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Exhibit 4.1  

RFS PARTNERSHIP, L.P.

RFS 2002 FINANCING, INC.
  (as Issuers) 

RFS HOTEL INVESTORS, INC.
RFS LEASING VII, INC.
  (each a Guarantor) 

9.75% Senior Notes due 2012

INDENTURE

Dated as of February 26, 2002

U.S. Bank National Association

(as Trustee) 

  

 
 

TABLE OF CONTENTS    
  

	 
	 	 
	 	Page

	ARTICLE I	 	 	 	 
	 	DEFINITIONS AND INCORPORATION BY REFERENCE	 	2
	 	SECTION 1.1	 	DEFINITIONS	 	2
	 	SECTION 1.2	 	OTHER DEFINITIONS	 	19
	 	SECTION 1.3	 	INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT	 	20
	 	SECTION 1.4	 	RULES OF CONSTRUCTION	 	20
	
ARTICLE II	
 	

 	
 	

 
	 	THE NOTES	 	20
	 	SECTION 2.1	 	FORM AND DATING	 	20
	 	SECTION 2.2	 	EXECUTION AND AUTHENTICATION	 	21
	 	SECTION 2.3	 	REGISTRAR, PAYING AGENT AND DEPOSITARY	 	21
	 	SECTION 2.4	 	PAYING AGENT TO HOLD MONEY IN TRUST	 	22
	 	SECTION 2.5	 	HOLDER LISTS	 	22
	 	SECTION 2.6	 	TRANSFER AND EXCHANGE	 	22
	 	SECTION 2.7	 	REPLACEMENT NOTES	 	33
	 	SECTION 2.8	 	OUTSTANDING NOTES	 	33
	 	SECTION 2.9	 	TREASURY NOTES	 	33
	 	SECTION 2.10	 	TEMPORARY NOTES	 	33
	 	SECTION 2.11	 	CANCELLATION	 	33
	 	SECTION 2.12	 	DEFAULTED INTEREST	 	34
	 	SECTION 2.13	 	CUSIP NUMBERS	 	35
	 	SECTION 2.14	 	ISSUANCE OF ADDITIONAL NOTES	 	35
	
ARTICLE III	
 	

 	
 	

 
	 	REDEMPTION	 	35
	 	SECTION 3.1	 	NOTICES TO TRUSTEE	 	35
	 	SECTION 3.2	 	SELECTION OF NOTES TO BE REDEEMED	 	35
	 	SECTION 3.3	 	NOTICE OF REDEMPTION	 	35
	 	SECTION 3.4	 	EFFECT OF NOTICE OF REDEMPTION	 	36
	 	SECTION 3.5	 	DEPOSIT OF REDEMPTION PRICE	 	36
	 	SECTION 3.6	 	NOTES REDEEMED IN PART	 	37
	 	SECTION 3.7	 	OPTIONAL REDEMPTION	 	37
	 	SECTION 3.8	 	NO MANDATORY REDEMPTION	 	38
	
ARTICLE IV	
 	

 	
 	

 
	 	COVENANTS	 	38
	 	SECTION 4.1	 	PAYMENT OF NOTES	 	38
	 	SECTION 4.2	 	MAINTENANCE OF OFFICE OR AGENCY	 	38
	 	SECTION 4.3	 	SEC REPORTS AND REPORTS TO HOLDERS	 	38
	 	SECTION 4.4	 	COMPLIANCE CERTIFICATE	 	39
	 	SECTION 4.5	 	TAXES	 	39
	 	SECTION 4.6	 	STAY, EXTENSION AND USURY LAWS	 	39
	 	SECTION 4.7	 	LIMITATION ON INCURRENCE OF ADDITIONAL INDEBTEDNESS AND DISQUALIFIED CAPITAL STOCK	 	40
	 	SECTION 4.8	 	LIMITATION ON LIENS	 	41
	 	SECTION 4.9	 	LIMITATION ON RESTRICTED PAYMENTS	 	41
	 	SECTION 4.10	 	LIMITATION ON DIVIDENDS AND OTHER PAYMENT RESTRICTIONS AFFECTING SUBSIDIARIES	 	43

i

 

	 	SECTION 4.11	 	LIMITATION ON LINES OF BUSINESS	 	44
	 	SECTION 4.12	 	LIMITATION ON TRANSACTIONS WITH AFFILIATES	 	44
	 	SECTION 4.13	 	LIMITATION ON SALE OF ASSETS AND SUBSIDIARY STOCK	 	45
	 	SECTION 4.14	 	REPURCHASE OF NOTES AT THE OPTION OF THE HOLDER UPON A CHANGE OF CONTROL	 	47
	 	SECTION 4.15	 	LIMITATION ON ISSUANCES OF GUARANTEES BY SUBSIDIARIES	 	48
	 	SECTION 4.16	 	LIMITATION ON LAYERING INDEBTEDNESS	 	48
	 	SECTION 4.17	 	RESTRICTION ON ACTIVITIES OF FINANCE	 	48
	 	SECTION 4.18	 	LIMITATION ON STATUS AS INVESTMENT COMPANY	 	49
	 	SECTION 4.19	 	MAINTENANCE OF PROPERTIES AND INSURANCE	 	49
	 	SECTION 4.20	 	CORPORATE EXISTENCE	 	49
	
ARTICLE V	
 	

 	
 	

 
	 	SUCCESSORS	 	49
	 	SECTION 5.1	 	MERGER, CONSOLIDATION OR SALE OF ASSETS	 	49
	 	SECTION 5.2	 	SUCCESSOR CORPORATION SUBSTITUTED	 	50
	
ARTICLE VI	
 	

 	
 	

 
	 	DEFAULTS AND REMEDIES	 	50
	 	SECTION 6.1	 	EVENTS OF DEFAULT	 	50
	 	SECTION 6.2	 	ACCELERATION	 	51
	 	SECTION 6.3	 	OTHER REMEDIES	 	53
	 	SECTION 6.4	 	WAIVER OF PAST DEFAULTS	 	53
	 	SECTION 6.5	 	CONTROL BY MAJORITY	 	53
	 	SECTION 6.6	 	LIMITATION ON SUITS	 	53
	 	SECTION 6.7	 	RIGHTS OF HOLDERS OF NOTES TO RECEIVE PAYMENT	 	54
	 	SECTION 6.8	 	COLLECTION SUIT BY TRUSTEE	 	54
	 	SECTION 6.9	 	TRUSTEE MAY FILE PROOFS OF CLAIM	 	54
	 	SECTION 6.10	 	PRIORITIES	 	55
	 	SECTION 6.11	 	UNDERTAKING FOR COSTS	 	55
	
ARTICLE VII	
 	

 	
 	

 
	 	TRUSTEE	 	55
	 	SECTION 7.1	 	DUTIES OF TRUSTEE	 	55
	 	SECTION 7.2	 	RIGHTS OF TRUSTEE	 	56
	 	SECTION 7.3	 	INDIVIDUAL RIGHTS OF TRUSTEE	 	57
	 	SECTION 7.4	 	TRUSTEE'S DISCLAIMER	 	57
	 	SECTION 7.5	 	NOTICE OF DEFAULTS	 	57
	 	SECTION 7.6	 	REPORTS BY TRUSTEE TO HOLDERS OF THE NOTES	 	57
	 	SECTION 7.7	 	COMPENSATION AND INDEMNITY	 	58
	 	SECTION 7.8	 	REPLACEMENT OF TRUSTEE	 	58
	 	SECTION 7.9	 	SUCCESSOR TRUSTEE BY MERGER, ETC.	 	59
	 	SECTION 7.10	 	ELIGIBILITY; DISQUALIFICATION	 	59
	 	SECTION 7.11	 	PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY	 	59
	
ARTICLE VIII	
 	

 	
 	

 
	 	LEGAL DEFEASANCE AND COVENANT DEFEASANCE	 	60
	 	SECTION 8.1	 	OPTION TO EFFECT LEGAL DEFEASANCE OR COVENANT DEFEASANCE	 	60
	 	SECTION 8.2	 	LEGAL DEFEASANCE AND DISCHARGE	 	60
	 	SECTION 8.3	 	COVENANT DEFEASANCE	 	60
	 	SECTION 8.4	 	CONDITIONS TO LEGAL OR COVENANT DEFEASANCE	 	61

ii

 

	 	SECTION 8.5	 	DEPOSITED MONEY AND GOVERNMENT SECURITIES TO BE HELD IN TRUST; OTHER MISCELLANEOUS PROVISIONS	 	62
	 	SECTION 8.6	 	REPAYMENT TO COMPANY	 	62
	 	SECTION 8.7	 	REINSTATEMENT	 	62
	
ARTICLE IX	
 	

 	
 	

 
	 	AMENDMENT, SUPPLEMENT AND WAIVER	 	63
	 	SECTION 9.1	 	WITHOUT CONSENT OF HOLDERS OF NOTES	 	63
	 	SECTION 9.2	 	WITH CONSENT OF HOLDERS OF NOTES	 	63
	 	SECTION 9.3	 	COMPLIANCE WITH TRUST INDENTURE ACT	 	65
	 	SECTION 9.4	 	REVOCATION AND EFFECT OF CONSENTS	 	65
	 	SECTION 9.5	 	NOTATION ON OR EXCHANGE OF NOTES	 	65
	 	SECTION 9.6	 	TRUSTEE TO SIGN AMENDMENTS, ETC.	 	65
	
ARTICLE X	
 	

 	
 	

 
	 	GUARANTEES	 	66
	 	SECTION 10.1	 	GUARANTEES	 	66
	 	SECTION 10.2	 	EXECUTION AND DELIVERY OF GUARANTEES	 	67
	 	SECTION 10.3	 	GUARANTORS MAY CONSOLIDATE, ETC., ON CERTAIN TERMS	 	67
	 	SECTION 10.4	 	RELEASE OF GUARANTORS	 	68
	 	SECTION 10.5	 	LIMITATION OF GUARANTOR'S LIABILITY; CERTAIN BANKRUPTCY EVENTS	 	68
	 	SECTION 10.6	 	APPLICATION OF CERTAIN TERMS AND PROVISIONS TO THE GUARANTORS	 	69
	 	SECTION 10.7	 	FUTURE GUARANTORS	 	69
	
ARTICLE XI	
 	

 	
 	

 
	 	MISCELLANEOUS	 	69
	 	SECTION 11.1	 	TRUST INDENTURE ACT CONTROLS	 	69
	 	SECTION 11.2	 	NOTICES	 	70
	 	SECTION 11.3	 	COMMUNICATION BY HOLDERS OF NOTES WITH OTHER HOLDERS OF NOTES	 	70
	 	SECTION 11.4	 	CERTIFICATE AND OPINION AS TO CONDITIONS PRECEDENT	 	71
	 	SECTION 11.5	 	STATEMENTS REQUIRED IN CERTIFICATE OR OPINION	 	71
	 	SECTION 11.6	 	RULES BY TRUSTEE AND AGENTS	 	71
	 	SECTION 11.7	 	NO PERSONAL LIABILITY OF DIRECTORS, OFFICERS, EMPLOYEES AND STOCKHOLDERS	 	71
	 	SECTION 11.8	 	GOVERNING LAW	 	71
	 	SECTION 11.9	 	NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS	 	72
	 	SECTION 11.10	 	SUCCESSORS	 	72
	 	SECTION 11.11	 	SEVERABILITY	 	72
	 	SECTION 11.12	 	COUNTERPART ORIGINALS	 	72
	 	SECTION 11.13	 	TABLE OF CONTENTS, HEADINGS, ETC.	 	72

iii

 

	

EXHIBIT A	
 	

 	
 	

 
	 	FORM OF NOTE	 	A-1
	

EXHIBIT B	
 	

 	
 	

 
	 	FORM OF CERTIFICATE OF TRANSFER	 	B-1
	

EXHIBIT C	
 	

 	
 	

 
	 	FORM OF CERTIFICATE OF EXCHANGE	 	C-1
	

EXHIBIT D	
 	

 	
 	

 
	 	FORM OF CERTIFICATE FROM ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR	 	D-1
	

EXHIBIT E	
 	

 	
 	

 
	 	FORM OF SUPPLEMENTAL INDENTURE TO BE DELIVERED BY SUBSEQUENT GUARANTORS	 	E-1

iv

  

 
 

CROSS-REFERENCE TABLE*    
  

	TIA Section
 
	 	Indenture Section
	 
	310(a)(1)	 	7.10	 
	 	(a)(2)	 	7.10	 
	 	(a)(3)	 	N.A.	 
	 	(a)(4)	 	N.A.	 
	 	(a)(5)	 	7.8; 7.10	 
	 	(b)	 	7.8; 7.10; 11.2	 
	 	(c)	 	N.A.	 
	311(a)	 	7.11	 
	 	(b)	 	7.11	 
	 	(c)	 	N.A.	 
	312(a)	 	2.5	 
	 	(b)	 	11.3	 
	 	(c)	 	11.3	 
	313(a)	 	7.6	 
	 	(b)(1)	 	N.A.	 
	 	(b)(2)	 	7.6	 
	 	(c)	 	7.6; 11.2	 
	 	(d)	 	7.6	 
	314(a)	 	4.3; 4.4; 11.2	 
	 	(b)	 	N.A.	 
	 	(c)(1)	 	11.4	 
	 	(c)(2)	 	11.4	 
	 	(c)(3)	 	N.A.	 
	 	(d)	 	N.A.	 
	 	(e)	 	11.5	 
	 	(f)	 	N.A.	 
	315(a)	 	7.1(b	)
	 	(b)	 	7.5; 11.2	 
	 	(c)	 	7.1(a	)
	 	(d)	 	7.1(c	)
	 	(e)	 	6.11	 
	316(a)(last sentence)	 	2.9	 
	 	(a)(1)(A)	 	6.5	 
	 	(a)(1)(B)	 	6.4	 
	 	(a)(2)	 	N.A.	 
	 	(b)	 	6.7	 
	 	(c)	 	6.4	 
	317(a)(1)	 	6.8	 
	 	(a)(2)	 	6.9	 
	 	(b)	 	2.4	 
	318(a)	 	11.1	 
	 	(c)	 	11.1	 

N.A.
means not applicable

*    This Cross-Reference table shall not, for any purpose, be deemed to be part of this Indenture. 

1

 

        INDENTURE,
dated as of February 26, 2002, among RFS Partnership, L.P., a Tennessee limited partnership (the "Company") and RFS 2002 Financing, Inc., a Tennessee corporation
("Finance" and together with the Company, the "Issuers"), the Guarantors (as defined), and U.S. Bank National Association, as trustee (the "Trustee"). 

        Each
party agrees as follows for the benefit of each other and for the equal and ratable benefit of the Holders (as defined) of the 9.75% Senior Notes due 2012 (the "Notes"): 

 
 

ARTICLE I
  DEFINITIONS AND INCORPORATION
  BY REFERENCE    
  

SECTION 1.1    DEFINITIONS  

        "144A Global Note" means one or more Global Notes bearing the Private Placement Legend, that shall be issued in an
aggregate amount of denominations equal in total to the outstanding principal amount of the Notes sold in reliance on Rule 144A. 

        "Accrued Bankruptcy Interest" means, with respect to any Indebtedness, all interest accruing thereon after the filing of a petition by or
against the Company or any of its Subsidiaries or any Parent under any Bankruptcy Law, in accordance with and at the rate (including any rate applicable upon any default or event of default, to the
extent lawful) specified in the documents evidencing or governing such
Indebtedness, whether or not the claim for such interest is allowed as a claim after such filing in any proceeding under such Bankruptcy Law. 

        "Acquired Indebtedness" means Indebtedness (including Disqualified Capital Stock) of any Person existing at the time such Person becomes a
Subsidiary of either of or both of the Company and the Parent, including by designation, or is merged or consolidated into or with either of the Company or the Parent or one of their respective
Subsidiaries. 

        "Acquisition" means (i) the purchase or other acquisition of any Person or all or substantially all the assets of any Person by any
other Person, whether by purchase, merger, consolidation, or other transfer, and whether or not for consideration, or (ii) an acquisition by the Company or the Parent or any of their respective
Subsidiaries from any other Person of one or more hotel properties. 

        "Additional Notes" means additional Notes which may be issued after the Issue Date pursuant to this Indenture (other than pursuant to an
Exchange Offer or otherwise in exchange for or in replacement of outstanding Notes). All references herein to "Notes" shall be deemed to include Additional Notes. 

        "Adjusted Consolidated Net Income" means, with respect to the Parent, the net income (or loss) of the Parent and its Consolidated
Subsidiaries, including the Company and its Consolidated Subsidiaries, (determined on a consolidated basis in accordance with GAAP) (it being understood that the net income of a Subsidiary shall be
consolidated with the Parent only to the extent of the Parent's proportionate interest in such Subsidiary; provided, that the minority interest of the
Company attributable to outstanding Units held by Persons other than the Parent shall not be deducted for purposes hereof), adjusted to exclude (only to the extent included in computing such net
income (or loss) and without duplication): 

        (a)  all
gains and losses which are either extraordinary (as determined in accordance with GAAP) or are unusual and nonrecurring (including any gain from the sale or other
disposition of assets outside the ordinary course of business or from the issuance or sale of any Capital Stock), 

        (b)  the
net income, if positive, of any Person, other than a Consolidated Subsidiary, in which the Company or the Parent or any of their respective Consolidated Subsidiaries
has an interest, except to the extent of the amount of any dividends or distributions actually paid in cash to the 

2

 

Company or the Parent or a Consolidated Subsidiary of either or both of the Company and the Parent during such period, but in any case not in excess of such Person's pro
rata share of their net income for such period, 

        (c)  the
net income or loss of any Person acquired in a pooling of interests transaction for any period prior to the date of such acquisition, 

        (d)  the
net income, if positive, of any of the Company's or the Parent's respective Consolidated Subsidiaries to the extent that the declaration or payment of dividends or
similar distributions to the Company is not at the time permitted by operation of the terms of its charter or bylaws or any other agreement, instrument, judgment, decree, order, statute, rule or
governmental regulation applicable to such Consolidated Subsidiary, and 

        (e)  the
net income of, and all dividends and distributions from any Unrestricted Subsidiary of either or both of the Company and the Parent, up to an aggregate amount equal
to all Investments made by either or both of the Company and the Parent and their respective Subsidiaries prior to the date of determination. 

        "Adjusted Consolidated Net Tangible Assets" means, at the date of determination, the total amount of assets of the Parent and its
respective Subsidiaries, including the Company and its Subsidiaries (less applicable depreciation, amortization and other valuation reserves), except to the extent resulting from write-ups
of capital assets (excluding write-ups in connection with accounting for acquisitions in conformity with GAAP), after deducting from the total amount of assets: 

        (1)  all
current liabilities of the Company and the Parent and their respective Subsidiaries, excluding intercompany items, and 

        (2)  all
goodwill, trade names, trademarks, patents, unamortized debt discount and expense and other intangibles, 

all
as set forth on the most recent quarterly or annual consolidated balance sheet of the Company and the Parent and their respective Subsidiaries, in conformity with GAAP and filed with the
Commission or provided to the Trustee pursuant to Section 4.3. 

        "Adjusted Total Assets" means, at the date of determination, for the Parent and its Subsidiaries, including the Company and its
Subsidiaries, the sum of: 

        (1)  Total
Assets for the Parent as of the end of the calendar quarter preceding the date of determination as set forth on the most recent quarterly or annual consolidated
balance sheet of the Parent and its Subsidiaries, prepared in conformity with GAAP and filed with the Commission or provided to the Trustee pursuant to Section 4.3, and 

        (2)  any
increase in Total Assets following the end of such quarter including, without limitation, any increase in Total Assets resulting from the application of the proceeds
of any additional Indebtedness. 

        "Affiliate" means any Person directly or indirectly controlling or controlled by or under direct or indirect common control with the
Company and the Parent. For purposes of this definition, the term "control" means the power to direct the management and policies of a Person, directly or through one or more intermediaries, whether
through the ownership of voting securities, by contract, or otherwise; provided, that with respect to ownership interest in the Parent and its
Subsidiaries, a Beneficial Owner of 10% or more of the total voting power normally entitled to vote in the election of directors, managers or trustees, as applicable, shall for such purposes be deemed
to constitute control. Notwithstanding the foregoing, "Affiliate" shall not include Wholly Owned Subsidiaries. 

        "Agent" means any Registrar, Paying Agent or co-registrar. 

3

 

        "Applicable Procedures" means, with respect to any transfer or exchange of or for beneficial interests in any Global Note, the rules and
procedures of the Depositary, Euroclear and Clearstream that apply to such transfer or exchange at the relevant time. 

        "Average Life" means, as of the date of determination, with respect to any security or instrument, the quotient obtained by dividing
(1) the sum of the products (a) of the number of years from the date of determination to the date or dates of each successive scheduled principal (or redemption) payment of such security
or instrument and (b) the amount of each such respective principal (or redemption) payment by (2) the sum of all such principal (or redemption) payments. 

        "Bankruptcy Code" means the United States Bankruptcy Code, codified at 11 U.S.C. §101-1330, as amended. 

        "Bankruptcy Law" means Title 11, U.S. Code, or any similar Federal, state or foreign law for the relief of debtors. 

        "Beneficial Owner" or "beneficial owner" for purposes of the definition of Change of
Control and Affiliate has the meaning attributed to it in Rules 13d-3 and 13d-5 under the Exchange Act (as in effect on the Issue Date), whether or not applicable. 

        "Board of Directors" means, with respect to any Person, the board of directors (or if such Person is not a corporation, the equivalent
board of managers or members or body performing similar functions for such Person) of such Person or any committee of the Board of Directors of such Person authorized, with respect to any particular
matter, to exercise the power of the board of directors of such Person. 

        "Broker-Dealer" means any broker-dealer that receives Exchange Notes for its own account in the Exchange Offer in exchange for Notes that
were acquired by such broker-dealer as a result of market-making or other trading activities. 

        "Business Day" means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banking institutions in New York,
New York are authorized or obligated by law or executive order to close. 

        "Capitalized Lease Obligation" means, as to any Person, the obligations of such Person under a lease that are required to be classified
and accounted for as capital lease obligations under GAAP and, for purposes of this definition, the amount of such obligations at any date shall be the capitalized amount of such obligations at such
date, determined in accordance with GAAP. 

        "Capital Stock" means, with respect to any entity, any and all shares, interests, rights to purchase (other than convertible or
exchangeable Indebtedness that is not itself otherwise capital stock), warrants, options, participations or other equivalents of or interests (however designated) in stock issued by that entity,
including partnership units in the case of a partnership). 

        "Cash Equivalent" means: 

        (1)  securities
issued or directly and fully guaranteed or insured by the United States of America or any agency or instrumentality thereof
(provided, that the full faith and credit of the United States of America is pledged in support thereof), 

        (2)  time
deposits and certificates of deposit and commercial paper issued by the parent corporation of any domestic commercial bank of recognized standing having capital and
surplus in excess of $500 million, or 

        (3)  commercial
paper issued by others rated at least A-2 or the equivalent thereof by Standard & Poor's Corporation or at least P-2 or the
equivalent thereof by Moody's Investors Service, Inc. 

and
in the case of each of clauses (1), (2) and (3) above maturing within one year after the date of acquisition. 

4

 

        "Change of Control" means: 

        (1)  any
"person" (including any group that is deemed to be a "person") is or becomes the "beneficial owner," directly or indirectly, of more than 35% of the aggregate Voting
Equity Interests of the Parent or (other than the Parent or a wholly owned Subsidiary of the Parent) the Company (including as a result of any merger or consolidation of the Company or the Parent with
or into any Person or any sale, transfer or other conveyance, whether direct or indirect, of all or substantially all of the Parent's or the Company's assets, in either case, on a consolidated basis,
in one transaction or a series of related transactions), 

        (2)  any
merger or consolidation of the Parent with or into another Person or the merger of another Person with or into the Parent, or the sale of all or substantially all of
the Parent's assets to another Person, if the Parent's Voting Equity Interests that are outstanding immediately prior to such transaction are changed into or exchanged for, cash, securities or
property, unless pursuant to such transaction such Voting Equity Interests are changed into or exchanged for, in addition to any other consideration, securities of the surviving person or transferee
that represent, immediately after such transaction, a majority of the aggregate voting power of the Voting Equity Interests of the surviving person or transferee. 

        (3)  the
Parent shall cease to own beneficially a majority of the voting power of the Voting Equity Interests of the Company or the consolidated financial statements of the
Parent would not include the Company and its Subsidiaries, determined in accordance with GAAP; 

        (4)  the
Continuing Directors cease for any reason to constitute a majority of our Board of Directors then in office, or 

        (5)  either
or both of the Company and the Parent adopt a plan of liquidation. 

As
used in this definition, "person" (including any group that is deemed to be a "person") has the meaning given by Section 13(d) of the Exchange Act, whether or not applicable. 

        "Clearstream" means Clearstream Banking Luxembourg, or its successors. 

        "Comparable Treasury Issue" means the U.S. Treasury security selected by an Independent Investment Banker as having maturity comparable to
March 1, 2007 that would be utilized at the time of selection and in accordance with customary financial practice, in pricing new issue of corporate debt securities of comparable maturity to
March 1, 2007. "Independent Investment Banker" means Credit Suisse First Boston Corporation, Banc of America Securities LLC or, if such firms are unwilling or unable to select the Comparable
Treasury Issue, an investment banking firm of national reputation selected by the Company. 

        "Comparable Treasury Price" means with respect to any redemption date, (i) the average of the Reference Treasury Dealer Quotations
for such redemption date, after excluding the highest and lowest such Reference Treasury Dealer Quotations for such redemption date, or (ii) the Company obtains fewer than three such Reference
Security Dealer Quotations, the average of all such quotations. 

        "Consolidation" means, with respect to the Company and the Parent, the consolidation of the accounts of the Subsidiaries with those of the
Company and the Parent, all in accordance with GAAP; provided, that "consolidation" shall not include consolidation of the accounts of any Unrestricted
Subsidiary with the accounts of the Company and the Parent. The term "Consolidated" has a correlative meaning to the foregoing. 

        "Consolidated Coverage Ratio" of the Parent on any date of determination (the "Transaction Date") means the ratio, on a  pro forma basis, of (a) the aggregate amount
of Consolidated EBITDA of the Parent attributable to continuing operations and businesses (exclusive
of amounts attributable to operations and businesses permanently discontinued or disposed of) for the Reference Period to (b) the 

5

 

aggregate Consolidated Fixed Charges of the Parent (exclusive of amounts attributable to operations and businesses permanently discontinued or disposed of, but only to the extent that the obligations
giving rise to such Consolidated Fixed Charges would no longer be obligations contributing to the Parent's Consolidated Fixed Charges subsequent to the Transaction Date) during the Reference Period;  provided, that for purposes of such calculation: 

        (1)  Acquisitions
which occurred during the Reference Period or subsequent to the Reference Period and on or prior to the Transaction Date shall be assumed to have occurred
on the first day of the Reference Period without regard to the effect of clause (c) of the definition of "Adjusted Consolidated Net Income," 

        (2)  transactions
giving rise to the need to calculate the Consolidated Coverage Ratio shall be assumed to have occurred on the first day of the Reference Period without
regard to the effect of clause (c) of the definition of "Adjusted Consolidated Net Income," 

        (3)  the
incurrence of any Indebtedness, (including the issuance of any Disqualified Capital Stock), (other than Indebtedness incurred under any revolving credit facility)
during the Reference Period or subsequent to the Reference Period and on or prior to the Transaction Date (and the application of the proceeds therefrom to the extent used to refinance or retire other
Indebtedness) shall be assumed to have occurred on the first day of the Reference Period, 

        (4)  the
Consolidated Fixed Charges of the Parent attributable to interest on any Indebtedness or dividends on any Disqualified Capital Stock bearing a floating interest (or
dividend) rate shall be computed on a pro forma basis as if the average rate in effect from the beginning of the Reference Period to the Transaction
Date had been the applicable rate for the entire period, unless such Person or any of its Subsidiaries is a party to an Interest Swap or Hedging Obligation (which shall remain in effect for the
12-month period immediately following the Transaction Date) that has the effect of fixing the interest rate on the date of computation, in which case such rate (whether higher or lower)
shall be used, and 

        (5)  for
any Reference Period that includes the full fiscal quarter ended March 31, 2001, the aggregate Consolidated EBITDA of the Parent shall be adjusted to add
thereto (to the extent deducted from net revenues in determining Consolidated Net Income and actually paid), up to $65,496,000 for the cash payments and related expenses by Subsidiaries of the Parent
to subsidiaries of Hilton Hotels Corporation for the cancellation of executory contracts that was recorded by the Parent as an expense on January 1, 2001, as described in the Parent's annual
report on Form 10-K for the fiscal year ended December 31, 2000, as filed with the Commission prior to the Issue Date. 

        "Consolidated EBITDA"means, for any period, the Adjusted Consolidated Net Income for such period adjusted to add thereto (to the extent
deducted from net revenues in determining Adjusted Consolidated Net Income), without duplication, the sum of 

        (1)  Consolidated
income tax expense, 

        (2)  Consolidated
depreciation and amortization expense, 

        (3)  Consolidated
Fixed Charges, and 

        (4)  all
other non-cash charges attributable to the grant, exercise or repurchase of options for or shares of Qualified Capital Stock to or from employees of the
Company or the Parent or any of their respective Consolidated Subsidiaries, less the amount of all cash payments made by the Company or the Parent or any of their respective Subsidiaries during such
period to the extent such payments relate to non-cash charges that were added back in determining Consolidated EBITDA for such period or any prior period;  provided, that consolidated income tax expense
and depreciation and amortization of a Subsidiary that is not a Wholly Owned Subsidiary shall only be
added to the extent of the equity interest of the Parent or the Company in such Subsidiary; provided, further, that if any Subsidiary of 

6

 

either of the Company or the Parent is not a Wholly Owned Subsidiary, Consolidated EBITDA shall be reduced (to the extent not otherwise reduced in accordance with GAAP) by an amount equal to:
(x) the amount of Adjusted Consolidated Net Income attributable to such Subsidiary, multiplied by (y) the percentage ownership interest in the income of such Subsidiary not owned on the
last day of such period by the Company or the Parent or any of their respective Subsidiaries. 

        "Consolidated Fixed Charges" of the Parent means, for any period, the aggregate amount (without duplication and determined in each case in
accordance with GAAP) of: 

        (a)  interest
expensed or capitalized, paid, accrued, or scheduled to be paid or accrued (including, in accordance with the following sentence, interest attributable to
Capitalized Lease Obligations) of the Parent and its Consolidated Subsidiaries, including the Company and its Consolidated Subsidiaries, during such period, and, in any case, including
(1) original issue discount and non-cash interest payments or accruals on any Indebtedness, (2) the interest portion of all deferred payment obligations, and (3) all
commissions, discounts and other fees and charges owed with respect to bankers' acceptances and letters of credit financings and currency and Interest Swap and Hedging Obligations, in each case to the
extent attributable to such period, and 

        (b)  the
amount of dividends accrued or payable (or guaranteed) by the Parent or any of its Consolidated Subsidiaries, including the Company and its Consolidated
Subsidiaries, in respect of Preferred Stock (other than by Subsidiaries of the Parent to the Parent or the Parent's Wholly Owned Subsidiaries, including the Company and its Subsidiaries), and 

        (c)  for
any period the aggregate Consolidated Fixed Charges of the Parent shall be adjusted to subtract therefrom (to the extent added thereto in such period and to the
extent actually paid), up to the aggregate Transaction Costs. 

For
purposes of this definition, (x) interest on a Capitalized Lease Obligation shall be deemed to accrue at an interest rate reasonably determined in good faith by the Parent to be the rate of
interest implicit in such Capitalized Lease Obligation in accordance with GAAP, and (y) interest expense attributable to any Indebtedness represented by the guaranty by the Parent or a
Subsidiary of the Parent, including the Company and its Subsidiaries, of an obligation of another Person shall be deemed to be the interest expense attributable to the Indebtedness guaranteed. 

        "Consolidated Subsidiary" means, for any Person, each Subsidiary of such Person (whether now existing or hereafter created or acquired)
the financial statements of which are Consolidated for financial statement reporting purposes with the financial statements of such Person in accordance with GAAP. 

        "Continuing Director" means during any period of 12 consecutive months after the Issue Date, individuals who at the beginning of any such
12-month period constituted the Board of Directors of the Parent (together with any new directors whose election by such Board of Directors or whose nomination for election by the
shareholders of the Parent was approved by a vote of a majority of the directors then still in office who were either directors at the beginning of such period or whose election or nomination for
election was previously so approved, including new directors designated in or provided for in an agreement regarding the merger, consolidation or sale, transfer or other conveyance, of all or
substantially all of the assets of the Company or the Parent, if such agreement was approved by a vote of such majority of directors). 

7

   
        "Corporate Trust Office" shall be at the address of the Trustee specified in Section 11.2 hereof or such other address as to which
the Trustee may give notice to the Company. 

        "Credit Agreement" means the Fifth Amended and Restated Credit Agreement dated as of July 16, 2001 by and among the Company,
certain financial institutions and Bank of America, N.A., as agent, as amended by the First Amendment thereto dated November 19, 2001, including any related notes, guarantees, collateral
documents, instruments and agreements executed in connection therewith, as such credit agreement and/or related documents may be amended, restated, supplemented, renewed, replaced or otherwise
modified from time to time whether or not with the same agent, trustee, representative lenders or holders, and, subject to the proviso to the next succeeding sentence, irrespective of any changes in
the terms and conditions thereof. Without limiting the generality of the foregoing, the term "Credit Agreement" shall include agreements in respect of Interest Swap and Hedging Obligations with
lenders (or Affiliates thereof) party to the Credit Agreement with respect to Indebtedness incurred under the Credit Agreement and shall also include any amendment, amendment and restatement, renewal,
extension, restructuring, supplement or modification to any Credit Agreement and all refundings, refinancings and replacements of any Credit Agreement, including any credit agreement: 

        (1)  extending
the maturity of any Indebtedness incurred thereunder or contemplated thereby, 

        (2)  adding
or deleting borrowers or guarantors thereunder, so long as borrowers and issuers include one or more of the Company, the Parent and Guarantors and their
respective successors and assigns, 

        (3)  increasing
the amount of Indebtedness incurred thereunder or available to be borrowed thereunder; provided, that on the
date such Indebtedness is incurred it would not be prohibited by Section 4.7 hereof, or 

        (4)  otherwise
altering the terms and conditions thereof in a manner not prohibited by the terms of this Indenture. 

        "Custodian" means any receiver, trustee, assignee, liquidator or similar official under any Bankruptcy Law. 

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

        "Definitive Note" means one or more certificated Notes registered in the name of the Holder thereof and issued in accordance with
Section 2.6 hereof, in the form of Exhibit A hereto except that such Note shall not include the information called for by footnotes 3, 4, 5 and 9 thereof. 

        "Depositary" means, with respect to the Notes issuable or issued in whole or in part in global form, the Person specified in
Section 2.3 hereof as the Depositary with respect to the Notes, until a successor shall have been appointed and become such pursuant to the applicable provisions of this Indenture, and
thereafter "Depositary" shall mean or include such successor. 

        "Disqualified Capital Stock" means with respect to any Person, (a) Equity Interests of such Person that, by its terms or by the
terms of any security into which it is convertible, exercisable or exchangeable, is, or upon the happening of an event or the passage of time or both would be, required to be redeemed or repurchased
(except for (i) customary change of control and asset sale provisions, (ii) the Units, and (iii) if in effect on the Issue Date, provisions relating to the loss of such Person's
status as a REIT; provided, that such Person shall be deemed to have incurred an amount of Indebtedness equal to the amount of Disqualified Capital
Stock equal to the greater of the voluntary or involuntary maximum fixed repurchase price plus accrued and unpaid dividends at the time such Person's status as a REIT is lost) including at the option
of the holder thereof, by such Person, the Parent, the Company, or any of their respective Subsidiaries, in whole or in part, on or prior to 91 days 

8

 

following the Stated Maturity of the Notes and (b) any Equity Interests of any Subsidiary of such Person other than any common equity with no preferences, privileges, and no redemption or
repayment provisions. 

        "Distribution Compliance Period" means the 40-day restricted period as defined in Regulation S. 

        "Equity Interests" means Capital Stock or partnership, participation or membership interests and all warrants, options or other rights to
acquire Capital Stock or partnership, participation or membership interests (but excluding any debt security that is convertible into, or exchangeable for, Capital Stock or partnership, participation
or membership interests). 

        "Euroclear" means Euroclear Bank S.A./N.V., or its successor, as operator of the Euroclear system. 

        "Event of Loss" means, with respect to any property or asset, any (1) loss, destruction or damage of such property or asset or
(2) any condemnation, seizure or taking, by exercise of the power of eminent domain or otherwise, of such property or asset, or confiscation or requisition of the use of such property or asset. 

        "Exchange Act" means the Securities Exchange Act of 1934, as amended. 

        "Exchange Notes" means the Series B Notes issued pursuant to the Exchange Offer. 

        "Exchange Offer" means an offer that may be made by the Company pursuant to the Registration Rights Agreement to exchange Exchange Notes
for the Notes issued on the Issue Date. 

        "Exchange Offer Registration Statement" shall have the meaning set forth in the Registration Rights Agreement. 

        "Exempted Affiliate Transaction" means (a) customary employee or director compensation and indemnification arrangements approved by
a majority of independent (as to such transactions) members of the Board of Directors of the Parent or (b) any Restricted Payment permitted under the terms of Section 4.9 hereof and
payable, in form and amount, on a pro rata basis to all holders of either (i) operating partnership units of the Company, or (ii) common
stock of the Parent, and (c) transactions solely between or among the Company and the Parent or solely between and among the Company or the Parent and any of their Consolidated Subsidiaries or
solely among Consolidated Subsidiaries of the Company or the Parent or solely among any combination of the foregoing. 

        "Existing Indebtedness" means the Indebtedness of the Company, the Parent and their respective Subsidiaries (other than Indebtedness under
the Credit Agreement) in existence on the Issue Date, reduced to the extent such amounts are repaid, refinanced or retired. 

        "fair market value" means the price that would be paid in an arm's-length transaction between an informed and willing seller under no
compulsion to sell and an informed and willing buyer under no compulsion to buy, as determined in good faith by the Company. 

        "Funds From Operations" for any period means the consolidated net income of the Parent and its Subsidiaries for such period determined in
conformity with GAAP excluding gains or losses from debt restructurings which would be extraordinary items in accordance with GAAP and sales of depreciable operating property, plus depreciation of
real property (including furniture, fixtures and equipment) and after adjustments for unconsolidated partnerships and joint ventures plus the minority interest in the
Company, if applicable, and to the extent actually paid or accrued in such period, plus Transaction Costs. 

        "GAAP" means United States generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting
Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in 

9

 

such other statements by such other entity as approved by a significant segment of the accounting profession in the United States as in effect from time to time. 

        "Global Notes" means one or more Notes in the form of Exhibit A hereto that includes, as applicable, the information referred to in
footnotes 3, 4, 5 and 9 to the form of Note, attached hereto as Exhibit A, issued under this Indenture, that is deposited with or on behalf of and registered in the name of the
Depositary or its nominee. 

        "Global Note Legend" means the legend set forth in Section 2.6(g)(ii) hereof, which is required to be placed on all Global Notes
issued under this Indenture. 

        "Guarantee" means a guarantee by each Guarantor for payment of the Notes by such Guarantor. The Guarantee shall be an unsecured senior
obligation of each Guarantor and shall be unconditional regardless of the enforceability of the Notes and this Indenture. 

        "Guarantor" means RFS Hotel Investors, Inc. and RFS Leasing VII, Inc. and each Subsidiary of either of the Company or
the Parent that executes a Guarantee in accordance with the provisions of this Indenture. 

        "Holder" means a Person in whose name a Note is registered on the Registrar's books. 

        "Indebtedness" of any Person means, without duplication, 

        (a)  all
liabilities and obligations, contingent or otherwise, of any such Person, to the extent such liabilities and obligations would appear as a liability upon the
consolidated balance sheet of such Person in accordance with GAAP, (1) in respect of borrowed money (whether or not the recourse of the lender is to the whole of the assets of such Person or
only to a portion thereof), (2) evidenced by bonds, notes, debentures or similar instruments, or (3) representing the balance deferred and unpaid of the purchase price of any property or
services, except (other than accounts payable or other obligations to
trade creditors which have remained unpaid for greater than 60 days past their original due date) those incurred in the ordinary course of its business that would ordinarily constitute a trade
payable to trade creditors; 

        (b)  all
liabilities and obligations, contingent or otherwise, of such Person (1) evidenced by bankers' acceptances or similar instruments issued or accepted by banks,
(2) relating to any Capitalized Lease Obligation, or (3) evidenced by a letter of credit or a reimbursement obligation of such Person with respect to any letter of credit; 

        (c)  all
net obligations of such Person under Interest Swap and Hedging Obligations; 

        (d)  all
liabilities and obligations of others of the kind described in the preceding clause (a), (b) or (c) that such Person has guaranteed or provided credit support
for or that are otherwise its legal liability or which are secured by any assets or property of such Person; 

        (e)  any
and all deferrals, renewals, extensions, refinancing and refundings (whether direct or indirect) of, or amendments, modifications or supplements to, any liability of
the kind described in any of the preceding clauses (a), (b), (c) or (d), or this clause (e), whether or not between or among the same parties; and 

        (f)    all
Disqualified Capital Stock of such Person (measured at the greater of its voluntary or involuntary maximum fixed repurchase price plus accrued and unpaid dividends). 

provided, that any indebtedness which has been defeased in accordance with GAAP or defeased pursuant to the deposit of cash or Government Securities (in
an amount sufficient to satisfy all such indebtedness obligations at maturity or redemption, as applicable, and all payments of interest and premium, if any) in a trust or account created or pledged
for the sole benefit of the holders of such 

10

 

indebtedness, and subject to no other Liens, and the other applicable terms of the instrument governing such indebtedness, shall not constitute "Indebtedness." 

For
purposes hereof, the "maximum fixed repurchase price" of any Disqualified Capital Stock which does not have a fixed repurchase price shall be calculated in accordance with the terms of such
Disqualified Capital Stock as if such Disqualified Capital Stock were purchased on any date on which Indebtedness shall be required to be determined pursuant to this Indenture, and if such price is
based upon, or measured by, the fair market value of such Disqualified Capital Stock, such fair market value to be determined in good faith by the board of directors of the issuer (or managing general
partner of the issuer) of such Disqualified Capital Stock. 

        The
amount of any Indebtedness outstanding as of any date shall be (1) the accreted value thereof, in the case of any Indebtedness issued with original issue discount, but the
accretion of original issue discount in accordance with the original terms of Indebtedness issued with an original issue discount shall not be deemed to be an incurrence and (2) the principal
amount thereof, together with any interest thereon that is more than 30 days past due, in the case of any other Indebtedness. 

        "Indenture" means this Indenture, as amended or supplemented from time to time in accordance with the terms hereof. 

        "Indirect Participant" means an entity that clears through, maintains a direct or indirect custodial relationship with, or holds a
beneficial interest through a Participant. 

        "Initial Purchasers" mean the initial purchasers of the Notes under the Purchase Agreement, dated February 21, 2002, among the
initial purchasers, the Issuers and the Guarantors party thereto. 

        "Institutional Accredited Investor" means an institution that is an "accredited investor" as defined in Rule 501(a)(1), (2), (3) or
(7) under the Securities Act, who is not also a QIB. 

        "Interest Payment Date" means the stated due date of an installment of interest on the Notes. 

        "Interest Swap and Hedging Obligation" means any obligation of any Person pursuant to any interest rate swap agreement, interest rate cap
agreement, interest rate collar agreement, interest rate exchange agreement, currency exchange agreement or any other agreement or arrangement designed to protect against fluctuations in interest
rates or currency values, including, without limitation, any arrangement whereby, directly or indirectly, such Person is entitled to receive from time to time periodic payments calculated by applying
either a fixed or floating rate of interest on a stated notional amount in exchange for periodic payments made by such Person calculated by applying a fixed or floating rate of interest on the same
notional amount. 

        "Investment" by any Person in any other Person means, without duplication, 

        (a)  the
acquisition (whether by purchase, merger, consolidation or otherwise) by such Person (whether for cash, property, services, securities or otherwise) of Equity
Interests, capital stock, bonds, notes, debentures, partnership or other ownership interests or other securities, including any options or warrants, of such other Person or any agreement to make any
such acquisition; 

        (b)  the
making by such Person of any deposit with, or advance, loan or other extension of credit to, such other Person (including the purchase of property from another
Person subject to an understanding or agreement, contingent or otherwise, to resell such property to such other Person) or any commitment to make any such advance, loan or extension (but excluding
accounts receivable, endorsements for collection or deposits arising in the ordinary course of business); 

        (c)  other
than guarantees of Indebtedness of the Company or any Guarantor to the extent permitted by Section 4.7 hereof, the entering into by such Person of any
guarantee of, or other credit support or contingent obligation with respect to, Indebtedness or other liability of such other Person; 

11

 

        (d)  the
making of any capital contribution by such Person to such other Person; and 

        (e)  the
designation by the Board of Directors of the Company of any Person to be an Unrestricted Subsidiary. 

The
Company and the Parent shall be deemed to make an Investment in an amount equal to the fair market value of the net assets of any subsidiary (or, if neither the Company, the Parent nor any of
their respective Subsidiaries has theretofore made an Investment in such subsidiary, in an amount equal to the Investments being made), at the time that such subsidiary is designated an Unrestricted
Subsidiary, and any property transferred to an Unrestricted Subsidiary from the Company or the Parent or any of their respective Subsidiaries shall be deemed an Investment valued at its fair market
value at the time of such transfer. The Company, the Parent or any of their respective Subsidiaries shall be deemed to have made an Investment in a Person that is or was a Wholly Owned Subsidiary and
a Guarantor if, upon the issuance, sale or other disposition of any portion of Company's, the Parent's or the Subsidiary's ownership in the Capital Stock of such Person, such Person ceases to be a
Wholly Owned Subsidiary. The fair market value of each Investment shall be measured at the time made or returned, as applicable. 

        "Issue Date" means the date of first issuance of the Notes under this Indenture. 

        "Letter of Transmittal" means the letter of transmittal to be prepared by the Company and sent to all Holders of the Notes for use by such
Holders in connection with the Exchange Offer. 

        "Lien" means any mortgage, charge, pledge, lien (statutory or otherwise), privilege, security interest, hypothecation or other encumbrance
upon or with respect to any property of any kind, real or personal, movable or immovable, now owned or hereafter acquired. 

        "Liquidated Damages" means all liquidated damages then owing pursuant to the Registration Rights Agreement. 

        "Make-Whole Premium" means, with respect to a note, the sum of the present values of the remaining scheduled payments of
interest, principal and premium thereon (not including any portion of such payments of interest accrued as of the date of redemption) as if the notes were redeemed on March 1, 2007 pursuant to
Section 3.7 on such date, discounted to the redemption date on a semiannual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus
50 basis points. 

        "Moody's" means Moody's Investors Service, Inc. and its successors. 

        "Net Cash Proceeds" means the aggregate amount of cash or Cash Equivalents received by the Company or the Parent in the case of a sale of
Qualified Capital Stock and by the Company or the Parent and their Subsidiaries in respect of an Asset Sale plus, in the case of an issuance of Qualified Capital Stock upon any exercise, exchange or
conversion of securities (including options, warrants, rights and convertible or exchangeable debt) of the Company or the Parent that were issued for cash on or after the Issue Date, the amount of
cash originally received by the Company or the Parent upon the issuance of such securities (including options, warrants, rights and convertible or exchangeable debt) less, in each case, the sum of all
payments, fees, commissions and expenses (including, without limitation, the fees and expenses of legal counsel and investment banking fees and expenses) incurred in connection with such Asset Sale or
sale of Qualified Capital Stock, and, in the case of an Asset Sale only, less the amount (estimated reasonably and in good faith by the Company) of income, franchise, sales and other applicable taxes
required to be paid by the Company or the Parent or any of their Subsidiaries in connection with such Asset Sale in the taxable year that such sale is consummated or in the immediately succeeding
taxable year, the computation of which shall take into account the reduction in tax liability resulting from any available operating losses and net operating loss carryovers, tax credits and tax
credit carryforwards, and similar tax attributes. 

12

  

        "Non-Recourse Indebtedness" means Indebtedness (a) as to which neither the Company, the Parent nor any of their
respective Subsidiaries (1) provides credit support of any kind (including any undertaking, agreement or instrument that would constitute Indebtedness) other than in the form of a Lien on an
asset serving as security for Non-Recourse Indebtedness of the Company, the Parent or any of their respective Subsidiaries, (2) is directly or indirectly liable (as a guarantor or
otherwise) other than in the form of a Lien on an asset serving as security for Non-Recourse Indebtedness of the Company, the Parent or any of their respective Subsidiaries, or
(3) constitutes the lender, and (b) no default with respect to which (including any rights that the holders thereof may have to take enforcement action against an Unrestricted
Subsidiary) would permit (upon notice, lapse of time or both) any holder of any other Indebtedness of the Parent, the Company or any of the Guarantors to declare a default on such other Indebtedness
or cause the payment thereof to be accelerated or payable prior to its stated maturity. 

        "Non-U.S. Person" means any Person other than a U.S. Person. 

        "Notes Custodian" means the Trustee, as custodian with respect to the Notes in global form, or any successor entity thereto. 

        "Obligation" means any principal, premium or interest payment, or monetary penalty, or damages, due by the Company or any Guarantor under
the terms of the Notes or this Indenture, including any Liquidated Damages due pursuant to the terms of the Registration Rights Agreement. 

        "Offering" means the offering of the Notes by the Company. 

        "Offering Circular" means the Offering Circular, dated February 21, 2002, relating to the initial offering of the Notes. 

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

        "Officers' Certificate"means the officers' certificate to be delivered upon the occurrence of certain events as set forth in this
Indenture. 

        "Opinion of Counsel" means an opinion from legal counsel who is reasonably acceptable to the Trustee, that meets the requirements of
Sections 11.4 and 11.5 hereof. The counsel may be an employee of or counsel to the Company or any Subsidiary of the Company. 

        "Parent" means RFS Hotel Investors, Inc. or its successor 

        "Participant" means, with respect to the Depositary, Euroclear or Clearstream, a Person who has an account with the Depositary, Euroclear
or Clearstream, respectively (and, with respect to The Depository Trust Company, shall include Euroclear and Clearstream). 

        "Permitted Indebtedness"means that: 

        (a)  the
Company and the Guarantors may incur Indebtedness evidenced by the Notes and the Guarantees issued pursuant to this Indenture up to the amounts being issued on the
original Issue Date less any amounts repaid or retired; 

        (b)  the
Company, the Parent and their respective Subsidiaries as applicable, may incur Refinancing Indebtedness with respect to any Existing Indebtedness or any Indebtedness
(including Disqualified Capital Stock), described in clause (a) or incurred pursuant to the Debt Incurrence Ratio test and clause (1) or (2) of Section 4.7 hereof or which was
refinanced pursuant to this clause (b); 

        (c)  the
Company, the Parent and their respective Subsidiaries may incur Indebtedness solely in respect of bankers acceptances, letters of credit and performance bonds (to
the extent that such 

13

 

incurrence does not result in the incurrence of any obligation to repay any obligation relating to borrowed money or other Indebtedness), all in the ordinary course of business in accordance with
customary industry practices, in amounts and for the purposes customary in the Company's industry; provided, that the aggregate principal amount
outstanding of such Indebtedness (including any Refinancing Indebtedness and any other Indebtedness issued to retire, refinance, refund, defease or replace such Indebtedness) shall at no time exceed
$2,000,000; 

        (d)  the
Company may incur Indebtedness owed to (borrowed from) any Guarantor, and any Guarantor may incur Indebtedness owed to (borrowed from) any other Guarantor or the
Company; provided, that in the case of Indebtedness of the Company, such obligations shall be unsecured and contractually subordinated in all respects
to the Company's obligations pursuant to the Notes and in the case of Indebtedness of a Guarantor such Indebtedness shall be unsecured and contractually subordinated in all respects to such
Guarantor's obligations pursuant to such Guarantor's Guarantee and any event that causes such Guarantor no longer to be a Guarantor (including by designation to be an Unrestricted Subsidiary) shall be
deemed to be a new incurrence by such issuer of such Indebtedness and any guarantor thereof subject to Section 4.7 hereof; 

        (e)  the
Company, the Parent and their respective Subsidiaries may incur Interest Swap and Hedging Obligations that are incurred for the purpose of fixing or hedging interest
rate or currency risk with respect to any fixed or floating rate Indebtedness that is permitted by this Indenture to be outstanding or any receivable or liability the payment of which is determined by
reference to a foreign currency; provided, that the notional amount of any such Interest Swap and Hedging Obligation does not exceed the principal
amount of Indebtedness to which such Interest Swap and Hedging Obligation relates. 

        "Permitted Investment"means: 

        (a)  any
Investment in any of the Notes; 

        (b)  any
Investment in Cash Equivalents; 

        (c)  intercompany
notes to the extent permitted under clause (d) of the definition of "Permitted Indebtedness"; 

        (d)  Investments
in a Person in a Related Business if as a result of such Investment such Person immediately becomes a Subsidiary of the Company or the Parent or such Person
is immediately merged with or into the Company or the Parent or one of their respective Subsidiaries; 

        (e)  any
Investment in any Person in exchange for the Company's or the Parent's Qualified Capital Stock or made with the Net Cash Proceeds of any substantially concurrent
sale of the Company's or the Parent's Qualified Capital Stock; and 

        (f)    any
Investment made as a result of the receipt of non-cash consideration from an Asset Sale that was made pursuant to and in compliance with
Section 4.13 hereof. 

        "Person" or "person" means any corporation, individual, limited liability company, joint
stock company, joint venture, partnership, unincorporated association, governmental regulatory entity, country, state or political subdivision thereof, trust, municipality or other entity. 

        "Preferred Stock" means any Equity Interest of any class or classes of a Person (however designated) which is preferred as to payments of
dividends, or as to distributions upon any liquidation or dissolution, over Equity Interests of any other class of such Person. 

        "Private Placement Legend" means the legend set forth in Section 2.6(g)(i) hereof to be placed on all Notes issued under this
Indenture except where specifically stated otherwise by the provisions of this Indenture. 

14

 

        "Pro Forma" or "pro forma" shall have the meaning set forth in
Regulation S-X of the Securities Act of 1933, as amended, unless and to the extent otherwise specifically stated herein. 

        "QIB" means a "qualified institutional buyer" as defined in Rule 144A. 

        "Qualified Capital Stock" means any Capital Stock of the Company or the Parent that is not Disqualified Capital Stock. 

        "Qualified Exchange"means: 

        (1)  any
legal defeasance, redemption, retirement, repurchase or other acquisition of Capital Stock, or Indebtedness of the Company or the Parent issued on or after the Issue
Date with the Net Cash Proceeds received by the Company or the Parent from the substantially concurrent sale of its Qualified Capital Stock (other than to a Subsidiary), and 

        (2)  any
issuance of Qualified Capital Stock of the Company or the Parent in exchange for any Capital Stock or Indebtedness of the Company or the Parent issued on or after
the Issue Date. 

        "Record Date" means a Record Date specified in the Notes, whether or not such date is a Business Day. 

        "Reference Period" with regard to any Person means the four full fiscal quarters (or such lesser period during which such Person has been
in existence) ended immediately preceding any date upon which any determination is to be made pursuant to the terms of the Notes or this Indenture. 

        "Reference Treasury Dealer Quotations" means, with respect of each Reference Treasury Dealer and any redemption date, the average, as
determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the
Independent Investment Banker by the each Reference Treasury Dealer at 5:00 p.m. on the third business day preceding such redemption date. 

        "Refinancing Indebtedness"means Indebtedness, including Disqualified Capital Stock, (a) issued in exchange for, or the proceeds
from the issuance and sale of which are used substantially concurrently to repay, redeem, defease, refund, refinance, discharge or otherwise retire for value, in whole or in part, or
(b) constituting an amendment, modification or supplement to, or a deferral or renewal of ((a) and (b) above are, collectively, a "Refinancing"), any Indebtedness (including Disqualified
Capital Stock) in a principal amount or, in the case of Disqualified Capital Stock, liquidation preference, not to exceed (after deduction of reasonable and customary fees and expenses incurred in
connection with the Refinancing) the lesser of (1) the principal amount or, in the case of Disqualified Capital Stock, liquidation preference, of the Indebtedness (including Disqualified
Capital Stock) so Refinanced and (2) if such Indebtedness being Refinanced was issued with an original issue discount, the accreted value thereof (as determined in accordance with GAAP) at the
time of such Refinancing (plus, in each case, the amount of any premium paid in connection with such Refinancing in accordance with the terms of the documents governing the Indebtedness refinanced
without giving effect to any modification thereof made in connection with or in contemplation of such refinancing); provided, that (A) such
Refinancing Indebtedness shall only be used to refinance outstanding Indebtedness (including Disqualified Capital Stock) of such Person issuing such Refinancing Indebtedness, (B) such
Refinancing Indebtedness shall (x) not have an Average Life shorter than the Indebtedness (including Disqualified Capital Stock) to be so refinanced at the time of such Refinancing and
(y) in all respects, be no less contractually subordinated or junior, if applicable, to the rights of Holders of the Notes than was the Indebtedness (including Disqualified Capital Stock) to be
refinanced, (C) such Refinancing Indebtedness shall have a final stated maturity or redemption date, as applicable, no earlier than the final stated maturity or redemption date, as applicable,
of the Indebtedness (including Disqualified Capital Stock) to be so refinanced or, if sooner, 91 days after the Stated Maturity of the Notes, and (D) such Refinancing Indebtedness shall
be secured (if secured) in a manner no more adverse to the Holders of the Notes 

15

 

than the terms of the Liens (if any) securing such refinanced Indebtedness, including, without limitation, the amount of Indebtedness secured shall not be increased. 

        "Registration Rights Agreement" means the Registration Rights Agreement, dated as of Issue Date, by and among the Company and the other
parties named on the signature pages thereof, as such agreement may be amended, modified or supplemented from time to time. 

        "Reg S Permanent Global Note" means one or more permanent Global Notes bearing the Private Placement Legend, that shall be issued
in an aggregate amount of denominations equal in total to the outstanding principal amount of the Reg S Temporary Global Note upon expiration of the Distribution Compliance Period. 

        "Reg S Temporary Global Note" means one or more temporary Global Notes bearing the Private Placement Legend and the Reg S
Temporary Global Note Legend, issued in an aggregate amount of denominations equal in total to the outstanding principal amount of the Notes initially sold in reliance on Rule 903 of
Regulation S. 

        "Reg S Temporary Global Note Legend" means the legend set forth in Section 2.6(g)(iii) hereof, which is required to be
placed on all Reg S Temporary Global Notes issued under this Indenture. 

        "Regulation S" means Regulation S promulgated under the Securities Act, as it may be amended from time to time, and any
successor provision thereto. 

        "Regulation S Global Note" means a Reg S Temporary Global Note or a Reg S Permanent Global Note, as the case may be. 

        "Related Business"means the business conducted (or proposed to be conducted) by the Company, the Parent and their Subsidiaries as of the
Issue Date and any and all businesses that in the good faith judgment of the Board of Directors of the Parent are materially related to such businesses. 

        "Restricted Definitive Note" means one or more Definitive Notes bearing the Private Placement Legend, issued under this Indenture. 

        "Restricted Global Note" means one or more Global Notes bearing the Private Placement Legend, issued under this Indenture. 

        "Restricted Investment" means, in one or a series of related transactions, any Investment, other than other Permitted Investments. 

        "Restricted Payment" means, with respect to any Person: 

        (1)  the
declaration or payment of any dividend or other distribution in respect of Equity Interests of such Person, 

        (2)  any
payment (except to the extent made with Qualified Capital Stock) on account of the purchase, redemption or other acquisition or retirement for value of Equity
Interests of such Person, 

        (3)  other
than with the proceeds from the substantially concurrent sale of or in exchange for Refinancing Indebtedness any purchase, redemption, or other acquisition or
retirement for value of, any payment in respect of any amendment of the terms of or any defeasance of, any Subordinated Indebtedness, directly or indirectly, by such Person or a parent or Subsidiary
of such Person prior to the scheduled maturity, any scheduled repayment of principal, or scheduled sinking fund payment, as the case may be, of such Indebtedness, and 

        (4)  any
Restricted Investment by such Person; 

provided, that the term "Restricted Payment" does not include (a) any dividend, distribution or other payment on or with respect to Equity
Interests of the Company or the Parent to the extent payable solely in shares of Qualified Capital Stock of such issuer or (b) any dividend, distribution or other payment to the Company or the
Parent, or to any of the Guarantors, by the Company or the Parent or 

16

 

any of their Subsidiaries and any Investment in any Subsidiary of the Company or the Parent by the Company or the Parent. 

        "Rule 144" means Rule 144 promulgated under the Securities Act, as it may be amended from time to time, and any successor
provision thereto. 

        "Rule 144A" means Rule 144A promulgated under the Securities Act, as it may be amended from time to time, and any successor
provision thereto. 

        "SEC" means the United States Securities and Exchange Commission, or any successor agency. 

        "Secured Indebtedness"means any Indebtedness or Disqualified Capital Stock secured by a Lien upon property of either of the Company or the
Parent or any of their respective Subsidiaries. 

        "Securities Act" means the Securities Act of 1933, as amended, and the rules and regulations of the SEC thereunder. 

        "Series A Notes" means the 9.75% Series A Senior Notes due 2012 issued on the Issue Date. 

        "Series B Notes" means the 9.75% Series B Senior Notes due 2012 issued pursuant to the Exchange Offer. 

        "Shelf Registration Statement" shall have the meaning set forth in the Registration Rights Agreement. 

        "Significant Subsidiary" shall have the meaning provided under Regulation S-X of the Securities Act as in effect on the
Issue Date. 

        "Special Record Date" means, for payment of any Defaulted Interest, a date fixed by the Paying Agent pursuant to Section 2.12
hereof. 

        "Stated Maturity" when used with respect to any Note, means March 1, 2012. 

        "Subordinated Indebtedness" means Indebtedness of the Company or a Guarantor that is subordinated in right of payment by its terms or the
terms of any document or instrument or instrument relating thereto ("contractually") to the Notes or such Guarantee, as applicable. 

        "Subsidiary" with respect to any Person, means (1) a corporation a majority of whose Equity Interests with voting power, under
ordinary circumstances, to elect directors is at the time, directly or indirectly, owned by such Person, by such Person and one or more Subsidiaries of such Person or by one or more Subsidiaries of
such Person, and (2) any other Person (other than a corporation) in which such Person, one or more Subsidiaries of such Person, or such Person and one or more Subsidiaries of such Person,
directly or indirectly, at the date of determination thereof has majority ownership interest, or (3) a partnership in which such Person or a Subsidiary of such Person is, at the time, a general
partner and in which such Person, directly or indirectly, at the date of determination thereof has a majority ownership interest. Notwithstanding the foregoing, (i) except as expressly set
forth in this Indenture, the Company shall not be considered a Subsidiary of the Parent for any purpose under this Indenture (including the definitions used therein), but each direct and indirect
Subsidiary of the Company shall
be considered a Subsidiary of the Parent, and (ii) an Unrestricted Subsidiary shall not be a Subsidiary of the Company or the Parent or of any of their Subsidiaries for any purpose under this
Indenture (including the definitions used therein). Unless the context requires otherwise, Subsidiary means each direct and indirect Subsidiary of the Company and the Parent. 

        "Subsidiary Indebtedness"means, without duplication, all Unsecured Indebtedness (including guarantees other than guarantees by
Subsidiaries of Secured Indebtedness) of which a Subsidiary of the Company or the Parent other than a Guarantor is the obligor. A release of the Guarantee of a Guarantor which remains a Subsidiary of
either of the Company or the Parent shall be deemed to be an incurrence of Subsidiary Indebtedness in an amount equal to the proportionate interest of the Company or the Parent in the Unsecured
Indebtedness of such Guarantor. 

17

 

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

        "Total Assets" means, at the date of determination, the sum of: 

        (1)  Undepreciated
Real Estate Assets, and 

        (2)  all
other assets of the Parent, the Company and their respective Subsidiaries on a consolidated basis determined in conformity with GAAP (but excluding intangibles and
accounts receivable). 

        "Transaction Costs" means (i) the payment of a yield maintenance premium of up to $6.5 million in connection with the
redemption or repurchase of the RFS Financing Partnership, L.P. Commercial Mortgage Bonds, Series 1996-1; (ii) up to $3.2 million of termination fees in
connection with the termination of Interest Swap and Hedging Obligations in connection with the termination of interest swap agreements in connection with the issuance of the Notes, each as described
in the Offering Circular. 

        "Transfer Restricted Notes" means Global Notes and Definitive Notes that bear or are required to bear the Private Placement Legend, issued
under this Indenture. 

        "Treasury Rate" means, with respect to any redemption date, the rate per annum equal to the semiannual yield to maturity of the Comparable
Treasury Issue, assuming a price for the Comparable
Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for such redemption date. 

        "Trustee" means the party named as such above until a successor replaces it in accordance with the applicable provisions of this Indenture
and thereafter means such successor serving hereunder. 

        "Undepreciated Real Estate Assets" means, as of any date, the cost (being the original cost to the Company, the Parent or the applicable
Subsidiary plus capital improvements) of real estate assets of the Parent and its Subsidiaries on such date, before depreciation and amortization of such real estate assets, determined on a
consolidated basis in conformity with GAAP. 

        "Units" means limited partnership units of the Company that by their terms are redeemable at the option of the holder thereof and that, if
so redeemed, at the election of the Company are redeemable for cash or common stock of the Parent. 

        "Unrestricted Definitive Note" means one or more Definitive Notes that do not bear and are not required to bear the Private Placement
Legend, issued under this Indenture. 

        "Unrestricted Global Note" means one or more permanent Global Notes that do not bear and are not required to bear the Private Placement
Legend, issued under this Indenture. 

        "Unrestricted Subsidiary" means any subsidiary of either of the Company or the Parent that does not own any Capital Stock of, or own or
hold any Lien on any property of, the Company or the Parent or any other Subsidiary of the Company or the Parent and that, at the time of determination, shall be an Unrestricted Subsidiary (as
designated by the Board of Directors of the Company); provided, that such Subsidiary at the time of such designation (a) is not party to any
agreement, contract, arrangement or understanding with the Company, the Parent or any Subsidiary of the Company or the Parent unless the terms of any such agreement, contract, arrangement or
understanding are no less favorable to the Company, the Parent or such Subsidiary than those that might be obtained at the time from Persons who are not Affiliates of the Company or the Parent;
(b) is a Person with respect to which neither of the Company, the Parent nor any of their Subsidiaries has any direct or indirect obligation (x) to subscribe for additional Equity
Interests or (y) to maintain or preserve such Person's financial condition or to cause such Person to achieve any specified levels of operating results; and (c) has not guaranteed or
otherwise directly or indirectly provided credit support for any Indebtedness of either of the Company, the Parent or any of their Subsidiaries. 

18

 

The
Board of Directors of the Company may designate any Unrestricted Subsidiary to be a Subsidiary, provided, that (1) no Default or Event of
Default is existing or shall occur as a consequence thereof and (2) immediately after giving effect to such designation, on a pro forma basis,
the Company could incur at least $1.00 of Indebtedness pursuant to clauses (a)(1) and (a)(2) of Section 4.7 hereof. Each such designation shall be evidenced by filing with the Trustee a
certified copy of the resolution giving effect to such designation and an Officers' Certificate certifying that such designation complied with the foregoing conditions. 

        "Unsecured Indebtedness" means any Indebtedness or Disqualified Capital Stock of the Company or the Parent or any of their Subsidiaries
that is not Secured Indebtedness. 

        "U.S. Government Obligations" means direct non-callable obligations of, or noncallable obligations guaranteed by, the United
States of America for the payment of which obligation or guarantee the full faith and credit of the United States of America is pledged. 

        "U.S. Person" means a U.S. person as defined in Rule 902(o) under the Securities Act. 

        "Voting Equity Interests" means Equity Interests which at the time are entitled to vote in the election of, as applicable, directors,
members or partners generally. 

        "Wholly Owned Subsidiary" means a Subsidiary all the Equity Interests of which (other than directors' qualifying shares) are owned by
either or both of the Company or the Parent or one or more Wholly Owned Subsidiaries of either or both of the Company and the Parent or a combination thereof. 

SECTION 1.2    OTHER DEFINITIONS  

	Term
 
	 	Defined

in Section

	"Acceleration Notice"	 	6.2
	"Affiliate Transaction"	 	4.12
	"Asset Sale"	 	4.13
	"Asset Sale Offer"	 	4.13
	"Asset Sale Offer Amount"	 	4.13
	"Asset Sale Offer Period"	 	4.13
	"Asset Sale Offer Price"	 	4.13
	"Authentication Order"	 	2.2
	"Benefitted Party"	 	10.1
	"Change of Control Offer"	 	4.14
	"Change of Control Offer Period"	 	4.14
	"Change of Control Purchase Date"	 	4.14
	"Change of Control Purchase Price"	 	4.14
	"Code"	 	4.9
	"Covenant Defeasance"	 	8.3
	"Debt Incurrence Ratio"	 	4.7
	"Defaulted Interest"	 	2.12
	"DTC"	 	2.3
	"Event of Default"	 	6.1
	"Excess Proceeds"	 	4.13
	"Future Guarantors"	 	10.7
	"Guaranteed Indebtedness"	 	4.15
	"Guarantee Obligations"	 	10.1
	"incur" or "incurrence"	 	4.7
	"Incurrence Date"	 	4.7
	"Investment Company Act"	 	4.18
	"Legal Defeasance"	 	8.2
	"Paying Agent"	 	2.3
	"Registrar"	 	2.3

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SECTION 1.3    INCORPORATION BY REFERENCE OF TRUST INDENTURE ACT  

        Whenever this Indenture refers to a provision of the TIA, such 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 Securities and Exchange Commission; 

        "obligor" on the Notes means the Company, each Guarantor and any successor obligor upon the Notes. 

        All
other terms used in this Indenture that are defined by the TIA, defined by TIA reference to another statute or defined by SEC rule under the TIA have the meanings so assigned to
them. 

SECTION 1.4    RULES OF CONSTRUCTION  

        Unless the context otherwise requires: 

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

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

        (3)  "or"
is not exclusive; 

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

        (5)  provisions
apply to successive events and transactions; 

        (6)  "herein,"
"hereof" and other words of similar import refer to this Indenture as a whole and not to any particular Article, Section or other subdivision; and 

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

  
 

    ARTICLE II
  THE NOTES    
  

SECTION 2.1    FORM AND DATING  

        (a)    General.    The Notes and the Trustee's certificate of authentication shall be substantially in the form of
Exhibit A hereto. The Notes may have notations, legends or endorsements required by law, stock exchange rule or usage. Each Note shall be dated the date of its authentication. The Notes shall
be in denominations of $1,000 and integral multiples thereof. 

        The
terms and provisions contained in the Notes shall constitute, and are hereby expressly made, a part of this Indenture and the Company, the Guarantors and the Trustee, by their
execution and delivery of this Indenture, expressly agree to such terms and provisions and to be bound thereby. However, to the extent any provision of any Note conflicts with the express provisions
of this Indenture, the provisions of this Indenture shall govern and be controlling. 

20

  

        (b)    Global Notes.    Notes issued in global form shall be substantially in the form of Exhibit A attached
hereto (including the Global Note Legend thereon and the "Schedule of Exchanges of Interests in the Global Note" attached thereto). Notes issued in definitive form shall be substantially in the form
of Exhibit A attached hereto (but without the Global Note Legend thereon and without the "Schedule of Exchanges of Interests in the Global Note" attached thereto). Each Global Note shall
represent such of the outstanding Notes as shall be specified therein and each shall provide that it shall represent the aggregate principal amount of outstanding Notes from time to time endorsed
thereon and that the aggregate principal amount of outstanding Notes represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions. Any
endorsement of a Global Note to reflect the amount of any increase or decrease in the aggregate principal amount of outstanding Notes represented thereby shall be made by the Trustee or the Notes
Custodian, at the direction of the Trustee, in accordance with instructions given by the Holder thereof as required by Section 2.6 hereof. 

        (c)    Euroclear and Clearstream Procedures Applicable.    The provisions of the "Operating Procedures of the
Euroclear System" and "Terms and Conditions Governing Use of Euroclear" and the "General Terms and Conditions of Clearstream Banking Luxembourg" and "Customer Handbook" of Clearstream in effect at the
relevant time shall be applicable to transfers of beneficial interests in the Regulation S Global Notes that are held by Participants through Euroclear or Clearstream. 

SECTION 2.2    EXECUTION AND AUTHENTICATION  

        Two Officers shall sign the Notes for the Company by manual or facsimile signature. In the case of Definitive Notes, such signatures may be imprinted or otherwise
reproduced on such Notes. If an Officer whose signature is on a Note no longer holds that office at the time a Note is authenticated, the Note shall nevertheless be valid. A Note shall not be valid
until authenticated by the manual signature of the Trustee. The signature shall be conclusive evidence that the Note has been authenticated under this Indenture. The Trustee shall, upon a written
order of the Company signed by an Officer (an "Authentication Order"), authenticate Notes for issuance up to the aggregate principal amount stated in such Authentication Order;  provided that Notes
authenticated for issuance on the Issue Date shall not exceed $125,000,000 in aggregate principal amount. The Trustee may appoint an
authenticating agent acceptable to the Company to authenticate Notes. An authenticating agent may authenticate Notes whenever the Trustee may do so. Each reference in this Indenture to authentication
by the Trustee includes authentication by such agent. An authenticating agent has the same rights as an Agent to deal with Holders or an Affiliate of the Company. 

SECTION 2.3    REGISTRAR, PAYING AGENT AND DEPOSITARY  

        The Company shall maintain an office or agency in the Borough of Manhattan, The City of New York, where Notes may be presented for registration of transfer or for
exchange ("Registrar") and an office or agency where Notes may be presented for payment ("Paying Agent"). The Registrar shall keep a register of the Notes and of their transfer and exchange. The
Company may appoint one or more co-registrars and one or more additional paying agents. The term "Registrar" includes any co-registrar and the term "Paying Agent" includes any
additional paying agent. The Company may change any Paying Agent or Registrar without notice to any Holder. The Company shall notify the Trustee in writing of the name and address of any Agent not a
party to this Indenture. If the Company fails to appoint or maintain another entity as Registrar or Paying Agent, the Trustee shall act as such. The Company or any of its Subsidiaries may act as
Paying Agent or Registrar. The Company initially appoints The Depository Trust Company ("DTC") to act as Depositary with respect to the Global Notes. The Company initially appoints the Trustee to act
as the Registrar and Paying Agent and to act as Notes Custodian with respect to the Global Notes. 

21

 

SECTION 2.4    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 shall hold in trust for the benefit of Holders or the
Trustee all money held by the Paying Agent for the payment of principal, premium or Liquidated Damages, if any, or interest on the Notes, and shall 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) shall have no further liability for the money. If the Company or a
Subsidiary acts as Paying Agent, it shall segregate and hold in a separate trust fund for the benefit of the Holders all money held by it as Paying Agent. Upon any bankruptcy or reorganization
proceedings relating to the Company, the Trustee shall serve as Paying Agent for the Notes. 

SECTION 2.5    HOLDER 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 all Holders and
shall otherwise comply with TIA § 312(a). If the Trustee is not the Registrar, the Company shall furnish, or shall cause the Registrar (if other than the Company) to furnish, to the
Trustee at least seven Business Days before each Interest Payment Date and at such other times as the Trustee may request in writing, a list in such form and as of such date as the Trustee may
reasonably require of the names and addresses of the Holders of Notes and the Company shall otherwise comply with TIA § 312(a). 

SECTION 2.6    TRANSFER AND EXCHANGE  

        (a)    Transfer and Exchange of Global Notes.    A Global Note may not be transferred as a whole except by the
Depositary to a nominee of the Depositary, by a nominee of the Depositary to the Depositary or to another nominee of the Depositary, or by the Depositary or any such nominee to a successor Depositary
or a nominee of such successor Depositary. All Global Notes shall be exchanged by the Company for Definitive Notes if (i) the Company delivers to the Trustee notice from the Depositary that
(x) the Depositary is unwilling or unable to continue to act as Depositary for the Global Notes and the Company thereupon fails to appoint a successor Depositary within 90 days or
(y) the Depositary is no longer a clearing agency registered under the Exchange Act, (ii) the Company in its sole discretion determines that the Global Notes (in whole but not in part)
should be exchanged for Definitive Notes and delivers a written notice to such effect to the Trustee or (iii) upon request of the Trustee or Holders of a majority of the aggregate principal
amount of outstanding Notes if there shall have occurred and be continuing a Default or Event of Default with respect to the Notes; provided that in no
event shall the Reg S Temporary Global Note be exchanged by the Company for Definitive Notes prior to (x) the expiration of the Distribution Compliance Period and (y) the receipt by the
Registrar of any certificate identified by the Company and its counsel to be required pursuant to Rule 903 or Rule 904 under the Securities Act. Upon the occurrence of any of the
preceding events in (i), (ii) or (iii) above, Definitive Notes shall be issued in such names as the Depositary shall instruct the Trustee. Global Notes also may be exchanged or replaced,
in whole or in part, as otherwise provided in this Section 2.6 or as provided in Sections 2.7 and 2.10 hereof. Every Note authenticated and delivered in exchange for, or in lieu of, a Global
Note or any portion thereof, pursuant to this Section 2.6 or Section 2.7 or 2.10 hereof, shall be authenticated and delivered in the form of, and shall be, a Global Note. A Global Note
may not be exchanged for another Note other than as provided in this Section 2.6(a), however, beneficial interests in a Global Note may be transferred and exchanged as provided in
Section 2.6(b), (c) or (f) hereof. 

        (b)    Transfer and Exchange of Beneficial Interests in the Global Notes.    The transfer and exchange of beneficial
interests in the Global Notes shall be effected through the Depositary, in accordance with 

22

 

the provisions of this Indenture and the Applicable Procedures. Beneficial interests in the Restricted Global Notes shall be subject to restrictions on transfer comparable to those set forth herein
to the extent required by the Securities Act. Transfers of beneficial interests in the Global Notes also shall require compliance with either subparagraph (i) or (ii) below, as
applicable, as well as one or more of the other following subparagraphs, as applicable: 

        (i)    Transfer of Beneficial Interests in the Same Global Note.    Beneficial interests in any Restricted Global Note
may be transferred to Persons who take delivery thereof in the form of a beneficial interest in the same Restricted Global Note in accordance with the transfer restrictions set forth in the Private
Placement Legend; provided, however, that prior to the expiration of the Distribution Compliance Period, transfers of beneficial interests in the Reg S
Temporary Global Note may not be made to a U.S. Person or for the account or benefit of a U.S. Person (other than an Initial Purchaser). Beneficial
interests in any Unrestricted Global Note may be transferred to Persons who take delivery thereof in the form of a beneficial interest in an Unrestricted Global Note. No written orders or instructions
shall be required to be delivered to the Registrar to effect the transfers described in this Section 2.6(b)(i). 

        (ii)    All Other Transfers and Exchanges of Beneficial Interests in Global Notes.    In connection with all transfers
and exchanges of beneficial interests that are not subject to Section 2.6(b)(i) above, the transferor of such beneficial interest must deliver to the Registrar either (A) (1) an
order from a Participant or an Indirect Participant given to the Depositary in accordance with the Applicable Procedures directing the Depositary to credit or cause to be credited a beneficial
interest in another Global Note in an amount equal to the beneficial interest to be transferred or exchanged and (2) instructions given in accordance with the Applicable Procedures containing
information regarding the Participant account to be credited with such increase or (B) (1) an order from a Participant or an Indirect Participant given to the Depositary in accordance with the
Applicable Procedures directing the Depositary to cause to be issued a Definitive Note in an amount equal to the beneficial interest to be transferred or exchanged and (2) instructions given by
the Depositary to the Registrar containing information regarding the Person in whose name such Definitive Note shall be registered to effect the transfer or exchange referred to in (B)(1) above;  provided, that in no event shall Definitive Notes be issued upon the transfer or exchange of beneficial interests in the Reg S Temporary Global Note
prior to (x) the expiration of the Distribution Compliance Period and (y) the receipt by the Registrar of any certificates identified by the Company or its counsel to be required
pursuant to Rule 903 and Rule 904 under the Securities Act. Upon consummation of an Exchange Offer by the Company in accordance with Section 2.6(f) hereof, the requirements of
this Section 2.6(b)(ii) shall be deemed to have been satisfied upon receipt by the Registrar of the instructions contained in the Letter of Transmittal delivered by the Holder of such
beneficial interests in the Restricted Global Notes. Upon satisfaction of all of the requirements for transfer or exchange of beneficial interests in Global Notes contained in this Indenture and the
Notes or otherwise applicable under the Securities Act, the Trustee shall adjust the principal amount of the relevant Global Note(s) pursuant to Section 2.6(h) hereof. 

        (iii)    Transfer of Beneficial Interests to Another Restricted Global Note.    A beneficial interest in any
Restricted Global Note may be transferred to a Person who takes delivery thereof in the form of a beneficial interest in another Restricted Global Note if the transfer complies with the requirements
of Section 2.6(b)(ii) above and the Registrar receives the following: 

        (A)  if
the transferee shall take delivery in the form of a beneficial interest in the 144A Global Note, then the transferor must deliver a certificate in the form of
Exhibit B hereto, including the certifications in item (1) thereof; and 

23

 

        (B)  if
the transferee shall take delivery in the form of a beneficial interest in the Reg S Temporary Global Note or the Reg S Permanent Global Note, then the transferor
must deliver a certificate in the form of Exhibit B hereto, including the certifications in item (2) thereof. 

        (iv)    Transfer and Exchange of Beneficial Interests in a Restricted Global Note for Beneficial Interests in the Unrestricted Global
Note.    A beneficial interest in any Restricted Global Note may be exchanged by any holder thereof for a beneficial interest in an Unrestricted Global Note or
transferred to a Person who takes delivery thereof in the form of a beneficial interest in an Unrestricted Global Note if the exchange or transfer complies with the requirements of
Section 2.6(b)(ii) above and: 

        (A)  such
exchange or transfer is effected pursuant to the Exchange Offer in accordance with the Registration Rights Agreement and Section 2.6(f) hereof, and the
holder of the beneficial interest to be transferred, in the case of an exchange, or the transferee, in the case of a transfer, certifies in the applicable Letter of Transmittal that it is not
(1) a Broker-Dealer, (2) a Person participating in the distribution of the Exchange Notes or (3) a Person who is an affiliate (as defined in Rule 144) of the Company; 

        (B)  such
transfer is effected pursuant to the Shelf Registration Statement in accordance with the Registration Rights Agreement; 

        (C)  such
transfer is effected by a Broker-Dealer pursuant to the Exchange Offer Registration Statement in accordance with the Registration Rights Agreement; or 

        (D)  the
Registrar receives the following: (1) if the holder of such beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for
a beneficial interest in an Unrestricted Global Note, a certificate from such holder in the form of Exhibit C hereto, including the certifications in item (1)(a) thereof; or (2) if the
holder of such beneficial interest in a Restricted Global Note proposes to transfer such beneficial interest to a Person who shall take delivery thereof in the form of a beneficial interest in an
Unrestricted Global Note, a certificate from such holder in the form of Exhibit B hereto, including the certifications in item (4) thereof; and, in each such case set forth in this
subparagraph (D), an Opinion of Counsel in form, and from legal counsel, reasonably acceptable to the Registrar and the Company to the effect that such exchange or transfer is in compliance with the
Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the Securities Act. 

        If
any such transfer is effected pursuant to subparagraph (B) or (D) above at a time when an Unrestricted Global Note has not yet been issued, the Company shall issue and,
upon receipt of an Authentication Order in accordance with Section 2.2 hereof, the Trustee shall authenticate one or more Unrestricted Global Notes in an aggregate principal amount equal to the
aggregate principal amount of beneficial interests transferred pursuant to subparagraph (B) or (D) above. Beneficial interests in an Unrestricted Global Note cannot be exchanged for, or
transferred to Persons who take delivery thereof in the form of, a beneficial interest in a Restricted Global Note. 

        (c)    Transfer or Exchange of Beneficial Interests for Definitive Notes.    

        (i)    Beneficial Interests in Restricted Global Notes to Restricted Definitive Notes.    If any holder of a
beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for a Restricted Definitive Note or to transfer such beneficial interest to a Person who takes 

24

 

delivery thereof in the form of a Restricted Definitive Note, then, upon receipt by the Registrar of the following documentation: 

        (A)  if
the holder of such beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for a Restricted Definitive Note, a certificate from
such holder in the form of Exhibit C hereto, including the certifications in item (2)(a) thereof; 

        (B)  if
such beneficial interest is being transferred to a QIB in accordance with Rule 144A, a certificate to the effect set forth in Exhibit B hereto,
including the certifications in item (1) thereof; 

        (C)  if
such beneficial interest is being transferred to a Non-U.S. Person in an offshore transaction in accordance with Rule 903 or Rule 904 under
the Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (2) thereof; 

        (D)  if
such beneficial interest is being transferred pursuant to an exemption from the registration requirements of the Securities Act in accordance with Rule 144, a
certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(d) thereof; 

        (E)  if
such beneficial interest is being transferred to an Institutional Accredited Investor in reliance on an exemption from the registration requirements of the Securities
Act other than those listed in subparagraphs (B) through (D) above, a certificate to the effect set forth in Exhibit B hereto, including the certifications, certificates and
Opinion of Counsel required by item (3) thereof, if applicable; 

        (F)  if
such beneficial interest is being transferred to the Company or any of its Subsidiaries, a certificate to the effect set forth in Exhibit B hereto, including
the certifications in item (3)(b) thereof; or 

        (G)  if
such beneficial interest is being transferred pursuant to an effective registration statement under the Securities Act, a certificate to the effect set forth in
Exhibit B hereto, including the certifications in item (3)(c) thereof, 

the
Trustee shall cause the aggregate principal amount of the applicable Restricted Global Note to be reduced accordingly pursuant to Section 2.6(h) hereof, and the Company shall execute and,
upon receipt of an Authentication Order pursuant to Section 2.2 hereof, the Trustee shall authenticate and deliver to the Person designated in the instructions a Restricted Definitive Note in
the appropriate principal amount. Any Restricted Definitive Note issued in exchange for a beneficial interest in a Restricted Global Note pursuant to this Section 2.6(c) shall be registered in
such name or names and in such authorized denomination or denominations as the holder of such beneficial interest shall instruct the Registrar through instructions from the Depositary and the
Participant or Indirect Participant. The Trustee shall deliver such Restricted Definitive Notes to the Persons in whose names such Notes are so registered. Any Restricted Definitive Note issued in
exchange for a beneficial interest in a Restricted Global Note pursuant to this Section 2.6(c)(i) shall bear the Private Placement Legend and shall be subject to all restrictions on
transfer contained therein. 

        (ii)    Beneficial Interests in Restricted Global Notes to Unrestricted Definitive Notes.    A holder of a beneficial
interest in a Restricted Global Note may exchange such beneficial interest for an Unrestricted Definitive Note or may transfer such beneficial interest to a Person who takes delivery thereof in the
form of an Unrestricted Definitive Note only if: 

        (A)  such
exchange or transfer is effected pursuant to the Exchange Offer in accordance with the Registration Rights Agreement and Section 2.6(f) hereof, and the
holder of such beneficial interest, in the case of an exchange, or the transferee, in the case of a transfer, certifies in the applicable Letter of Transmittal that it is not (1) a
Broker-Dealer, (2) a Person 

25

 

participating in the distribution of the Exchange Notes or (3) a Person who is an affiliate (as defined in Rule 144) of the Company; 

        (B)  such
transfer is effected pursuant to the Shelf Registration Statement in accordance with the Registration Rights Agreement; 

        (C)  such
transfer is effected by a Broker-Dealer pursuant to the Exchange Offer Registration Statement in accordance with the Registration Rights Agreement; or 

        (D)  the
Registrar receives the following: (1) if the holder of such beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for
a Definitive Note that does not bear the Private Placement Legend, a certificate from such holder in the form of Exhibit C hereto, including the certifications in item (1)(b) thereof; or
(2) if the holder of such beneficial interest in a Restricted Global Note proposes to transfer such beneficial interest to a Person who shall take delivery thereof in the form of a Definitive
Note that does not bear the Private Placement Legend, a certificate from such holder in the form of Exhibit B hereto, including the certifications in item (4) thereof; and, in each such
case set forth in this subparagraph (D), an Opinion of Counsel in form, and from legal counsel, reasonably acceptable to the Registrar and the Company to the effect that such exchange or transfer is
in compliance with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the
Securities Act. 

        (iii)    Beneficial Interests in Unrestricted Global Notes to Unrestricted Definitive Notes.    If any holder of a
beneficial interest in an Unrestricted Global Note proposes to exchange such beneficial interest for an Unrestricted Definitive Note or to transfer such beneficial interest to a Person who takes
delivery thereof in the form of an Unrestricted Definitive Note, then, upon satisfaction of the conditions set forth in Section 2.6(b)(ii) hereof, the Trustee shall cause the aggregate
principal amount of the applicable Unrestricted Global Note to be reduced accordingly pursuant to Section 2.6(h) hereof, and the Company shall execute and, upon receipt of an Authentication
Order pursuant to Section 2.2 hereof, the Trustee shall authenticate and deliver to the Person designated in the instructions an Unrestricted Definitive Note in the appropriate principal
amount. Any Unrestricted Definitive Note issued in exchange for a beneficial interest pursuant to this Section 2.6(c)(iii) shall be registered in such name or names and in such
authorized denomination or denominations as the holder of such beneficial interest shall instruct the Registrar through instructions from the Depositary and the Participant or Indirect Participant.
The Trustee shall deliver such Unrestricted Definitive Notes to the Persons in whose names such Notes are so registered. Any Unrestricted Definitive Note issued in exchange for a beneficial interest
pursuant to this Section 2.6(c)(iii) shall not bear the Private Placement Legend. 

        (iv)    Transfer or Exchange of Reg S Temporary Global Notes.    Notwithstanding the other provisions of this
Section 2.6, a beneficial interest in the Reg S Temporary Global Note may not be (A) exchanged for a Definitive Note prior to (x) the expiration of the Distribution Compliance
Period (unless such exchange is effected by the Company, does not require an investment decision on the part of the holder thereof and does not violate the provisions of Regulation S) and
(y) the receipt by the Registrar of any certificates identified by the Company or its counsel to be required pursuant to Rule 903(c)(3)(B) under the Securities Act or
(B) transferred to a Person who takes delivery thereof in the form of a Definitive Note prior to the events set forth in clause (A) above or unless the transfer is pursuant to an
exemption from the registration requirements of the Securities Act other than Rule 903 or Rule 904. 

        (d)    Transfer and Exchange of Definitive Notes for Beneficial Interests.    

        (i)    Restricted Definitive Notes to Beneficial Interests in Restricted Global Notes.    If any Holder of a
Restricted Definitive Note proposes to exchange such Note for a beneficial interest in a 

26

 

Restricted Global Note or to transfer such Restricted Definitive Notes to a Person who takes delivery thereof in the form of a beneficial interest in a Restricted Global Note, then, upon receipt by
the Registrar of the following documentation: 

        (A)  if
the Holder of such Restricted Definitive Note proposes to exchange such Note for a beneficial interest in a Restricted Global Note, a certificate from such Holder in
the form of Exhibit C hereto, including the certifications in item (2)(b) thereof; 

        (B)  if
such Restricted Definitive Note is being transferred to a QIB in accordance with Rule 144A, a certificate to the effect set forth in Exhibit B hereto,
including the certifications in item (1) thereof; or 

        (C)  if
such Restricted Definitive Note is being transferred to a Non-U.S. Person in an offshore transaction in accordance with Rule 903 or Rule 904
under the Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (2) thereof, 

the
Trustee shall cancel the Restricted Definitive Note, increase or cause to be increased the aggregate principal amount of, in the case of clause (A) above, the appropriate Restricted Global
Note, in the case of clause (B) above, the 144A Global Note, and in the case of clause (C) above, the Regulation S Global Note. 

        (ii)    Restricted Definitive Notes to Beneficial Interests in Unrestricted Global Notes.    A Holder of a Restricted
Definitive Note may exchange such Note for a beneficial interest in an Unrestricted Global Note or transfer such Restricted Definitive Note to a Person who takes delivery thereof in the form of a
beneficial interest in an Unrestricted Global Note only if: 

        (A)  such
exchange or transfer is effected pursuant to the Exchange Offer in accordance with the Registration Rights Agreement and Section 2.6(f) hereof, and the
Holder, in the case of an exchange, or the transferee, in the case of a transfer, certifies in the applicable Letter of Transmittal that it is not (1) a Broker-Dealer, (2) a Person
participating in the distribution of the Exchange Notes or (3) a Person who is an affiliate (as defined in Rule 144) of the Company; 

        (B)  such
transfer is effected pursuant to the Shelf Registration Statement in accordance with the Registration Rights Agreement; 

        (C)  such
transfer is effected by a Broker-Dealer pursuant to the Exchange Offer Registration Statement in accordance with the Registration Rights Agreement; or 

        (D)  the
Registrar receives the following: (1) if the Holder of such Restricted Definitive Notes proposes to exchange such Notes for a beneficial interest in the
Unrestricted Global Note, a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (1)(c) thereof; or (2) if the Holder of such Restricted
Definitive Notes proposes to transfer such Notes to a Person who shall take delivery thereof in the form of a beneficial interest in the Unrestricted Global Note, a certificate from such Holder in the
form of Exhibit B hereto, including the certifications in item (4) thereof; and, in each such case set forth in this subparagraph (D), an Opinion of Counsel in form, and from legal
counsel, reasonably acceptable to the Registrar and the Company to the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions on transfer contained
herein
and in the Private Placement Legend are no longer required in order to maintain compliance with the Securities Act. Upon satisfaction of the conditions of any of the subparagraphs in this
Section 2.6(d)(ii), the Trustee shall cancel the Restricted Definitive Notes so transferred or exchanged and increase or cause to be increased the aggregate principal amount of the Unrestricted
Global Note. 

27

  

        (iii)    Unrestricted Definitive Notes to Beneficial Interests in Unrestricted Global Notes.    A Holder of an
Unrestricted Definitive Note may exchange such Note for a beneficial interest in an Unrestricted Global Note or transfer such Definitive Notes to a Person who takes delivery thereof in the form of a
beneficial interest in an Unrestricted Global Note at any time. Upon receipt of a request for such an exchange or transfer, the Trustee shall cancel the applicable Unrestricted Definitive Note and
increase or cause to be increased the aggregate principal amount of one of the Unrestricted Global Notes. 

        (iv)    Transfer or Exchange of Unrestricted Definitive Notes to Beneficial Interest in Restricted Notes
Prohibited.    An Unrestricted Definitive Note cannot be exchanged for, or transferred to Persons who take delivery thereof in the form of, beneficial interests in a
Restricted Global Note. 

        (v)    Issuance of Unrestricted Global Notes.    If any such exchange or transfer from a Definitive Note to a
beneficial interest is effected pursuant to subparagraphs (ii)(B), (ii)(D) or (iii) of this Section 2.6(d) at a time when an Unrestricted Global Note has not yet been issued, the Company
shall issue and, upon receipt of an Authentication Order in accordance with Section 2.2 hereof, the Trustee shall authenticate one or more Unrestricted Global Notes in an aggregate principal
amount equal to the principal amount of Definitive Notes so transferred. 

        (e)    Transfer and Exchange of Definitive Notes for Definitive Notes.     Upon request by a Holder of Definitive
Notes and such Holder's compliance with the provisions of this Section 2.6(e), the Registrar shall register the transfer or exchange of Definitive Notes. Prior to such registration of transfer
or exchange, the requesting Holder shall present or surrender to the Registrar the Definitive Notes duly endorsed or accompanied by a written instruction of transfer in form satisfactory to the
Registrar duly executed by such Holder or by its attorney, duly authorized in writing. In addition, the requesting Holder shall provide any additional certifications, documents and information, as
applicable, required pursuant to the following provisions of this Section 2.6(e). 

        (i)    Restricted Definitive Notes to Restricted Definitive Notes.    Any Restricted Definitive Note may be
transferred to and registered in the name of Persons who take delivery thereof in the form of a Restricted Definitive Note if the Registrar receives the following: 

        (A)  if
the transfer shall be made pursuant to Rule 144A, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the
certifications in item (1) thereof; 

        (B)  if
the transfer shall be made pursuant to Rule 903 or Rule 904 under the Securities Act, then the transferor must deliver a certificate in the form of
Exhibit B hereto, including the certifications in item (2) thereof; and 

        (C)  if
the transfer shall be made pursuant to any other exemption from the registration requirements of the Securities Act, then the transferor must deliver a certificate in
the form of Exhibit B hereto, including the certifications, certificates and Opinion of Counsel required by item (3) thereof, if applicable. 

        (ii)    Restricted Definitive Notes to Unrestricted Definitive Notes.    Any Restricted Definitive Note may be
exchanged by the Holder thereof for an Unrestricted Definitive Note or transferred to a Person or Persons who take delivery thereof in the form of an Unrestricted Definitive Note if: 

        (A)  such
exchange or transfer is effected pursuant to the Exchange Offer in accordance with the Registration Rights Agreement and Section 2.6(f) hereof, and the
Holder, in the case of an exchange, or the transferee, in the case of a transfer, certifies in the applicable Letter of Transmittal that it is not (1) a Broker-Dealer, (2) a Person
participating in the distribution of the Exchange Notes or (3) a Person who is an affiliate (as defined in Rule 144) of the Company; 

28

 

        (B)  any
such transfer is effected pursuant to the Shelf Registration Statement in accordance with the Registration Rights Agreement; 

        (C)  any
such transfer is effected by a Broker-Dealer pursuant to the Exchange Offer Registration Statement in accordance with the Registration Rights Agreement; or 

        (D)  the
Registrar receives the following: (1) if the Holder of such Restricted Definitive Notes proposes to exchange such Notes for an Unrestricted Definitive Note, a
certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (1)(d) thereof; or (2) if the Holder of such Restricted Definitive Notes proposes to
transfer such Notes to a Person who shall take delivery thereof in the form of an Unrestricted Definitive Note, a certificate from such Holder in the form of Exhibit B hereto, including the
certifications in item (4) thereof; and, in each such case set forth in this subparagraph (D), an Opinion of Counsel in form, and from legal counsel, reasonably acceptable to the Registrar and
the Company to the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are no
longer required in order to maintain compliance with the Securities Act. 

        (iii)    Unrestricted Definitive Notes to Unrestricted Definitive Notes.    A Holder of Unrestricted Definitive Notes
may transfer such Notes to a Person who takes delivery thereof in the form of an Unrestricted Definitive Note. Upon receipt of a request to register such a transfer, the Registrar shall register the
Unrestricted Definitive Notes pursuant to the instructions from the Holder thereof. 

        (f)    Exchange Offer.    Upon the occurrence of the Exchange Offer in accordance with the Registration Rights
Agreement, the Company shall issue and, upon receipt of an Authentication Order in accordance with Section 2.2 hereof and an Opinion of Counsel for the Company as to certain matters discussed
in this Section 2.6(f), the Trustee shall authenticate (i) one or more Unrestricted Global Notes in an aggregate principal amount equal to the sum of (A) the principal amount of
the beneficial interests in the Restricted Global Notes tendered for acceptance by Persons that certify in the applicable Letters of Transmittal that (x) they are not Broker-Dealers,
(y) they are not participating in a distribution of the Exchange Notes and (z) they are not affiliates (as defined in Rule 144) of the Company, and accepted for exchange in the
Exchange Offer and (B) the principal amount of Definitive Notes exchanged or transferred for beneficial interests in Unrestricted Global Notes in connection with the Exchange Offer pursuant to
Section 2.6(d)(ii) hereof and (ii) Definitive Notes in an aggregate principal amount equal to the principal amount of the Restricted Definitive Notes accepted for exchange in the
Exchange Offer (other than Definitive Notes described in clause (i)(B) immediately above). Concurrently with the issuance of such Notes, the Trustee shall cause the aggregate principal amount
of the applicable Restricted Global Notes to be reduced accordingly, and the Company shall execute and, upon receipt of an Authentication Order pursuant to Section 2.2 hereof, the Trustee shall
authenticate and deliver to the Persons designated by the Holders of Definitive Notes so accepted Definitive Notes in the appropriate principal amount. 

        The
Opinion of Counsel for the Company referenced above shall state, in form and substance satisfactory to the Trustee, that: 

        (1)  the
issuance and sale of the Exchange Notes by the Company have been duly authorized and, when executed and authenticated in accordance with the provisions of this
Indenture and delivered in exchange for Series A Notes in accordance with this Indenture and the Exchange Offer, shall be entitled to the benefits of this Indenture and shall be valid and
binding obligations of the Company, enforceable against the Company in accordance with their terms except as the enforceability thereof may be limited by (x) bankruptcy, fraudulent transfer,
insolvency, reorganization, moratorium or similar laws affecting creditors' rights generally and (y) equitable 

29

 

principles of general applicability (regardless of whether enforceability is considered at equity or in law); and 

        (2)  when
the Exchange Notes are executed and authenticated in accordance with the provisions of this Indenture and delivered in exchange for Series A Notes in
accordance with this Indenture and the Exchange Offer, the Guarantees by the Guarantors endorsed thereon shall be entitled to the benefits of this Indenture and shall be valid and binding obligations
of the Guarantors, enforceable against the
Guarantors in accordance with their terms except as the enforceability thereof may be limited by (x) bankruptcy, fraudulent transfer, insolvency, reorganization, moratorium or similar laws
affecting creditors' rights generally and (y) equitable principles of general applicability (regardless of whether enforceability is considered at equity or in law). 

        (g)    Legends.    The following legends shall appear on the face of all Global Notes and Definitive Notes issued
under this Indenture unless specifically stated otherwise in the applicable provisions of this Indenture. 

        (i)    Private Placement Legend.    

        (A)  Except
as permitted by subparagraph (B) below, each Global Note and each Definitive Note (and all Notes issued in exchange therefor or substitution thereof) shall
bear the legend in substantially the following form: 

"THIS
NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE "SECURITIES ACT"), AND THIS NOTE MAY NOT BE OFFERED,
SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF THIS NOTE MAY BE RELYING ON
THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER." 

"THE
HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF THE COMPANY THAT (A) THIS NOTE MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) IN THE UNITED STATES TO A PERSON WHOM
THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) OUTSIDE THE
UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (III) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144
THEREUNDER (IF AVAILABLE) OR (IV) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (IV) IN ACCORDANCE WITH ANY APPLICABLE
SECURITIES LAWS OF ANY STATE OF THE UNITED SATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS NOTE FROM IT OF THE RESALE RESTRICTIONS
REFERRED TO IN (A) ABOVE." 

        (B)  Notwithstanding
the foregoing, any Global Note or Definitive Note issued pursuant to subparagraphs (b)(iv), (c)(ii), (c)(iii), (d)(ii), (d)(iii), (e)(ii),
(e)(iii) or (f) to this Section 2.6 (and all Notes issued in exchange therefor or substitution thereof) shall not bear the Private Placement Legend. 

30

 

        (ii)    Global Note Legend.    To the extent required by the Depositary, each Global Note shall bear legends in
substantially the following forms: 

"THIS
GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE TO ANY
PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.6 OF THE INDENTURE, (II) THIS GLOBAL NOTE MAY BE
EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.6(a) OF THE INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE
AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY." 

"UNLESS
AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A NOMINEE
OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) ("DTC"), TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO
CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN." 

        (iii)    Reg S Temporary Global Note Legend.    To the extent required by the Depositary, each Reg S Temporary Global
Note shall bear a legend in substantially the following form: 

"THE
RIGHTS ATTACHING TO THIS REGULATION S TEMPORARY GLOBAL NOTE, AND THE CONDITIONS AND PROCEDURES GOVERNING ITS EXCHANGE FOR DEFINITIVE NOTES, ARE AS SPECIFIED IN THE INDENTURE (AS DEFINED HEREIN).
NEITHER THE HOLDER NOR THE BENEFICIAL OWNERS OF THIS REGULATION S TEMPORARY GLOBAL NOTE SHALL BE ENTITLED TO RECEIVE CASH PAYMENTS OF INTEREST
DURING THE PERIOD WHICH SUCH HOLDER HOLDS THIS NOTE. NOTHING IN THIS LEGEND SHALL BE DEEMED TO PREVENT INTEREST FROM ACCRUING ON THIS NOTE." 

        (h)    Cancellation and/or Adjustment of Global Notes.    At such time as all beneficial interests in a particular
Global Note have been exchanged for Definitive Notes or a particular Global Note has been redeemed, repurchased or cancelled in whole and not in part, each such Global Note shall be returned to or
retained and cancelled by the Trustee in accordance with Section 2.11 hereof. At any time prior to such cancellation, if any beneficial interest in a Global Note is exchanged for or transferred
to a Person who shall take delivery thereof in the form of a beneficial interest in another Global Note or for Definitive Notes, the principal amount of Notes represented by such Global Note shall be
reduced 

31

 

accordingly and an endorsement may be made on such Global Note by the Trustee or by the Depositary at the direction of the Trustee to reflect such reduction; and if the beneficial interest is being
exchanged for or transferred to a Person who shall take delivery thereof in the form of a beneficial interest in another Global Note, such other Global Note shall be increased accordingly and an
endorsement may be made on such Global Note by the Trustee or by the Depositary at the direction of the Trustee to reflect such increase. 

        (i)    General Provisions Relating to Transfers and Exchanges.    

          (i)  To
permit registrations of transfers and exchanges, the Company shall execute and the Trustee shall authenticate Global Notes and Definitive Notes upon receipt of an
Authentication Order. 

        (ii)  No
service charge shall be made to a holder of a beneficial interest in a Global Note or to a Holder of a Definitive Note for any registration of transfer or exchange,
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 taxes or similar
governmental charge payable upon exchange or transfer pursuant to Sections 2.10, 3.6, 4.13 and 4.14 hereof). 

        (iii)  The
Registrar shall not be required to register the transfer of or exchange any Note selected for redemption in whole or in part, except the unredeemed portion of any
Note being redeemed in part. 

        (iv)  All
Global Notes and Definitive Notes issued upon any registration of transfer or exchange of Global Notes or Definitive Notes shall be the valid obligations of the
Company, evidencing the same Indebtedness, and entitled to the same benefits under this Indenture, as the Global Notes or Definitive Notes surrendered upon such registration of transfer or exchange. 

        (v)  The
Company shall not be required (A) to issue, to register the transfer of or to exchange any Notes during a period beginning at the opening of business
15 days before the day of any selection of Notes for redemption under Section 3.2 hereof and ending at the close of business on the day of selection, (B) to register the transfer
of or to exchange any Note so selected for redemption in whole or in part, except the unredeemed portion of any Note being redeemed in part or (C) to register the transfer of or to exchange a
Note between a Record Date and the next succeeding Interest Payment Date. 

        (vi)  Prior
to due presentment for the registration of a transfer of any Note, the Trustee, any Agent and the Company may deem and treat the Person in whose name any Note is
registered as the absolute owner of such Note for the purpose of receiving payment of principal of and interest on such Notes and for all other purposes, and none of the Trustee, any Agent or the
Company shall be affected by notice to the contrary. 

      (vii)  The
Trustee shall authenticate Global Notes and Definitive Notes in accordance with the provisions of Section 2.2 hereof. 

      (viii)  All
certifications, certificates and Opinions of Counsel required to be submitted to the Registrar pursuant to this Section 2.6 to effect a registration of
transfer or exchange may be submitted by facsimile. 

        Notwithstanding
anything herein to the contrary, as to any certifications and certificates delivered to the Registrar pursuant to this Section 2.6, the Registrar's duties shall be
limited to confirming that any such certifications and certificates delivered to it are in the form of Exhibits A, B, C and D attached hereto. The Registrar shall not be responsible for confirming the
truth or accuracy of representations made in any such certifications or certificates. 

32

 

SECTION 2.7    REPLACEMENT NOTES  

        If any mutilated Note is surrendered to the Trustee or the Company and the Trustee and the Company receive evidence (which evidence may be from the Trustee) to
their satisfaction of the destruction, loss or theft of any Note, the Company shall issue and the Trustee, upon receipt of an Authentication Order, shall authenticate a replacement Note if the
Trustee's requirements are met. If required by the Trustee or the Company, an indemnity bond must be supplied by the Holder that is sufficient in the judgment of the Trustee and the Company to protect
the Company, the Trustee, any Agent and any authenticating agent from any loss that any of them may suffer if a Note is replaced. The Company may charge for its expenses in replacing a Note. Every
replacement Note is an additional obligation of the Company and shall be entitled to all of the benefits of this Indenture equally and proportionately with all other Notes duly issued hereunder. 

SECTION 2.8    OUTSTANDING NOTES  

        The Notes outstanding at any time are all the Notes authenticated by the Trustee (including any Note represented by a Global Note) except for those cancelled by
it or at its direction, those delivered to it for cancellation, those reductions in the interest in a Global Note effected by the Trustee in accordance with the provisions hereof, and those described
in this Section 2.8 as not outstanding. Except as set forth in Section 2.9 hereof, a Note does not cease to be outstanding because the Company or an Affiliate of the Company holds the
Note. If a Note is replaced pursuant to Section 2.7 hereof, such Note, together with the Guarantee of that particular Note endorsed thereon, ceases to be outstanding unless the Trustee receives
proof satisfactory to it that the replaced Note is held by a bona fide purchaser. If the principal amount of any Note is considered paid under
Section 4.1 hereof, it ceases to be outstanding and interest on it ceases to accrue. If the Paying Agent (other than the Company, a Subsidiary or an Affiliate of any thereof) holds, on a
redemption date or the maturity date, money sufficient to pay Notes payable on that date, then on and after that date such Notes shall be deemed to be no longer outstanding and shall cease to accrue
interest. 

SECTION 2.9    TREASURY NOTES  

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

SECTION 2.10    TEMPORARY NOTES  

        Until certificates representing Notes are ready for delivery, the Company may prepare and the Trustee, upon receipt of an Authentication Order, shall authenticate
temporary Notes. Temporary Notes shall be substantially in the form of Definitive Notes but may have variations that the Company considers appropriate for temporary Notes and as shall be reasonably
acceptable to the Trustee. Without unreasonable delay, the Company shall prepare and the Trustee shall authenticate Definitive Notes in exchange for temporary Notes. Holders of temporary Notes shall
be entitled to all of the benefits of this Indenture. 

SECTION 2.11    CANCELLATION  

        The Company at any time may deliver Notes to the Trustee for cancellation. The Registrar and Paying Agent shall forward to the Trustee any Notes surrendered to
them for registration of transfer, exchange or payment. The Trustee, or at the direction of the Trustee, the Registrar or the Paying Agent 

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(other than the Company or an Affiliate of the Company), and no one else shall cancel all Notes surrendered for registration of transfer, exchange, payment, replacement or cancellation and shall
destroy cancelled Notes (subject to the record retention requirement of the Exchange Act). Certification of the destruction of all cancelled Notes shall be delivered to the Company. The Company may
not issue new Notes to replace Notes that it has paid or that have been delivered to the Trustee for cancellation. 

SECTION 2.12    DEFAULTED INTEREST  

        Any interest on any Note which is payable, but is not punctually paid or duly provided for, on any Interest Payment Date plus, to the extent lawful, any interest
payable on the defaulted interest at the rate and in the manner provided in Section 4.1 hereof and in the Note (herein called "Defaulted Interest") shall forthwith cease to be payable to the
registered holder on the relevant Record Date, and such Defaulted Interest may be paid by the Company, at its election in each case, as provided in clause (1) or (2) below: 

        (1)  The
Company may elect to make payment of any Defaulted Interest to the Persons in whose names the Notes are registered at the close of business on a Special Record Date
for the payment of such Defaulted Interest, which shall be fixed in the following manner. The Company shall notify the Trustee and the Paying Agent in writing of the amount of Defaulted Interest
proposed to be paid on each Note and the date of the proposed payment, and at the same time the Company shall deposit with the Paying Agent an amount of cash equal to the aggregate amount proposed to
be paid in respect of such Defaulted Interest or shall make arrangements reasonably satisfactory to the Paying Agent for such deposit prior to the date of the proposed payment, such cash when
deposited to be held in trust for the benefit of the Persons entitled to such Defaulted Interest as provided in this clause (1). Thereupon the Paying Agent shall fix a "Special Record Date" for
the payment of such Defaulted Interest which shall be not more than 15 days and not less than 10 days prior to the date of the proposed payment and not less than 10 days after the
receipt by the Paying Agent of the notice of the proposed payment. The Paying Agent shall promptly notify the Company and the Trustee of such Special Record Date and, in the name and at the expense of
the Company, shall cause notice of the proposed payment of such Defaulted Interest and the Special Record Date therefor to be mailed, first-class postage prepaid, to each Holder at its address as it
appears in the Note register maintained by the Registrar not less than 10 days prior to such Special Record Date. Notice of the proposed payment of such Defaulted Interest and the Special
Record Date therefor having been mailed as aforesaid, such Defaulted Interest shall be paid to the persons in whose names the Notes (or their respective predecessor Notes) are registered on such
Special Record Date and shall no longer be payable pursuant to the following clause (2). 

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

        Subject
to the foregoing provisions of this Section 2.12, each Note delivered under this Indenture upon registration of transfer of or in exchange for or in lieu of any other Note
shall carry the rights to interest accrued and unpaid, and to accrue, which were carried by such other Note. 

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SECTION 2.13    CUSIP NUMBERS  

        The Company in issuing the Notes may use "CUSIP"and/or "ISIN" numbers (if then generally in use), and, if so, the Trustee shall use "CUSIP"and/or "ISIN" 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 Notes or as contained in any notice of a redemption and that reliance may be placed only on the other identification numbers printed on the Notes, and any such
redemption shall not be affected by any defect in or omission of such numbers. The Company shall promptly notify the Trustee of any change in the "CUSIP" and/or "ISIN" numbers. 

SECTION 2.14    ISSUANCE OF ADDITIONAL NOTES  

        The Company may, subject to Section 4.7 hereof and applicable law, issue Additional Notes under this Indenture. The Notes issued on the Issue Date and any
additional Notes subsequently issued shall be treated as a single class for all purposes under this Indenture. 

 
 

ARTICLE III
  REDEMPTION    
  

SECTION 3.1    NOTICES TO TRUSTEE  

        If the Company elects to redeem Notes pursuant to the optional redemption provisions of Section 3.7 hereof, it shall furnish to the Trustee, at least
30 days (unless a shorter period is acceptable to the Trustee) but not more than 60 days (unless a longer period is acceptable to the Trustee) before a redemption date, an Officers'
Certificate setting forth (i) the clause of this Indenture pursuant to which the redemption shall occur, (ii) the redemption date, (iii) the principal amount of Notes to be
redeemed and (iv) the redemption price. 

SECTION 3.2    SELECTION OF NOTES TO BE REDEEMED  

        If less than all of the Notes are to be redeemed at any time, the Trustee shall select the Notes or portions thereof to be redeemed among the Holders of the Notes
in compliance with the requirements of the principal national securities exchange, if any, on which the Notes are listed or, if the Notes are not so listed, on a pro
rata basis, by lot or in accordance with any other method the Trustee considers fair and appropriate. In the event of partial redemption by lot, the particular Notes to be
redeemed shall be selected, unless otherwise provided herein, not less than 30 nor more than 60 days prior to the redemption date by the Trustee from the outstanding Notes not previously called
for redemption. 

        The
Trustee shall promptly notify the Company in writing of the Notes selected for redemption and, in the case of any Note selected for partial redemption, the principal amount thereof
to be redeemed. Notes and portions of Notes in denominations of larger than $1,000 selected shall be in amounts of $1,000 or integral multiples of $1,000; except that if all of the Notes of a Holder
are to be redeemed, the entire outstanding amount of Notes held by such Holder, even if not an integral multiple of $1,000, shall be redeemed. Except as provided in the preceding sentence, provisions
of this Indenture that apply to Notes called for redemption also apply to portions of Notes called for redemption. 

SECTION 3.3    NOTICE OF REDEMPTION  

        Subject to the provisions of Section 3.7 hereof, at least 30 days but not more than 60 days before a redemption date, the Company shall mail
or cause to be mailed, by first class mail, a notice of redemption to each Holder whose Notes are to be redeemed at its registered address. 

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        The
notice shall identify the Notes to be redeemed and shall state: 

        (a)  the
redemption date; 

        (b)  the
redemption price; 

        (c)  if
any Note is being redeemed in part, the portion of the principal amount of such Note to be redeemed and that, on or after the redemption date upon surrender of such
Note, a new Note or
Notes in principal amount equal to the unredeemed portion shall be issued upon cancellation of the original Note; 

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

        (e)  that
Notes called for redemption must be surrendered to the Paying Agent to collect the redemption price; 

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

        (g)  the
paragraph of the Notes and/or Section of this Indenture pursuant to which the Notes called for redemption are being redeemed; and 

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

        At
the Company's request, the Trustee shall give the notice of redemption in the Company's name and at its expense; provided, however,
that the Company shall have delivered to the Trustee, at least 45 days prior to the redemption date (unless a shorter period shall be acceptable to the Trustee), an Officers' Certificate
requesting that the Trustee give such notice and setting forth the information to be stated in such notice as provided in the preceding paragraph. 

SECTION 3.4    EFFECT OF NOTICE OF REDEMPTION  

        Once notice of redemption is mailed in accordance with Section 3.3 hereof, Notes called for redemption become irrevocably due and payable on the redemption
date at the redemption price. A notice of redemption may not be conditional. 

SECTION 3.5    DEPOSIT OF REDEMPTION PRICE  

        On or before the redemption date, the Company shall deposit with the Trustee or with the Paying Agent immediately available funds sufficient to pay the redemption
price of and accrued and unpaid interest (and Liquidated Damages, if any) on all Notes to be redeemed on that date. The Trustee or
the Paying Agent shall promptly return to the Company any money deposited with the Trustee or the Paying Agent by the Company in excess of the amounts necessary to pay the redemption price of, and
accrued and unpaid interest (and Liquidated Damages, if any) on, all Notes to be redeemed. 

        If
the Company complies with the provisions of the preceding paragraph, on and after the redemption date, interest shall cease to accrue on the Notes or the portions of Notes called for
redemption. If a Note is redeemed on or after an interest Record Date but on or prior to the related Interest Payment Date, then any accrued and unpaid interest (and Liquidated Damages, if any) shall
be paid to the Person in whose name such Note was registered at the close of business on such Record Date. 

        If
any Note called for redemption shall not be so paid upon surrender for redemption because of the failure of the Company to comply with the preceding paragraph, interest shall be paid
on the unpaid principal, from the redemption date until such principal is paid, and to the extent lawful on any 

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interest not paid on such unpaid principal, in each case at the rate provided in the Notes and in Section 4.1 hereof. 

SECTION 3.6    NOTES REDEEMED IN PART  

        Upon surrender of a Note that is redeemed in part, the Company shall issue and, upon receipt of an Authentication Order, the Trustee shall authenticate for the
Holder at the expense of the Company a new Note equal in principal amount to the unredeemed portion of the Note surrendered. 

SECTION 3.7    OPTIONAL REDEMPTION  

        (a)  The
Company shall have the option to redeem the Notes, in whole or in part, in cash from time to time, upon not less than 30 days' nor more than 60 days'
notice, prior to March 1, 2007 at a redemption price equal to the greater of (i) 104.875% of the principal amount of the Notes so redeemed, plus accrued and unpaid interest (and
Liquidated Damages, if any) and (ii) the Make-Whole Premium, plus to the extent not included in the Make-Whole Premium, accrued and unpaid interest (and Liquidated
Damages, if any) to, but not including, the redemption date. 

        (b)  The
Notes shall be redeemable for cash at the option of the Company, in whole or in part, at any time on or after March 1, 2007, upon not less than 30 days
nor more than 60 days prior notice mailed by
first class mail to each Holder at its last registered address, at the following redemption prices (expressed as percentages of the principal amount) if redeemed during the 12-month period
commencing March 1 of the years indicated below, in each case (subject to the right of Holders of record on a Record Date to receive the corresponding interest due (and the corresponding
Liquidated Damages, if any) on the corresponding Interest Payment Date that is on or prior to such redemption date) together with accrued and unpaid interest (and Liquidated Damages, if any), thereon
to the date of redemption of the Notes (the "Redemption Date"): 

	Year
 
	 	Percentage
	 
	2007	 	104.875	%
	2008	 	103.250	%
	2009	 	101.625	%
	2010 and thereafter	 	100.000	%

        (c)  Notwithstanding
the provisions of clauses (a) and (b) of this Section 3.7, at any time or from time to time on or prior to March 1, 2005,
upon one or more public equity offerings of the Parent's Qualified Capital Stock, up to 35% of the aggregate principal amount of the Notes issued pursuant to this Indenture (only as necessary to avoid
any duplication, excluding any replacement Notes) may be redeemed at the Company's option within 90 days of such public equity offering, on not less than 30 days, but not more than
60 days, notice to each Holder of the Notes to be redeemed, with cash in an amount not in excess of the Net Cash Proceeds of such public equity offering, at a redemption price equal to 109.750%
of principal, together with accrued and unpaid interest and Liquidated Damages, if any, to, but not including, the Redemption Date; provided, however,
that immediately following each such redemption not less than 65% of the aggregate principal amount of the Notes (but in no event less than $100 million aggregate principal amount of the Notes)
originally issued pursuant to this Indenture on the Issue Date remain outstanding (only as necessary to avoid any duplication, excluding any replacement Notes). 

        (d)  Any
redemption pursuant to this Section 3.7 shall be made pursuant to the provisions of Sections 3.1 through 3.6 hereof. 

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SECTION 3.8    NO MANDATORY REDEMPTION  

        The Issuers shall not be required to make mandatory redemption payments with respect to the Notes (however, the Issuers are required to offer to repurchase Notes
in accordance with the provisions of Sections 4.13 and 4.14 below). The Notes shall not have the benefit of any sinking fund. 

 
 

ARTICLE IV
  COVENANTS    
  

SECTION 4.1    PAYMENT OF NOTES  

        The Issuers shall pay or cause to be paid the principal of, premium, if any, and interest on the Notes on the dates and in the manner provided in the Notes.
Principal, premium, if any, and interest shall be considered paid on the date due if the Paying Agent, if other than the Issuers or a Subsidiary thereof, holds as of 12:00 noon Eastern time on the due
date money deposited by the Issuers in immediately available funds and designated for and sufficient to pay all principal, premium, if any, and interest then due. The Issuers shall pay all Liquidated
Damages, if any, in the same manner on the dates and in the amounts set forth in the Registration Rights Agreement and herein. 

        The
Issuers shall pay interest (including Accrued Bankruptcy Interest in any proceeding under any Bankruptcy Law) on overdue principal at the then applicable interest rate on the Notes
to the extent lawful; it shall pay interest (including Accrued Bankruptcy Interest in any proceeding under any Bankruptcy Law) on overdue installments of interest (and Liquidated Damages, if any)
(without regard to any applicable grace period) at the same rate to the extent lawful. 

SECTION 4.2    MAINTENANCE OF OFFICE OR AGENCY  

        The Issuers and the Guarantors shall maintain in the Borough of Manhattan, The City of New York, an office or agency (which may be an office of the Trustee or an
affiliate of the Trustee, Registrar or co-registrar) where Notes may be surrendered for registration of transfer or for exchange and where notices and demands to or upon the Issuers and
the Guarantors in respect of the Notes and this Indenture may be served. The Issuers and the Guarantors shall give prompt written notice to the Trustee of the location, and any change in the location,
of such office or agency. If at any time the Issuers and the Guarantors shall fail to maintain any such required office or agency or shall fail to furnish the Trustee with the address thereof, such
presentations, surrenders, notices and demands may be made or served at the Corporate Trust Office. 

        The
Issuers may also from time to time designate one or more other offices or agencies where the Notes may be presented or surrendered for any or all such purposes and may from time to
time rescind such additional designations; provided that no such designation or rescission shall in any manner relieve the Issuers and the Guarantors of
their obligation to maintain an office or agency in the Borough of Manhattan, The City of New York. The Issuers shall give prompt written notice to the Trustee of any such designation or rescission
and of any change in the location of any such other office or agency. 

        The
Issuers hereby designate the Corporate Trust Office as one such office or agency of the Issuers in accordance with Section 2.3 hereof. 

SECTION 4.3    SEC REPORTS AND REPORTS TO HOLDERS  

        Whether or not the Company and the Parent are subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act, the Company and the Parent
shall deliver or make available to the Trustee (and if the Company and the Parent are not subject to such reporting requirements, to each Holder of Notes), within five days after the Company and the
Parent are or would have been (if the Company and the Parent were subject to such reporting obligations) required to file such 

38

 

statements with the SEC, annual and quarterly financial statements substantially equivalent to financial statements that would have been included in reports filed with the SEC, if the Company and the
Parent were subject to the requirements of Section 13 or 15(d) of the Exchange Act, including, with respect to annual information only, a report thereon by the Company's certified independent
public accountants as such would be required in such reports to the Commission, and, in each case, together with a management's discussion and analysis of financial condition and results of operations
which would be so required and, unless the Commission shall not accept such reports, file with the Commission the annual, quarterly and other reports which it is or would have been required to file
with the Commission. In addition, the Issuers and the Guarantors agree that, prior to consummation of the Exchange Offer, they shall make available to the holders and to securities analysts and
prospective investors, upon their request, the information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act. 

SECTION 4.4    COMPLIANCE CERTIFICATE  

        (a)  The
Issuers shall deliver to the Trustee, within 120 days after the end of each fiscal year, an Officers' Certificate stating that a review of the activities of
the Issuers, the Parent and their respective Subsidiaries during the preceding fiscal year has been made under the supervision of the signing
Officers with a view to determining whether the Issuers, the Parent and their respective Subsidiaries have kept, observed, performed and fulfilled their obligations under this Indenture, and further
stating, as to each such Officer signing such certificate, that to his or her knowledge the Issuers, the Parent and their respective Subsidiaries are not in default in the performance or observance of
any of the terms, provisions and conditions of this Indenture (or, if a Default or Event of Default shall have occurred and be continuing, describing all such Defaults or Events of Default of which he
or she may have knowledge and what action the Issuers are taking or proposes to take with respect thereto) and that to his or her knowledge no event has occurred and remains in existence by reason of
which payments on account of the principal of or interest, if any, on the Notes is prohibited or if such event has occurred, a description of the event and what action the Issuers are taking or
proposes to take with respect thereto. The Issuers shall provide the Trustee with timely written notice of any change in its fiscal year end, which is currently December 31. 

        (b)  The
Issuers shall, so long as any of the Notes are outstanding, deliver to the Trustee, within five Business Days of any Officer becoming aware of any Default or Event
of Default, an Officers' Certificate specifying such Default or Event of Default and what action the Issuers are taking or proposes to take with respect thereto. 

SECTION 4.5    TAXES  

        The Company shall pay, and shall cause each of its Subsidiaries to pay, prior to delinquency, all material taxes, assessments, and governmental levies except such
as are contested in good faith and by appropriate proceedings or where the failure to effect such payment would not have a material adverse effect on the ability of the Company and the Guarantors to
satisfy their obligations under the Notes, the Guarantees and this Indenture. 

SECTION 4.6    STAY, EXTENSION AND USURY LAWS  

        The Company covenants (to the extent that it may lawfully do so) that it shall not at any time insist upon, plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time hereafter in force, that may affect the covenants or the performance of this Indenture; and the Company
(to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it shall not, 

39

 

by resort to any such law, hinder, delay or impede the execution of any power herein granted to the Trustee, but shall suffer and permit the execution of every such power as though no such law has
been enacted. 

SECTION 4.7    LIMITATION ON INCURRENCE OF ADDITIONAL INDEBTEDNESS AND DISQUALIFIED CAPITAL STOCK  

        (a)  Except
as set forth in this Section 4.7, the Company and the Parent shall not, and neither the Company nor the Parent shall permit any of their respective
Subsidiaries to, directly or indirectly, issue, assume, guaranty, incur, become directly or indirectly liable with respect to (including as a result of an Acquisition), or otherwise become responsible
for, contingently or otherwise (individually and collectively, to "incur" or, as appropriate, an "incurrence"), any Indebtedness (including Disqualified Capital Stock and Acquired Indebtedness), other
than Permitted Indebtedness. Notwithstanding the foregoing if, on the date of such incurrence (the "Incurrence Date"), (x) no Default or Event of Default shall have occurred and be continuing
at the time of, or would exist after giving effect on a pro forma basis to, such incurrence of Indebtedness, and (y) the Consolidated Coverage
Ratio of the Parent for the Reference Period immediately preceding the Incurrence Date, after giving effect on a pro forma basis to such incurrence of
such Indebtedness and, to the extent set forth in the definition of Consolidated Coverage Ratio, the use of proceeds thereof, would be at least 2.00 to 1.00 (the "Debt Incurrence Ratio"), then: 

        (1)  the
Company and the Parent and their respective Subsidiaries may incur Indebtedness (other than Secured Indebtedness and Subsidiary Indebtedness), (including
Disqualified Capital Stock) if, after giving effect to, on a pro forma basis, such incurrence and the receipt and application of proceeds therefrom, the
aggregate amount of all outstanding Indebtedness and Disqualified Capital Stock of the Parent and its Subsidiaries, including the Company and its Subsidiaries, determined on a consolidated basis,
without duplication, is less than or equal to 65% of the Adjusted Total Assets of the Parent and its Subsidiaries, including the Company and its Subsidiaries; and 

        (2)  the
Company and the Parent and their respective Subsidiaries may incur Secured Indebtedness and the Parent's Subsidiaries, excluding the Company but including the
Company's Subsidiaries, may incur Subsidiary Indebtedness (including Disqualified Capital Stock), if, after giving effect, on a pro forma basis, to such
incurrence of Indebtedness and the receipt and application of proceeds therefrom, the aggregate amount of all outstanding Secured Indebtedness and Subsidiary Indebtedness (including Disqualified
Capital Stock), of the Parent and its Subsidiaries (including outstanding amounts of Refinancing Indebtedness in respect of Secured Indebtedness and Subsidiary Indebtedness and Disqualified Capital
Stock), including for purposes of Secured Indebtedness only, the Secured Indebtedness of the Company, determined on a consolidated basis, without duplication, is less than or equal to 45% of the
Adjusted Total Assets of the Parent and its Subsidiaries, including the Company and its Subsidiaries. 

        (b)  The
foregoing limitations of this Section 4.7 shall not prohibit the Company's incurrence or the incurrence by any Guarantor of Indebtedness pursuant to the
Credit Agreement in an aggregate amount incurred and outstanding at any time pursuant to this clause (b) (plus any Refinancing Indebtedness incurred to retire, defease, refinance, replace or
refund such Indebtedness) of up to $175 million, minus the amount of any such Indebtedness (1) retired with the Net Cash Proceeds from any Asset Sale applied to permanently reduce the
outstanding amounts or the commitments with
respect to such Indebtedness pursuant to Section 4.13 herein or (2) assumed by a transferee in an Asset Sale so long as neither the Company, any of Guarantors nor any the Parent's or the
Company's Subsidiaries continues to be an obligor under such Indebtedness. 

40

   
        (c)  Indebtedness (including Disqualified Capital Stock) of any Person that is outstanding at the time such Person becomes a Subsidiary (including upon designation of any
subsidiary or other Person as a Subsidiary) of either or both of the Company or the Parent or is merged with or into or consolidated with either or both of the Company or the Parent or a Subsidiary of
either or both of the Company and the Parent shall be deemed to have been incurred at the time such Person becomes or is designated a Subsidiary of either or both of the Company and the Parent or is
merged with or into or consolidated with either or both of the Company and the Parent or a Subsidiary, as applicable. 

        (d)  Notwithstanding
any other provision of this Section 4.7, but only to avoid duplication, subject to clause (a)(2) of this Section 4.7, a guarantee of
Indebtedness of either or both of the Company or the Parent or of the Indebtedness of another Guarantor incurred in accordance with the terms of this Indenture issued at the time such Indebtedness was
incurred or, if later, at the time the guarantor thereof became a Subsidiary of the Company or the Parent shall not constitute a separate incurrence, or amount outstanding, of Indebtedness for
purposes of the foregoing provisions (other than clause (a)(2) of this Section 4.7). Upon each incurrence of Indebtedness, the Company may designate pursuant to which provision of this
Section 4.7 such Indebtedness is being incurred and the Company may subdivide an amount of Indebtedness and designate more than one provision pursuant to which such amount of Indebtedness is
being incurred and such Indebtedness shall not be deemed to have been incurred or outstanding under any other provision of this Section 4.7, except as stated otherwise in the foregoing
provisions. 

SECTION 4.8    LIMITATION ON LIENS  

        (a)  The
Company and the Parent shall not, and shall not permit any of their respective Subsidiaries to, create, incur, assume or suffer to exist any Lien of any kind upon
any of their respective assets now owned or acquired on or after the Issue Date or upon any income or profits therefrom securing any Indebtedness, unless the Company and the Parent provide, and cause
their respective Subsidiaries to provide, concurrently therewith, that the Notes and the applicable Guarantees are equally and ratably so secured. 

        (b)  Notwithstanding
the foregoing, the Company and the Parent may, and may permit their respective Subsidiaries to incur, assume or suffer to exist Liens of any kind upon
any of their respective assets
now owned or acquired on or after the Issue Date or upon any income or profits therefrom securing Indebtedness in an aggregate amount outstanding at any time (including outstanding amounts of
Refinancing Indebtedness), without duplication, less than or equal to 45% of Adjusted Total Assets of the Parent and its Subsidiaries, including the Company and its Subsidiaries, determined on a
consolidated basis. 

SECTION 4.9    LIMITATION ON RESTRICTED PAYMENTS  

        (a)  The
Company and the Parent shall not, and shall not permit any of their respective Subsidiaries to, directly or indirectly, make any Restricted Payment if, after giving
effect to such Restricted Payment on a pro forma basis: 

        (1)  a
Default or an Event of Default shall have occurred and be continuing, 

        (2)  the
Company is not permitted to incur at least $1.00 of additional Indebtedness pursuant to the Debt Incurrence Ratio and clauses (a)(1) or (a)(2) of Section 4.7
hereof, or 

41

 

        (3)  the
aggregate amount of all Restricted Payments made by the Company and the Parent and their respective Subsidiaries, including after giving effect to such proposed
Restricted Payment, on and after the Issue Date, would exceed, without duplication, the sum of: 

        (A)  95%
of the aggregate Funds From Operations (determined by excluding income resulting from transfers of assets by the Company or the Parent or any of their respective
Subsidiaries to an Unrestricted Subsidiary) accrued on a cumulative basis during the period (taken as one accounting period), commencing on the first day of the fiscal quarter in which the Issue Date
occurs, to and including the last day of the fiscal quarter ended immediately prior to the date of each such calculation for which the Company's and the Parent's consolidated financial statements are
required to be delivered to the Trustee or, if sooner, filed with the SEC (or, in the event Funds From Operations for such period is a deficit, then minus 100% of such deficit), plus 

        (B)  the
aggregate Net Cash Proceeds received by the Company or the Parent from the sale of Qualified Capital Stock (other than (i) to a Subsidiary of either or both
of the Company or the Parent and (ii) to
the extent applied in connection with a Qualified Exchange or a Permitted Investment or, to avoid duplication, otherwise given credit for in any provision of clauses (b) or (c) hereof),
after the Issue Date, plus 

        (C)  except
in each case, in order to avoid duplication, to the extent any such payment or proceeds have been included in the calculation of Funds From Operations, an amount
equal to the net reduction in Investments (other than returns of or from Permitted Investments) in any Person resulting from cash distributions on or cash repayments of any Investments, including
payments of interest on Indebtedness, dividends, repayments of loans or advances, or other distributions or other transfers of assets, in each case to the Company or the Parent or any of their
respective Subsidiaries or from the Net Cash Proceeds from the sale of any such Investment or from redesignations of Unrestricted Subsidiaries as Subsidiaries (valued in each case as provided in the
definition of "Investments"), not to exceed, in each case, the amount of Investments previously made by the Company or the Parent or any of their Subsidiaries in such Person, including, if applicable,
such Unrestricted Subsidiary, less the cost of disposition, plus 

        (D)  the
purchase price of noncash tangible assets acquired in exchange for an issuance of Qualified Capital Stock of either of the Company or the Parent on or after the
Issue Date (other than, in order to avoid duplication, acquisitions that constitute Permitted Investments and other than from the Parent, the Company or any of their respective Subsidiaries). 

        (b)  Notwithstanding
clause (a) of this Section 4.9, so long as the Parent is otherwise maintaining its status as a REIT under the Internal Revenue Code of
1986, as amended (the "Code"), the Company or the Parent may declare or pay any dividend or make any distribution that is necessary to maintain the Parent's status as a REIT under the Code if at the
time of such declaration (or, if there is no declaration, at the time of payment): 

        (1)  the
aggregate principal amount of all outstanding Indebtedness of the Parent and its Subsidiaries, including the Company and its Subsidiaries, on a consolidated basis at
such time is less than 65% of Adjusted Total Assets; and 

        (2)  no
Default or Event of Default shall have occurred and be continuing. 

        The
full amount of all Restricted Payments made pursuant to clause (b) of this Section 4.9, however, shall be counted as Restricted Payments for purposes of the calculation
of the aggregate amount of Restricted Payments available to be made referred to in clause (a)(3) of this Section 4.9. 

42

 

        (c)  Clause (a)
under this section 4.9 shall not prohibit: 

        (1)  a
Qualified Exchange, or 

        (2)  the
payment of any dividend on Qualified Capital Stock within 60 days after the date of its declaration if such dividend could have been made on the date of such
declaration in compliance with the foregoing provisions. 

        Clauses
(a)(2) and (a)(3) of this Section 4.9 shall not prohibit: 

        (3)  repurchases
of Capital Stock from the Company's or the Parent's employees or directors (or their heirs or estates) or from employees or directors (or their heirs or
estates) of Company's or the Parent's Subsidiaries upon the death, disability or termination of employment in an aggregate amount to all employees and directors (or their heirs and estates) not to
exceed $500,000 per year or $3 million in the aggregate on and after the Issue Date, or 

        (4)  any
dividend, distribution or other payments by any Subsidiary of the Company or the Parent (other than the Company) on its Equity Interests that is paid  pro rata to all holders of such Equity Interests.

        The
provisions of clause (a) under this Section 4.9 shall not prohibit: 

        (5)  Restricted
Payments pursuant to this clause (c)(5) in an aggregate amount not to exceed $25 million. 

        (d)  The
full amount of any Restricted Payment made pursuant to the foregoing clauses (c)(2), (c)(3), (c)(4) and (c)(5) (but not pursuant to clause (c)(1)), however,
shall be counted as Restricted Payments for purposes of the calculation of the aggregate amount of Restricted Payments available to be made referred to in clause (a)(3) of this
Section 4.9. 

        (e)  For
purposes of this Section 4.9, the amount of any Restricted Payment made or returned, if other than in cash, shall be the fair market value thereof, as
determined in the good faith reasonable judgment of the Board of Directors, unless stated otherwise, at the time made or returned, as applicable. Not later than (1) 45 days following the
end of any calendar quarter in which any Restricted Payment is made, and (2) 10 days after the making of any Restricted Payment which, when added to the sum of all Restricted Payments
made in a calendar quarter, would cause the aggregate of all Restricted Payments made in such quarter to exceed $5 million (other than payments of quarterly dividends on
Capital Stock of the Company or the Parent in the ordinary course of business), the Parent and the Company shall deliver an Officers' Certificate to the Trustee describing in reasonable detail the
nature of such Restricted Payments, stating the amount of such Restricted Payments, stating in reasonable detail the provisions of this Indenture pursuant to which such Restricted Payments were made
and certifying that such Restricted Payments were made in compliance with the terms of this Indenture. 

SECTION 4.10    LIMITATION ON DIVIDENDS AND OTHER PAYMENT RESTRICTIONS AFFECTING SUBSIDIARIES  

        The Company and the Parent shall not, and shall not permit any of their respective Subsidiaries to, directly or indirectly, create, assume or suffer to exist any
consensual restriction on the ability of any of their respective Subsidiaries to pay dividends or make other distributions to or on behalf of, or to pay any obligation to or on behalf of, or otherwise
to transfer assets or property to or on behalf of, or make or pay loans or advances to or on behalf of the Company or the Parent or any of their respective Subsidiaries, except: 

        (1)  restrictions
imposed by the Notes or this Indenture or by other Indebtedness ranking pari passu with the Notes or the
Guarantees, as applicable; provided, that such restrictions are not more restrictive, taken as a whole, than those imposed by this Indenture and the
Notes; 

43

 

        (2)  restrictions
imposed by applicable law; 

        (3)  existing
restrictions under Existing Indebtedness; 

        (4)  restrictions
under any Acquired Indebtedness not incurred in violation of this Indenture or any agreement (including any Equity Interest) relating to any property,
asset, or business acquired by the Company or the Parent or any of their respective Subsidiaries, which restrictions in each case existed at the time of acquisition, were not put in place in
connection with or in anticipation of such acquisition and are not applicable to any Person, other than the Person acquired, or to any property, asset or business, other than the property, assets and
business so acquired; 

        (5)  restrictions
imposed by Indebtedness incurred under the Credit Agreement permitted to be incurred pursuant to Section 4.7;  provided, that such restrictions or requirement are no more restrictive in any material
respect than that imposed by the Credit Agreement as of the
Issue Date, 

        (6)  restrictions
with respect solely to any Subsidiary of either or both of the Company or the Parent imposed pursuant to a binding agreement which has been entered into for
the sale or disposition of all of the Equity Interests or assets of such Subsidiary; provided, that such restrictions apply solely to the Equity
Interests or assets of such Subsidiary which are being sold; 

        (7)  in
connection with and pursuant to permitted Refinancings, replacements of restrictions imposed pursuant to clauses (1), (3) or (4) or this
clause (7) of this Section 4.10 that are not more restrictive in any material respect than those being replaced and do not apply to any other Person or assets than those that would have
been covered by the restrictions in the Indebtedness so refinanced; 

        (8)  customary
provisions restricting subletting or assignment of any lease entered into in the ordinary course of business, consistent with industry practice; 

        (9)  any
asset subject to a Lien which is not prohibited to exist with respect to such asset pursuant to the terms of this Indenture may be subject to customary restrictions
on the transfer or disposition thereof pursuant to such Lien; and 

      (10)  restrictions
imposed by Indebtedness incurred under clause (a)(2) of Section 4.7 hereof (whether such restrictions are contained in the terms of such
Indebtedness or are required by the terms of agreements governing such Indebtedness to be contained in the organizational documents governing the Subsidiary which incurred such Indebtedness). 

SECTION 4.11    LIMITATION ON LINES OF BUSINESS  

        Neither the Company, the Parent, nor any of their respective Subsidiaries or Unrestricted Subsidiaries shall directly or indirectly engage to any substantial
extent in any line or lines of business activity other than that which, in the reasonable good faith judgment of the Board of Directors, is a Related Business. 

SECTION 4.12    LIMITATION ON TRANSACTIONS WITH AFFILIATES  

        Neither the Company, the Parent nor any of their respective Subsidiaries shall be permitted on or after the Issue Date to enter into or suffer to exist any
contract, agreement, arrangement or transaction with any Affiliate (an "Affiliate Transaction"), or any series of related Affiliate Transactions, (other than Exempted Affiliate Transactions),
(1) unless it is determined that the terms of such Affiliate Transaction are fair and reasonable to the Company or the Parent, as the case may be, and no less favorable to the Company or the
Parent than could have been obtained in an arm's length transaction with a
non-Affiliate, and (2) if involving consideration to either party in excess of $2 million, unless such Affiliate Transaction(s) is evidenced by an Officers' Certificate
addressed and delivered to the 

44

 

Trustee certifying that such Affiliate Transaction (or Transactions) has been approved by a majority of the members of the Parent's Board of Directors that are disinterested in such transaction, if
there are any directors who are so disinterested, and (3) if involving consideration to either party in excess of $10 million, unless in addition the Company or the Parent, prior to the
consummation thereof, obtains a written favorable opinion as to the fairness of such transaction to the Company or the Parent from a financial point of view from an independent investment banking firm
of national reputation in the United States or, if pertaining to a matter for which such investment banking firms do not customarily render such opinions, an appraisal or valuation firm of national
reputation in the United States. 

SECTION 4.13    LIMITATION ON SALE OF ASSETS AND SUBSIDIARY STOCK  

        (a)  The
Company or the Parent shall not and shall not permit any of their respective Subsidiaries to, in one or a series of related transactions, convey, sell, transfer,
assign or otherwise dispose of, directly or indirectly, any of their property, business or assets, including by merger or consolidation (in the case of a Subsidiary or Unrestricted Subsidiary), and
including any sale or other transfer or issuance of any Equity Interests of any Subsidiary, whether by the Company or the Parent or one of their respective Subsidiaries or through the issuance, sale
or transfer of Equity Interests by one of the Company's Subsidiaries or Unrestricted Subsidiary and including any sale and leaseback transaction (any of the foregoing, an "Asset Sale"), unless: 

        (1)  at
least 75% of the total consideration for such Asset Sale or series of related Asset Sales consists of cash or Cash Equivalents;  provided, that with respect to the sale of one or more hotel properties,
up to 75% of the consideration may consist of Indebtedness of the purchaser of
such hotel properties so long as such Indebtedness is secured by a first priority Lien on the hotel property or properties sold; 

        (2)  no
Default or Event of Default shall have occurred and be continuing at the time of, or would occur after giving effect, on a pro forma  basis, to such Asset Sale; and 

        (3)  the
Parent and the Company determine in good faith that the consideration received by the Parent, the Company or their respective Subsidiaries, as applicable, equals the
fair market value for such Asset Sale. 

        (b)  In
the event and to the extent that immediately following any Asset Sale the Net Cash Proceeds received by the Company or the Parent or any of their respective
Subsidiaries from such Asset Sale, plus the Net Cash Proceeds of any other Asset Sale(s) which occurred (i) on or after the Issue Date and (ii) within the 360-day period
proceeding such Asset Sale, exceed 10% of Adjusted Consolidated Net Tangible Assets, within 360 days following such Asset Sale, the Net Cash Proceeds therefrom (the "Asset Sale Amount") shall
be: 

        (1)  invested
in assets and property (except in connection with the acquisition of a Subsidiary which is a Guarantor in a Related Business, other than notes, bonds,
obligation and securities) which shall immediately constitute or be a part of a Related Business of the Company or the Parent or such Subsidiary (if it continues to be a Subsidiary) immediately
following such transaction, or 

        (2)  used
to retire Indebtedness incurred under the Credit Agreement and to permanently reduce the amount of such Indebtedness permitted to be incurred pursuant to
Section 4.7(b) hereof. 

        Pending
the final application of any Net Cash Proceeds, the Company or the Parent may temporarily reduce revolving credit borrowings or otherwise invest the Net Cash Proceeds in any
manner that is not prohibited by this Indenture. 

45

 

        (c)  The
accumulated Net Cash Proceeds from Asset Sales not applied as set forth in (b)(1) or (b)(2) shall constitute "Excess Proceeds." Within 30 days after the date
that the amount of Excess Proceeds exceeds $10 million, which date shall not be prior to 390 days after the Asset Sale that generated such Excess Proceeds, the Company shall apply an
amount (the "Asset Sale Offer Amount") equal to the Excess Proceeds to the repurchase of the Notes and such other Indebtedness ranking on a parity with the Notes and with provisions requiring the
Company to make an offer to purchase such Indebtedness with the proceeds from such Asset Sale pursuant to a cash offer (subject only to conditions required by applicable law, if any)
(pro rata in proportion to the respective principal amounts (or accreted values in the case of Indebtedness issued with an original issue discount) of
the Notes and such other Indebtedness then outstanding) (the "Asset Sale Offer") at a purchase price of 100% of the principal amount (or accreted value in the case of Indebtedness issued with an
original issue discount) (the "Asset Sale Offer Price") together with accrued and unpaid interest and Liquidated Damages, if any, to the date of payment. Each Asset Sale Offer shall remain open for 20
Business Days following its commencement (the "Asset Sale Offer Period"). 

        (d)  Upon
expiration of the Asset Sale Offer Period, the Company shall apply the Asset Sale Offer Amount plus an amount equal to accrued and unpaid interest and Liquidated
Damages, if any, to the purchase of all Indebtedness properly tendered in accordance with the provisions hereof (on a pro rata basis if the Asset Sale
Offer Amount is insufficient to purchase all Indebtedness so tendered) at the Asset Sale Offer Price (together with accrued interest and Liquidated Damages, if any). To the extent that the aggregate
amount of Notes and such other pari passu Indebtedness tendered pursuant to an
Asset Sale Offer is less than the Asset Sale Offer Amount, the Company may use any remaining Net Cash Proceeds as otherwise permitted by this Indenture and following the consummation of each Asset
Sale Offer the Excess Proceeds amount shall be reset to zero. 

        (e)  Notwithstanding,
and without complying with, the other provisions of this Section 4.13: 

        (1)  the
Company or the Parent may and their respective Subsidiaries may, in the ordinary course of business, (a) convey, sell, transfer, assign or otherwise dispose
of inventory and other assets acquired and held for resale in the ordinary course of business and (b) liquidate Cash Equivalents; 

        (2)  the
Company and the Parent may and their respective Subsidiaries may convey, sell, transfer, assign or otherwise dispose of assets pursuant to and in accordance with
Section 5.1; 

        (3)  the
Company and the Parent may and their respective Subsidiaries may sell or dispose of damaged, worn out or other obsolete personal property in the ordinary course of
business so long as such property is no longer necessary for the proper conduct of the Company's or the Parent's business or the business of such Subsidiary, as applicable; 

        (4)  the
Company and the Parent may and the Guarantors may convey, sell, transfer, assign or otherwise dispose of assets to the Company or the Parent or any of the
Guarantors; 

        (5)  the
Company and the Parent may and their respective Subsidiaries may, in the ordinary course of business, convey, sell, transfer, assign, or otherwise dispose of assets
(or related assets or in related transactions) with a fair market value of less than $2 million; 

        (6)  the
Company and the Parent may and their respective Subsidiaries may surrender or waive or settle, release or surrender tort or other litigation claims in the ordinary
course of business or grant Liens not prohibited by this Indenture; and 

        (7)  the
Company and the Parent may and their respective Subsidiaries may make Permitted Investments pursuant to clause (d) in the definition thereof and Restricted
Investments permitted under Section 4.9. 

46

 

        All
Net Cash Proceeds from an Event of Loss shall be reinvested or used as otherwise provided above in clauses (b)(1) or (b)(2) of this Section 4.13. 

        Any
Asset Sale Offer shall be made in compliance with all applicable laws, rules, and regulations, including, if applicable, Regulation 14E of the Exchange Act and the rules and
regulations thereunder and all other applicable Federal and state securities laws. To the extent that the provisions of any securities laws or regulations conflict with the provisions of this
Section 4.13, the Company's compliance or the compliance of any of the Company's subsidiaries with such laws and regulations shall not in and of itself cause a breach of the Company's
obligations under this Section 4.13. 

        If
the payment date in connection with an Asset Sale Offer hereunder is on or after an interest payment Record Date and on or before the associated Interest Payment Date, any accrued and
unpaid interest (and Liquidated Damages, if any) due on such Interest Payment Date shall be paid to the Person in whose name a Note is registered at the close of business on such Record Date. 

SECTION 4.14    REPURCHASE OF NOTES AT THE OPTION OF THE HOLDER UPON A CHANGE OF CONTROL  

        In the event that a Change of Control has occurred, each Holder of Notes shall have the right, at such Holder's option, pursuant to an offer (subject only to
conditions required by applicable law, if any) by the Company (the "Change of Control Offer"), to require the Company to repurchase all or any part of such Holder's Notes
(provided, that the principal amount of such Notes must be $1,000 or an integral multiple thereof) on a date (the "Change of Control Purchase Date")
that is no later than 35 Business Days after the occurrence of such Change of Control, at a cash price equal to 101% of the principal amount thereof (the "Change of Control Purchase Price"), together
with accrued and unpaid interest (and Liquidated Damages, if any) to the Change of Control Purchase Date. 

        The
Change of Control Offer shall be made within 10 Business Days following a Change of Control and shall remain open for 20 Business Days following its commencement (the "Change of
Control Offer Period"). Upon expiration of the Change of Control Offer Period, the Company shall promptly purchase all Notes properly tendered in response to the Change of Control Offer. 

        On
or before the Change of Control Purchase Date, the Company shall: 

        (1)  accept
for payment Notes or portions thereof properly tendered pursuant to the Change of Control Offer, 

        (2)  deposit
with the Paying Agent cash sufficient to pay the Change of Control Purchase Price (together with accrued and unpaid interest and Liquidated Damages, if any to
the Change of Control Payment Date) of all Notes so tendered, and 

        (3)  deliver
to the Trustee the Notes so accepted together with an Officers' Certificate listing the Notes or portions thereof being purchased by the Company. 

        The
Paying Agent shall promptly pay the Holders of Notes so accepted an amount equal to the Change of Control Purchase Price (together with accrued and unpaid interest and Liquidated
Damages, if any to the Change of Control Payment Date) and the Trustee shall promptly authenticate and deliver to each such Holder a new Note equal in principal amount to any unpurchased portion of
the Note surrendered. Any Notes not so accepted shall be delivered promptly by the Company to the Holders thereof. The Company shall publicly announce the results of the Change of Control Offer on or
as soon as practicable after the Change of Control Purchase Date. 

47

  

        Any Change of Control Offer shall be made in compliance with all applicable laws, rules and regulations, including, if applicable, Regulation 14E under the Exchange Act and the
rules thereunder and all other applicable Federal and state securities laws. To the extent that the provisions of any securities laws or regulations conflict with the provisions of this
Section 4.14, the Company's compliance or compliance by any of the Guarantors with such laws and regulations shall not in and of itself cause a breach of their obligations under such covenant. 

        If
the Change of Control Purchase Date hereunder is on or after a Record Date and on or before the associated Interest Payment Date, any accrued and unpaid interest (and Liquidated
Damages, if any) due on such Interest Payment Date shall be paid to the Person in whose name a Note is registered at the close of business on such Record Date. 

SECTION 4.15    LIMITATION ON ISSUANCES OF GUARANTEES BY SUBSIDIARIES  

        The Company shall not permit any of its Subsidiaries and the Parent shall not permit any of its Subsidiaries, directly or indirectly, to guarantee any
Indebtedness of either or both of the Company or the Parent or of any Guarantor, including any Indebtedness under the Credit Agreement that ranks equally with or subordinate in right of payment to the
Notes ("Guaranteed Indebtedness"), unless: 

        (1)  such
Subsidiary simultaneously executes and delivers a supplemental indenture to this Indenture providing for a guarantee of the Notes by such Subsidiary, and 

        (2)  such
Subsidiary waives and agrees not to, in any manner whatsoever, claim or take the benefit or advantage of, any rights of reimbursement, indemnity or subrogation or
any other rights against the Company, the Parent or any other Subsidiary as a result of any payment by such Subsidiary under its Guarantee; 

provided, that this provision shall not be applicable to any guarantee of any Subsidiary that existed at the time such Person became a Subsidiary and
which was not incurred in connection with, or in contemplation of, such Person becoming a Subsidiary. If the Guaranteed Indebtedness ranks equally in right of payment with the Notes, then the
guarantee of such Guaranteed Indebtedness shall rank equally in right of payment with, or subordinate in right of payment to, the Guarantee. If the
Guaranteed Indebtedness is subordinate in right of payment to the Notes, then the guarantee of such Guaranteed Indebtedness shall be subordinated in right of payment to the Guarantee at least to the
extent that the Guaranteed Indebtedness is subordinated in right of payment to the Notes. 

SECTION 4.16    LIMITATION ON LAYERING INDEBTEDNESS  

        The Company or the Parent shall not and shall not permit any of their respective Subsidiaries to incur any Indebtedness that is contractually subordinated in
right of payment to any of either or both of the Company's or the Parent's Indebtedness or the Indebtedness of any Guarantor unless such Indebtedness is as contractually subordinated in right of
payment to the Notes or such Guarantor's Guarantee, as applicable, at least to the same extent as it is to such other Indebtedness. 

SECTION 4.17    RESTRICTION ON ACTIVITIES OF FINANCE  

        Notwithstanding anything in this Indenture to the contrary, Finance shall not (a) own any material assets, (b) become liable for any obligations or
Indebtedness other than the Notes (including any additional Notes incurred pursuant to Section 4.7 hereof) pursuant to the terms of this Indenture, or (c) engage in any business
activities other than the co-issuance of the Notes (including any additional Notes incurred pursuant to Section 4.7 hereof). 

48

 

SECTION 4.18    LIMITATION ON STATUS AS INVESTMENT COMPANY  

        The Company and the Parent and their respective Subsidiaries shall be prohibited from being required to register as an "investment company" (as that term is
defined in the Investment Company Act of 1940, as amended (the "Investment Company Act")), or from otherwise becoming subject to regulation under the Investment Company Act. 

SECTION 4.19    MAINTENANCE OF PROPERTIES AND INSURANCE  

        The Company and the Guarantors shall cause all material properties used or useful to the conduct of their business and the business of each of their Subsidiaries
to be maintained and kept in good condition, repair and working order (reasonable wear and tear excepted) and supplied with all necessary equipment and shall cause to be made all necessary repairs,
renewals, replacements, betterments and improvements thereof, all as in their reasonable judgment may be necessary, so that
the business carried on in connection therewith may be properly conducted at all times; provided, however, that nothing in this Section 4.20
shall prevent the Company or any Guarantor from discontinuing any operation or maintenance of any of such properties, or disposing of any of them, if such discontinuance or disposal is (a) (i)
in the judgment of the Board of Directors of the Company, desirable in the conduct of the business of such entity and (ii) would not have a material adverse effect on the ability of the Company
and the Guarantors to satisfy their obligations under the Notes, the Guarantees and this Indenture, and, to the extent applicable, (b) as otherwise permitted under Section 4.13 hereof. 

        The
Company and Guarantors shall provide, or cause to be provided, for themselves and each of their Subsidiaries, insurance (including appropriate self-insurance) against
loss or damage of the kinds that, in the reasonable, good faith opinion of the Board of Directors of the Company is adequate and appropriate for the conduct of the business of the Company, the
Guarantors and such Subsidiaries. 

SECTION 4.20    CORPORATE EXISTENCE  

        Subject to Section 4.14 and Article V hereof, the Company and the Parent shall do or cause to be done all things necessary to preserve and keep in
full force and effect (i) its corporate existence, and the corporate, partnership or other existence of each of their respective Subsidiaries, in accordance with the respective organizational
documents (as the same may be amended from time to time) of the Company, the Parent or any such Subsidiary and (ii) the rights (charter and statutory), licenses and franchises of the Company,
the Parent and their respective Subsidiaries; provided, however, that the Company and the Parent shall not be required to preserve any such right,
license or franchise, or the corporate, partnership or other existence of any of their respective Subsidiaries, if the Board of Directors shall determine that the preservation thereof is no longer
desirable in the conduct of the business of the Company, the Parent and their respective Subsidiaries, taken as a whole, and that the loss thereof would not have a material adverse effect on the
ability of the Company and the Guarantors to satisfy their obligations under the Notes, the Guarantees and this Indenture. 

 
 

ARTICLE V
  SUCCESSORS    
  

SECTION 5.1    MERGER, CONSOLIDATION OR SALE OF ASSETS  

        Neither the Company nor the Parent shall consolidate with or merge with or into another Person or, directly or indirectly, sell, lease, convey or transfer all or
substantially all of their assets (such 

49

 

amounts to be computed on a consolidated basis), whether in a single transaction or a series of related transactions, to another Person or group of affiliated Persons, unless: 

        (a)  either
(1) the Company or the Parent, as applicable, is the continuing entity or (2) the resulting, surviving or transferee entity, as applicable, is an
entity organized under the laws of the United States, any state thereof or the District of Columbia and expressly assumes by supplemental indenture all of the Company's or the Parent's, as applicable,
obligations in connection with the Notes or the Guarantee, as applicable; 

        (b)  no
Default or Event of Default shall exist or shall occur immediately after giving effect on a pro forma basis to such
transaction; 

        (c)  unless
such transaction is solely the merger of the Company or the Parent and one of a Wholly Owned Subsidiaries which is also a Guarantor for the purpose of
reorganization into another jurisdiction and which transaction is not for the purpose of evading this provision and not in connection with any other transaction, immediately after giving effect to
such transaction on a pro forma basis, the consolidated resulting, surviving or transferee entity would immediately thereafter be permitted to incur at
least $1.00 of additional Indebtedness pursuant to the Debt Incurrence Ratio and clauses (a)(1) or (a)(2) of Section 4.7 hereof; and 

        (d)  each
Guarantor shall have, if necessary, confirmed in writing that its Guarantee shall apply to the obligations of the Company, or the surviving entity in accordance
with the Notes and this Indenture. 

SECTION 5.2    SUCCESSOR CORPORATION SUBSTITUTED  

        Upon any consolidation or merger, the successor entity formed by such consolidation or into which the Company or the Parent is merged shall succeed to and (except
in the case of a lease or any transfer of all or substantially all of the Company's or the Parent's assets) be substituted for, and may exercise every right and power of, the Company or the Parent, as
applicable, under this Indenture with the same effect as if such successor entity had been named therein as the Company or the Parent, as applicable, and (except in the case of a lease or any transfer
of all or substantially all of the Company's or the Parent's assets) the Company or the Parent, as applicable, shall be released from the obligations under this Indenture, the Notes and the Guarantee,
as applicable, except with respect to any obligations that arise from, or are related to, such transaction. 

        For
purposes of the foregoing, the transfer (by lease, assignment, sale or otherwise) of all or substantially all of the properties and assets of one or more Subsidiaries, the Company's
or the Parent's
interest in which constitutes all or substantially all of the Company's or the Parent's properties and assets, shall be deemed to be the transfer of all or substantially all of the Company's or the
Parent's properties and assets. 

 
 

ARTICLE VI
  DEFAULTS AND REMEDIES    
  

SECTION 6.1    EVENTS OF DEFAULT  

        An "Event of Default," wherever used herein, means any one of the following events: 

        (1)  the
Company's failure to pay any installment of interest (or Liquidated Damages, if any) on the Notes as and when the same becomes due and payable and the continuance of
any such failure for 30 days; 

        (2)  the
Company's failure to pay all or any part of the principal, or premium, if any, on the Notes when and as the same becomes due and payable at maturity, upon
redemption, by 

50

 

acceleration or otherwise, including, without limitation, payment of the Change of Control Purchase Price or the Asset Sale Offer Price, on Notes validly tendered and not withdrawn pursuant to a
Change of Control Offer or Asset Sale Offer, as applicable; 

        (3)  the
Company's failure or the failure by the Parent or any of their respective Subsidiaries to observe or perform any other covenant or agreement contained in the Notes
or this Indenture and, except for the provisions under Section 4.13, 4.14 and 5.1, the continuance of such failure for a period of 30 days; 

        (4)  a
court having jurisdiction in the premises enters a decree or order for (a) relief in respect of the Company, the Parent or any of their respective Significant
Subsidiaries in an involuntary case under any applicable Bankruptcy Law now or hereafter in effect, (b) appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator or
similar official of the Company, the Parent or any of their respective Significant Subsidiaries or for all or substantially all of the property and assets of the Company, the Parent or any of their
respective Significant Subsidiaries or (c) the winding up or liquidation of the affairs of the Company, the Parent or any Significant Subsidiary and, in each case, such decree or order shall
remain unstayed and in effect for a period of 60 consecutive days; or, 

        (5)  the
Company, the Parent or any of their respective Significant Subsidiaries (a) commences a voluntary case under any applicable Bankruptcy Law now or hereafter in
effect, or consents to the entry of an order for relief in an involuntary case under any such law, (b) consents to the appointment of or taking possession by a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official of the Company, the Parent or any of their respective Significant Subsidiaries or for all or substantially all of the property and assets of the
Company, the Parent or any of their respective Significant Subsidiaries or (c) effects any general assignment for the benefit of creditors; 

        (6)  a
default occurs (after giving effect to any waivers, amendments, applicable grace periods or any extension of any maturity date) in any of the Company's or the Parent's
Indebtedness or the Indebtedness of any of their respective Subsidiaries with an aggregate amount outstanding in excess of $7.5 million (or if such Indebtedness is Non-Recourse
Indebtedness, $20 million) (a) resulting from the obligor's failure to pay principal of or interest on such Indebtedness, or (b) as a result of such default, the maturity of such
Indebtedness has been accelerated prior to its stated maturity; 

        (7)  final
unsatisfied judgments not covered by insurance aggregating in excess of $7.5 million, at any one time rendered against the Company or the Parent or any of
their respective Subsidiaries and not stayed, bonded or discharged within 60 days; and 

        (8)  any
Guarantee of a Guarantor ceases to be in full force and effect or becomes unenforceable or invalid or is declared null and void (other than in accordance with the
terms of the Guarantee and this Indenture) or any Guarantor denies or disaffirms its Obligations under its Guarantee. 

SECTION 6.2    ACCELERATION  

        (a)  If
an Event of Default occurs and is continuing (other than an Event of Default specified in clause (4) or (5) of Section 6.1 relating to the
Company or the Parent or any of their respective Significant Subsidiaries,) then in every such case, unless the principal of all of the Notes shall have already become due and payable, either the
Trustee or the Holders of at least 25% in aggregate principal amount of the Notes then outstanding, by notice in writing to the Company (and to the Trustee if given by Holders) (an "Acceleration
Notice"), may declare all principal, determined as set forth below, and accrued and unpaid interest (and Liquidated Damages, if any) thereon to be due and 

51

 

payable immediately. If an Event of Default specified in clause (4) or (5) of Section 6.1 herein relating to the Company or the Parent or any of their respective Significant
Subsidiaries occurs, all principal and accrued and unpaid interest (and Liquidated Damages, if any) thereon shall be immediately due and
payable on all outstanding Notes without any declaration or other act on the part of the Trustee or the Holders. The Holders of a majority in aggregate principal amount of Notes generally are
authorized to rescind such acceleration if all existing Events of Default, other than the non-payment of the principal of, premium, if any, and interest on the Notes which have become due
solely by reason of such acceleration have been cured or waived. 

        (b)  Prior
to the declaration of acceleration of the maturity of the Notes, the Holders of a majority in aggregate principal amount of the Notes at the time outstanding may
waive on behalf of all the Holders any Default or Event of Default, and except a Default in the payment of principal of or interest on any Note not yet cured or a Default with respect to any covenant
or provision which cannot be modified or amended without the consent of the Holder of each outstanding Note affected. Subject to the provisions of this Indenture relating to the duties of the Trustee,
the Trustee shall be under no obligation to exercise any of its rights or powers under this Indenture at the request, order or direction of any of the Holders, unless such Holders have offered to the
Trustee reasonable security or indemnity. 

        Subject
to all provisions of this Indenture and applicable law, the Holders of a majority in aggregate principal amount of the Notes at the time outstanding shall have the right to
direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or exercising any trust or power conferred on the Trustee. 

        (c)  At
any time after such a declaration of acceleration being made and before a judgment or decree for payment of the money due has been obtained by the Trustee as
hereinafter provided in this Article VI, the Holders of not less than a majority in aggregate principal amount of then outstanding Notes, by written notice to the Company and the Trustee, may
rescind, on behalf of all Holders, any such declaration of acceleration and its consequences if: 

        (1)  the
Company has paid or deposited with the Trustee cash sufficient to pay: (a) all overdue interest and Liquidated Damages, if any, on all Notes; (b) the
principal of (and premium, if any, applicable to) any Notes which would become due other than by reason of such declaration of acceleration, and to the extent such interest is lawful, interest thereon
at the rate borne by the Notes; (c) to the extent that payment of such interest is lawful, interest upon overdue interest at the rate borne by the Notes; and (d) all sums paid or
advanced by the Trustee hereunder and the reasonable compensation, expenses, disbursements and advances of the Trustee and its agents and counsel, and all other amounts due the Trustee under
Section 7.7 hereof; and 

        (2)  all
Events of Default, other than the non-payment of the principal of, premium, if any, and interest (and Liquidated Damages, if any) on the Notes which have
become due solely by such declaration of acceleration, have been cured or waived as provided in Section 6.4 hereof. 

        (d)  Notwithstanding
clause (c)(2) of this Section 6.2, no waiver shall be effective against any Holder for any Event of Default or event which with notice or
lapse of time or both would be an Event of Default
with respect to any covenant or provision which cannot be modified or amended without the consent of the Holder of each outstanding Note affected thereby, unless all such affected Holders agree, in
writing, to waive such Event of Default or other event. No such waiver shall cure or waive any subsequent default or impair any right consequent thereon. 

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SECTION 6.3    OTHER REMEDIES  

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

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

SECTION 6.4    WAIVER OF PAST DEFAULTS  

        Subject to Section 6.7 hereof, and notwithstanding anything contained in Section 6.2(b) the Holders of a majority in principal amount of the
outstanding Notes by written notice to the Company and to the Trustee, may, on behalf of all Holders, waive any existing or past Default or Event of Default hereunder and its consequences under this
Indenture, except a default: 

	(1)
	in
the payment of principal of, premium, if any, Liquidated Damages, if any, or interest on any Note not yet cured as specified in clauses (c)(1) and
(c)(2) of Section 6.2 hereof;

	(2)
	in
respect of a covenant or provision hereof which, under Article IX, cannot be modified or amended without the consent of the Holder of each
outstanding Note affected, unless all such affected Holders agree, in writing, to waive such default; or

	(3)
	the
rescission of which would conflict with any judgment or decree of a court of competent jurisdiction. 

        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 arising therefrom. 

SECTION 6.5    CONTROL BY MAJORITY  

        Holders of a majority in aggregate principal amount of the then outstanding Notes have the right to direct the time, method and place of conducting any proceeding
for exercising any remedy available to the Trustee or exercising any trust or power conferred on the Trustee. However, the Trustee may refuse to follow any direction that conflicts with law or this
Indenture, that the Trustee determines in good faith may be unduly prejudicial to the rights of other Holders of Notes not joining in the giving of such direction or that may involve the Trustee in
personal liability and the Trustee may take any other action it deems proper that is not inconsistent with any such direction received from Holders of the Notes. 

SECTION 6.6    LIMITATION ON SUITS  

        A Holder of a Note may pursue a remedy with respect to this Indenture or the Notes only if: 

        (a)  the
Holder of a Note gives to the Trustee written notice of a continuing Event of Default; 

        (b)  the
Holders of at least 25% in aggregate principal amount of the then outstanding Notes make a written request to the Trustee to pursue the remedy; 

        (c)  such
Holder of a Note or Holders of Notes offer and, if requested, provide to the Trustee indemnity satisfactory to the Trustee against any costs, liability or expense; 

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

        (e)  during
such 60-day period the Holders of a majority in aggregate principal amount of the then outstanding Notes do not give the Trustee a direction
inconsistent with the request. 

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

SECTION 6.7    RIGHTS OF HOLDERS OF NOTES TO RECEIVE PAYMENT  

        Notwithstanding any other provision of this Indenture, except as permitted by Section 9.2 hereof, the right of any Holder of a Note to receive payment of
the principal of, premium and interest (and Liquidated Damages, if any) on the Notes, on or after the respective due dates expressed in the Notes (including in connection with an offer to purchase) or
to bring suit for the enforcement of any such payment on or after such respective dates, shall not be impaired or affected without the consent of such Holder. 

SECTION 6.8    COLLECTION SUIT BY TRUSTEE  

        If an Event of Default specified in Section 6.1 hereof occurs and is continuing, the Trustee is authorized to recover judgment in its own name and as
trustee of an express trust against the Issuers for the whole amount of principal of, premium and Liquidated Damages, if any, and interest remaining unpaid on the Notes and, to the extent lawful,
interest on overdue principal and, to the extent lawful, interest and such further amount as shall be sufficient to cover the costs and expenses of collection, including the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel. 

SECTION 6.9    TRUSTEE MAY FILE PROOFS OF CLAIM  

        The Trustee is authorized to file such proofs of claim and other papers or documents as may be necessary or advisable in order to have the claims of the Trustee
(including any claim for the reasonable compensation, expenses, disbursements and advances of the Trustee, its agents and counsel) and the Holders of the Notes allowed in any judicial proceedings
relative to the Company (or any other obligor upon the Notes), its creditors or its property and shall be entitled and empowered to collect, receive and distribute any money or other property payable
or deliverable on any such claims and any custodian in any such judicial proceeding is hereby authorized by each Holder to make such payments to the Trustee, and in the event that the Trustee shall
consent to the making of such payments directly to the Holders, to pay to the Trustee any amount due to it for the reasonable compensation, expenses, disbursements and advances of the Trustee, its
agents and counsel, and any other amounts due the Trustee under Section 7.7 hereof. To the extent that the payment of any such compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, and any other amounts due the Trustee under Section 7.7 hereof out of the estate in any such proceeding, shall be denied for any reason, payment of the same shall be
secured by a Lien on, and shall be paid out of, any and all
distributions, dividends, money, securities and other properties that the Holders may be entitled to receive in such proceeding whether in liquidation or under any plan of reorganization or
arrangement or otherwise. Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent to or accept or adopt on behalf of any Holder any plan of reorganization,
arrangement, adjustment or composition affecting the Notes or the rights of any Holder, or to authorize the Trustee to vote in respect of the claim of any Holder in any such proceeding;  provided, however that the Trustee may, on behalf of the Holders, vote for the election of a trustee in bankruptcy or similar official and may be a
member of the creditor's committee. 

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SECTION 6.10    PRIORITIES  

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

        First:    to the Trustee, its agents and attorneys for amounts due under Section 7.7 hereof, including payment of all
compensation, expense and liabilities incurred, and all advances made, by the Trustee and the costs and expenses of collection (including the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel); 

        Second:    to Holders of Notes for amounts due and unpaid on the Notes for principal and Liquidated Damages, if any, and
interest, ratably, without preference or priority of any kind, according to the amounts due and payable on the Notes for principal, premium and Liquidated Damages, if any, and interest, respectively;
and 

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

        The
Trustee may fix a Record Date and payment date for any payment to Holders of Notes pursuant to this Section 6.10. 

SECTION 6.11    UNDERTAKING FOR COSTS  

        In any suit for the enforcement of any right or remedy under this Indenture or in any suit against the Trustee for any action taken or omitted by it as a Trustee,
a court in its discretion may require the filing by any party litigant in the suit of an undertaking to pay the costs of the suit, and the court in its discretion may assess reasonable costs,
including reasonable attorneys' fees, against any party litigant in the suit, having due regard to the merits and good faith of the claims or defenses made by the party litigant. This
Section 6.11 does not apply to a suit by the Trustee, a suit by a Holder of a Note pursuant to Section 6.7 hereof, or a suit by Holders of more than 10% in aggregate principal amount of
the then outstanding Notes. 

 
 

ARTICLE VII
  TRUSTEE    
  

SECTION 7.1    DUTIES OF TRUSTEE  

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

        (b)  Except
during the continuance of an Event of Default of which the Trustee has knowledge: 

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

        (2)  in
the absence of bad faith on its part, the Trustee may conclusively rely, as to the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the requirements of this Indenture. However, the Trustee shall examine the certificates and opinions to determine whether or not
they conform to the requirements of this Indenture. 

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

        (1)  this
clause (c) does not limit the effect of clause (b) of this Section 7.1; 

        (2)  the
Trustee shall not be liable for any error of judgment made in good faith by an Officer of the Trustee, unless it is proved that the Trustee was negligent in
ascertaining the pertinent facts; and 

        (3)  the
Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to
Section 6.5 hereof. 

        (d)  Whether
or not therein expressly so provided, every provision of this Indenture that in any way relates to the Trustee is
subject to Sections 7.1 and 7.2 hereof. 

        (e)  No
provision of this Indenture shall require the Trustee to expend or risk its own funds or incur any liability. The Trustee shall be under no obligation to exercise any
of its rights and powers under this Indenture at the request of any Holders, unless such Holder shall have offered to the Trustee security and 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. 

SECTION 7.2    RIGHTS OF TRUSTEE  

        (a)  In
connection with the Trustee's rights and duties under this Indenture, the Trustee may conclusively rely upon any document believed by it to be genuine and to have
been signed or presented by the proper Person. The Trustee need not investigate any fact or matter stated in the document. 

        (b)  Before
the Trustee acts or refrains from acting under this Indenture, it may require an Officers' Certificate or an Opinion of Counsel or both. 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. The Trustee may consult with counsel and the written advice of such
counsel or any Opinion of Counsel shall be full and complete authorization and protection from liability in respect of any action taken, suffered or omitted by it hereunder in good faith and in
reliance thereon. 

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

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

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

        (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 unless
such Holders shall have offered to the Trustee reasonable security or indemnity against the costs, expenses and liabilities that might be incurred by it in compliance with such request or direction. 

        (g)  Except
with respect to Section 4.1 hereof, the Trustee shall have no duty to inquire as to the performance of the Company's covenants in Article IV hereof.
In addition, the Trustee shall not be deemed to have knowledge of any Default or Event of Default except (i) any Event of Default occurring pursuant to Sections 6.1(1), 6.1(2) and 4.1 hereof or
(ii) any Default or Event of Default of which the Trustee shall have received written notification in the manner set forth in this Indenture or an officer in the corporate trust administration
of the Trustee shall have obtained actual knowledge. 

56

 

Delivery of reports, information and documents to the Trustee under Section 4.3 hereof is for informational purposes only and the Trustee's receipt of the foregoing shall not constitute
constructive notice of any information contained therein or determinable from information contained therein, including the Company's or any Guarantor's, as applicable, compliance with any of their
covenants thereunder (as to which the Trustee is entitled to rely exclusively on an Officer's Certificate). 

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

SECTION 7.3    INDIVIDUAL RIGHTS OF TRUSTEE  

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

SECTION 7.4    TRUSTEE'S DISCLAIMER  

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

SECTION 7.5    NOTICE OF DEFAULTS  

        If a Default or Event of Default occurs and is continuing and if it is known to the Trustee, the Trustee shall mail to Holders of Notes a notice in the manner and
to the extent provided by Section 313(c) of the TIA of the Default or Event of Default within 90 days after it occurs. Except in the case of a Default or Event of Default in payment of
principal of, premium, if any, Liquidated Damages, if any, or interest on any Note, the Trustee may withhold the notice if and so long as a committee of its Officers in good faith determines that
withholding the notice is in the interests of the Holders of the Notes. 

SECTION 7.6    REPORTS BY TRUSTEE TO HOLDERS OF THE NOTES  

        Within 60 days after each May 15 beginning with the May 15 following the date of this Indenture, and for so long as Notes remain outstanding,
the Trustee shall mail to the Holders of the Notes a brief report dated as of such reporting date that complies with TIA § 313(a) (but if no event described in TIA § 313(a) has
occurred within the 12 months preceding the reporting date, no report need be transmitted). The Trustee also shall comply with TIA § 313(b)(2). The Trustee shall also transmit by
mail all reports as required by TIA § 313(c). 

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

57

 

SECTION 7.7    COMPENSATION AND INDEMNITY  

        The Company shall pay to the Trustee from time to time reasonable compensation for its acceptance of this Indenture and services hereunder. 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 promptly upon request for all reasonable disbursements, advances
and expenses incurred or made by it in addition to the compensation for its services. Such expenses shall include the reasonable compensation, disbursements and expenses of the Trustee's agents and
counsel. 

        The
Company shall indemnify the Trustee against any and all losses, liabilities or expenses (including reasonable attorneys' fees) incurred by it arising out of or in connection with the
acceptance or administration of its duties under this Indenture, including the costs and expenses of enforcing this Indenture against the Company (including this Section 7.7) and defending
itself against any claim (whether asserted by the Company or any Holder or any other Person) or liability in connection with the exercise or performance of any of its powers or duties hereunder,
except to the extent any such loss, liability or expense may be attributable to its negligence, bad faith or willful misconduct. The Trustee shall notify the Company promptly of any claim for which it
may seek indemnity. Failure by the Trustee to so notify the Company shall not relieve the Company of its obligations hereunder. 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. 

        The
obligations of the Company under this Section 7.7 shall survive the satisfaction and discharge of this Indenture. 

        To
secure the Company's payment obligations in this Section 7.7, the Trustee shall have a Lien prior to the Notes on all money or property held or collected by the Trustee, except
that held in trust to pay principal and interest on particular Notes. Such Lien shall survive the satisfaction and discharge of this Indenture. 

        When
the Trustee incurs expenses or renders services after an Event of Default specified in Sections 6.1(4) or 6.1(5) hereof occurs, the expenses and the compensation for the services
(including the fees and expenses of its agents and counsel) are intended to constitute expenses of administration under any Bankruptcy Law. 

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

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 7.8. 

        The
Trustee may resign in writing at any time and be discharged from the trust hereby created by so notifying the Company. The Holders of Notes of a majority in principal amount of the
then outstanding Notes may remove the Trustee by so notifying the Trustee and the Company in writing. The Company may remove the Trustee if: 

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

        (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. 

58

 

        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 Notes may appoint a successor Trustee to replace the successor Trustee appointed by the Company. 

        If
a successor Trustee does not take office within 60 days after the retiring Trustee resigns or is removed, the retiring Trustee, the Company, or the Holders of Notes of at least
10% in aggregate principal amount of the then outstanding Notes may petition any court of competent jurisdiction for the appointment of a successor Trustee. 

        If
the Trustee, after written request by any Holder of a Note who has been a Holder of a Note for at least six months, fails to comply with Section 7.10 hereof, such Holder of a
Note 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. Thereupon, 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 under this Indenture. The successor Trustee shall mail a notice of its succession to Holders of
the Notes. The retiring Trustee shall promptly transfer all property held by it as Trustee to the successor Trustee; provided all sums owing to the
Trustee hereunder have been paid and subject to the Lien provided for in Section 7.7 hereof. 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. 

SECTION 7.9    SUCCESSOR TRUSTEE BY MERGER, ETC.  

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

SECTION 7.10    ELIGIBILITY; DISQUALIFICATION  

        There shall at all times be a Trustee hereunder that is a corporation or trust company (or a member of a bank holding company) organized and doing business under
the laws of the United States of America or of any state thereof that is authorized under such laws to exercise corporate trustee power, that is subject to supervision or examination by federal or
state authorities and that has (or the bank holding company of which it is a member has) a combined capital and surplus of at least $50,000,000 as set forth in its most recent published annual report
of condition. 

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

SECTION 7.11    PREFERENTIAL COLLECTION OF CLAIMS AGAINST COMPANY  

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

59

 

 
 

ARTICLE VIII
  LEGAL DEFEASANCE AND COVENANT DEFEASANCE    
  

SECTION 8.1    OPTION TO EFFECT LEGAL DEFEASANCE OR COVENANT DEFEASANCE  

        The Company may, at the option of its Board of Directors evidenced by a resolution set forth in an Officers' Certificate, at any time, elect to have either
Section 8.2 or 8.3 hereof be applied to all outstanding Notes upon compliance with the conditions set forth below in this Article VIII. 

SECTION 8.2    LEGAL DEFEASANCE AND DISCHARGE  

        Upon the Company's exercise under Section 8.1 hereof of the option applicable to this Section 8.2, each of the Company and the Guarantors, as
applicable, shall, subject to the satisfaction of the applicable conditions set forth in Section 8.4 hereof, be deemed to have been discharged from its obligations with respect to all
outstanding Notes and Guarantees, as applicable, on the date the conditions set forth below are satisfied (hereinafter, "Legal Defeasance"). For this purpose, Legal Defeasance means that the Company
shall be deemed to have paid and discharged all amounts owed under the outstanding Notes and the Guarantors shall be deemed to have paid and discharged the entire Indebtedness represented by the
outstanding Guarantees, which shall thereafter be deemed to be "outstanding" only for the purposes of Section 8.5 hereof and the other Sections of this Indenture referred to in (a) and
(b) below, and to have satisfied all its other obligations under such Notes, such Guarantees and this Indenture (and the Trustee, on demand of and at the expense of the Company, shall execute
proper instruments acknowledging the same), except for the following provisions which shall survive until otherwise terminated or discharged hereunder: (a) the rights of Holders of outstanding
Notes to receive solely from the trust fund described in Section 8.4 hereof, and as more fully set forth in Section 8.4, payments in respect of the principal of, premium, if any, and
interest (and Liquidated Damages, if any) on such Notes when such payments are due, (b) the Company's obligations with respect to such Notes under Sections 2.6, 2.7 and 2.10 hereof,
(c) the rights, powers, trusts, duties and immunities of the Trustee hereunder and the Company's obligations in connection therewith and (d) this Article VIII. Subject to
compliance with this Article VIII, the Company may exercise its option under this Section 8.2 notwithstanding the prior exercise of its option under Section 8.3 hereof. 

SECTION 8.3    COVENANT DEFEASANCE  

        Upon the Company's exercise under Section 8.1 hereof of the option applicable to this Section 8.3, subject to the satisfaction of the applicable
conditions set forth in Section 8.4 hereof, the Company and the Guarantors shall be released from their respective obligations under Sections 4.3, 4.4, 4.5, 4.7, 4.8, 4.9, 4.10, 4.11, 4.12,
4.13, 4.14, 4.15, 4.16 and 4.18 and Article V hereof and the Guarantors shall be released from their obligations under Article X hereof, in each case on and after the date the conditions
set forth below are satisfied (hereinafter, "Covenant Defeasance"), and the Notes and the Guarantees shall thereafter be deemed not "outstanding" for the purposes of any direction, waiver, consent or
declaration or act of Holders (and the consequences of any thereof) in connection with such covenants, but shall continue to be deemed "outstanding" for all other purposes hereunder (it being
understood that such Notes shall not be deemed outstanding for accounting purposes). For this purpose, Covenant Defeasance means that, with respect to the outstanding Notes, the Company and the
Guarantors may omit to comply with and shall have no liability in respect of any term, condition or limitation set forth in any such covenant, whether directly or indirectly, by reason of any
reference elsewhere herein to any such covenant or by reason of any reference in any such covenant to any other provision herein or in any other document and such omission to comply shall not
constitute a Default or an Event of Default under Section 6.1 hereof, but, except as specified above, the remainder of this Indenture and such Notes shall be unaffected thereby. In addition,
upon the Company's exercise under 

60

 

Section 8.1 hereof of the option applicable to this Section 8.3, subject to the satisfaction of the applicable conditions set forth in Section 8.4 hereof, (x) Sections
6.1(3), (6) and (7) hereof shall not constitute Events of Default and (y) Sections 6.1(4) and 6.1(5) hereof shall not constitute an Event of Default to the extent they occur after
the 91st day following the occurrence of the Company's exercise of Covenant Defeasance; provided, however that for all other purposes as set forth
herein, such Covenant Defeasance provisions shall be effective. 

SECTION 8.4    CONDITIONS TO LEGAL OR COVENANT DEFEASANCE  

        The following shall be the conditions to the application of either Section 8.2 or 8.3 hereof to the outstanding Notes: 

        In
order to exercise either Legal Defeasance or Covenant Defeasance: 

        (a)  the
Company must irrevocably deposit with the Trustee, in trust, for the benefit of the Holders, cash in United States legal tender, U.S. Government Obligations, or a
combination thereof, in amounts that shall be sufficient, in the opinion of a nationally recognized firm of independent public accountants, to pay the principal of, premium, if any, and interest on
the outstanding Notes on the stated date for payment thereof or on the applicable redemption date, as the case may be, and the Trustee must have, for the benefit of Holders of the Notes, a valid,
perfected exclusive security interest in such trust; 

        (b)  in
the case of an election under Section 8.2 hereof, the Company must deliver to the Trustee an Opinion of Counsel in the United States reasonably acceptable to
the Trustee confirming that: (A) the Company has received from, or there has been published by, the Internal Revenue Service, a ruling or (B) since the date of this Indenture, there has
been a change in the applicable federal income tax law, in either case to the effect that, the Holders of the outstanding Notes shall not recognize income, gain or loss for federal income tax purposes
as a result of such Legal Defeasance and shall 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 Defeasance had not
occurred; 

        (c)  in
the case of an election under Section 8.3 hereof, the Company must deliver to the Trustee an Opinion of Counsel in the United States reasonably acceptable to
the Trustee confirming that Holders of the outstanding Notes shall not recognize income, gain or loss for federal income tax purposes as a result of such Covenant Defeasance and shall 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 Defeasance had not occurred; 

        (d)  in
the case of an election under Section 8.2 or 8.3 hereof, (x) no Default or Event of Default shall have occurred and be continuing on the date of the
deposit, and (y) in the case of Legal Defeasance no Event of Default specified in Section 6.1(4) or 6.1(5) hereof shall have occurred at any time from the date of the deposit to the
91st calendar day thereafter; 

        (e)  the
Defeasance may not result in a breach or violation of, or constitute a default under this Indenture or any other material agreement or instrument to which the
Company, the Parent or any of their respective Subsidiaries are a party or by which the Company, the Parent or any of their Subsidiaries are bound; 

        (f)    the
Company must deliver to the Trustee an Officers' Certificate stating that the deposit was not made by the Company with the intent to hinder, delay or defraud any
other of the Company's creditors; and 

61

  

        (g)  the Company must deliver to the Trustee an Officers' Certificate confirming the satisfaction of the conditions in clauses (a) through (f) above, and an
Opinion of Counsel, confirming the satisfaction of the conditions in clauses (a) (with respect to the validity and perfection of the security interest), (b), (c) and (e). 

        Legal
Defeasance and Covenant Defeasance shall be deemed effective on the earlier of (i) the 91st day after the deposit and (ii) the day all of the applicable
conditions set forth in this Section 8.4 are satisfied. 

SECTION 8.5    DEPOSITED MONEY AND GOVERNMENT SECURITIES TO BE HELD IN TRUST; OTHER MISCELLANEOUS PROVISIONS  

        Subject to Section 8.6 hereof, all money and U.S. Government Obligations (including the proceeds thereof) deposited with the Trustee (or other qualifying
trustee, collectively for purposes of this Section 8.5, the "Trustee") pursuant to Section 8.4 hereof in respect of the outstanding Notes shall be held in trust and applied by the
Trustee, in accordance with the provisions of such Notes and this Indenture, to the payment, either directly or through any Paying Agent (including the Company acting as Paying Agent) as the Trustee
may determine, to the Holders of such Notes of all sums due and to become due thereon in respect of principal, premium, if any, and interest (and Liquidated Damages, if any), but such money need not
be segregated from other funds except to the extent required by law. 

        The
Company shall pay and indemnify the Trustee against any tax, fee or other charge imposed on or assessed against the money or U.S. Government Obligations deposited pursuant to
Section 8.4 hereof or the principal and interest received in respect thereof, other than any such tax, fee or other charge which by law is for the account of the Holders of the outstanding
Notes. 

        Anything
in this Article VIII to the contrary notwithstanding, the Trustee shall deliver or pay to the Company from time to time upon the request of the Company any money or U.S.
Government Obligations held by it as provided in Section 8.4 hereof which, in the opinion of a firm of independent public accountants nationally recognized in the United States expressed in a
written certification thereof delivered to the Trustee (which may be the opinion delivered under Section 8.4(a) hereof), are in excess of the amount thereof that would then be required to be
deposited to effect an equivalent Legal Defeasance or Covenant Defeasance. 

SECTION 8.6    REPAYMENT TO COMPANY  

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

SECTION 8.7    REINSTATEMENT  

        If the amount deposited with the Trustee to effect a Covenant Defeasance is insufficient to pay the principal of, premium, if any, and interest on the Notes when
due, or if any court enters an order 

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directing the repayment of the deposit to us or otherwise making the deposit unavailable to make payments under the Notes when due, then (so long as the insufficiency exists or the order remains in
effect) our and the Guarantors' obligations under the Indenture and the Notes and the Guarantees will be revived, and the Defeasance will be deemed not to have occurred. 

 
 

ARTICLE IX
  AMENDMENT, SUPPLEMENT AND WAIVER    
  

SECTION 9.1    WITHOUT CONSENT OF HOLDERS OF NOTES  

        Notwithstanding Section 9.2 hereof, the Company, the Guarantors and the Trustee may amend or supplement this Indenture, the Notes or any Guarantee, without
the consent of any Holder of a Note: 

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

        (b)  to
provide for uncertificated Notes in addition to or in place of certificated Notes; 

        (c)  to
provide for the assumption of the Company's obligations to the Holders of the Notes in the case of a merger or consolidation pursuant to Article V hereof; 

        (d)  to
provide for the release or assumption of a Guarantee in compliance with this Indenture; 

        (e)  to
make any change that would provide any additional rights or benefits to the Holders of the Notes or that does not adversely affect the rights hereunder of any Holder
of the Note; 

        (f)    to
comply with the provisions of the Depositary, Euroclear or Clearstream or the Trustee with respect to the provisions of this Indenture or the Notes relating to
transfers and exchanges of Notes or beneficial interests therein; 

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

        (h)  to
provide for the issuance of Additional Notes in accordance with the limitations set forth in this Indenture as of the date hereof. 

        Upon
the request of the Company accompanied by a resolution of its Board of Directors authorizing the execution of any such amended or supplemental Indenture, and upon receipt by the
Trustee of the documents described in Section 9.6 hereof, the Trustee shall join with the Company in the execution of any amended or supplemental Indenture authorized or permitted by the terms
of this Indenture and to make any further appropriate agreements and stipulations that may be therein contained, but the Trustee shall not be obligated to enter into such amended or supplemental
Indenture that adversely affects its own rights, duties or immunities under this Indenture or otherwise. 

SECTION 9.2    WITH CONSENT OF HOLDERS OF NOTES  

        Except as expressly stated otherwise in this Section 9.2, and subject to Sections 6.4 and 6.7 hereof, the Company, the Guarantors and the Trustee may amend
or supplement this Indenture, the Notes and the
Guarantees, with the consent of the Holders of a majority in aggregate principal amount of the Notes then outstanding (including, without limitation, consents obtained in connection with a purchase
of, or tender offer or exchange offer for, the Notes), and, subject to Sections 6.4 and 6.7 hereof, any existing Default or Event of Default (other than a Default or Event of Default in the payment of
the principal of, premium, if any, or interest on the Notes, except a payment default resulting from an acceleration that has been rescinded) or compliance with any provision of this Indenture or the
Notes may be waived with the consent of the Holders of a majority in aggregate principal amount of the then outstanding Notes (including consents obtained in connection with a purchase of, or tender
offer or exchange offer for, the Notes). 

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        Subject
to Sections 6.4 and 6.7 hereof, the Holders of a majority in aggregate principal amount of the Notes then outstanding may waive compliance in a particular instance by the Company
or any Subsidiary with any provision of this Indenture or the Notes. 

        However,
without the consent of each Holder affected (it being understood that, except as expressly stated otherwise in clauses (a) through (e) below, Section 4.13
and 4.14 hereof may be amended, waived or modified in accordance with the first paragraph of this Section 9.2) an amendment or waiver may not (with respect to any Notes held by a
non-consenting Holder): 

        (a)  change
the Stated Maturity on any Note, or reduce the principal amount thereof or the rate (or extend the time for payment) of interest thereon or any premium payable
upon the redemption thereof at the Company's option, or change the city of payment where, or the coin or currency in which, any Note or any premium or the interest thereon is payable, or impair the
right to institute suit for the enforcement of any such payment on or after the Stated Maturity thereof (or, in the case of redemption at our option, on or after the Redemption Date), or reduce the
Change of Control Purchase Price or the Asset Sale Offer Price or otherwise modify such covenants in a manner adverse to the Holders after the corresponding Asset Sale or Change of Control has
occurred or alter the provisions (including the defined terms used therein) regarding the Company's right to redeem the Notes as a right, or at the Company's option, in a manner adverse to the
Holders; 

        (b)  reduce
the percentage in principal amount of the outstanding Notes, the consent of whose Holders is required for any such amendment, supplemental indenture or waiver
provided for in this Indenture; 

        (c)  modify
any of the waiver provisions, except to increase any required percentage or to provide that certain other provisions of this Indenture cannot be modified or
waived without the consent of the Holder of each outstanding Note affected thereby; 

        (d)  cause
the Notes or any Guarantee to become contractually subordinate in right of payment to any other Indebtedness of the Company or the applicable Guarantor, as the
case may be; or 

        (e)  make
any changes in the foregoing clauses (a) through (d) or this clause (e) hereof, in a manner adverse to the Holders of the Notes. 

        In
connection with any amendment, supplement or waiver under this Article IX, the Company may, but shall not be obligated to, offer to any Holder who consents to such amendment,
supplement or waiver, or to all Holders, consideration for such Holder's consent to such amendment, supplement or waiver. 

        Upon
the request of the Company accompanied by a resolution of its Board of Directors authorizing the execution of any such amended or supplemental Indenture, and upon the filing with
the Trustee of evidence satisfactory to the Trustee of the consent of the Holders of Notes as aforesaid, and upon receipt by the Trustee of the documents described in Section 9.6 hereof, the
Trustee shall join with the Company in the execution of such amended or supplemental Indenture unless such amended or supplemental Indenture adversely affects the Trustee's own rights, duties or
immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but shall not be obligated to, enter into such amended or supplemental Indenture. 

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

        After
an amendment, supplement or waiver under this Section 9.2 becomes effective, the Company shall mail to the Holders of Notes affected thereby a notice briefly describing the
amendment, supplement or waiver. Any failure of the Company to mail such notice, or any defect therein, shall not, 

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however, in any way impair or affect the validity of any such amended or supplemental Indenture or waiver. 

SECTION 9.3    COMPLIANCE WITH TRUST INDENTURE ACT  

        Every amendment or supplement to this Indenture or the Notes shall be set forth in an amended or supplemental Indenture that complies with the TIA as then in
effect. 

SECTION 9.4    REVOCATION AND EFFECT OF CONSENTS  

        Until an amendment, supplement or waiver becomes effective (as determined by the Company and which may be prior to any such amendment, supplement or waiver
becoming operative), a consent to it by a Holder of a Note is a continuing consent by the Holder of a Note and every subsequent Holder of a Note or portion of a Note that evidences the same
Indebtedness as the consenting Holder's Note, even if notation of the consent is not made on any Note. However, any such Holder of a Note or subsequent Holder of a Note may revoke the consent as to
its Note if the Trustee receives written notice of revocation before the date the waiver, supplement or amendment becomes effective (as determined by the Company), which may be prior to any such
amendment, supplement or waiver becoming operative. 

        The
Company may, but shall not be obligated to, fix a record date for the purpose of determining the Holders entitled to consent to any amendment, supplement or waiver, which record date
shall be the date so fixed by the Company notwithstanding the provisions of the TIA. If a record date is fixed, then notwithstanding the last sentence of the immediately preceding paragraph, those
Persons who were Holders at such record date, and only those Persons (or their duly designated proxies), shall be entitled to revoke any consent previously given, whether or not such Persons continue
to be Holders after such record date. 

        After
an amendment, supplement or waiver becomes effective, it shall bind every Holder unless it makes a change described in any of clauses (a) through (e) of
Section 9.2 hereof, in which case, the amendment, supplement or waiver shall bind only each Holder of a Note who has consented to it and every subsequent Holder of a Note or portion of a Note
that evidences the same debt as the consenting Holder's Note; provided, that any such waiver shall not impair or affect the right of any Holder to
receive payment of principal and premium of and interest (and Liquidated Damages, if any) on a Note, on or after the respective dates set for such amounts to become due and payable expressed in such
Note, or to bring suit for the enforcement of any such payment on or after such respective dates. 

SECTION 9.5    NOTATION ON OR EXCHANGE OF NOTES  

        The Trustee may place an appropriate notation about an amendment, supplement or waiver on any Note thereafter authenticated. The Company in exchange for all Notes
may issue and the Trustee shall authenticate new Notes that reflect the amendment, supplement or waiver. 

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

SECTION 9.6    TRUSTEE TO SIGN AMENDMENTS, ETC.  

        The Trustee shall sign any amended or supplemental Indenture authorized pursuant to this Article IX if the amendment or supplement does not adversely
affect the rights, duties, liabilities or immunities of the Trustee. The Company may not sign an amended or supplemental Indenture until the Board of Directors approves it. In executing any amended or
supplemental Indenture, the Trustee shall be entitled to receive indemnity reasonably satisfactory to it and to receive and (subject to 

65

 

Section 7.1 hereof) shall be fully protected in relying upon, an Officers' Certificate and an Opinion of Counsel stating that the execution of such amended or supplemental Indenture is
authorized or permitted by this Indenture. 

 
 

ARTICLE X
  GUARANTEES    
  

SECTION 10.1    GUARANTEES  

        By its execution hereof, each of the Guarantors acknowledges and agrees that it receives substantial benefits from the Company and that such party is providing
its Guarantee for good and valuable consideration, including, without limitation, such substantial benefits and services. 

        Accordingly,
subject to the provisions of this Article X, each Guarantor, jointly and severally, hereby unconditionally guarantees on a senior unsecured basis to each Holder of a
Note authenticated and delivered by the Trustee and its successors and assigns that: (i) the principal of, premium, if any, and interest and Liquidated Damages, if any, on the Notes shall be
duly and punctually paid in full when due, whether at maturity, by acceleration, call for redemption, upon a Change of Control Offer, upon an Asset Sale Offer or otherwise, and interest on overdue
principal, premium, if any, Liquidated Damages, if any, and (to the extent permitted by law) interest on any interest, if any, on the Notes and all other Obligations of the Company to the Holders or
the Trustee hereunder or under the Notes (including fees, expenses or other) shall be promptly paid in full or performed, all in accordance with the terms hereof; and (ii) in case of any
extension of time of payment or renewal of any Notes or any of such other Obligations, the same shall be promptly paid in full when due or performed in accordance with the terms of the extension or
renewal, whether at stated maturity, by acceleration, call for redemption, upon a Change of Control, upon an Asset Sale Offer or otherwise, subject, however, in the case of clauses (i) and
(ii) above, to the limitations set forth in Section 10.5 hereof (collectively, the "Guarantee Obligations"). 

        Subject
to the provisions of this Article X, each Guarantor hereby agrees that its Guarantee hereunder shall be unconditional, irrespective of the validity, regularity or
enforceability of the Notes or this Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any thereof, the entry of any judgment
against the Company, any action to enforce the same or any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a Guarantor. Each Guarantor hereby waives
and relinquishes: (a) any right to require the Trustee, the Holders or the Company (each, a "Benefitted Party") to proceed against the Company, the Subsidiaries or any other Person or to
proceed against or exhaust any security held by a Benefitted Party at any time or to pursue any other remedy in any secured party's power before proceeding against the Guarantors; (b) any
defense that may arise by reason of the incapacity, lack of authority, death or disability of any other Person or Persons or the failure of a Benefitted Party to file or enforce a claim against the
estate (in administration, bankruptcy or any other proceeding) of any other Person or Persons; (c) demand, protest and notice of any kind (except as expressly required by this Indenture),
including but not limited to notice of the existence, creation or incurring of any new or additional Indebtedness or obligation or of any action or non-action on the part of the
Guarantors, the Company, the Subsidiaries, any Benefitted Party, any creditor of the Guarantors, the Company or the Subsidiaries or on the part of any other Person whomsoever in connection with any
Obligations the performance of which are hereby guaranteed; (d) any defense based upon an election of remedies by a Benefitted Party, including but not limited to an election to proceed against
the Guarantors for reimbursement; (e) any defense based upon any statute or rule of law which provides that the obligation of a surety must be neither larger in amount nor in other respects
more burdensome than that of the principal; (f) any defense arising because of a Benefitted Party's election, in any proceeding instituted under the Bankruptcy Law, of the application of
Section 1111(b)(2) of the Bankruptcy Code; and (g) any defense based on any borrowing or grant of a security interest under Section 364 of the 

66

 

Bankruptcy Code. The Guarantors hereby covenant that, except as otherwise provided therein, the Guarantees shall not be discharged except by payment in full of all Guarantee Obligations, including
the principal, premium, if any, and interest on the Notes and all other costs provided for under this Indenture. 

        If
any Holder or the Trustee is required by any court or otherwise to return to either the Company or the Guarantors, or any trustee or similar official acting in relation to either the
Company or the Guarantors, any amount paid by the Company or the Guarantors to the Trustee or such Holder, the Guarantees, to the extent theretofore discharged, shall be reinstated in full force and
effect. Each of the Guarantors agrees that it shall not be entitled to any right of subrogation in relation to the Holders in respect of any Guarantee Obligations hereby until payment in full of all
such Obligations guaranteed hereby. Each Guarantor agrees that, as between it, on the one hand, and the Holders of Notes and the Trustee, on the other hand, (x) the maturity of the Obligations
guaranteed hereby may be accelerated as provided in Article VI hereof for the purposes hereof, notwithstanding any stay, injunction or other prohibition preventing such acceleration in respect
of the Guarantee Obligations, and (y) in the event of any acceleration of such Obligations as provided in Article VI hereof, such Guarantee Obligations (whether or not due and payable)
shall forthwith become due and payable by such Guarantor for the purpose of the Guarantee. 

SECTION 10.2    EXECUTION AND DELIVERY OF GUARANTEES  

        To evidence its Guarantees set forth in Section 10.1 hereof, each of the Guarantors agrees that a notation of its Guarantees substantially in the form
included in Exhibit A hereto shall be endorsed on each Note authenticated and delivered by the Trustee and that this Indenture shall be executed on behalf of such Guarantors by an Officer of
such Guarantors. 

        Each
of the Guarantors agree that its Guarantees set forth in this Article X shall remain in full force and effect and apply to all the Notes notwithstanding any failure to
endorse on each Note a notation of the Guarantees. 

        If
an Officer whose facsimile signature is on a Note or a notation of Guarantee no longer holds that office at the time the Trustee authenticates the Note on which the Guarantee is
endorsed, the Guarantee shall be valid nevertheless. 

        The
delivery of any Note by the Trustee, after the authentication thereof hereunder, shall constitute due delivery of the Guarantees set forth in this Indenture on behalf of the
Guarantors. 

SECTION 10.3    GUARANTORS MAY CONSOLIDATE, ETC., ON CERTAIN TERMS  

        (a)  Subject
to Article V, nothing contained in this Indenture or in the Notes shall prevent any consolidation or merger of any Guarantor with or into each other or
with or into the Company. Upon any such consolidation or merger, the Guarantee of the Guarantor that does not survive the consolidation or merger shall no longer be of any force or effect. 

        (b)  Except
for a merger or consolidation in which a Guarantor is sold and its Guarantee is released in compliance with the provisions of Section 10.4 hereof or as
permitted by Section 10.3(a), no Guarantor (other than the Parent) shall consolidate or merge with or into (whether or not such Guarantor is the surviving Person) another Person unless, subject
to the provisions of the following clause (c) and the other provisions of this Indenture, (i) the Person formed by or surviving any such consolidation or merger (if other than such
Guarantor) assumes all the obligations of such Guarantor pursuant to a supplemental indenture in form reasonably satisfactory to the Trustee, pursuant to which such Person shall guarantee, on a senior
basis, all of such Guarantor's obligations under such Guarantor's Guarantee on the terms set forth herein; and (ii) immediately before and immediately after giving effect to such transaction on
a pro forma basis, no Default or Event of Default shall have 

67

 

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

        (c)  The
Trustee, subject to the provisions of Section 11.4 hereof, shall be entitled to receive an Officers' Certificate as conclusive evidence that any such
consolidation or merger, and any such assumption of Guarantee Obligations, comply with the provisions of this Section 10.3. Such Officers' Certificate shall comply with the provisions of
Section 11.5 hereof. 

SECTION 10.4    RELEASE OF GUARANTORS  

        Upon the sale or disposition (including by merger or stock purchase) of a Guarantor (other than the Parent) as an entirety to an entity which is not and is not
required to become a Guarantor, or the designation of a Guarantor (other than the Parent) to become an Unrestricted Subsidiary, which transaction is otherwise in compliance with this Indenture
(including, without limitation, the provisions of Section 4.13, such Guarantor shall be deemed released from its obligations under its guarantee of the Notes; provided,
however, that any such termination shall occur only to the extent that all obligations of such Guarantor under all of its guarantees, and under all of its pledges of assets or
other security interests which secure, any of the Company's or the Parent's Indebtedness or Indebtedness of any other of their respective Subsidiaries shall also terminate upon such release, sale or
transfer and none of its Equity Interests are pledged for the benefit of any holder of any of the Company's or the Parent's Indebtedness or any Indebtedness of any of their respective Subsidiaries. 

        Upon
delivery by the Company to the Trustee of an Officer's Certificate, to the effect that such sale or other disposition or that such designation was made by the Company in accordance
with the provisions of this Indenture, the Trustee shall execute any documents reasonably required in order to evidence the release of any such Guarantor from its obligations under its Guarantee.
Except as provided in Section 10.3(a) hereof, any Guarantor not released from its obligations under its Guarantee shall remain liable for the full amount of principal of and interest on the
Notes and for the other obligations of any Guarantor under this Indenture as provided in this Article X. 

        Notwithstanding
the foregoing provisions of this Article X, (i) any Guarantor whose Guarantee would otherwise be released pursuant to the provisions of this
Section 10.4 may elect, at its sole discretion, by
written notice to the Trustee, to maintain such Guarantee in effect notwithstanding the event or events that otherwise would cause the release of such Guarantee (which election to maintain such
Guarantee in effect may be conditional or for a limited period of time), and (ii) any Subsidiary of the Company which is not a Guarantor may elect, at its sole discretion, by written notice to
the Trustee, to become a Guarantor (which election may be conditional or for a limited period of time). 

SECTION 10.5    LIMITATION OF GUARANTOR'S LIABILITY; CERTAIN BANKRUPTCY EVENTS  

        (a)  Each
Guarantor, and by its acceptance hereof each Holder, hereby confirms that it is the intention of all such parties that the Guarantee Obligation of such Guarantor
pursuant to its Guarantee not constitute a fraudulent transfer or conveyance for purposes of any Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any
similar federal or 

68

 

state law. To effectuate the foregoing intention, the Holders and such Guarantor hereby irrevocably agree that the Guarantee Obligations of such Guarantor under this Article X shall be limited
to the maximum amount as shall, after giving effect to all other contingent and fixed liabilities of such Guarantor and after giving effect to any collections from or payments made by or on behalf of
any other Guarantor in respect of the Guarantee Obligations of such other Guarantor under this Article X, result in the Guarantee Obligations of such Guarantor under the Guarantee of such
Guarantor not constituting a fraudulent transfer or conveyance. 

        (b)  Each
Guarantor hereby covenants and agrees, to the fullest extent that it may do so under applicable law, that in the event of the insolvency, bankruptcy, dissolution,
liquidation or reorganization of the Company, such Guarantor shall not file (or join in any filing of), or otherwise seek to participate in the filing of, any motion or request seeking to stay or to
prohibit (even temporarily) execution on the Guarantee and hereby waives and agrees, to the fullest extent that it may do so under applicable law, not to take the benefit of any such stay of
execution, whether under Section 362 or 105 of the Bankruptcy Law or otherwise. 

SECTION 10.6    APPLICATION OF CERTAIN TERMS AND PROVISIONS TO THE GUARANTORS  

        (a)  For
purposes of any provision of this Indenture which provides for the delivery by any Guarantor of an Officers' Certificate and/or an Opinion of Counsel, the
definitions of such terms in Section 1.1
hereof shall apply to such Guarantor as if references therein to the Company were references to such Guarantor. 

        (b)  Any
request, direction, order or demand which by any provision of this Indenture is to be made by any Guarantor, shall be sufficient if evidenced as described in
Section 11.2 hereof as if references therein to the Company were references to such Guarantor. 

        (c)  Any
notice or communication which by any provision of this Indenture is required or permitted to be given or served by the Trustee or by the holders of Notes to or on
any Guarantor may be given or served as described in Section 11.2 hereof as if references therein to the Company were references to such Guarantor. 

        (d)  Upon
any demand, request or application by any Guarantor to the Trustee to take any action under this Indenture, such Guarantor shall furnish to the Trustee such
certificates and opinions as are required in Section 11.4 hereof as if all references therein to the Company were references to such Guarantor. 

SECTION 10.7    FUTURE GUARANTORS  

        The Issuers and the Parent shall cause RFS Financing Partnership, L.P., RFS Leasing II, Inc. and RFS Financing Corp. (the "Future Guarantors") to fully and
unconditionally guarantee on a senior basis the performance of the Notes and the other obligations of the Issuers under this Indenture to the same extent as such obligations are guaranteed by the
other Guarantors, and within 120 days of the Issue Date, to cause each such Future Guarantor to execute and deliver to the Trustee a supplemental indenture making such Future Guarantor a party
to this Indenture. 

 
 

ARTICLE XI
  MISCELLANEOUS    
  

SECTION 11.1    TRUST INDENTURE ACT CONTROLS  

        If any provision of this Indenture limits, qualifies or conflicts with the duties imposed by the TIA, the imposed duties shall control. 

69

   SECTION 11.2    NOTICES  

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

	If to the Company

or the Guarantors:	 	 
	 	 	RFS Partnership, L.P.

850 Ridge Lake Boulevard, Suite 300

Memphis, Tennessee 38120

Attention: Chief Financial Officer
	

with copies (which

shall not constitute

notice) to:	
 	

 
	 	 	Hunton & Williams

Riverfront Plaza—East Tower

Richmond, Virginia 23219

Attention: David Wright, Esq.
	

If to the Trustee:	
 	

 
	 	 	U.S. Bank National Association

180 East Fifth Street

St. Paul, Minnesota 55101

Attention: Corporate Trust Services

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

        All
notices and communications (other than those sent to Holders) shall be deemed to have been duly given: (i) at the time delivered by hand, if personally delivered;
(ii) the third Business Day after sent by mail; (iii) when receipt acknowledged, if telecopied; and (iv) the next Business Day after timely delivery to the courier, if sent by
overnight air courier guaranteeing next day delivery. 

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

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

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

SECTION 11.3    COMMUNICATION BY HOLDERS OF NOTES WITH OTHER HOLDERS OF NOTES  

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

70

 

SECTION 11.4    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 in form and substance reasonably satisfactory to the Trustee (which shall include the statements set forth in Section 11.5 hereof)
stating that, in the opinion of the signers, all conditions precedent and covenants, if any, provided for in this Indenture relating to the proposed action have been satisfied; and 

        (b)  an
Opinion of Counsel in form and substance reasonably satisfactory to the Trustee (which shall include the statements set forth in Section 11.5 hereof) stating
that, in the opinion of such counsel, all such conditions precedent and covenants have been satisfied. 

SECTION 11.5    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 § 314(a)(4)) shall comply with the provisions of TIA § 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 or she 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 satisfied; and 

        (d)  a
statement as to whether or not, in the opinion of such Person, such condition or covenant has been satisfied; provided,
however, that with respect to matters of fact, an Opinion of Counsel may rely on an Officers' Certificate or certificate of public officials. 

SECTION 11.6    RULES BY TRUSTEE AND AGENTS  

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

SECTION 11.7    NO PERSONAL LIABILITY OF DIRECTORS, OFFICERS, EMPLOYEES AND STOCKHOLDERS  

        No past, present or future partner, director, officer, employee, incorporator or stockholder (direct or indirect) of the Issuers or the Guarantors (or any such
successor entity), as such, shall have any liability
for any Obligations of the Issuers or the Guarantors under the Notes, the Guarantees or this Indenture or for any claim based on, in respect of, or by reason of, such Obligations or their creation,
except in their capacity as an obligor or Guarantor of the Notes in accordance with this Indenture. Each Holder by accepting a Note waives and releases all such liability. The waiver and release are
part of the consideration for issuance of the Notes. 

SECTION 11.8    GOVERNING LAW  

        THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE, THE NOTES AND THE GUARANTEES, INCLUDING, WITHOUT LIMITATION,
SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND NEW YORK CIVIL PRACTICE LAWS AND RULES 327(b). 

71

 

SECTION 11.9    NO ADVERSE INTERPRETATION OF OTHER AGREEMENTS  

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

SECTION 11.10    SUCCESSORS  

        All agreements of the Company and the Guarantors in this Indenture and the Notes shall bind their successors. All agreements of the Trustee in this Indenture
shall bind its successors. 

SECTION 11.11    SEVERABILITY  

        In case any one or more of the provisions of this Indenture or in the Notes or in the Guarantees shall be held invalid, illegal or unenforceable, in any respect
for any reason, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions shall not in any way be affected or impaired thereby, it being
intended that all of the provisions hereof shall be enforceable to the full extent permitted by law. 

SECTION 11.12    COUNTERPART ORIGINALS  

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

SECTION 11.13    TABLE OF CONTENTS, HEADINGS, ETC.  

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

[Signatures on following pages] 

72

 
 

SIGNATURES    
  

        IN WITNESS WHEREOF, the parties hereto have executed this Indenture as of the date first written above. 

	 	 	THE ISSUERS:
	

 	
 	

RFS PARTNERSHIP, L.P.
	

 	
 	

By:	

RFS HOTEL INVESTORS, INC.
	 	 	Its:	General Partner
	

 	
 	

By:	

    /s/  KEVIN M. LUEBBERS      

	 	 	 	Name:    Kevin M. Luebbers
	 	 	 	Title:    Chief Financial Officer
	

 	
 	

RFS 2002 FINANCING, INC.
	

 	
 	

By:	

    /s/  KEVIN M. LUEBBERS      

	 	 	 	Name:    Kevin M. Luebbers
	 	 	 	Title:    Chief Financial Officer
	

 	
 	
THE GUARANTORS:
	

 	
 	

RFS HOTEL INVESTORS, INC.
	

 	
 	

By:	

    /s/  KEVIN M. LUEBBERS      

	 	 	 	Name:    Kevin M. Luebbers
	 	 	 	Title:    Chief Financial Officer
	

 	
 	

RFS LEASING VII, INC.
	

 	
 	

By:	

    /s/  KEVIN M. LUEBBERS      

	 	 	 	Name:    Kevin M. Luebbers
	 	 	 	Title:    Chief Financial Officer
	

 	
 	
THE TRUSTEE:
	

 	
 	

U.S. BANK NATIONAL ASSOCIATION
	

 	
 	

By:	

    /s/  FRANK P. LESLIE      

	 	 	 	Name:    Frank P. Leslie
	 	 	 	Title:    Vice President

  

 
 

EXHIBIT A    
  

FORM OF NOTE  

 RFS PARTNERSHIP, L.P.

RFS 2002 FINANCING, INC.  

9.75% [SERIES A] [SERIES B](1) SENIOR NOTE

DUE 2012  

	 	 	CUSIP:	 	 
	 	 	 	 	

	 	 	ISIN:	 	 
	 	 	 	 	

	No.	 	$	 	 
	 	 	 	 	

        RFS
Partnership, L.P., a Tennessee limited partnership, (the "Company", which term includes any successors under the Indenture hereinafter referred to), and RFS 2002
Financing, Inc., a Tennessee corporation ("Finance", which term includes any successors under the Indenture hereinafter referred to, and together with the Company, the "Issuers"), for value
received, hereby promise to pay to                        , or registered assigns, the principal sum
of                        Dollars, on March 1, 2012. 

        Interest
Payment Dates: March 1 and September 1; commencing September 1, 2002. 

        Record
Dates: February 15 and August 15. 

        Reference
is made to the further provisions of this Note on the reverse side, which shall, for all purposes, have the same effect as if set forth at this place. 

	(1)
	Series A
should be replaced with Series B in the Exchange Notes. 

A-1

        IN WITNESS WHEREOF, the Issuers have caused this instrument to be duly executed. 

	 	 	RFS PARTNERSHIP, L.P.

a Tennessee limited partnership
	

 	
 	

By:	

RFS HOTEL INVESTORS, INC.
	 	 	Its:	General Partner
	

 	
 	

 	

By:	

    

	 	 	 	 	Name:	 
	 	 	 	 	Title:	 
	

 	
 	

 	

By:	

    

	 	 	 	 	Name:	 
	 	 	 	 	Title:	 
	

 	
 	

RFS 2002 FINANCING, INC.

a Tennessee corporation
	

 	
 	

By:	

    

	 	 	 	Name:	 	 
	 	 	 	Title:	 	 
	

 	
 	

By:	

    

	 	 	 	Name:	 	 
	 	 	 	Title:	 	 

 
 

TRUSTEE'S CERTIFICATE OF AUTHENTICATION    
  

        This is one of the Notes described in the within-mentioned Indenture. 

	 	 	U.S. BANK NATIONAL ASSOCIATION
	

 	
 	

By:	

    
 Authorized Signatory
	

Dated: February     , 2002	
 	

 	

 

   (Back of Note)  

 9.75% [Series A] [Series B]2 Senior Notes due 2012]

        [THIS
GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE) OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND
IS NOT TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (I) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.6 OF THE INDENTURE,
(II) THIS GLOBAL NOTE MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.6(a) OF THE INDENTURE, (III) THIS GLOBAL NOTE MAY BE DELIVERED TO THE TRUSTEE FOR
CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (IV) THIS GLOBAL NOTE MAY BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE
ISSUERS.]3 

        [UNLESS
AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE
DEPOSITARY OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY. UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) ("DTC"), TO THE ISSUERS OR THEIR AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC
(AND ANY PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO
ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]4 

        [THE
RIGHTS ATTACHING TO THIS REGULATION S TEMPORARY GLOBAL NOTE AND THE CONDITIONS AND PROCEDURES GOVERNING ITS EXCHANGE FOR DEFINITIVE NOTES, ARE AS SPECIFIED IN THE
INDENTURE (AS DEFINED HEREIN). NEITHER THE HOLDER NOR THE BENEFICIAL OWNERS OF THIS REGULATION S TEMPORARY GLOBAL NOTE SHALL BE ENTITLED TO RECEIVE CASH PAYMENTS OF INTEREST
DURING THE PERIOD WHICH SUCH HOLDER HOLDS THIS NOTE. NOTHING IN THIS LEGEND SHALL BE DEEMED TO PREVENT INTEREST FROM ACCRUING ON THIS NOTE.]5 

        [THIS
NOTE (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933 (THE "SECURITIES ACT"), AND
THIS NOTE MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS NOTE IS HEREBY NOTIFIED THAT THE SELLER OF
THIS NOTE MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. 

	2
	Series A
should be replaced with Series B in the Exchange Notes.

	3
	To
be included only on Global Notes deposited with DTC as Depostary.

	4
	To
be included only on Global Notes deposited with DTC as Depostary.

	5
	To
be included only on Reg S Temporary Global Notes. 

A-4

 

        THE
HOLDER OF THIS NOTE AGREES FOR THE BENEFIT OF THE ISSUERS THAT (A) THIS NOTE MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) IN THE UNITED STATES TO
A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A,
(II) OUTSIDE THE UNITED STATES IN AN OFFSHORE TRANSACTION IN ACCORDANCE WITH RULE 904 UNDER THE SECURITIES ACT, (III) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR (IV) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, IN EACH OF CASES (I) THROUGH (IV) IN ACCORDANCE
WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED SATES, AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT
HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS NOTE FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE.]6 

        Capitalized
terms used herein shall have the meanings assigned to them in the Indenture referred to below unless otherwise indicated. 

        1.    Interest.    RFS Partnership, L.P., a Tennessee limited partnership (the "Company") and RFS 2002
Financing, Inc., a Tennessee corporation ("Finance," and together with the Company, the "Issuers"), promise to pay interest on the principal amount of this Note at 9.75% per annum from the
Issue Date until maturity and shall pay the Liquidated Damages, if any, payable pursuant to Section 5 of the Registration Rights Agreement referred to below. The Issuers shall pay interest and
Liquidated Damages, if any, semi-annually on March 1 and September 1 of each year, or if any such day is not a Business Day, on the next succeeding Business Day (each an
"Interest Payment Date"). The first Interest Payment Date shall be September 1, 2002. Interest on the Notes shall accrue from the most recent date to which interest has been paid or, if no
interest has been paid, from the Issue Date; provided that if there is no existing Default in the payment of interest, and if this Note is authenticated
between a Record Date (defined below) referred to on the face hereof and the next succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment Date. The Issuers
shall pay interest (including Accrued Bankruptcy Interest in any proceeding under any Bankruptcy Law) on overdue principal and premium, if any, from time to time on demand at the rate then in effect;
it shall pay interest (including Accrued Bankruptcy Interest in any proceeding under any Bankruptcy Law) on overdue installments of interest and Liquidated Damages, if any, (without regard to any
applicable grace periods) from time to time on demand at the same rate to the extent lawful. Interest shall be computed on the basis of a 360-day year of twelve 30-day months. 

        2.    Method of Payment.    The Issuers shall pay interest on the Notes (except defaulted interest) and Liquidated
Damages, if any, to the Persons who are registered Holders of Notes at the close of business on the February 15 or August 15 next preceding the Interest Payment Date (each a "Record
Date"), even if such Notes are cancelled after such Record Date and on or before such Interest Payment Date, except as provided in Section 2.12 of the Indenture (as defined below) with respect
to defaulted interest. The Notes shall be payable as to principal, interest, premium, if any, and Liquidated Damages, if any, at the office or agency of the Issuers maintained within the City and
State of New York for such purpose, or, at the option of the Issuers, payment of interest and Liquidated Damages, if any, may be made by check mailed to the Holders at their addresses set forth in the
register of Holders, and provided that payment by wire transfer of immediately available funds to an account within the United States shall be required
with respect to principal of and interest, premium, if any, and Liquidated Damages, if any, on all Global Notes. Such payment shall be in such coin or currency of the United States of America as at
the time of payment is legal tender for payment of public and private debts. 

	6
	To
be included only on Transfer Restricted Notes. 

A-5

 

        3.    Paying Agent and Registrar.    Initially, U.S. Bank National Association, the Trustee under the Indenture, shall
act as Paying Agent and Registrar. The Issuers may change any Paying Agent or Registrar without notice to any Holder. The Issuers or any of their Subsidiaries may act in any such capacity. 

        4.    Indenture.    The Issuers issued the Notes under an Indenture dated as of the Issue Date, ("Indenture") by and
among the Issuers, the Guarantors party thereto and the Trustee. The terms of the Notes include those stated in the Indenture and those made part of the Indenture by reference to the Trust Indenture
Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb). The Notes are subject to all such terms, and Holders are referred to the Indenture and such Act for a
statement of such terms. 

        5.    Optional Redemption.    

        (a)  The
Company shall have the option to redeem the Notes, in whole or in part, in cash from time to time, upon not less than 30 days' nor more than 60 days'
notice, prior to March 1, 2007 at a redemption price equal to the greater of (i) 104.875% of the principal amount of the Notes so redeemed, plus accrued and unpaid interest (and
Liquidated Damages, if any) and (ii) the Make-Whole Premium, plus to the extent not included in the Make-Whole Premium, accrued and unpaid interest (and Liquidated
Damages, if any) to, but not including, the redemption date. 

        (b)  The
Notes shall be redeemable for cash at the option of the Company, in whole or in part, at any time on or after March 1, 2007, upon not less than 30 days
nor more than 60 days prior notice mailed by first class mail to each Holder at its last registered address, at the following redemption prices (expressed as percentages of the principal
amount) if redeemed during the 12-month period commencing March 1 of the years indicated below, in each case (subject to the right of Holders of record on a Record Date to receive
the corresponding interest due (and the corresponding Liquidated Damages, if any) on the corresponding Interest Payment Date that is on or prior to such redemption date) together with accrued and
unpaid interest (and Liquidated Damages, if any), thereon to the date of redemption of the Notes (the "Redemption Date"): 

	Year
 
	 	Percentage
	 
	2007	 	104.875	%
	2008	 	103.250	%
	2009	 	101.625	%
	2010 and thereafter	 	100.000	%

        (c)  Notwithstanding
the provisions of clauses (a) and (b) of this Section, at any time or from time to time until March 1, 2005, upon one or more public equity
offerings of the Parent's Qualified Capital Stock, up to 35% of the aggregate principal amount of the Notes issued pursuant to the Indenture (only as necessary to avoid any duplication, excluding any
replacement Notes) may be redeemed at the Company's option within 90 days of such public equity offering, on not less than 30 days, but not more than 60 days, notice to each
Holder of the Notes to be redeemed, with cash in an amount not in excess of the Net Cash Proceeds of such public equity offering, at a redemption price equal to 109.750% of principal, together with
accrued and unpaid interest and Liquidated Damages, if any, to, but not including, the Redemption Date; provided, however, that immediately following
each such redemption not less than 65% of the aggregate principal amount of the Notes (but in no event less than $100 million aggregate principal amount of the Notes) originally issued pursuant
to the Indenture on the Issue Date remain outstanding (only as necessary to avoid any duplication, excluding any replacement Notes). 

        (d)  Notice
of redemption shall be mailed by first class mail at least 30 days but not more than 60 days before the redemption date to each Holder whose Notes
are to be redeemed at its 

A-6

 

registered address. Notes in denominations larger than $1,000 may be redeemed in part but only in integral multiples of $1,000, unless all of the Notes held by a Holder are to be redeemed. On and
after the redemption date interest ceases to accrue on Notes or portions thereof called for redemption unless the Company defaults in such payments due on the redemption date. 

        6.    Mandatory Redemption.    The Issuers shall not be required to make mandatory redemption payments with respect to
the Notes. The Notes shall not have the benefit of any sinking fund. 

        7.    Offers to Purchase.    

        (a)    Change of Control.    In the event that a Change of Control has occurred, each Holder of Notes shall have the
right, at such Holder's option, pursuant to an offer (subject only to conditions required by applicable law, if any) by the Issuers (the "Change of Control Offer"), to require the Issuers to
repurchase all or any part of such Holder's Notes 

(provided, that the principal amount of such Notes must be $1,000 or an integral multiple thereof) on a date (the "Change of Control Purchase Date")
that is no later than 35 Business Days after the occurrence of such Change of Control, at a cash price equal to 101% of the principal amount thereof (the "Change of Control Purchase Price"), together
with accrued and unpaid interest (and Liquidated Damages, if any) to the Change of Control Purchase Date. 

        The
Change of Control Offer shall be made within 10 Business Days following a Change of Control and shall remain open for 20 Business Days following its commencement (the "Change of
Control Offer Period"). Upon expiration of the Change of Control Offer Period, the Issuers shall promptly purchase all Notes properly tendered in response to the Change of Control Offer. 

        (b)    Asset Sale.    The Company or the Parent shall not and shall not permit any of their respective Subsidiaries
to, in one or a series of related transactions, convey, sell, transfer, assign or otherwise dispose of, directly or indirectly, any of their property, business or assets, including by merger or
consolidation (in the case of a Subsidiary or Unrestricted Subsidiary), and including any sale or other transfer or issuance of any Equity Interests of any Subsidiary, whether by the Company or the
Parent or one of their respective Subsidiaries or through the issuance, sale or transfer of Equity Interests by one of their respective Subsidiaries or Unrestricted Subsidiaries and including any sale
and leaseback transaction (any of the foregoing, an "Asset Sale"), unless: (1) at least 75% of the total consideration for such Asset Sale or series of related Asset Sales consists of cash or
Cash Equivalents; provided, that with respect to the sale of one or more hotel properties, up to 75% of the consideration may consist of Indebtedness of
the purchaser of such hotel properties so long as such Indebtedness is secured by a first priority Lien on the hotel property or properties sold; (2) no Default or Event of Default shall have
occurred and be continuing at the time of, or would occur after giving effect, on a pro forma basis, to such Asset Sale; and (3) the Parent and
the Company determine in good faith that the consideration received by the Parent, the Company or their respective Subsidiaries, as applicable, equals the fair market value for such Asset Sale. 

        In
the event and to the extent that immediately following any Asset Sale the Net Cash Proceeds received by the Company or the Parent or any of their respective Subsidiaries from such
Asset Sale, plus the Net Cash Proceeds of any other Asset Sale(s) which occurred (i) on or after the Issue Date and (ii) within the 360-day period proceeding such Asset Sale,
exceed 10% of Adjusted Consolidated Net Tangible Assets, the Indenture provides that within 360 days following such Asset Sale, the Net Cash Proceeds therefrom (the "Asset Sale Amount") shall
be: (1) invested in assets and property (except in connection with the acquisition of a Subsidiary which is a Guarantor in a Related Business, other than notes, bonds, obligation and
securities) which shall immediately constitute or be a part of a Related Business of the Company or the Parent or such Subsidiary (if it continues to be a Subsidiary) immediately following such
transaction, or (2) used 

A-7

 

to retire Indebtedness incurred under the Credit Agreement and to permanently reduce the amount of such Indebtedness permitted to be incurred pursuant to Section 4.7(b) of the Indenture. 

        Pending
the final application of any Net Cash Proceeds, the Company or the Parent may temporarily reduce revolving credit borrowings or otherwise invest the Net Cash Proceeds in any
manner that is not prohibited by the Indenture. 

        The
accumulated Net Cash Proceeds from Asset Sales not applied as set forth above shall constitute "Excess Proceeds." Within 30 days after the date that the amount of Excess
Proceeds exceeds $10 million, which date shall not be prior to 390 days after the Asset Sale that generated such Excess Proceeds, the Company shall apply an amount (the "Asset Sale Offer
Amount") equal to the Excess Proceeds to the repurchase of the Notes and such other Indebtedness ranking on a parity with the Notes and with provisions requiring the Company to make an offer to
purchase such Indebtedness with the proceeds from such Asset Sale pursuant to a cash offer (subject only to conditions required by applicable law, if any) (pro
rata in proportion to the respective principal amounts (or accreted values in the case of Indebtedness issued with an original issue discount) of the Notes and such other
Indebtedness then outstanding) (the "Asset Sale Offer") at a purchase price of 100% of the principal amount (or accreted value in the case of Indebtedness issued with an original issue discount) (the
"Asset Sale Offer Price") together with accrued and unpaid interest and Liquidated Damages, if any, to the date of payment. Each Asset Sale Offer shall remain open for 20 Business Days following its
commencement (the "Asset Sale Offer Period"). 

        8.    Denominations, Transfer, Exchange.    The Notes are in registered form without coupons in denominations of
$1,000 and integral multiples of $1,000. The transfer of Notes may be registered and Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee may require a Holder, among
other things, to furnish appropriate endorsements and transfer documents and the Issuers may require a Holder to pay any taxes and fees required by law or permitted by the Indenture. The Company need
not exchange or register the transfer of any Note or portion of a Note selected for redemption, except for the unredeemed portion of any Note being redeemed in part. Also, it need not exchange or
register the transfer of any Notes for a period of 15 days before a selection of Notes to be redeemed or during the period between a Record Date and the corresponding Interest Payment Date. 

        9.    Persons Deemed Owners.    The registered Holder of a Note may be treated as its owner for all purposes. 

        10.    Amendment, Supplement and Waiver.    Subject to certain exceptions, the Indenture, the Notes or the Guarantees
may be amended or supplemented with the consent of the Holders of a majority in principal amount of the then outstanding Notes, and any existing Default or compliance with any provision of the
Indenture, the Notes or the Guarantees may be waived with the consent of the Holders of a majority in principal amount of the then outstanding Notes. Without the consent of any Holder of a Note, the
Indenture, the Notes or the Guarantees may be amended or supplemented to cure any ambiguity, defect or inconsistency, to provide for uncertificated Notes in addition to or in
place of certificated Notes, to provide for the assumption of the Issuers' obligations to Holders of the Notes in case of a merger or consolidation, to provide for additional Guarantees as set forth
in the Indenture or for the release or assumption of Guarantees in compliance with the Indenture, to make any change that would provide any additional rights or benefits to the Holders of the Notes
(including the addition of any Guarantor) or that does not adversely affect the rights under the Indenture of any such Holder, to comply with the provisions of the Depositary, Euroclear or Clearstream
or the Trustee with respect to the provisions of the Indenture or the Notes relating to transfers and exchanges of Notes or beneficial interests therein, or to comply with the requirements of the SEC
in order to effect or maintain the qualification of the Indenture under the TIA. 

A-8

 

        11.    Defaults and Remedies.    The Indenture provides that each of the following constitutes an Event of Default: 

        (1)  the
Company's failure to pay any installment of interest (or Liquidated Damages, if any) on the Notes as and when the same becomes due and payable and the continuance of
any such failure for 30 days, 

        (2)  the
Company's failure to pay all or any part of the principal, or premium, if any, on the Notes when and as the same becomes due and payable at maturity, upon
redemption, by acceleration or otherwise, including, without limitation, payment of the Change of Control Purchase Price or the Asset Sale Offer Price, on Notes validly tendered and not withdrawn
pursuant to a Change of Control Offer or Asset Sale Offer, as applicable, 

        (3)  the
Company's failure or the failure by the Parent or any of their respective Subsidiaries to observe or perform any other covenant or agreement contained in the Notes
or the Indenture and, except for the provisions under Sections 4.13, 4.14 and 5.1 of the Indenture, the continuance of such failure for a period of 30 days, 

        (4)  a
court having jurisdiction in the premises enters a decree or order for (A) relief in respect of the Company, the Parent or any of their respective Significant
Subsidiaries in an involuntary case under any applicable Bankruptcy Law now or hereafter in effect, (B) appointment of a receiver, liquidator, assignee, custodian, trustee, sequestrator or
similar official of the Company, the Parent or any of their respective Significant Subsidiaries or for all or substantially all of the property and assets of the Company, the Parent or any of their
respective Significant Subsidiaries or (C) the winding up or liquidation of the affairs of the Company, the Parent or any Significant Subsidiary and, in each case, such decree or order shall
remain unstayed and in effect for a period of 60 consecutive days; or, 

        (5)  the
Company, the Parent or any of their respective Significant Subsidiaries (a) commences a voluntary case under any applicable Bankruptcy Law now or hereafter in
effect, or consents to the entry of an order for relief in an involuntary case under any such law, (b) consents to the appointment of or taking possession by a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official of the Company, the Parent or any of their respective Significant Subsidiaries or for all or substantially all of the property and assets of the
Company, the Parent or any of their respective Significant Subsidiaries or (c) effects any general assignment for the benefit of creditors, 

        (6)  a
default occurs (after giving effect to any waivers, amendments, applicable grace periods or any extension of any maturity date) in any of the Company's or the Parent's
Indebtedness or the Indebtedness of any of their respective Subsidiaries with an aggregate amount outstanding in excess of $7.5 million (or if such Indebtedness is Non-Recourse
Indebtedness, $20 million) (a) resulting from the obligor's failure to pay principal of or interest on such Indebtedness, or (b) as a result of such default, the maturity of such
Indebtedness has been accelerated prior to its stated maturity, 

        (7)  final
unsatisfied judgments not covered by insurance aggregating in excess of $7.5 million, at any one time rendered against the Company or the Parent or any of
their respective Subsidiaries and not stayed, bonded or discharged within 60 days, and 

A-9

  

        (8)  any
Guarantee of a Guarantor ceases to be in full force and effect or becomes unenforceable or invalid or is declared null and void (other than in accordance with the
terms of the Guarantee and the Indenture) or any Guarantor denies or disaffirms its Obligations under its Guarantee. 

        12.    Trustee Dealings with Company.    The Trustee, in its individual or any other capacity, may make loans to,
accept deposits from, and perform services for the Company or its Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not the Trustee. 

        13.    No Recourse Against Others.    No past, present or future partner, director, officer, employee, incorporator or
stockholder (direct or indirect) of the Issuers or the Guarantors (or any such successor entity), as such, shall have any liability for any Obligations of the Issuers or the Guarantors under the
Notes, the Guarantees or the Indenture or for any claim based on, in respect of, or by reason of, such Obligations or their creation, except in their capacity as an obligor or Guarantor of the Notes
in accordance with the Indenture. Each Holder by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes. 

        14.    Authentication.    This Note shall not be valid until authenticated by the manual signature of the Trustee or
an authenticating agent. 

        15.    Abbreviations.    Customary abbreviations may be used in the name of a Holder or an assignee, such as: TEN COM
(= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform Gifts to
Minors Act). 

        16.    Additional Rights of Holders of Transfer Restricted Notes.7    In addition to the rights provided
to Holders of Notes under the Indenture, Holders of Transfer Restricted Notes shall have all the rights set forth in
the Registration Rights Agreement dated as of the date of the Indenture, among the Issuers, the guarantors party thereto and the Initial Purchasers (the "Registration Rights Agreement"). 

	7
	To
be included only on Transfer Restricted Notes. 

A-10

 

        17.    CUSIP Numbers.    Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Company has caused CUSIP numbers to be printed on the Notes and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders. No representation is made as to
the accuracy of such numbers either as printed on the Notes or as contained in any notice of redemption and reliance may be placed only on the other identification numbers placed thereon, and any such
redemption shall not be affected by any defect in or omission of such numbers. 

        18.    Notation of Guarantee.    As more fully set forth in the Indenture, to the extent permitted by law, each of the
Guarantors from time to time, in accordance with Article X of the Indenture, unconditionally and jointly and severally guarantees, to each Holder of a Note authenticated and delivered by the
Trustee and to the Trustee and its successors and assigns, that: it receives substantial benefits from the Company and that such party is providing its Guarantee for good and valuable consideration,
including, without limitation, such substantial benefits and services. 

        When
a successor assumes all the obligations of its predecessor under the Notes and the Indenture, the predecessor may be released from those obligations. 

        19.    Governing Law.    THE INDENTURE AND THE NOTES SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK, INCLUDING, WITHOUT LIMITATION, SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW AND NEW YORK CIVIL LAWS AND RULES 327(b). 

        The
Company shall furnish to any Holder upon written request and without charge a copy of the Indenture [and/or the Registration Rights Agreement]8.
Requests may be made to: 

RFS
Partnership, L.P.

850 Ridge Lake Boulevard, Suite 300

Memphis, Tennessee 38120

(901) 767-7005 

	8
	To
be included only on Transfer Restricted Notes. 

A-11

 
 
 

Assignment Form    
  

        To assign this Note, fill in the form below: (I) or (We) assign and transfer this Note to 

	    
 (Insert assignee's soc. sec. or tax I.D. no.)
	

  

	

  

	

  

 (Print or type assignee's name, address and zip code)
	

and irrevocably appoint
                                         
                               

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

  

	

Date:	

 	
 	

 	

 
	 	
	 	 	 
	

 	

 	
 	

Your Signature:	

 
	 	 	 	 	

	 	 	 	(Sign exactly as your name appears on the face of this Note)
	

Signature Guarantee*	
 	

 	

 
	

    	

 	
 	

 	

 
	    

*NOTICE:
The Signature must be guaranteed by an Institution which is a member of one of the following recognized signature Guarantee Programs: (i) The Securities Transfer Agent Medallion
Program (STAMP); (ii) The New York Stock Exchange Medallion Program (MNSP); (iii) The Stock Exchange Medallion Program (SEMP); or (iv) in such other guarantee program acceptable
to the Trustee. 

A-12

 
 
 

Option of Holder to Elect Purchase    
  

        If you want to elect to have this Note purchased by the Company pursuant to Section 4.13 or Section 4.14 of the Indenture, check the box below: 

	o    Section 4.13	 	o    Section 4.14

        If
you want to elect to have only part of the Note purchased by the Company pursuant to Section 4.13 or Section 4.14 of the Indenture, state the amount you elect to have
purchased (in denominations of $1,000 only, except if you have elected to have all of your Notes purchased): $
                         

	

Date:	

 	
 	

 	

 
	 	
	 	 	 
	

 	

 	
 	

Your Signature:	

 
	 	 	 	 	

	 	 	 	(Sign exactly as your name appears on the face of this Note)
	

    	

 	
 	

 	

 
	 	 	 	Social Security or Tax Identification No.:                         
	

Signature Guarantee*	
 	

 	

 
	

    	

 	
 	

 	

 
	    

*NOTICE:
The Signature must be guaranteed by an Institution which is a member of one of the following recognized signature Guarantee Programs: (i) The Securities Transfer Agent Medallion
Program (STAMP); (ii) The New York Stock Exchange Medallion Program (MNSP); (iii) The Stock Exchange Medallion Program (SEMP); or (iv) in such other guarantee program acceptable
to the Trustee. 

A-13

  

 
 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE9    
  

        The following exchanges of an interest in this Global Note for an interest in another Global Notes or for a Definitive Note, or exchanges of an interest in
another Global Note or Definitive Note for an interest in this Global Note, have been made: 

	Date of Exchange
 
	 	Amount of Decrease in Principal Amount of this Global Note
	 	Amount of Increase in Principal Amount of this Global Note
	 	Principal Amount of this Global Note Following Such Decrease (or Increase)
	 	Signature of Authorized Officer of Trustee or Note Custodian

       

       

	9
	This
should be included only if the Note is issued in global form. 

A-14

 
 
 

GUARANTEE    
  

        The Guarantors listed below (hereinafter referred to as the "Guarantors," which term includes any successors or
assigns under the Indenture, dated the date hereof (the "Indenture"), among the Guarantors, the Issuers (defined below) and U.S. Bank National
Association, as trustee (the "Trustee") and any additional Guarantors, have irrevocably and unconditionally guaranteed on a senior basis the Guarantee
Obligations (as defined in Section 10.1 of the Indenture), which include (i) the due and punctual payment of the principal of, premium, if any, and interest and Liquidated Damages, if
any, on the 9.75% Senior Notes due 2012 (the "Notes") of RFS Partnership, L.P., a Tennessee limited partnership (the
"Company," which term includes any successors or assigns under the Indenture), and RFS 2002 Financing, Inc., a Tennessee corporation
("Finance," which term includes any successors or assigns under the Indenture, and together with the Company, the
"Issuers"), whether at maturity, by acceleration, call for redemption, upon a Change of Control Offer, upon an Asset Sale Offer or otherwise, the due
and punctual payment of interest on the overdue principal and premium, if any, and (to the extent permitted by law) interest on any interest on the Notes, and the due and punctual performance of all
other obligations of the Issuers, to the Holders or the Trustee all in accordance with the terms set forth in Article X of the Indenture, and (ii) in case of any extension of time of
payment or renewal of any Notes or any such other obligations, that the same shall be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at
stated maturity, by acceleration, call for redemption, upon a Change of Control Offer, upon an Asset Sale Offer, or otherwise. 

        The
obligations of each Guarantor to the Holders and to the Trustee pursuant to this Guarantee and the Indenture are expressly set forth in Article X of the Indenture and
reference is hereby made to such Indenture for the precise terms of this Guarantee. 

        No
past, present or future partner, director, officer, employee, incorporator or stockholder (direct or indirect) of the Guarantors (or any such successor entity), as such, shall have
any liability for any obligations of the Guarantors under this Guarantee or the Indenture or for any claim based on, in respect of, or by reason of, such obligations or their creation, except in their
capacity as an obligor or Guarantor of the Notes in accordance with the Indenture. 

        This
is a continuing Guarantee and shall remain in full force and effect and shall be binding upon each Guarantor and its successors and assigns until full and final payment of all of
the Issuers' obligations under the Notes and Indenture or until released or legally defeased in accordance with the Indenture and shall inure to the benefit of the successors and assigns of the
Trustee and the Holders, and, in the event of any transfer or assignment of rights by any Holder or the Trustee, the rights and privileges herein conferred upon that party shall automatically extend
to and be vested in such transferee or assignee, all subject to the terms and conditions hereof. This is a Guarantee of payment and performance and not of collectibility. 

        This
Guarantee shall not be valid or obligatory for any purpose until the certificate of authentication on the Note upon which this Guarantee is noted shall have been executed by the
Trustee under the Indenture by the manual signature of one of its authorized officers. 

        The
obligations of each Guarantor under this Guarantee shall be limited to the extent necessary to insure that it does not constitute a fraudulent conveyance under applicable law. 

        THE
TERMS OF ARTICLE X OF THE INDENTURE ARE INCORPORATED HEREIN BY REFERENCE. 

        Capitalized
terms used herein have the same meanings given in the Indenture unless otherwise indicated. 

[remainder of page intentionally left blank; signature page follows] 

A-15

        IN WITNESS WHEREOF, each of the Guarantors has caused this instrument to be duly executed. 

	 	 	RFS HOTEL INVESTORS, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Name:

Title:
	

 	
 	

RFS LEASING VII, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Name:

Title:

  

 
 

EXHIBIT B
  FORM OF CERTIFICATE OF TRANSFER    
  

RFS
Partnership, L.P.

850 Ridge Lake Boulevard, Suite 300

Memphis, Tennessee 38120 

U.S.
Bank National Association

180 East Fifth Street

St. Paul, Minnesota 55101

Attention: Corporate Trust Services 

        Re:
9.75% Senior Notes due 2012 

Dear
Sirs: 

        Reference
is hereby made to the Indenture, dated as of February 26, 2002 (the "Indenture"), among RFS Partnership, L.P. (the "Company") and RFS 2002 Financing, Inc.
("Finance"), as issuers, the Guarantors party thereto and U.S. Bank National Association, as trustee. Capitalized terms used but not defined herein shall have the meanings given to them in the
Indenture.                        , (the "Transferor") owns and proposes to transfer the Note[s] or interest in such Note[s]
specified in Annex A hereto,
in the principal amount of $                        in such Note[s] or interests (the "Transfer"),
to                        (the "Transferee"), as further specified in Annex A hereto.
In connection with the Transfer, the Transferor hereby certifies that: 

[CHECK
ALL THAT APPLY] 

        1.    o    Check if Transferee shall take delivery of a beneficial
interest in the 144A Global Note or a Definitive Note Pursuant to Rule 144A.    The Transfer is being effected pursuant to and in accordance with
Rule 144A under the United States Securities Act of 1933, as amended (the "Securities Act"), and, accordingly, the Transferor hereby further certifies that the beneficial interest or Definitive
Note is being transferred to a Person that the Transferor reasonably believed and believes is purchasing the beneficial interest or Definitive Note for its own account, or for one or more accounts
with respect to which such Person exercises sole investment discretion, and such Person and each such account is a "qualified institutional buyer" within the meaning of Rule 144A in a
transaction meeting the requirements of Rule 144A and such Transfer is in compliance with any applicable blue sky securities laws of any State of the United States. Upon consummation of the
proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note shall be subject to the restrictions on transfer enumerated in the Private
Placement Legend printed on the 144A Global Note and/or the Definitive Note and in the Indenture and the Securities Act. 

        2.    o    Check if Transferee shall take delivery of a beneficial
interest in the Regulation S Global Note or a Definitive Note pursuant to Regulation S.    The Transfer is being effected pursuant to and in accordance
with Rule 903 or Rule 904 under the Securities Act and, accordingly, the Transferor hereby further certifies that (i) the Transfer is not being made to a person in the United
States and (x) at the time the buy order was originated, the Transferee was outside the United States or such Transferor and any Person acting on its behalf reasonably believed and believes
that the Transferee was outside the United States or (y) the transaction was executed in, on or through the facilities of a designated offshore securities market and neither such Transferor nor
any Person acting on its behalf knows that the transaction was prearranged with a buyer in the United States, (ii) no directed selling efforts have been made in contravention of the
requirements of Rule 903(b) or Rule 904(b) of Regulation S under the Securities Act, (iii) the transaction is not part of a plan or scheme to evade the registration
requirements of the Securities Act and (iv) if the proposed transfer is being made prior to the expiration of the Distribution Compliance Period, the transfer is not being made to a U.S. Person
or 

B-1

 

for the account or benefit of a U.S. Person (other than an Initial Purchaser) and the interest transferred shall be held immediately thereafter through Euroclear or Clearstream. Upon consummation of
the proposed transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note shall be subject to the restrictions on Transfer enumerated in the Private
Placement Legend printed on the Regulation S Global Note and/or the Definitive Note and in the Indenture and the Securities Act. 

        3.    o    Check and complete if Transferee shall take delivery of a
beneficial interest in a Definitive Note pursuant to any provision of the Securities Act other than Rule 144A or Regulation S.    The Transfer is being
effected in compliance with the transfer restrictions applicable to beneficial interests in Restricted Global Notes and Restricted Definitive Notes and pursuant to and in accordance with the
Securities Act and any applicable blue sky securities laws of any State of the United States, and accordingly the Transferor hereby further certifies that (check one): 

        (a)    o    Such Transfer is being effected pursuant to and in
accordance with Rule 144 under the Securities Act; or 

        (b)    o    Such Transfer is being effected to the Company or a
subsidiary thereof; or 

        (c)    o    Such Transfer is being effected pursuant to an effective
registration statement under the Securities Act and in compliance with the prospectus delivery requirements of the Securities Act; or 

        (d)    o    Such Transfer is being effected to an Institutional
Accredited Investor and pursuant to an exemption from the registration requirements of the Securities Act other than Rule 144A, Rule 144 or Rule 904, and the Transferor hereby
further certifies that it has not engaged in any general solicitation within the meaning of Regulation D under the Securities Act and the Transfer complies with the transfer restrictions
applicable to beneficial interests in a Restricted Global Note or Restricted Definitive Notes and the requirements of the exemption claimed, which certification is supported by (1) a
certificate executed by the Transferee in a form of Exhibit D to the Indenture and (2) if such Transfer is in respect of a principal amount of Notes at the time of transfer of less than
$250,000, an Opinion of Counsel provided by the Transferor or the Transferee (a copy of which the Transferor has attached to this certification and provided to the Company, which has confirmed its
acceptability), to the effect that such Transfer is in compliance with the Securities Act and with any applicable blue sky securities laws of any state of the United States. Upon consummation of the
proposed transfer in accordance with the terms of the Indenture, the Definitive Note shall be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the
Definitive Notes and in the Indenture and the Securities Act. 

        4.    o    Check if Transferee shall take delivery of a beneficial
interest in an Unrestricted Global Note or of an Unrestricted Definitive Note.    

        (a)    o    Check if Transfer is Pursuant to
Rule 144.    (i) The Transfer is being effected pursuant to and in accordance with Rule 144 under the Securities Act and in compliance with the
transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any State of the United States and (ii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain compliance with the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Definitive Note shall no longer be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes, on
Restricted Definitive Notes and in the Indenture and the Securities Act. 

        (b)    o    Check if Transfer is Pursuant to
Regulation S.    (i) The Transfer is being effected pursuant to and in accordance with Rule 903 or Rule 904
under the Securities Act and in compliance with the transfer restrictions contained in the Indenture and any applicable blue sky 

B-2

 

securities laws of any State of the United States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act. Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note shall no longer be
subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes, on Restricted Definitive Notes and in the Indenture and the Securities Act. 

        (c)    o    Check if Transfer is Pursuant to Other
Exemption.    (i) The Transfer is being effected pursuant to and in compliance with an exemption from the registration requirements of the Securities Act other
than Rule 144, Rule 903 or Rule 904 and in compliance with the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any State of the
United States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act. Upon
consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note shall not be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the Restricted Global Notes or Restricted Definitive Notes and in the Indenture. 

        This
certificate and the statements contained herein are made for your benefit and the benefit of the Company. 

	    
 [Insert Name of Transferor]	 	Dated:	    

	

By:	

    
	
 	

 	

 
	 	Name:	 	 	 	 
	 	Title:	 	 	 	 

B-3

  

 
 

ANNEX A TO CERTIFICATE OF TRANSFER    
  

	1.	 	The Transferor owns and proposes to transfer the following:
	

[CHECK ONE OF (a) OR (b)]
	

 	
 	

(a)	
 	

o	
 	

a beneficial interest in the:
	

 	
 	

 	
 	

(i)	
 	

o	
 	

144A Global Note (CUSIP            ), or
	

 	
 	

 	
 	

(ii)	
 	

o	
 	

Regulation S Global Note (CUSIP or ISIN            ), or
	

 	
 	

(b)	
 	

o	
 	

a Restricted Definitive Note.
	

2.	
 	

After the Transfer the Transferee shall hold:
	

[CHECK ONE]
	

 	
 	

(a)	
 	

o	
 	

a beneficial interest in the:
	

 	
 	

 	
 	

(i)	
 	

o	
 	

144A Global Note (CUSIP ), or
	

 	
 	

 	
 	

(ii)	
 	

o	
 	

Regulation S Global Note (CUSIP or ISIN            ), or
	

 	
 	

 	
 	

(iii)	
 	

o	
 	

Unrestricted Global Note (CUSIP ); or
	

 	
 	

(b)	
 	

o	
 	

a Restricted Definitive Note; or
	

 	
 	

(c)	
 	

o	
 	

an Unrestricted Definitive Note,
	

in accordance with the terms of the Indenture.

B-4

  

 
 

EXHIBIT C
  FORM OF CERTIFICATE OF EXCHANGE    
  

RFS
Partnership, L.P.

850 Ridge Lake Boulevard, Suite 300

Memphis, Tennessee 38120 

U.S.
Bank National Association

180 East Fifth Street

St. Paul, Minnesota 55101

Attention: Corporate Trust Services 

        Re:
9.75% Senior Notes due 2012 

Dear
Sirs: 

        Reference
is hereby made to the Indenture, dated as of February 26, 2002 (the "Indenture"), among RFS Partnership, L.P. (the "Company") and RFS 2002 Financing, Inc.
("Finance"), as issuers, the Guarantors party thereto and U.S. Bank National Association, as trustee. Capitalized terms used but not defined herein shall have the meanings given to them in the
Indenture. 

                                ,
(the "Owner") owns and proposes to exchange the Note[s] or interest in such Note[s] specified herein, in the principal
amount of $                        in such Note[s] or interests (the "Exchange"). In connection with the Exchange, the Owner
hereby certifies that: 

          1.  Exchange of Restricted Definitive Notes or Beneficial Interests in a Restricted Global Note for Unrestricted Definitive Notes or Beneficial
Interests in an Unrestricted Global Note.

        (a)  / /    Check if Exchange is from beneficial interest in a Restricted Global Note to beneficial interest in an Unrestricted
Global Note. In connection with the Exchange of the Owner's beneficial interest in a Restricted Global Note for a beneficial interest in an Unrestricted Global Note in an equal
principal amount, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner's own account without transfer, (ii) such Exchange has been effected in
compliance with the transfer restrictions applicable to the Global Notes and pursuant to and in accordance with the United States Securities Act of 1933, as amended (the "Securities Act"),
(iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the
beneficial interest in an Unrestricted Global Note is being acquired in compliance with any applicable blue sky securities laws of any State of the United States. 

        (b)  / /    Check if Exchange is from beneficial interest in a Restricted Global Note to Unrestricted Definitive
Note. In connection with the Exchange of the Owner's beneficial interest in a Restricted Global Note for an Unrestricted Definitive Note, the Owner hereby certifies
(i) the Definitive Note is being acquired for the Owner's own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to
the Restricted Global Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the Definitive Note is being acquired in compliance with any applicable blue sky securities laws of any State of the
United States. 

        (c)  / /    Check if Exchange is from Restricted Definitive Note to beneficial interest in an Unrestricted Global
Note. In connection with the Owner's Exchange of a Restricted Definitive Note for a beneficial interest in an Unrestricted Global Note, the Owner hereby certifies
(i) the beneficial interest is being acquired for the Owner's own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable
to Restricted Definitive Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions on 

C-1

 

transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the beneficial interest is being acquired
in compliance with any applicable blue sky securities laws of any State of the United States. 

        (d)  / /    Check if Exchange is from Restricted Definitive Note to Unrestricted Definitive Note. In
connection with the Owner's Exchange of a Restricted Definitive Note for an Unrestricted Definitive Note, the Owner hereby certifies (i) the Unrestricted Definitive Note is being acquired for
the Owner's own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to Restricted Definitive Notes and pursuant to and in
accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the
Securities Act and (iv) the Unrestricted Definitive Note is being acquired in compliance with any applicable blue sky securities laws of any State of the United States. 

          2.  Exchange of Restricted Definitive Notes or Beneficial Interests in Restricted Global Notes for Restricted Definitive Notes or Beneficial
Interests in Restricted Global Notes

        (a)  / /    Check if Exchange is from beneficial interest in a Restricted Global Note to Restricted Definitive
Note. In connection with the Exchange of the Owner's beneficial interest in a Restricted Global Note for a Restricted Definitive Note with an equal
principal amount, the Owner hereby certifies that the Restricted Definitive Note is being acquired for the Owner's own account without transfer. Upon consummation of the proposed Exchange in
accordance with the terms of the Indenture, the Restricted Definitive Note issued shall continue to be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the
Restricted Definitive Note and in the Indenture and the Securities Act. 

        (b)  / /    Check if Exchange is from Restricted Definitive Note to beneficial interest in a Restricted Global
Note. In connection with the Exchange of the Owner's Restricted Definitive Note for a beneficial interest in the: [CHECK ONE]
/ / 144A Global Note or / / Regulation S Global Note with an equal principal amount, the Owner hereby certifies (i) the beneficial interest is being acquired for the
Owner's own account without transfer and (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to the Restricted Global Notes and pursuant to and in
accordance with the Securities Act, and in compliance with any applicable blue sky securities laws of any State of the United States. Upon consummation of the proposed Exchange in accordance with the
terms of the Indenture, the beneficial interest issued shall be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the relevant Restricted Global Note and in
the Indenture and the Securities Act. 

C-2

 

This
certificate and the statements contained herein are made for your benefit and the benefit of the Company. 

	
 [Insert Name of Owner]	 	 
	

By:	

 	
 	

 	
 	

 
	 	
 Name:

Title:	 	 
	

Dated:	
 	

 	
 	

 
	 	 	 	
	 	 

C-3

  

 
 

EXHIBIT D
  FORM OF CERTIFICATE FROM ACQUIRING
  INSTITUTIONAL ACCREDITED INVESTOR    
  

RFS
Partnership, L.P.

850 Ridge Lake Boulevard, Suite 300

Memphis, Tennessee 38120 

U.S.
Bank National Association

180 East Fifth Street

St. Paul, Minnesota 55101

Attention: Corporate Trust Services 

        Re:
9.75% Senior Notes due 2012 

Dear
Sirs: 

        Reference
is hereby made to the Indenture, dated as of February 26, 2002 (the "Indenture"), among RFS Partnership, L.P. (the "Company") and RFS 2002 Financing, Inc.
("Finance"), as issuers, the Guarantors party thereto and U.S. Bank National Association, as trustee. Capitalized terms used but not defined herein shall have the meanings given to them in the
Indenture. 

        In
connection with our proposed purchase of $                        aggregate principal amount of: (a) a beneficial interest in
a Global Note, or (b) a Definitive Note, we confirm
that: 

          1.  We
understand that any subsequent transfer of the Notes or any interest therein is subject to certain restrictions and conditions set forth in the Indenture and the
undersigned agrees to be bound by, and
not to resell, pledge or otherwise transfer the Notes or any interest therein except in compliance with, such restrictions and conditions and the United States Securities Act of 1933, as amended (the
"Securities Act"). 

          2.  We
understand that the offer and sale of the Notes have not been registered under the Securities Act, and that the Notes and any interest therein may not be offered or
sold except as permitted in the following sentence. We agree, on our own behalf and on behalf of any accounts for which we are acting as hereinafter stated, that if we should sell the Notes or any
interest therein, we shall do so only (A) to the Company or any Guarantor or any of their respective subsidiaries, (B) in accordance with Rule 144A under the Securities Act to a
"qualified institutional buyer" (as defined therein), (C) to an institutional "accredited investor" (as defined below) that, prior to such transfer, furnishes (or has furnished on its behalf by
a U.S. broker-dealer) to you and to the Company a signed letter substantially in the form of this letter and, if the proposed transfer is in respect of an aggregate principal amount of Notes of less
than $250,000, an Opinion of Counsel in form reasonably acceptable to the Company to the effect that such transfer is in compliance with the Securities Act, (D) outside the United States in
accordance with Rule 904 of Regulation S under the Securities Act, (E) pursuant to the provisions of Rule 144 under the Securities Act, (F) in accordance with
another exemption from the registration requirements of the Securities Act (and based upon an opinion of counsel acceptable to the Company) or (G) pursuant to an effective registration
statement under the Securities Act, and we further agree to provide to any person purchasing the Definitive Note from us in a transaction meeting the requirements of clauses (A) through
(F) of this paragraph a notice advising such purchaser that resales thereof are restricted as stated herein. 

          3.  We
understand that, on any proposed resale of the Notes or beneficial interest therein, we shall be required to furnish to you and the Company such certifications, legal
opinions and other information as you and the Company may reasonably require to confirm that the proposed sale complies with the foregoing restrictions. We further understand that the Notes purchased
by us shall bear a legend to the foregoing effect. We further understand that any subsequent transfer by us of the 

D-1

 

Notes or beneficial interest therein acquired by us must be effected through one of the Initial Purchasers. 

          4.  We
are an institutional "accredited investor" (as defined in Rule 501(a)(1), (2), (3) or (7) of Regulation D under the Securities Act) and
have such knowledge and experience in financial and business matters as to be capable of evaluating the merits and risks of our investment in the Notes, and we and any accounts for which we are acting
are each able to bear the economic risk of our or its investment. 

          5.  We
are acquiring the Notes or beneficial interest therein purchased by us for our own account or for one or more accounts (each of which is an institutional "accredited
investor") as to each of which we exercise sole investment discretion. 

D-2

 

        You
and the Company are entitled to rely upon this letter and are irrevocably authorized to produce this letter or a copy hereof to any interested party in any administrative or legal
proceedings or official inquiry with respect to the matters covered hereby. 

	 	 	 	 	Dated:                        ,
	
 [Insert Name of Accredited Investor]	 	 
	

 	
 	

 	
 	

 
	

By:	
 	

 	
 	

 
	 	 	
	 	 
	Name:

Title:	 	 

D-3

  

 
 

EXHIBIT E
  FORM OF SUPPLEMENTAL INDENTURE
  TO BE DELIVERED BY SUBSEQUENT
  GUARANTORS    
  

        Supplemental Indenture (this "Supplemental Indenture"), dated as of            ,
among                        (the "Guaranteeing Subsidiary"), a subsidiary of RFS
Partnership, L.P. (or its permitted successor), a Tennessee limited partnership (the "Company"), the Company and U.S. Bank National Association, as trustee under the Indenture referred to below (the
"Trustee"). 

W I T N E S S E T H

        WHEREAS,
the Company has heretofore executed and delivered to the Trustee an indenture (the "Indenture"), dated as of February 26, 2002, providing for the issuance of 9.75% Senior
Notes due 2012 (the "Notes"); 

        WHEREAS,
the Indenture provides that under certain circumstances the Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental indenture pursuant to which any
newly-acquired or created Guarantor shall unconditionally guarantee all of the Company's obligations under the Notes and the Indenture on the terms and conditions set forth herein (the "Subsidiary
Guarantee"); and 

        WHEREAS,
pursuant to Section 9.1 of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture. 

        NOW
THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Guaranteeing Subsidiary and the Trustee
mutually covenant and agree for the equal and ratable benefit of the Holders of the Notes as follows: 

        1.    Capitalized Terms.    Capitalized terms used herein without definition shall have the meanings assigned to them
in the Indenture. 

        2.    Agreement to Guarantee.    The Guaranteeing Subsidiary irrevocably and unconditionally guarantees the Guarantee
Obligations, which include (i) the due and punctual payment of the principal of, premium, if any, and interest and Liquidated Damages, if any, on the Notes, whether at maturity, by
acceleration, call for redemption, upon a Change of Control Offer, upon an Asset Sale Offer or otherwise, the due and punctual payment of interest on the overdue principal and premium, if any, and (to
the extent permitted by law) interest on any interest on the Notes, and payment of expenses, and the due and punctual performance of all other obligations of the Company, to the Holders or the Trustee
all in accordance with the terms set forth in Article X of the Indenture, and (ii) in case of any extension of time of payment or renewal of any Notes or any such other obligations, that
the same shall be promptly paid in full when due or performed in accordance with the terms of the extension or renewal, whether at stated maturity, by acceleration, call for redemption, upon a Change
of Control Offer, upon an Asset Sale Offer or otherwise. 

        The
obligations of Guaranteeing Subsidiary to the Holders and to the Trustee pursuant to this Subsidiary Guarantee and the Indenture are expressly set forth in Article X of the
Indenture and reference is hereby made to such Indenture for the precise terms of this Subsidiary Guarantee. 

        No
past, present or future partner, director, officer, employee, incorporator or stockholder (direct or indirect) of the Guaranteeing Subsidiary (or any such successor entity), as such,
shall have any liability for any obligations of the Guaranteeing Subsidiary under this Subsidiary Guarantee or the Indenture or for any claim based on, in respect of, or by reason of, such obligations
or their creation, except in their capacity as an obligor or Guarantor of the Notes in accordance with the Indenture. 

        This
is a continuing Guarantee and shall remain in full force and effect and shall be binding upon the Guaranteeing Subsidiary and its successors and assigns until full and final payment
of all of the 

E-1

 

Company's obligations under the Notes and Indenture or until released in accordance with the Indenture and shall inure to the benefit of the successors and assigns of the Trustee and the Holders,
and, in the event of any transfer or assignment of rights by any Holder or the Trustee, the rights and privileges herein conferred upon that party shall automatically extend to and be vested in such
transferee or assignee, all subject to the terms and conditions hereof. This is a Guarantee of payment and performance and not of collectibility. 

        The
obligations of the Guaranteeing Subsidiary under its Subsidiary Guarantee shall be limited to the extent necessary to insure that it does not constitute a fraudulent conveyance under
applicable law. 

        THE
TERMS OF ARTICLE X OF THE INDENTURE ARE INCORPORATED HEREIN BY REFERENCE. 

        3.    NEW YORK LAW TO GOVERN.    THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS
SUPPLEMENTAL INDENTURE, INCLUDING, WITHOUT LIMITATION, SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW. 

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

        5.    Effect of Headings.    The Section headings herein are for convenience only and shall not affect the
construction hereof. 

E-2

 

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

	 	 	THE ISSUERS:
 RFS PARTNERSHIP, L.P.
	

 	
 	

By:	
 	

RFS Hotel Investors, Inc.
	 	 	Its:	 	General Partner
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Name:
 Title:
	

 	
 	
RFS 2002 FINANCING, INC.
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Name:
 Title:
	

 	
 	
GUARANTEEING SUBSIDIARY:
 NAME:
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Name:
 Title:
	

 	
 	
THE TRUSTEE:
 U.S BANK NATIONAL ASSOCIATION
	

 	
 	

By:	
 	

 
	 	 	 	 	
 Name:
 Title:

E-3

QuickLinks

TABLE OF CONTENTS

CROSS-REFERENCE TABLE

ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE

ARTICLE II THE NOTES

ARTICLE III REDEMPTION

ARTICLE IV COVENANTS

ARTICLE V SUCCESSORS

ARTICLE VI DEFAULTS AND REMEDIES

ARTICLE VII TRUSTEE

ARTICLE VIII LEGAL DEFEASANCE AND COVENANT DEFEASANCE

ARTICLE IX AMENDMENT, SUPPLEMENT AND WAIVER

ARTICLE X GUARANTEES

ARTICLE XI MISCELLANEOUS

SIGNATURES

EXHIBIT A

TRUSTEE'S CERTIFICATE OF AUTHENTICATION

Assignment Form

Option of Holder to Elect Purchase

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE9

GUARANTEE

EXHIBIT B FORM OF CERTIFICATE OF TRANSFER

ANNEX A TO CERTIFICATE OF TRANSFER

EXHIBIT C FORM OF CERTIFICATE OF EXCHANGE

EXHIBIT D FORM OF CERTIFICATE FROM ACQUIRING INSTITUTIONAL ACCREDITED INVESTOR

EXHIBIT E FORM OF SUPPLEMENTAL INDENTURE TO BE DELIVERED BY SUBSEQUENT GUARANTORSQuickLinks
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EXHIBIT 4.4  

 
 

$125,000,000
  
    RFS PARTNERSHIP, L.P.
  RFS 2002 FINANCING, INC.
  
    9.75% Senior Notes due 2012
  
    REGISTRATION RIGHTS AGREEMENT    
  

February 26, 2002  

Credit
Suisse First Boston Corporation

Banc of America Securities LLC

c/o Credit Suisse First Boston Corporation

Eleven Madison Avenue

New York, New York 10010-3629 

Dear
Sirs: 

        RFS
Partnership L.P., a Tennessee limited partnership (the "Company"), and RFS 2002 Financing, Inc., a Tennessee corporation
("Finance," and together with the Company, the "Issuers"), proposes to issue and sell to Credit Suisse
First Boston Corporation and Banc of America Securities LLC (collectively, the "Initial Purchasers"), as representatives of the purchasers listed on
Schedule A to the Purchase Agreement, dated February 21, 2002 (the "Purchase Agreement"), among the Issuers, the Guarantors (as defined
below) and the Initial Purchasers, upon the terms set forth in the Purchase Agreement, $125,000,000 aggregate principal amount of their 9.75% Senior Notes due 2012 (the
"Initial Notes") to
be guaranteed by RFS Hotel Investors, Inc., a Tennessee corporation, and RFS Leasing VII, Inc., a Tennessee corporation (collectively, the
"Guarantors," and together with the Issuers and any future guarantor of the Notes, the "Obligors"). The
Initial Notes will be issued pursuant to an Indenture, dated February 26, 2002 (the "Indenture"), among the Issuers, the Guarantors and U.S. Bank
National Association, as trustee (the "Trustee"). As an inducement to the Initial Purchasers to enter into the Purchase Agreement, the Obligors hereby
agree with the Initial Purchasers, for the benefit of the Initial Purchasers and the holders of the Notes (as defined below) (collectively the
"Holders"), as follows: 

        1.    Registered Exchange Offer. Unless not permitted by applicable law, the Obligors shall prepare and, not later than
60 days (such 60th day being a "Filing Deadline") after the date on which the Initial Purchasers purchase the Initial Notes pursuant to the
Purchase Agreement (the "Closing Date"), file with the Securities and Exchange Commission (the
"Commission") a registration statement (the "Exchange Offer Registration Statement") on an appropriate
form under the Securities Act of 1933, as amended (the "Securities Act"), with respect to a proposed offer (the "Registered
Exchange Offer") to the Holders of Transfer Restricted Securities (as defined in Section 6 hereof), who are not prohibited by any law or policy of the Commission from
participating in the Registered Exchange Offer, to issue and deliver to such Holders, in exchange for the Initial Notes, a like aggregate principal amount of debt securities of the Obligors issued
under the Indenture, identical (other than with respect to registration rights, liquidated damages and transfer restrictions) in all material respects to the Initial Notes and registered under the
Securities Act (the "Exchange Notes"). The Obligors shall use their best efforts to (i) cause such Exchange Offer Registration Statement to
become effective under the Securities Act at the earliest possible time, but in any event within 150 days after the Closing Date (such 150th day being an "Effectiveness
Deadline") and (ii) keep the Exchange Offer Registration Statement effective for not less than 20 business days (or longer, if required by applicable law) after the date
notice of the Registered Exchange Offer is mailed to the Holders (such period being called the "Exchange Offer Registration Period"). 

        If
the Obligors commence the Registered Exchange Offer, the Obligors (i) will be entitled to consummate the Registered Exchange Offer 20 business days after such commencement
(provided that the Obligors have accepted all the Initial Notes theretofore validly tendered in accordance with the terms of the Registered Exchange
Offer) and (ii) will be required to consummate the Registered Exchange Offer no later than 30 business days after the date on which the Exchange Offer Registration Statement is declared
effective (such 30th business day being the "Consummation Deadline"). Subject to the provisions contained in Section 2 hereof, following the
consummation of the Registered Exchange Offer and the issuance of the Exchange Notes thereunder, the Company will have no further obligation to register any Initial Notes hereunder. 

        Following
the declaration of the effectiveness of the Exchange Offer Registration Statement, the Obligors shall promptly commence the Registered Exchange Offer, it being the objective of
such Registered Exchange Offer to enable each Holder of Transfer Restricted Securities electing to exchange the Initial Notes for Exchange Notes (assuming that such Holder is not an affiliate of any
Obligor within the meaning of the Securities Act, acquires the Exchange Notes in the ordinary course of such Holder's business and has no arrangements or understandings (or any intention to engage in
any
arrangement or understanding) with any person to participate in the distribution of the Exchange Notes and is not prohibited by any law or policy of the Commission from participating in the Registered
Exchange Offer) to trade such Exchange Notes from and after their receipt without any limitations or restrictions under the Securities Act and without material restrictions under the Notes laws of the
several states of the United States. 

        The
Obligors and Initial Purchasers acknowledge that, pursuant to current interpretations by the Commission's staff of Section 5 of the Securities Act, in the absence of an
applicable exemption therefrom, (i) each Holder which is a broker-dealer electing to exchange Initial Notes, acquired for its own account as a result of market making activities or other
trading activities, for Exchange Notes (an "Exchanging Dealer"), is required to deliver a prospectus containing the information in substantially the
same form set forth in (a) Annex A hereto on the cover, (b) Annex B hereto in the "Exchange Offer Procedures" section and the "Purpose of the Exchange Offer" section, and
(c) Annex C hereto in the "Plan of Distribution" section of such prospectus in connection with a sale of any such Exchange Notes received by such Exchanging Dealer pursuant to the Registered
Exchange Offer and (ii) an Initial Purchaser that elects to sell Notes (as defined below) acquired in exchange for Initial Notes constituting any portion of an unsold allotment, is required to
deliver a prospectus containing the information required by Items 507 or 508 of Regulation S-K under the Securities Act, as applicable, in connection with such sale. The content and
location of Annexes A, B and C may be altered if so requested by the staff of the Commission. 

        The
Obligors shall use their best efforts to keep the Exchange Offer Registration Statement effective and to amend and supplement the prospectus contained therein, in order to permit
such prospectus to be lawfully delivered by all persons subject to the prospectus delivery requirements of the Securities Act for such period of time as such persons must comply with such requirements
in order to resell the Exchange Notes; provided, however, that (i) in the case where such
prospectus and any amendment or supplement thereto must be delivered by an Exchanging Dealer or an Initial Purchaser, such period shall be the lesser of 180 days and the date on which all
Exchanging Dealers and the Initial Purchasers have sold all Exchange Notes held by them (unless such period is extended pursuant to Section 3(j) below) and (ii) the Obligors shall make
such prospectus and any amendment or supplement thereto available to any broker-dealer for use in connection with any resale of any Exchange Notes for a period of not less than 180 days after
the consummation of the Registered Exchange Offer. 

        If,
upon consummation of the Registered Exchange Offer, any Initial Purchaser holds Initial Notes acquired by it as part of its initial distribution, the Obligors, simultaneously with
the delivery of the Exchange Notes pursuant to the Registered Exchange Offer, shall issue and deliver to such Initial Purchaser upon the written request of such Initial Purchaser (delivered at least
two days in advance of the consummation of the Registered Exchange Offer), in exchange (the "Private Exchange") for the Initial Notes held by such
Initial Purchaser, a like principal amount of debt securities of the Obligors 

issued under the Indenture and identical in all material respects to the Initial Notes (the "Private Exchange Notes"). The Initial Notes, the Exchange
Notes and the Private Exchange Notes are herein collectively called the "Notes". 

        In
connection with the Registered Exchange Offer, the Obligors shall: 

        (a)  mail
to each Holder a copy of the prospectus forming part of the Exchange Offer Registration Statement, together with an appropriate letter of transmittal and related
documents; 

        (b)  keep
the Registered Exchange Offer open for not less than 20 business days (or longer, if required by applicable law) after the date notice thereof is mailed to the
Holders; 

        (c)  utilize
the services of a depositary for the Registered Exchange Offer with an address in the Borough of Manhattan, The City of New York, which may be the Trustee or an
affiliate of the Trustee; 

        (d)  permit
Holders to withdraw tendered Notes at any time prior to the close of business, New York time, on the last business day on which the Registered Exchange Offer
shall remain open; and 

        (e)  otherwise
comply with all applicable laws. 

        As
soon as practicable after the close of the Registered Exchange Offer or the Private Exchange, as the case may be, the Obligors shall: 

        (x)  accept
for exchange all the Notes validly tendered and not withdrawn pursuant to the Registered Exchange Offer and the Private Exchange; 

        (y)  deliver
to the Trustee for cancellation (or authorize the Trustee as custodian of the Initial Notes to cancel) all the Initial Notes so accepted for exchange; and 

        (z)  cause
the Trustee to authenticate and deliver promptly to each Holder of the Initial Notes, Exchange Notes or Private Exchange Notes, as the case may be, equal in
principal amount to the Initial Notes of such Holder so accepted for exchange. 

        The
Indenture will provide that the Exchange Notes will not be subject to the transfer restrictions set forth in the Indenture and that all the Notes will vote and consent together on
all matters as one class and that none of the Notes will have the right to vote or consent as a class separate from one another on any matter. 

        Interest
on each Exchange Note and Private Exchange Note issued pursuant to the Registered Exchange Offer and in the Private Exchange will accrue from the last interest payment date on
which interest was paid on the Initial Notes surrendered in exchange therefor or, if no interest has been paid on the Initial Notes, from the date of original issue of the Initial Notes. 

        Each
Holder participating in the Registered Exchange Offer shall be required to represent to the Obligors that at the time of the consummation of the Registered Exchange Offer
(i) any Exchange Notes received by such Holder will be acquired in the ordinary course of business, (ii) such Holder will have no arrangements or understanding with any person to
participate in the distribution of the Notes within the meaning of the Securities Act, (iii) such Holder is not an "affiliate," as defined in Rule 405 of the Securities Act, of the
Obligors or if it is an affiliate, such Holder will comply with the registration and prospectus delivery requirements of the Securities Act to the extent applicable, (iv) if such Holder is not
a broker-dealer, that it is not engaged in, and does not intend to engage in, the distribution of the Exchange Notes, (v) if such Holder is a broker-dealer, that it will receive Exchange Notes
for its own account in exchange for Initial Notes that were acquired as a result of market-making activities or other trading activities and that it will be required to acknowledge that it will
deliver a prospectus in connection with any resale of such Exchange Notes, and (vi) any other representations and warranties required by law or Commission policy.. 

        Notwithstanding
any other provisions hereof, the Obligors will ensure that (i) any Exchange Offer Registration Statement and any amendment thereto and any prospectus forming part
thereof and any 

supplement thereto complies in all material respects with the Securities Act and the rules and regulations thereunder, (ii) any Exchange Offer Registration Statement and any amendment thereto
does not, when it becomes effective, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not
misleading and (iii) any prospectus forming part of any Exchange Offer Registration Statement, and any supplement to such prospectus, does not include an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. 

        2.    Shelf Registration. If, (i) because of any change in law or Commission policy or in applicable interpretations of
such law or policy by the staff of the Commission, the Obligors are not permitted to effect a Registered Exchange Offer, as contemplated by Section 1 hereof, (ii) the Registered Exchange
Offer is not consummated by the Consummation Deadline and such consummation could not reasonably be expected to occur within 45 days after the Consummation Deadline, or (iii) any Holder
of Notes which are Transfer Restricted Securities notifies the Company prior to the 20thbusiness day following the consummation of the Registered Exchange Offer that (a) it is
prohibited by law or Commission policy from participating in the Registered Exchange Offer, (b) it may not resell the Notes acquired by it in the Registered Exchange Offer to the public without
delivering a prospectus, and the prospectus contained in the Exchange Offer Registration Statement is not appropriate or available for such resales by it, or (c) it is a broker-dealer and holds
Notes acquired directly from the Issuers or any of the Issuer's affiliates, the Obligors shall take the following actions (the date on which any of the
conditions described in the foregoing clauses (i), (ii) or (iii) occur, including in the case of clause (iii) the receipt of the required notice, being a
"Trigger Date"): 

        (a)  The
Obligors shall promptly (but in no event more than 30 days after the Trigger Date (such 30th day being a "Filing
Deadline")) file with the Commission and thereafter use their best efforts to cause to be declared effective no later than 60 days after the Trigger Date (such 60th day
being an "Effectiveness Deadline") a registration statement (the "Shelf Registration Statement" and,
together with the Exchange Offer Registration Statement, a "Registration Statement") on an appropriate form under the Securities Act relating to the
offer and sale of the Transfer Restricted Securities by the Holders thereof from time to time in accordance with the methods of distribution set forth in the Shelf Registration Statement and
Rule 415 under the Securities Act (hereinafter, the "Shelf Registration"); provided,  however, that no
Holder (other than an Initial Purchaser) shall be entitled to have the Notes held by it covered by such Shelf Registration Statement
unless such Holder agrees in writing to be bound by all the provisions of this Agreement applicable to such Holder. 

        (b)  The
Obligors shall use their best efforts to keep the Shelf Registration Statement continuously effective in order to permit the prospectus included therein to be
lawfully delivered by the Holders of the relevant Notes, for a period of two years (or for such longer period if extended pursuant to Section 3(j) below) from the date of its effectiveness or
such shorter period that will terminate when all the Notes covered by the Shelf Registration Statement (i) have been sold pursuant thereto or (ii) are no longer restricted securities (as
defined in Rule 144 under the Securities Act, or any successor rule thereof). The Obligors shall be deemed not to have used their best efforts to keep the Shelf Registration Statement effective
during the requisite period if any of them voluntarily takes any action that would result in Holders of Notes covered thereby not being able to offer and sell such Notes during that period, unless
such action is required by applicable law. 

        (c)  Notwithstanding
any other provisions of this Agreement to the contrary, the Obligors shall cause the Shelf Registration Statement and the related prospectus and any
amendment or supplement thereto, as of the effective date of the Shelf Registration Statement, amendment or supplement, (i) to comply in all material respects with the applicable requirements
of the Securities Act and the rules and regulations of the Commission and (ii) not to contain any untrue statement of a material fact or omit to state a material fact required to be stated
therein or 

necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. 

        3.    Registration Procedures. In connection with any Shelf Registration contemplated by Section 2 hereof and, to the
extent applicable, any Registered Exchange Offer contemplated by Section 1 hereof, the following provisions shall apply: 

        (a)  The
Obligors shall (i) furnish to each Initial Purchaser, prior to the filing thereof with the Commission, a copy of the Registration Statement and each amendment
thereof and each supplement,
if any, to the prospectus included therein and, in the event that an Initial Purchaser (with respect to any portion of an unsold allotment from the original offering) is participating in the
Registered Exchange Offer or the Shelf Registration, the Obligors shall use their best efforts to reflect in each such document, when so filed with the Commission, such comments as such Initial
Purchaser reasonably may propose in a timely manner so as not to interfere materially with the Obligors' ability to meet the deadlines provided herein; (ii) include the information set forth in
Annex A hereto on the cover, in Annex B hereto in the "Exchange Offer Procedures" section and the "Purpose of the Exchange Offer" section and in Annex C hereto in the "Plan of Distribution" section of
the prospectus forming a part of the Exchange Offer Registration Statement and include the information set forth in Annex D hereto in the Letter of Transmittal delivered pursuant to the Registered
Exchange Offer; (iii) if requested by an Initial Purchaser, include the information required by Items 507 or 508 of Regulation S-K under the Securities Act, as applicable, in
the prospectus forming a part of the Exchange Offer Registration Statement; (iv) include within the prospectus contained in the Exchange Offer Registration Statement a section entitled "Plan of
Distribution," reasonably acceptable to the Initial Purchasers, which shall contain a summary statement of the positions taken or policies made by the staff of the Commission with respect to the
potential "underwriter" status of any broker-dealer that is the beneficial owner (as defined in Rule 13d-3 under the Notes Exchange Act of 1934, as amended (the "Exchange Act")) of
Exchange Notes received by such broker-dealer in the Registered Exchange Offer (a "Participating Broker-Dealer"), whether such positions or policies
have been publicly disseminated by the staff of the Commission or such positions or policies, in the reasonable judgment of the Initial Purchasers based upon advice of counsel (which may be
in-house counsel), represent the prevailing views of the staff of the Commission; and (v) in the case of a Shelf Registration Statement, include the names of the Holders who propose
to sell Notes pursuant to the Shelf Registration Statement as selling securityholders. Any information required by Initial Purchasers or Holders, or their respective representatives, shall be provided
to the Obligors in a timely manner so as not to interfere materially with the Obligors' ability to meet any deadline provided herein. 

        (b)  The
Obligors shall give written notice to the Initial Purchasers, the Holders of the Notes and any Participating Broker-Dealer from whom the Obligors have received prior
written notice that it will be a Participating Broker-Dealer in the Registered Exchange Offer (which notice pursuant to clauses (ii)-(v) hereof shall be accompanied by an instruction to suspend
the use of the prospectus until the requisite changes have been made): 

        (i)    when
the Registration Statement or any amendment thereto has been filed with the Commission and when the Registration Statement or any post-effective
amendment thereto has become effective; 

        (ii)  of
any request by the Commission for amendments or supplements to the Registration Statement or the prospectus included therein or for additional information; 

        (iii)  of
the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose; 

        (iv)  of
the receipt by the Obligors or their legal counsel of any notification with respect to the suspension of the qualification of the Notes for sale in any jurisdiction
or the initiation or threatening of any proceeding for such purpose; and 

        (v)  of
the happening of any event that requires the Obligors to make changes in the Registration Statement or the prospectus in order that the Registration Statement or the
prospectus do not contain an untrue statement of a material fact nor omit to state a material fact required to be stated therein or necessary to make the statements therein (in the case of the
prospectus, in light of the circumstances under which they were made) not misleading. 

        (c)  The
Obligors shall make every reasonable effort to obtain the withdrawal at the earliest possible time of any order suspending the effectiveness of the Registration
Statement. 

        (d)  The
Obligors shall furnish to each Holder of Notes included within the coverage of the Shelf Registration, without charge, one copy of the Shelf Registration Statement
and any post-effective amendment thereto, including financial statements and schedules, and, if the Holder so requests in writing, all exhibits thereto (including those, if any,
incorporated by reference). 

        (e)  The
Obligors shall deliver to each Exchanging Dealer and each Initial Purchaser, and to any other Holder who so requests, without charge, at least one copy of the
Exchange Offer Registration Statement and any post-effective amendment thereto, including financial statements and schedules, and, if any Initial Purchaser or any such Holder requests, all
exhibits thereto (including those incorporated by reference). 

        (f)    The
Obligors shall, during the Shelf Registration Period, deliver to each Holder of Notes included within the coverage of the Shelf Registration, without charge, as many
copies of the prospectus (including each preliminary prospectus) included in the Shelf Registration Statement and any amendment or supplement thereto as such person may reasonably request. The
Obligors hereby consent, subject to the provisions of this Agreement, to the use of the prospectus or any amendment or supplement thereto by each of the selling Holders of the Notes in connection with
the offering and sale of the Notes covered by the prospectus, or any amendment or supplement thereto, included in the Shelf Registration Statement. 

        (g)  The
Obligors shall deliver to each Initial Purchaser, any Exchanging Dealer, any Participating Broker-Dealer and such other persons required to deliver a prospectus
following the Registered Exchange Offer, without charge, as many copies of the final prospectus included in the Exchange Offer Registration Statement and any amendment or supplement thereto as such
persons may reasonably request. The Obligors hereby consent, subject to the provisions of this Agreement, to the use of the
prospectus or any amendment or supplement thereto by any Initial Purchaser, if necessary, any Participating Broker-Dealer and such other persons required to deliver a prospectus following the
Registered Exchange Offer in connection with the offering and sale of the Exchange Notes covered by the prospectus, or any amendment or supplement thereto, included in such Exchange Offer Registration
Statement. 

        (h)  Prior
to any public offering of the Notes pursuant to any Registration Statement the Obligors shall register or qualify or cooperate with the Holders of the Notes
included therein and their respective counsel in connection with the registration or qualification of the Notes for offer and sale under the Notes or "blue sky" laws of such states of the United
States as any Holder of Notes reasonably requests in writing and do any and all other acts or things necessary or advisable to enable the offer and sale in such jurisdictions of the Notes covered by
such Registration Statement; provided, however, that the Obligors shall not be required to
(i) qualify generally to do business in any jurisdiction where it is not then so qualified or (ii) take any action which would subject it to general service of process or to taxation in
any jurisdiction where it is not then so subject. 

        (i)    The
Obligors shall cooperate with the Holders of the Notes to facilitate the timely preparation and delivery of certificates representing the Notes to be sold pursuant
to any Registration Statement free of any restrictive legends and in such denominations and registered in such names as the Holders may request a reasonable period of time prior to sales of the Notes
pursuant to such Registration Statement. 

        (j)    Upon
the occurrence of any event contemplated by paragraphs (ii) through (v) of Section 3(b) above during the period for which the Obligors are
required to maintain an effective Registration Statement, the Obligors shall promptly prepare and file a post-effective amendment to the Registration Statement or a supplement to
the related prospectus and any other required document so that, as thereafter delivered to Holders of the Notes or purchasers of Notes, the prospectus will not contain an untrue statement of a
material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. If
the Obligors notify the Initial Purchasers, the Holders of the Notes and any known Participating Broker-Dealer in accordance with paragraphs (ii) through (v) of Section 3(b) above
to suspend the use of the prospectus until the requisite changes to the prospectus have been made, then the Initial Purchasers, the Holders of the Notes and any such Participating Broker-Dealers shall
suspend use of such prospectus, and the period of effectiveness of the Shelf Registration Statement provided for in Section 2(b) above and the Exchange Offer Registration Statement provided for
in Section 1 above shall each be extended by the number of days from and including the date of the giving of such notice to and including the date when the Initial Purchasers, the Holders of
the Notes and any known Participating Broker-Dealer shall have received such amended or supplemented prospectus pursuant to this Section 3(j). 

        (k)  Not
later than the effective date of the applicable Registration Statement, the Obligors will provide a CUSIP number for the Initial Notes, the Exchange Notes or the
Private Exchange Notes, as the case
may be, and provide the applicable trustee with printed certificates for the Initial Notes, the Exchange Notes or the Private Exchange Notes, as the case may be, in a form eligible for deposit with
The Depository Trust Company. 

        (l)    The
Obligors will comply with all rules and regulations of the Commission to the extent and so long as they are applicable to the Registered Exchange Offer or the Shelf
Registration and will make generally available to their security holders (or otherwise provide in accordance with Section 11(a) of the Securities Act) an earnings statement satisfying the
provisions of Section 11(a) of the Securities Act, no later than 45 days after the end of a 12-month period (or 90 days, if such period is a fiscal year) beginning
with the first month of the Obligors' first fiscal quarter commencing after the effective date of the Registration Statement, which statement shall cover such 12-month period. 

        (m)  The
Obligors shall cause the Indenture to be qualified under the Trust Indenture Act of 1939, as amended, in a timely manner and containing such changes, if any, as
shall be necessary for such qualification. In the event that such qualification would require the appointment of a new trustee under the Indenture, the Obligors shall appoint a new trustee thereunder
pursuant to the applicable provisions of the Indenture. 

        (n)  The
Obligors may require each Holder of Notes to be sold pursuant to the Shelf Registration Statement to furnish to the Obligors such information regarding the Holder
and the distribution of the Notes as the Obligors may from time to time reasonably require for inclusion in the Shelf Registration Statement, and the Obligors may exclude from such registration the
Notes of any Holder that unreasonably fails to furnish such information within a reasonable time after receiving such request. To the extent any such Holder is excluded from the Shelf Registration
Statement pursuant to this clause (n), such Holder shall not be entitled to Liquidated Damages provided for herein from and after the date of such exclusion. 

        (o)  The
Obligors shall enter into such customary agreements (including, if requested, an underwriting agreement in customary form) and take all such other action, if any, as
any Holder of Notes shall reasonably request in order to facilitate the disposition of the Notes pursuant to any Shelf Registration; provided that in no
event shall the Obligors be responsible for the payment of broker, dealer or underwriting discounts or commissions (or their attorney's or expert's fees or expenses) or transfer taxes with respect to
the sale of the Notes. 

        (p)  In
the case of any Shelf Registration, the Obligors shall (i) make reasonably available for inspection by the Holders of the Notes, any underwriter participating
in any disposition pursuant to the Shelf Registration Statement and any attorney, accountant or other agent retained by the Holders of the Notes or any such underwriter all relevant financial and
other records, pertinent corporate documents and properties of the Obligors and (ii) cause the Obligors' officers, directors, employees, accountants and auditors to supply all relevant
information reasonably requested by the Holders of the Notes or
any such underwriter, attorney, accountant or agent in connection with the Shelf Registration Statement, in each case, as shall be reasonably necessary to enable such persons, to conduct a reasonable
investigation within the meaning of Section 11 of the Securities Act; provided, however, that the
foregoing inspection and information gathering shall be coordinated on behalf of the Initial Purchasers by you and on behalf of the other parties, by one counsel designated by and on behalf of such
other parties as described in Section 4 hereof. 

        (q)  In
the case of any Shelf Registration, the Obligors, if requested by any Holder of Notes covered thereby, shall cause (i) their counsel to deliver an opinion and
updates thereof relating to the Notes in customary form and substantially similar in scope to the opinion provided under the Purchase Agreement, with such changes as are customary with the preparation
of a Registration Statement (and (if appropriate) such changes as are customary in connection with an underwritten offering) addressed to such Holders and the Managing Underwriters, if any, thereof
and dated, in the case of the initial opinion, the effective date of such Shelf Registration Statement (it being agreed that the matters to be covered by such opinion shall include, without
limitation, the due incorporation and good standing of the Obligors and their subsidiaries; the qualification of the Obligors and their subsidiaries to transact business as foreign corporations; the
due authorization, execution and delivery of any relevant agreement referred to in Section 3(o) hereof; the due authorization, execution, authentication and issuance, and the validity and
enforceability, of the applicable Notes; the absence of material legal or governmental proceedings involving the Obligors and their subsidiaries; the absence of governmental approvals required to be
obtained in connection with the Shelf Registration Statement, the offering and sale of the applicable Notes, or any agreement of the type referred to in Section 3(o) hereof; the compliance as
to form of such Shelf Registration Statement and any documents incorporated by reference therein and of the Indenture with the requirements of the Securities Act and the Trust Indenture Act,
respectively; and, as of the date of the opinion and as of the effective date of the Shelf Registration Statement or most recent post-effective amendment thereto, as the case may be, the
absence from such Shelf Registration Statement and the prospectus included therein, as then amended or supplemented, and from any documents incorporated by reference therein of an untrue statement of
a material fact or the omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading (in the case of any such documents, in the
light of the circumstances existing at the time that such documents were filed with the Commission under the Exchange Act); (ii) their respective officers to execute and deliver all customary
documents and certificates and updates thereof requested by any underwriters of the applicable Notes and (iii) their independent public accountants and the independent public accountants with
respect to any other entity for which financial information is provided in the Shelf Registration Statement to provide to the selling Holders of the applicable Notes and any underwriter therefor a
comfort letter in customary form and covering matters of the type customarily covered in comfort letters in connection with primary underwritten offerings, subject to receipt of appropriate
documentation as contemplated, and only if permitted, by Statement of Auditing Standards No. 72. 

        (r)  In
the case of the Registered Exchange Offer, if requested by any Initial Purchaser or any known Participating Broker-Dealer, the Obligors shall cause (i) their
counsel to deliver to such Initial Purchaser or such Participating Broker-Dealer a signed opinion in the form set forth in Section 6(c) of the Purchase Agreement with such changes as are
customary in connection with the preparation of a Registration Statement and (ii) their independent public accountants and the independent public accountants with respect to any other entity
for which financial information is provided in the Registration Statement to deliver to such Initial Purchaser or such Participating Broker-Dealer a comfort letter, in customary form, meeting the
requirements as to the substance 

thereof as set forth in Sections 6(a) and 6(f) of the Purchase Agreement, with appropriate date changes. 

        (s)  If
a Registered Exchange Offer or a Private Exchange is to be consummated, upon delivery of the Initial Notes by Holders to the Obligors (or to such other Person as
directed by the Obligors) in exchange for the Exchange Notes or the Private Exchange Notes, as the case may be, the Obligors shall mark, or caused to be marked, on the Initial Notes so exchanged that
such Initial Notes are being canceled in exchange for the Exchange Notes or the Private Exchange Notes, as the case may be; in no event shall the Initial Notes be marked as paid or otherwise
satisfied. 

        (t)    The
Obligors will use their best efforts to (a) if the Initial Notes have been rated prior to the initial sale of such Initial Notes, confirm such ratings will
apply to the Notes covered by a Registration Statement, or (b) if the Initial Notes were not previously rated, cause the Notes covered by a Registration Statement to be rated with the
appropriate rating agencies, if so requested by Holders of a majority in aggregate principal amount of Notes covered by such Registration Statement, or by the Managing Underwriters, if any. 

        (u)  In
the event that any broker-dealer registered under the Exchange Act shall underwrite any Notes or participate as a member of an underwriting syndicate or selling group
or "assist in the distribution" (within the meaning of the Conduct Rules (the "Rules") of the National Association of Notes Dealers, Inc.
("NASD")) thereof, whether as a Holder of such Notes or as an underwriter, a placement or sales agent or a broker or dealer in respect thereof, or
otherwise, the Obligors will assist such broker-dealer in complying with the requirements of such Rules, including, without limitation, by (i) if such Rules, including Rule 2720, shall
so require, engaging a "qualified independent underwriter" (as defined in Rule 2720) to participate in the preparation of the Registration Statement relating to such Notes, to exercise usual
standards of due diligence in respect thereto and, if any portion of the offering contemplated by such Registration Statement is an underwritten offering or is made through a placement or sales agent,
to recommend the yield of such Notes, (ii) indemnifying any such qualified independent underwriter to the extent of the indemnification of underwriters provided in Section 5 hereof and
(iii) providing such information to such broker-dealer as may be required in order for such broker-dealer to comply with the requirements of the Rules. 

        (v)  The
Obligors shall use their best efforts to take all other steps reasonably necessary to effect the registration of the Notes covered by a Registration Statement
contemplated hereby. 

        4.    Registration Expenses. (a) All expenses incident to the Obligors' performance of and compliance with this Agreement
will be borne by the Obligors, regardless of whether a Registration Statement is ever filed or becomes effective, including, without limitation: 

        (i)    all
registration and filing fees and expenses; 

        (ii)  all
fees and expenses of compliance with federal securities and state "blue sky" or securities laws; 

        (iii)  all
expenses of printing (including printing certificates for the Notes to be issued in the Registered Exchange Offer and the Private Exchange and printing of
prospectuses), reasonable messenger and delivery services and telephone; 

        (iv)  all
fees and disbursements of counsel for the Obligors; and 

        (v)  all
fees and disbursements of independent certified public accountants of the Obligors (including the expenses of any customary audit and comfort letters required by or
incident to such performance). 

        The
Obligors will bear their internal expenses (including, without limitation, all salaries and expenses of their respective officers and employees performing legal or accounting
duties), the expenses of any annual audit, the fees and expenses of any person, including special experts, retained by the 

Obligors; provided, however, that the Obligors shall not be responsible for the payment of broker, dealer or underwriter discounts (or their attorney's or expert's fees) or commissions or transfer
taxes. 

        5.    Indemnification. (a) The Obligors agree to indemnify and hold harmless each Holder of Notes, any Participating
Broker-Dealer and each person, if any, who controls such Holder or such Participating Broker-Dealer within the meaning of the Securities Act or the Exchange Act (each Holder, any Participating
Broker-Dealer and such controlling persons are referred to collectively as the "Indemnified Parties") from and against any losses, claims, damages or
liabilities, joint or several, or any actions in respect thereof (including, but not limited to, any losses, claims, damages, liabilities or actions relating to purchases and sales of the Notes) to
which each Indemnified Party may become subject under the Securities Act, the Exchange Act or otherwise, insofar as such losses, claims, damages, liabilities or actions arise out of or are based upon
any untrue statement or alleged untrue statement of a material fact contained in a Registration Statement or prospectus or in any amendment or supplement thereto or in any preliminary prospectus
relating to a Shelf Registration, or arise out of, or are based upon, the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, and shall reimburse, as incurred, the Indemnified Parties for any legal or other expenses reasonably incurred by them in connection with investigating or defending
any such loss, claim, damage, liability or action in respect thereof; provided, however, that
(i) the Obligors shall not be liable in any such case to the extent that such loss, claim, damage or liability arises out of or is based upon any untrue statement or alleged untrue statement or
omission or alleged omission made in a Registration Statement or prospectus or in any amendment or supplement thereto or in any preliminary prospectus relating to a Shelf Registration in reliance upon
and in conformity with written information pertaining to such Holder and furnished to
the Obligors by or on behalf of such Holder specifically for inclusion therein and (ii) with respect to any untrue statement or omission or alleged untrue statement or omission made in any
preliminary prospectus relating to a Shelf Registration Statement, the indemnity agreement contained in this subsection (a) shall not inure to the benefit of any Holder or Participating
Broker-Dealer from whom the person asserting any such losses, claims, damages or liabilities purchased the Notes concerned, to the extent that a prospectus relating to such Notes was required to be
delivered by such Holder or Participating Broker-Dealer under the Securities Act in connection with such purchase and any such loss, claim, damage or liability of such Holder or Participating
Broker-Dealer results from the fact that there was not sent or given to such person, at or prior to the written confirmation of the sale of such Notes to such person, a copy of the final prospectus if
the Obligors had previously furnished copies thereof to such Holder or Participating Broker-Dealer; and provided,  further, that this indemnity agreement
will be in addition to any liability which the Obligors may otherwise have to such Indemnified Party. The
Obligors shall also indemnify any underwriters, their officers and directors and each person who controls such underwriters within the meaning of the Securities Act or the Exchange Act to the same
extent as provided above with respect to the indemnification of the Holders of the Notes if requested by such Holders. 

        (b)  Each
Holder of Notes, severally and not jointly, will indemnify and hold harmless the Obligors and each person, if any, who controls the Obligors within the meaning of
the Securities Act or the Exchange Act from and against any losses, claims, damages or liabilities or any actions in respect thereof, to which the Obligors or any such controlling person may become
subject under the Securities Act, the Exchange Act or otherwise, insofar as such losses, claims, damages, liabilities or actions arise out of or are based upon any untrue statement or alleged untrue
statement of a material fact contained in a Registration Statement or prospectus or in any amendment or supplement thereto or in any preliminary prospectus relating to a Shelf Registration, or arise
out of or are based upon the omission or alleged omission to state therein a material fact necessary to make the statements therein not misleading, but in each case only to the extent that the untrue
statement or omission or alleged untrue statement or omission was made in reliance upon and in conformity with written information pertaining to such Holder and furnished to the Obligors by or on
behalf of such Holder specifically for inclusion therein; and, subject to the limitation set forth immediately preceding this clause, shall reimburse, as incurred, the Obligors for any legal or other
expenses reasonably incurred by the Obligors or any such controlling person in 

connection with investigating or defending any loss, claim, damage, liability or action in respect thereof. This indemnity agreement will be in addition to any liability which such Holder may
otherwise have to the Obligors or any of their controlling persons. 

        (c)  Promptly
after receipt by an indemnified party under this Section 5 of notice of the commencement of any action or proceeding (including a governmental
investigation), such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 5, notify the indemnifying party of the commencement
thereof; but the omission so to notify the indemnifying party will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification
obligation provided in paragraph (a) or (b) above, unless such failure to notify materially prejudices the indemnifying party's ability to defend the against the action. In case any such
action is brought against any indemnified party, and it notifies the indemnifying party of the commencement thereof, the indemnifying party will be entitled to participate therein and, to the extent
that it may wish, jointly with any other indemnifying party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified party (who shall not, except
with the
consent of the indemnified party, be counsel to the indemnifying party), and after notice from the indemnifying party to such indemnified party of its election so to assume the defense thereof the
indemnifying party will not be liable to such indemnified party under this Section 5 for any legal or other expenses, other than reasonable costs of investigation, subsequently incurred by such
indemnified party in connection with the defense thereof. No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement of any pending or threatened
action in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party unless such settlement includes an unconditional
release of such indemnified party from all liability on any claims that are the subject matter of such action, and does not include a statement as to or an admission of fault, culpability or a failure
to act by or on behalf of any indemnified party. 

        (d)  If
the indemnification provided for in this Section 5 is unavailable or insufficient to hold harmless an indemnified party under subsections (a) or
(b) above, then each indemnifying party shall contribute to the amount paid or payable by such indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect
thereof) referred to in subsection (a) or (b) above (i) in such proportion as is appropriate to reflect the relative benefits received by the indemnifying party or parties on the
one hand and the indemnified party on the other from the exchange of the Notes, pursuant to the Registered Exchange Offer, or (ii) if the allocation provided by the foregoing clause (i)
is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) above but also the relative fault of the
indemnifying party or parties on the one hand and the indemnified party on the other in connection with the statements or omissions that resulted in such losses, claims, damages or liabilities (or
actions in respect thereof) as well as any other relevant equitable considerations. The relative fault of the parties shall be determined by reference to, among other things, whether the untrue or
alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Obligors on the one hand or such Holder or such other
indemnified party, as the case may be, on the other, and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The amount
paid by an indemnified party as a result of the losses, claims, damages or liabilities referred to in the first sentence of this subsection (d) shall be deemed to include any legal or other
expenses reasonably incurred by such indemnified party in connection with investigating or defending any action or claim which is the subject of this subsection (d). Notwithstanding any other
provision of this Section 5(d), the Holders of the Notes shall not be required to contribute any amount in excess of the amount by which the net proceeds received by such Holders from the sale
of the Notes pursuant to a Registration Statement exceeds the amount of damages which such Holders have otherwise been required to pay by reason of such untrue or alleged untrue statement or omission
or alleged omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to 

contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this paragraph (d), each person, if any, who controls such indemnified party within the
meaning of the Securities Act or the Exchange Act shall have the same rights to contribution as such indemnified party and each person, if any, who controls the Obligors within the meaning of the
Securities Act or the Exchange Act shall have the same rights to contribution as the Obligors. 

        (e)  The
agreements contained in this Section 5 shall survive the sale of the Notes pursuant to a Registration Statement and shall remain in full force and effect,
regardless of any termination or cancellation of this Agreement or any investigation made by or on behalf of any indemnified party. 

        6.    Liquidated Damages Under Certain Circumstances. (a) Liquidated damages ("Liquidated
Damages") with respect to the Notes shall be assessed as follows if any of the following events occur (each such event in clauses (i) through (iv) below being
herein called a "Registration Default"): 

        (i)    the
Exchange Offer Registration Statement required by this Agreement is not filed with the Commission on or prior to the applicable Filing Deadline; 

        (ii)  the
Shelf Registration Statement required by this Agreement is not filed with the Commission on or prior to the applicable Filing Deadline; 

        (iii)  any
Registration Statement required by this Agreement is not declared effective by the Commission on or prior to the applicable Effectiveness Deadline; 

        (iv)  the
Registered Exchange Offer has not been consummated on or prior to the Consummation Deadline; or 

        (v)  any
Registration Statement required by this Agreement has been declared effective by the Commission but (A) such Registration Statement thereafter ceases to be
effective or (B) such Registration Statement or the related prospectus ceases to be usable in connection with resales of Transfer Restricted Securities during the periods specified herein
because either (1) any event occurs as a result of which the related prospectus forming part of such Registration Statement would include any untrue statement of a material fact or omit to
state any material fact necessary to make the statements therein in the light of the circumstances under which they were made not misleading, or (2) it shall be necessary to amend such
Registration Statement or supplement the related prospectus, to comply with the Securities Act or the Exchange Act or the respective rules thereunder. 

        Each
of the foregoing will constitute a Registration Default whatever the reason for any such event and whether it is voluntary or involuntary or is beyond the control of the Obligors or
pursuant to operation of law or as a result of any action or inaction by the Commission. 

        (b)  The
Obligors jointly and severally agree to pay to each Holder of Transfer Restricted Securities affected by a Registration Default an amount equal to $0.05 per week per
$1,000 in principal amount of Transfer Restricted Securities held by such Holder for each week or portion thereof that the Registration Default continues for the first 90-day period
immediately following the occurrence of such Registration Default. The amount of Liquidated Damages shall increase by an additional $0.05 per week per $1,000 in principal amount of Transfer Restricted
Securities with respect to each subsequent 90-day period until all Registration Defaults have been cured. The Obligors shall not be required to pay
Liquidated Damages for more than one Registration Default at any given time. Following the cure of all Registration Defaults, the accrual of Liquidated Damages will cease. 

        (c)  A
Registration Default referred to in Section 6(a)(v) hereof shall be deemed not to have occurred and be continuing in relation to a Shelf Registration
Statement or the related prospectus if (i) such Registration Default has occurred solely as a result of (x) the filing of a post-effective amendment to such Shelf
Registration Statement to incorporate annual audited financial information with respect to the Obligors where such post-effective amendment is not yet effective and needs to be declared
effective to permit Holders to use the related prospectus or (y) other material events, with respect to the Obligors that would need to be described in such Shelf 

Registration Statement or the related prospectus and (ii) in the case of clause (y), the Obligors are proceeding promptly and in good faith to amend or supplement such Shelf
Registration Statement and related prospectus to describe such events; provided, however, that in any
case if such Registration Default occurs for a continuous period in excess of 30 days, Liquidated Damages shall be payable in accordance with the above paragraph from the day such Registration
Default occurs until such Registration Default is cured. 

        (d)  Any
amount of Liquidated Damages due pursuant to Section 6(a) hereof will be payable in cash on the regular interest payment dates with respect to the Notes. 

        (e)  "Transfer Restricted Securities" means each Note until the earliest of: (i) the date on which such Note has been
exchanged by a person other than a broker-dealer for a freely transferable Exchange Note in the Registered Exchange Offer, (ii) following the exchange by a broker-dealer in the Registered
Exchange Offer of an Initial Note for an Exchange Note, the date on which such Exchange Note is sold pursuant to the "Plan of Distribution" contemplated by the Exchange Offer Registration Statement to
a purchaser who receives from such broker-dealer on or prior to the date of such sale a copy of the prospectus contained in the Exchange Offer Registration Statement, (iii) the date on which
such Note has been effectively registered under the Securities Act and disposed of in accordance with the Shelf Registration Statement, or (iv) the date on which such Note is distributed to the
public pursuant to Rule 144 under the Securities Act or is saleable pursuant to Rule 144(k) under the Securities Act. 

        7.    Rules 144 and 144A. The Obligors shall use their best efforts to file the reports required to be filed by it under
the Securities Act and the Exchange Act in a timely manner and, if at any time the Obligors are not required to file such reports, they will, upon the reasonable request of any Holder of Notes, make
publicly available other information so long as legally required to permit sales of their Notes pursuant to Rules 144 and 144A under the Securities Act. The Obligors covenant that it will take
such further action as any Holder of Notes may reasonably request, all to the extent required from time to time to enable such Holder to sell Notes without registration under the Securities Act within
the limitation of the exemptions provided by Rules 144 and 144A under the Securities Act (including the requirements of Rule 144A(d)(4) under the Securities Act). The Obligors will
provide a copy of this Agreement to prospective purchasers of Initial Notes identified to the Obligors by the Initial Purchasers upon request. Upon the request of any Holder of Initial Notes, the
Obligors shall deliver to
such Holder a written statement as to whether it has complied with such requirements. Notwithstanding the foregoing, nothing in this Section 7 shall be deemed to require the Obligors to
register any of their Notes pursuant to the Exchange Act. 

        8.    Underwritten Registrations. If any of the Transfer Restricted Securities covered by any Shelf Registration are to be sold
in an underwritten offering, the investment banker or investment bankers and manager or managers that will administer the offering (the "Managing
Underwriters") will be selected by the Holders of a majority in aggregate principal amount of such Transfer Restricted Securities to be included in such offering. 

        No
person may participate in any underwritten registration hereunder unless such person (i) agrees to sell such person's Transfer Restricted Securities on the basis reasonably
provided in any underwriting arrangements approved by the persons entitled hereunder to approve such arrangements and (ii) completes and executes all questionnaires, powers of attorney,
indemnities, underwriting agreements and other documents reasonably required under the terms of such underwriting arrangements. 

        In
any underwritten registration, the Obligors shall not be responsible for (i) the payment of brokers' dealers' and underwriting discounts and commissions and brokers', dealers'
and underwriters' counsel or other expert fees, or (ii) transfer taxes with respect to the sale of the Notes. 

        9.    Miscellaneous. 

        (a)  Remedies. The Obligors hereby acknowledge and agree that any failure by any of them to comply with their obligations
under Sections 1 and 2 hereof may result in material irreparable injury to the Initial Purchasers or the Holders for which there is no adequate remedy at law, that 

it will not be possible to measure damages for such injuries precisely and that, in the event of any such failure, the Initial Purchasers or any Holder may obtain such relief as may be required to
specifically enforce the Obligors' obligations under Sections 1 and 2 hereof. The Obligors further agree to waive the defense in any action for specific performance that a remedy at law would be
adequate. 

        (b)  No Inconsistent Agreements. The Obligors will not on or after the date of this Agreement enter into any agreement with
respect to the Notes that is inconsistent with the rights granted to the Holders in this Agreement or otherwise conflicts with the provisions hereof. The rights granted to the Holders hereunder do not
in any way conflict with and are not inconsistent with the rights granted to the holders of the Obligors' Notes under any agreement in effect on the date hereof. 

        (c)  Amendments and Waivers. The provisions of this Agreement may not be amended, modified or supplemented, and waivers or
consents to departures from the provisions hereof may not be given, except by the Obligors and the written consent of the Holders of a majority in principal amount of the Notes affected by such
amendment, modification, supplement, waiver or consents. 

        (d)  Notices. All notices and other communications provided for or permitted hereunder shall be made in writing by hand
delivery, first-class mail, facsimile transmission or air courier which guarantees overnight delivery: 

        (1)  if
to a Holder of Notes, at the most current address given by such Holder to the Obligors. 

        (2)  if
to the Initial Purchasers, to: 

Credit
Suisse First Boston Corporation

Eleven Madison Avenue

New York, NY 10010-3629

Fax No.: (212) 325-8278

Attention: Transactions Advisory Group

with
a copy to: 

Skadden,
Arps, Slate, Meagher & Flom LLP

300 South Grand Avenue, Suite 3400

Los Angeles, CA 90071

Fax No.: (213) 687-5600

Attention: Nicholas P. Saggese, Esq.

        (3)  if
to any Obligor, at its address as follows: 

850
Ridge Lake Boulevard, Suite 300

Memphis, TN 38120

Fax No.: (901) 818-5260

Attention: Kevin Luebbers, Executive Vice President, Treasurer and Chief Financial Officer

with
a copy to: 

Hunton &
Williams

Riverfront Plaza—East Tower

951 E. Byrd Street

Richmond, VA 23219

Fax No.: (804) 788-8218

Attention: David C. Wright, Esq.

        All
such notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; three business days after being deposited in the
mail, postage 

prepaid, if mailed; when receipt is acknowledged by recipient's facsimile machine operator, if sent by facsimile transmission; and on the day delivered, if sent by overnight air courier guaranteeing
next day delivery. 

        (e)  Third Party Beneficiaries. The Holders shall be third party beneficiaries to the agreements made hereunder between the
Obligors, on the one hand, and the Initial Purchasers, on the other hand, and shall have the right to enforce such agreements directly to the extent they may deem such enforcement necessary or
advisable to protect their rights or the rights of Holders hereunder. 

        (f)    Successors and Assigns. This Agreement shall be binding upon the Obligors and their respective successors and assigns. 

        (g)  Counterparts. This Agreement 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. 

        (h)  Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect
the meaning hereof. 

        (i)    Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF
NEW YORK (INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THAT WOULD REQUIRE THE
APPLICATION OF THE LAWS OF ANOTHER JURISDICTION. 

        (j)    Severability. If any one or more of the provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be affected or
impaired thereby. 

        (k)  Notes Held by the Obligors. Whenever the consent or approval of Holders of a specified percentage of principal amount of
Notes is required hereunder, any Notes held by the Obligors or their affiliates (other than subsequent Holders of Notes if such subsequent Holders are deemed to be affiliates solely by reason of their
holdings of such Notes) shall not be counted in determining whether such consent or approval was given by the Holders of such required percentage. 

        (l)    Service of Process; Submission to Jurisdiction; Waiver of Immunities. By the execution and delivery of this Agreement,
each of the Obligors hereby (i) submits to the nonexclusive jurisdiction of any suit or proceeding arising out of or relating to this Agreement that may be instituted in any federal or state
court in the State of New York or brought under federal or state securities laws, and (ii) agrees that service of process to its address in Section 9(d) hereof shall be deemed in every
respect effective service of process upon it in any such suit or proceeding. To the extent that any Obligor may acquire any immunity from jurisdiction of any court or from any legal process (whether
through service of notice, attachment prior to judgment, attachment in aid of execution, execution or otherwise) with respect to itself or its property, it hereby irrevocably waives such immunity in
respect of this Agreement, to the fullest extent permitted by law. 

        (m)  Business Days. For purposes of this Agreement, a "business day" means each Monday, Tuesday, Wednesday, Thursday and
Friday which is not a day on which banking institutions in New York, New York are authorized or obligated by law or executive order to close. If any deadline contained herein falls on a day that is
not a business day, such deadline shall be deemed to be the next business day. In connection with any Effectiveness Deadline or Filing Deadline, in addition to the foregoing a "day" shall mean a day
the Commission is open during normal business hours and accepting filings. 

[remainder of page intentionally left blank; signature pages follow] 

        If
the foregoing is in accordance with your understanding of our agreement, please sign and return to the Company a counterpart hereof, whereupon this instrument, along with all
counterparts, will become a binding agreement among the Initial Purchasers and the Obligors in accordance with its terms. 

	

 	
 	

 	
 	

Very truly yours,
	

 	
 	

 	
 	

RFS PARTNERSHIP, L.P.
	

 	
 	

 	
 	

By:	
 	

/s/  RFS HOTEL INVESTORS, INC.      

	 	 	 	 	Its:	 	General Partner
	

 	
 	

 	
 	

By:	
 	

/s/  KEVIN M. LUEBBERS      

	 	 	 	 	Title:	 	Chief Financial Officer
	

 	
 	

 	
 	

RFS 2002 FINANCING, INC.
	

 	
 	

 	
 	

By:	
 	

/s/  KEVIN M. LUEBBERS      

	 	 	 	 	Title:	 	Chief Financial Officer
	

 	
 	

 	
 	

RFS HOTEL INVESTORS, INC.
	

 	
 	

 	
 	

By:	
 	

/s/  KEVIN M. LUEBBERS      

	 	 	 	 	Title:	 	Chief Financial Officer
	

 	
 	

 	
 	

RFS LEASING VII, INC.
	

 	
 	

 	
 	

By:	
 	

/s/  KEVIN M. LUEBBERS      

	 	 	 	 	Title:	 	Chief Financial Officer

	

The foregoing Registration Rights Agreement is hereby confirmed and accepted as of the date first above written.	
 	

 	
 	

 
	

CREDIT SUISSE FIRST BOSTON CORPORATION	
 	

 	
 	

 
	

By:	
 	

/s/  DON KINSEY      	
 	

 	
 	

 
	 	 	
	 	 	 	 
	Title:	 	Managing Director	 	 	 	 
	

BANC OF AMERICA SECURITIES LLC	
 	

 	
 	

 
	

By:	
 	

/s/  STEPHAN JAEGER      
	
 	

 	
 	

 
	Title:	 	Vice President	 	 	 	 

ANNEX A  

        Each
broker-dealer that receives Exchange Notes for its own account pursuant to the Exchange Offer must acknowledge that it will deliver a prospectus in connection with any resale of
such Exchange Notes. The Letter of Transmittal states that by so acknowledging and by delivering a prospectus, a broker-dealer will not be deemed to admit that it is an "underwriter" within the
meaning of the Securities Act. This Prospectus, as it may be amended or supplemented from time to time, may be used by a broker-dealer in connection with resales of Exchange Notes received in exchange
for Initial Notes where such Initial Notes were acquired by such broker-dealer as a result of market-making activities or other trading activities. The Issuers have agreed that, for a period of
180 days after the Expiration Date (as defined herein), it will make this Prospectus available to any broker-dealer for use in connection with any such resale. See "Plan of Distribution." 

ANNEX B  

        Each
broker-dealer that receives Exchange Notes for its own account in exchange for Initial Notes, where such Initial Notes were acquired by such broker-dealer as a result of
market-making activities or other trading activities, must acknowledge that it will deliver a prospectus in connection with any resale of such Exchange Notes. See "Plan of Distribution." 

ANNEX C  

PLAN OF DISTRIBUTION  

        Each broker-dealer that receives Exchange Notes for its own account pursuant to the Exchange Offer must acknowledge that it will deliver a prospectus in
connection with any resale of such Exchange Notes. This Prospectus, as it may be amended or supplemented from time to time, may be used by a broker-dealer in connection with resales of Exchange Notes
received in exchange for Initial Notes where such Initial Notes were acquired as a result of market-making activities or other trading activities. The Issuers have agreed that, for a period of
180 days after the Expiration Date, it will make this prospectus, as amended or supplemented, available to any broker-dealer for use in connection with any such resale. In addition, until
                        , 200    , all dealers effecting transactions in the Exchange Notes may be required to
deliver a prospectus.(1) 

	(1)
	In
addition, the legend required by Item 502(e) of Regulation S-K will appear on the back cover page of the Exchange Offer prospectus. 

        The
Issuers will not receive any proceeds from any sale of Exchange Notes by broker-dealers. Exchange Notes received by broker-dealers for their own account pursuant to the Exchange
Offer may be sold from time to time in one or more transactions in the over-the-counter market, in negotiated transactions, through the writing of options on the Exchange Notes
or a combination of such methods of resale, at market prices prevailing at the time of resale, at prices related to such prevailing market prices or negotiated prices. Any such resale may be made
directly to purchasers or to or through brokers or dealers who may receive compensation in the form of commissions or concessions from any such broker-dealer or the purchasers of any such Exchange
Notes. Any broker-dealer that resells Exchange Notes that were received by it for its own account pursuant to the Exchange Offer and any broker or dealer that participates in a distribution of such
Exchange Notes may be deemed to be an "underwriter" within the meaning of the Securities Act and any profit on any such resale of Exchange Notes and any commission or concessions received by any such
persons may be deemed to be underwriting compensation under the Securities Act. The Letter of Transmittal states that, by acknowledging that it will deliver and by delivering a prospectus, a
broker-dealer will not be deemed to admit that it is an "underwriter" within the meaning of the Securities Act. 

        For
a period of 180 days after the Expiration Date the Issuers will promptly send additional copies of this Prospectus and any amendment or supplement to this Prospectus to any
broker-dealer that requests such documents in the Letter of Transmittal. The Issuers have agreed to pay all expenses incident to the Exchange Offer (including the expenses of one counsel for the
Holders of the Notes) other than commissions or concessions of any brokers or dealers and will indemnify the Holders of the Notes (including any broker-dealers) against certain liabilities, including
liabilities under the Securities Act. 

ANNEX D  

o    CHECK
HERE IF YOU ARE A BROKER-DEALER AND WISH TO RECEIVE 10 ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS OR
SUPPLEMENTS THERETO. 

	

 	
 	

Name:	
 	

 	
 	

 
	 	 	 	 	
	 	 
	

 	
 	

Address:	
 	

 	
 	

 
	 	 	 	 	
	 	 

        If the undersigned is not a broker-dealer, the undersigned represents that it is not engaged in, and does not intend to engage in, a distribution of Exchange
Notes. If the undersigned is a broker-dealer that will receive Exchange Notes for its own account in exchange for Initial Notes that were acquired as a result of market-making activities or other
trading activities, it acknowledges that it will deliver a prospectus in connection with any resale of such Exchange Notes; however, by so acknowledging and by delivering a prospectus, the undersigned
will not be deemed to admit that it is an "underwriter" within the meaning of the Securities Act. 

QuickLinks

$125,000,000 RFS PARTNERSHIP, L.P. RFS 2002 FINANCING, INC. 9.75% Senior Notes due 2012 REGISTRATION RIGHTS AGREEMENT

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