administrators, successors and assigns and other legal
representatives as the case may be, of each and every of the parties hereto, and every reference
herein to any party hereto shall include the heirs, executors, administrators, successors and
assigns and other legal representatives of such party, and where there is more than one tenant, the
provisions hereof shall be read with all grammatical changes thereby rendered necessary, and all
covenants shall be deemed joint and several. The neutral gender shall include both the masculine
and feminine gender.

ADDITIONAL TAXES

33. If any business, transfer tax, value-added tax, multi-stage sales tax, sales tax, goods and
services tax (GST) or any like tax is imposed on the Landlord by any governmental authority on any
rent payable by the Tenant under this Lease or due in any way to the Tenant’s occupancy, then the
Tenant shall reimburse the Landlord for the amount of such tax forthwith upon demand as additional
rent.

CHANGES TO BUILDING

34. The Landlord hereby reserves the right, at any time, to make changes to, additions to,
subtractions from or rearrangements of the Building including, without limitation, any
improvements thereon or any entrances and exits thereto, or to grant, modify and terminate
easements or other agreements pertaining to the use and maintenance of all or parts of the
Building and to make changes and additions to the pipes, conduits, utilities and other necessary
services in the Building or Leased Premises which serve the Leased Premises or other premises in
the Building, provided that prior to the commencement of such work, if necessary, the Landlord may
alter the Leased Premises, to the extent found necessary by the Landlord, acting
reasonably, to accommodate such changes and in doing so, the Landlord shall take all reasonable
steps so as to minimize the disruption to the Tenant. Should such changes, as determined in
accordance with the most current BOMA standards, result in the rentable area of the Leased
Premises or Building being different than that originally calculated or than that area being used
at such time, then the Tenant’s proportionate share may be altered by the Landlord acting
reasonably (so long as the adjustments are applied consistently and proportionately to the other
Tenants of the Building) and the rental rates for Minimum and Additional Rent shall be applied to
such adjusted areas and the Tenant shall pay such rent resulting from such measurements at such
time as such changes are completed.

 

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GUARANTEE

35. Deleted Intentionally

LANDLORD CONDITION 

36. Intentionally Deleted

HAZARDOUS SUBSTANCES

37(a) For the purposes of this section, HAZARDOUS SUBSTANCES means any substance, or class of
substance or mixture of substances which may be detrimental to the environment, plant or animal
life, or human health and includes, without limitation, flammable, explosives, or radioactive
materials, asbestos, polychlorinated biphenyl’s (PCB’s), chemicals believed to cause cancer or
reproductive toxicity, pollutants, contaminants, hazardous wastes, toxic substances and related
materials, petroleum and petroleum products, any substance that, if added to water, may degrade or
alter or form part of a process of degradation or alteration of the quality or temperature of that
water to the extent that it is detrimental to its use by man or by any animal, fish or plant, and
substances declared to be hazardous or toxic under any law or regulation now or hereafter enacted
or promulgated by any governmental authority having jurisdiction over the Landlord, the Tenant, the
Leased Premises or the Building (the “Authorities”).

(b) If the Tenant shall cause or permit any Hazardous Substances to be brought onto, created in,
released or discharged from, placed or disposed of, at or near the Leased Premises, the Tenant
shall be responsible at its own expense to completely remedy the occurrence to the satisfaction of
the Landlord.

(c) The Tenant shall not cause or permit to occur any violation of any federal, provincial,
municipal or local law, ordinance, or regulation, now or hereinafter enacted (the “Laws”), related
to environmental conditions on, under, at, near or about the Leased Premises, or related to the
Landlord, the Tenant or the Building, air, soil or ground water condition, including without
limitation, the generation, storage or disposal of Hazardous Substances.

(d) The Tenant shall:

	 	(i)	 	at its own expense comply with the Laws;
	 
	 	(ii)	 	at its own expense make all submissions to, provide all information required
by, and comply with all requirements of the Authorities under the Laws; and
	 
	 	(iii)	 	indemnify, defend and hold harmless the Landlord, the Landlord’s mortgagees,
any manager of the Building, and their respective officers, directors, beneficiaries,
shareholders, partners, agents and employees, from all fines, suits, procedures, claims
and actions of every kind, and all costs associated therewith (including legal fees on
a solicitor and his own client basis and consultants’ fees) arising out of or in any
way connected with any deposit, spill, discharge, or other release of Hazardous
Substances that occurs during the Term or any renewal or extension period, at or from
the Leased Premises, and caused by the Tenant or those for whom it is in law
responsible, or which arises at any time from the Tenant’s use or occupancy of the
Leased Premises, or from the Tenant’s failure to provide all information, make all
submissions, and take all steps required by this Section or by the Authorities.
	 
	 	(iv)	 	pay for any and all remediation and clean up costs including but not limited to
paying all fines,

 

-29-

	 	 	 	suits, procedures, claims and actions of every kind, and all costs associated therewith (including
legal fees on a solicitor and his own client basis and consultants’ fees) arising out of or in
any way connected with any deposit, spill, discharge, or other release of Hazardous Substances
that occurs during the Term or any renewal or extension period, at or from the Leased
Premises, or which arises at any time from the Tenants’ use or occupancy of the Leased
Premises, or from the Tenants’ failure to provide all information, make all submissions, and
take all steps required by this Section or by the Authorities.

(e) Notwithstanding any other provision of this Lease, if the Tenant creates or brings to the
Leased Premises any Hazardous Substances or if the conduct of the Tenant’s business shall cause
there to be any Hazardous Substances at or near the Leased Premises, or discharged or released on,
under or about the Leased Premises, the Building or the lands upon which the Building is
constructed, the air, soil or ground water, then notwithstanding any rule of law to the contrary,
such Hazardous Substances shall be and remain the sole and exclusive property of the Tenant and
shall not become the property of the Landlord, notwithstanding the degree of affixation to the
Leased Premises of the Hazardous Substances or the goods containing the Hazardous Substances. This
affirmation of the Tenant’s interest in the Hazardous Substances or the goods containing the
Hazardous Substances shall not however prohibit the Landlord from dealing with such material as
otherwise provided for in this Lease.

(f) All obligations of the Tenant regarding this clause and its dealing with Hazardous Substances
shall survive the expiry or termination of this Lease.

(g) To the best of the Landlord’s knowledge including information provided in any environmental
reports received by the Landlord which predate February 5th, 2004, the Building does not now
contain any hazardous substances beyond levels, amounts or concentrations permitted under the Laws
applicable to the Building.

ESCAPE CLAUSE

38. Deleted Intentionally.

TENANT INDUCEMENT Intentionally deleted

39. Deleted Intentionally

 

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ACT REASONABLY

40. Whenever the consent, approval or permission of the Landlord is required under this Lease it
shall not be unreasonably withheld or delayed.

FIRST RIGHT OF REFUSAL

41. Provided the Tenant has never been in default of its financial obligations under the Lease and
has never had any other material default under the Lease the Tenant shall have one first right of
refusal to lease the relinquished space under the same terms and conditions as contained herein,
except for the minimum rental. Should the Landlord receive an offer to lease for all or any
portion of the relinquished space the Landlord will, by written notice, provide the Tenant with the
minimum rent it is prepared to lease the relinquished space, or portion thereof, if applicable, and
the Tenant shall have 10 working days to execute a firm and binding lease for the relinquished
space at a minimum rent which will be equal to the greater of the minimum rent the Landlord is
prepared to lease all or a portion of the relinquished premises or the minimum rent in effect for
the Leased Premises, at the time of the aforenoted Landlord’s written notice to the Tenant. Failure
of the Tenant to sign such lease within the 10 working days from the Landlord’s written notice
shall render the Tenant’s first right of refusal forever null and void.

IN WITNESS WHEREOF the parties hereto have hereunto set their respective hands and seals and/or
affixed their corporate seals duly attested to by the hands of their proper signing officer(s)
authorized in that behalf.

	 	 	 	 	 	 	 	 	 	 	 	 	 
	SIGNED, SEALED AND DELIVERED	 	 	 	Elk Property Management Limited, as agent for PBX

Properties Ltd. and 350 Palladium Drive Inc. and

856581 Alberta Ltd.
	In the presence of:	 	 	)	 	 	(LANDLORD)  
	 

	 	 	)	 	 	 	 	 	 	 	 	 
	 

	 	 	)	 	 	 	 	 	 	 	 	 
	 	 	 	)	 	 	Per:	 	/s/ George Gaty	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	)	 	 	 	 	Name:
	 	George Gaty	 	 
	 

	 	 	)	 	 	 	 	Position:
	 	President	 	 
	. 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	)	 	 	ZixCorp Canada Inc. and Zix Corporation
	 	 	 	)	 	 	(TENANT)  
	 

	 	 	)	 	 	 	 	 	 	 	 	 
	 

	 	 	)	 	 	 	 	 	 	 	 	 
	 	 	 	)	 	 	Per:	 	/s/ Ronald A. Woessner	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	)	 	 	 	 	Name:
	 	Ronald A. Woessner	 	 
	 

	 	 	)	 	 	 	 	Position:
	 	ZixCorp — S.V.P.	 	 
	 	 	 	)	 	 	I HAVE AUTHORITY TO BIND THE CORPORATION.
	 	 	 	 	 	 	               ZixCorp Canada — Secretary

 

-31-

Schedule “A”

Legal Description — Lands

BEING:

Part of Lot 1 in Concession 2, designated as Parts 1, 2 and 3 on Plan 4R-14540, Geographic Township
of March, City of Ottawa (formerly the city of Kanata), Regional Municipality of Ottawa-Carleton.

 

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Schedule “B”

Approximate Floor Plan

 

-33-

Schedule “C”

Rules and Regulations

The Tenant and its invitees and employees shall observe the following rules and regulations ( as
added to, amended or modified from time to time by the Landlord).

	1.	 	SECURITY: Landlord may from time to time adopt appropriate systems and procedures for the
security or safety of the Building, any persons occupying ,using or entering the same ,or any
equipment finishings or contents thereof, and Tenant shall comply with Landlord’s reasonable
requirements relative thereto.
	 
	2.	 	LOCKS: Landlord may from time to time install and change locking mechanisms on the entrances
to the Building, common area thereof, and the Premises, and shall provide to the Tenant a
reasonable number of keys and replacements therefore to meet the bona fide requirements of the
Tenant. In these rules “keys” include any device serving the same purpose. Tenant shall not
add to or change existing locking mechanisms on any door in or to the Leased Premises without
Landlord’s prior written consent and without providing a copy of the key to the Landlord. If,
with Landlord’s consent, Tenant installs lock(s)incompatible with the Building master locking
system:

	 	(a)	 	Landlord, without abatement of Rent, shall be relieved of any obligation under
the Lease to provide any service to the affected areas which require access thereto,
	 
	 	(b)	 	Tenant shall indemnify Landlord against any expense as a result of forced entry
thereto which may be required in an emergency, and
	 
	 	(c)	 	Tenant shall at the end of the Term and at Landlord’s request remove such
lock(s) at Tenant’s expense

	3.	 	RETURN OF KEYS: At the end of the Term, Tenant shall promptly return to Landlord all keys for
the Building and Leased Premises which are in possession of Tenant.
	 
	4.	 	WINDOWS: Tenant shall observe Landlord’s rules with respect to maintaining window coverings
at all windows in the Leased Premises so that the Building presents a uniform exterior
appearance, and shall not install any signs, window shades, screens, drapes, covers or any
other on or at window in the Leased Premises without Landlord’s prior written consent.
	 
	5.	 	REPAIR, MAINTENANCE, ALTERATIONS AND IMPROVEMENTS: Tenant shall carry out Tenant’s repair,
maintenance, alterations and improvements in the Leased Premises only during times agreed to
in advance by Landlord and in a manner in which will not interfere with the rights of other
tenants in the Building.
	 
	6.	 	WATER FIXTURES: Tenant shall not use water fixtures for any purpose for which they are not
intended, nor shall Tenant tamper in any way with water fixtures so as to increase water
consumption. Tenant shall pay for any cost or damage resulting from such misuse by Tenant.

 

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	7.	 	PERSONAL USE OF LEASED PREMISES: The Leased Premises shall not be used or permitted to be
used for residential, lodging or sleeping purposes or for the storage of personal effects or
property not required for business purposes.
	 
	8.	 	HEAVY ARTICLES: Tenant shall not place in or move about the Leased Premises without
Landlord’s prior written consent any safe or other heavy article, which in the Landlord’s
reasonable opinion may damage the Building and Landlord may designate the location of any
heavy articles in the Leased Premises.
	 
	9.	 	CARPET PADS: deliberately omitted.
	 
	10.	 	BICYCLES, ANIMALS: Tenant shall not bring any animals or birds into the Building and shall
not permit bicycles or other vehicles inside or on the sidewalks outside the Building except
in areas designated from time to time by Landlord for such purposes. The Landlord accepts that
the Tenant will use forklifts and other standard warehouse equipment so long as such forklifts
and other equipment are only used in the rear warehouse area.
	 
	11.	 	DELIVERIES: Tenant shall insure that deliveries of materials and supplies to the Leased
Premises are made through such entrances, elevators and corridors and at such times as may
from time to time be designated by Landlord, and shall promptly pay or cause to be paid to
Landlord the cost of repairing any damage to the Building caused by any person making such
deliveries.
	 
	12.	 	FURNITURE AND EQUIPMENT: Tenant shall insure that furniture and equipment being moved into or
out of the Leased Premises is moved through such entrances, elevators and corridors and at
such times as may from time to time be designated by the Landlord, and by movers or a moving
company approved by Landlord and shall promptly pay or cause to be paid to Landlord the cost
of repairing any damage in the Building caused thereby.
	 
	13.	 	SOLICITATIONS: Landlord reserves the right to restrict or prohibit canvassing, soliciting or
peddling in the Building.
	 
	14.	 	FOOD AND BEVERAGES: Tenant shall be permitted the use of the equipment on the Leased Premises
for the dispensation of soft drinks, cold confectioneries and the like, for the preparation of
coffee, tea and the like, and for the warming of food already prepared. The Tenant shall not
permit on the premise equipment for the preparation of food. In addition only persons approved
from time to time by the Landlord may prepare, solicit orders for, sell, serve, or distribute
foods or beverages in the Building or use the elevators, corridors or common areas for such
purpose. This however shall not prevent the Tenant from using catering services from time to
time for special occasions as luncheons and receptions.
	 
	15.	 	REFUSE: Tenant shall place all refuse in proper receptacles provided by Tenant at its expense
in the Leased Premises or in receptacles (if any) provided by Landlord for the Building and
shall keep sidewalks and driveways outside the Building and lobbies, corridors, stairwells,
ducts and shafts of the Building free of all refuse.

 

-35-

	16.	 	OBSTRUCTIONS: Tenant shall not obstruct or place anything in or on the sidewalks or driveways
outside the building or in the lobbies, corridors, stairwells or other common areas of the
Building, or use such locations for any purpose except access to and exit from the Leased
Premises without Landlord’s prior written consent. Landlord may remove at Tenant’s expense any
such obstruction or thing (unauthorized by Landlord) without notice or obligation to Tenant.
	 
	17.	 	DANGEROUS OR IMMORAL ACTIVITIES: Tenant shall not make any use of the Leased Premises which
involves the danger or injury to any person, nor shall the same be used for any immoral or
illegal purpose.
	 
	18.	 	PROPER CONDUCT: Tenant shall not conduct itself in any manner which is inconsistent with the
character of the Building as a first quality building or which will impair the comfort and
convenience of other tenants in the building.
	 
	19.	 	EMPLOYEES, AGENTS AND INVITEES: In these Rules and Regulations, Tenant includes the
employees, agents, invitees and licensees of Tenant and others permitted by Tenant to use,
occupy, or visit the Leased Premises.
	 
	20.	 	PARKING: The Tenant, its employees, agents and suppliers shall park only in those portions of
the parking area on the Building designated for such purposes by the Landlord. If required by
Landlord to control parking, Tenant will provide the Landlord with the license numbers of all
cars of the Tenant and its employees authorized to park in the parking area. The parking area
shall not be used for anything but for the temporary parking of passenger vehicules. At no
time shall cars or anything else including but not limited to items of storage be left
overnight anywhere in or around the Building including those areas reserved for parking. The
Tenant agrees that it will not hold the Landlord responsible in any manner whatsoever for
theft or damage of any vehicule or its contents however caused, including for greater
certainty, damage or loss caused by fire, vandalism, or damage caused by the falling, escaping
or dripping of any substance including but not limited to water, solutions or any falling
building material. The aforesaid parking area shall be solely used for the temporary parking
of passenger automobiles and no such automobiles shall be cleaned or washed or serviced in any
way in the parking area.
	 
	21.	 	WINDOWS AND WINDOW COVERINGS: The skylights and windows that reflect or admit light into any
place in the Building shall not be covered or obstructed by the Tenant, and no awnings,
curtains or blinds shall be installed without the prior written consent of the Landlord.
Window coverings that are installed shall have lining on the side facing the interior side of
exterior windows. The Tenant shall not and shall not permit its employees, agents or invitees
to throw anything out the windows or doors of the Building or into the passageways, stairways,
lightwells or elevators shafts of the Building.
	 
	22.	 	SMOKING: Smoking is prohibited in all common areas of the Building.

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